Tips for easier filing
NEW TAX SEASON STARTS: GET PROFESSIONAL HELP, CHECK IRP5 DATA
Before submitting return, check no amounts are due that may lead to penalties.
The South African Revenue Service’s (Sars) 2017/18 tax filing season kicks off this week. Tax Consulting SA offers some important hints to keep in mind this tax-filing season, which is three weeks shorter.
IRP 5: Check that your employer-issued IRP5 certificate is correctly reflected on the tax return.
If you do not have a South African identity number, for example, an expatriate working here, your IRP5 certificate will not be pre-populated and you need to obtain this from your employer to allow you to manually input this information.
Medical and retirement annuity tax info: Sars has administered a major improvement with regards to the taxpayer’s medical aid and retirement annuity tax information.
This information is now prepopulated, as received from financial institutions, saving the taxpayer time in preparing the 2018 tax return. However, the onus is on the taxpayer to ensure it’s correct. If there are mistakes, it’s probably not a Sars error, but may be incorrect information sent through from a financial institution.
Get professional help: Sars will even more vigorously enforce compliance this year. If you are a high-risk taxpayer, including foreigners working here, a South African working abroad; having large capital gains, income from rental properties or from a trust; as a rule of thumb engage an experienced tax practitioner to assist with the tax filing.
Check for audits: Before you submit your tax return, check with the tax calculation function on Sars e-filing that there are no amounts due. If there are tax amounts due, interest or penalties will often be charged when these amounts should have been settled on a provisional tax basis.
An experienced tax practitioner will be able to assist with any possible mitigation and also confirm the instances where there are no penalties and interest.
Pay now, argue later: If you disagree with Sars’ tax assessment, always bear in mind the pay-nowargue-later principle. You must ask for a suspension of payment, as commencing a dispute with Sars does not stop the obligation to settle the amount Sars computed as due. Also, in following the dispute resolution rules, it is best to ask Sars for “reasons” before lodging an objection.
In more complex or higher value cases, engage a tax practitioner earlier on, and ideally, an admitted attorney specialising in tax, to avoid premature forfeiture of your claim and ensuring client privilege.
If the above advice is used as needed, taxpayers should be able to rest assured of a tax season that is relatively hassle free. – Moneyweb
Ask Sars for reasons before lodging an objection