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AUTO-ASSESSMENTS



 L
 LU XURY IN CAT FOOD  FOR INDIVIDUAL TAxPAYERS
 X
 U
 UR
 OOD
 T F
 Y IN CA
             What you need to know
                                                  By Alisha Emms of The Tax Shop Waterfall
            M        ore than one million taxpayers                                 TIMELINE

                     have already been alerted by
                                                                                    Non-provisional taxpayers (generally
                     the South African Revenue
                     Service (SARS) that they have                                  taxpayers with one employer and
                                                                                    no additional deductions) who
             been auto-assessed for the 2020 tax year.                              have not been auto-assessed
                                                                                    will have from 1 September until
             HOW SARS CONDUCTS                                                      16 November, 2020 to file their returns
             AUTO-ASSESSMENTS                                                       electronically (eFiling or MobiApp).
             SARS has used third party data from
             IRP5s, insurance companies and                                         Taxpayers will only be able to get
             financial institutions to pre-populate                                 assistance at a branch if they have an
             auto-assessed taxpayers’ returns. The                                  appointment. SARS is discouraging any
             draft assessments are based on the                                     ‘unscheduled visits’ to their offices in light
             data provided to the revenue service                                   of the need for social distancing during
             and information available to it.                                       the COVID-19 pandemic. You may end
                                                                                    up in undesirably long queues which
             There may be the perception that  ‘SARS                                they want to avoid as far as possible.
             issued it, so it must be correct’. There   issued by the employer, they will have
             may even be an element of fear in   to ensure that it is corrected before   Non-provisional taxpayers who are
             disagreeing with SARS’s proposal and,   SARS will accept an edited return.   not registered for eFiling or are not
             in some cases there will probably be                                   using the MobiApp and elect to
             some taxpayers for whom accepting   The onus still lies with the taxpayer   file at a SARS branch will have until
             will be the easiest option as they   to ensure all information submitted   22 October, 2020 to do so. However,
             are too busy to bother checking.   to SARS is complete and correct.    they will also not receive assistance at a
                                                                                    SARS office without an appointment.
             While the majority of auto-assessments   In another case, taxpayers might have
             should be accurate, there has already   some outstanding deductions that they   Provisional taxpayers who have not
             been an acknowledgement by         will qualify for, but miss out on by just   been auto-assessed will have until
             SARS of several errors in how certain   accepting the auto-assessment, such as:   29 January, 2021 to file their returns.
             information has been populated,    •  Log book mileage against one’s travel   These are taxpayers with more
             with some information duplicated    allowance that can only be captured   complicated tax returns and additional
             and some information missing.       from an employee’s own records.    sources of income and expenses.
                                                •  Donations for which no tax certificate
             POSSIBLE ISSUES                     has been loaded on the return.     CHECk YOUR ASSESSMENT
             This might sound inconvenient,     •  Medical expenses incurred.       AND SEEk PROFESSIONAL
             but we urge everyone selected for                                      ADVICE
             auto-assessments to verify that all   In these cases, additional deductions   Additionally, we advise that taxpayers
             pre-populated taxpayer information,   not known by SARS will have to   with complex tax affairs should be
             including the information on their   be updated from certificates and   particularly cautious and should
             IRP5s, has been captured and that it was   submitted to them by the taxpayer.   seek direction from tax practitioners
             captured correctly. Neglecting to check                                before filing their tax returns.
 BON APPÉTIT cat food is a gourmet meal   the data for completeness and accuracy   The good news is that taxpayers can
 created with the essence of decadence.   may be seen by the tax authority as a   object to the draft assessment if they   For further information, contact
 The range features mousse and paté with   deliberate attempt to evade tax and   believe that information has not been   Alisha Emms at The Tax Shop
 irresistible flavour options. True mealtime  could result in stiff penalties. If there has   captured in full, by using the ‘edit’   Waterfall on 072 447 4765 or
 indulgence to make your cat whisper “meow”.  been a mistake on the tax certificate   function on the e-filling platform.   email: waterfall@taxshop.co.za.

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