Tips to avoid frustration in filing your tax form
IT IS TAX season and despite all the information available and the fact it is an annual mandatory practice, people still get the process confused and end up frustrated.
CRS Technologies, a human resources and human capital management service and solutions provider, advised taxpayers to be proactive to avoid missing deadlines.
The solutions provider urged taxpayers to check the accuracy of their IRP5 forms prior to submission, bearing in mind the scams existed.
CRS emphasised points that needed to be considered, most importantly, the time frame for personal tax submissions.
The tax return time frame runs from July 1 until November 24 at an SA Revenue Service (Sars) branch (provisional and non-provisional) or e-filing (non-provisional) until January 31 (provisional taxpayers via e-filing).
The Income Tax Act 58 of 1962 and the Tax Administration Act regulated the income tax rules. This legislation stipulated whether a person had to pay tax or not.
CRS legislation business consultant Sandra Maritz said an individual would not need to file an annual tax submission if their total salary for the year before tax was less than R350 000.
However, it should be noted that an individual earning this amount would still be liable to pay income tax.
It was imperative to remember that earning less than the R350 000 threshold in employment income applies to an individual that earns a fixed salary and does not receive any other forms of income such as allowances or reimbursed amounts.
The moment there was such an earning, the individual would be compelled to submit a return.
A person was liable to pay income tax if that person earned more than the tax threshold for the applicable year of assessment.
“There are specific criteria that need to be met and if you are not certain, it is best to consult with experts and legislation to check what these criteria are. It is also advisable to check on exactly what documents are required to complete the annual tax return.”
CRS emphasised the importance of having the correct documents and proof for every claim made. Overstating the number of dependants or expenses for medical claims was a criminal offence. Individuals who do not comply with their obligations may be liable to certain penalties,” added Maritz. Be aware of scams.
“Sars will never request your banking details in any communication that you receive via post, email, or SMS. Sars will not send you any hyperlinks to other websites – even those of banks. If you have forgotten your password you can reset it by calling your Sars contact centre and follow a simple procedure,” she said.
Before submitting a tax return, the specialist listed the following as priority considerations: an employer must issue an employee with an employee tax certificate (IRP5) showing the employee’s tax was deducted from earnings. This certificate disclosed, among other things, the total employment income earned for the year of assessment and the employees tax that was deducted“Every taxpayer has to register for income tax, even if he or she is not liable to submit a tax return. Employers can register their employees for income tax. Ensure that you submit your return by the relevant deadline, otherwise you will be liable for an administrative penalty due to non-compliance,” Maritz said.
The opening of the income tax return season normally sees queues all the way around the front, side and back of the Sars building in Lower Long Street, Cape Town.