Penalties Posts in Tax Q&A

Should I submit my late husband's IRP5



My husband passed away last year July, he used to work for Fidelity security services. At his work place they sent me his tax certificate (IPR5)should I send it to SARS or what? When does the tax season end?

Earning income outside of South Africa.



Hi Tim, Before I start a Tax Return I need to ask a few questions. I currently am working in the UK. I started in July 2014 to date. I submitted a tax return in SA for the 2013/2014 tax year, but my last income was January 2013 (paid tax on a Pension/provident fund early cash out for this period). I keep a current address, and still have a bank account, and assets such as a car, etc in SA. I do not own property. Under what circumstances would I be required to submit a tax return in SA, and if so...

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How much I must pay/be paid?



Thank you for submitting your income tax return for the 2015 year of assessment. Your assessment has been concluded and reflects an amount refundable to you of R -316. 36

Please note that this amount only reflects your income tax assessment and does not reflect tax payable under any previous assessment or any other balances on your account. The current balance on your assessed account is R 4621. 86. For a statement reflecting your final balance (including all amounts payable or refund...

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What expenses can I deduct to calculate my taxable income




Taxation on UK pension lump sum payout (Aged 55 and now reside in SA since 1 Jan 2014)



I have decided to cash in my Pension Pot in the UK (I was 55 years old in 2014 and therefore can retire) - I have been paid out UK Pound amount 47843 of which tax of UK Pound 19977 was deducted. I now need to recover this tax from the UK and then submit same to SARS. My query is therefore:
1. I need to complete UK/SA double taxation form to apply for relief of income tax at source ie UK and claim back my tax
2. I need to submit??? to SARS for them to calculate tax owed by me - I would however need help with this so as to understand how much tax will be owed (would be interested to know what conversion rate will be used by SARS in the calculation)...

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What to do when one hasn't filed for the last 4 tax periods?



What to do when one hasn't filed for the last 4 tax periods?

Taxation of rental income within a business



I own properties in a business with 2 partners, can the monthly bond repayments be deducted from the income generated from the rentals?

Tax payable on savings?



What % tax do you pay on interest earned on savings and or fixed deposit.

Purchasing a home for a relative



I am considering purchasing a residential property for a family relative, who would stay there and contribute towards the bond repayments. However, I would not live on the premises. From a tax perspective, what is the correct approach to avoid my relative's contributions being viewed as rental income?

Tax for pensioners



I am helping someone with their tax. The person is 66 years old and has an monthly retirement annuity payout of R7000 and monthly interest (from investments) of about R4000 that gets paid out also monthly to them. Should a tax return be filed,or are there exemptions? I know the over 65 year olds get exempt of certain amounts for interest earned,but im not sure if that is the only excemption,or is there a total amount of income they are excempt of? Or must you add the two excemption amounts toge...

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Refund on Dividends Withholding tax?



I have twins and have set them up with unit trust investments in their own name. The distributions from the trusts are fully reinvested. However the trusts pay out a mixture of interest and dividends etc. On the dividends can I submit tax returns for them to claim back the dividend withholding tax. The interest and capital gains portions are below annual limits. They have no other income as they are not working.

What other documents are needed to hand in with IRP5 at branch or efiling?



Hi, what other documents is requiered at the SARS branch whith my IRP5? And do I need it for SARS eFiling as well? Thanks

Must I pay provisional tax?



I earn a salary of R5500 per month, I am under 65 years and receive interest and dividends of R25000 per year. What forms must I complete for my tax return? Must I pay provisional tax?
Thank you

Am I and independent Contractor or a Bookkeeper for tax purposes; can I deduct a pc course as an exp



I am a bookkeeper for 2 entities with the same directors, but different company and tax numbers. I invoice a fixed fee per month, but split it based on the pro-rate turnover per entity. I work form my study although I also do visit their office especially certain periods during the month - ie mid-month for invoicing and month end to balance the books. Question: Does this mean I am an Independent Contractor? Is this applicable for the 80/20 split as an independent contractor? Do they have to deduct tax from me on a monthly basis?...

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Tax implications on unit trust for a new born child



Hi Tim
What are the tax implications if I have a unit trust fund for my child. Do I need to disclose the interest and capital gain on sale in my tax return? Thank you

How to declare foreign income?



Hi, I have a small website that generates some commission from clicks on advertisements. I get paid in USD and GBP. The money is wired from Germany directly to my personal bank account and converted into ZAR. I don't own a formal business and it is relatively small amounts that are transferred. I also have a property that generates rental income. How do I go about declaring the income properly on my tax returns?

Equipment depreciation



I am a self employed design consultant. I purchased a laptop I use for work late 2012, and have been depreciating it for the last 2 tax years (2013, 2014). My office was recently broken into and the laptop was stolen. Am I able to still claim depreciation on it (2015), even though it is no longer in my possession?
With the insurance payout I have replaced the equipment. Am I able to claim the full amount of the new equipment, or only the difference between payout and replacement cost?

What to include as taxable income for provisional tax calculations



When calculating "taxable income" on an IRP6 should one include
- expected investment interest ?
- expected investment share dividends ?

Thank you.

Audit because they neglected to inform me about previous tax year



I got penalties for 2007 when I submitted my tax return for 2015. The consultant did say that I must complete a form to lift penalty for they neglected to tell me when I was at the offices in 2011. The problem now is that I recieved a sms stating that I am audited for 2007.. If I cant get any original documentation, what can I do? I there any way to lift the audit because they neglected to tell me about 2007?

AP34 Penalty and Refund Due



I have a AP34 penalty. I am also due a refund. Do I first have to pay the penalty before I receive my refund?

Support for cell phone depreciation at SARS?



What supporting documentation does SARS usually look for when assessing if depreciation/wear and tear on your cell phone is an allowable deduction. Please note that my cellphone is paid via a monthly contract fee. These contracts usually don't stipulate the base price of the phone. Furthermore, what support do you need to give them for the allocation of business use versus private use. I have tried to search and ask what they need as they wanted to verify this deduction, however, I cannot seem t...

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Reconciling interest per S24J



An IT3(b) form for interest from a bank, when added to the opening balance of a fixed deposit investment, does not agree with the closing balance due (I think) to the accrual provisions of Section 24J of the ITA. I have to "fudge" the entries I have made for interest received each month so that I can get the balances correct for SARS tax returns. Is there any way round this other than to make no bookkeeping entries until IT3(b) are issued after the end of the tax year. This is for a family trust...

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Passive investment and unit trust income - do I submit a tax return?



I am an independent contractor and my earnings is below R200 000 per year. Over the past two years, I have managed to save and have invested R100 000 in listed shares and R50 000 in investment funds such as unit trusts. I am not sure whether I need to submit a tax return?

Tax on endowments



What percentage of tax do you pay on endowments upon a husband's death, and his wife is the beneficiary?

Is there income tax payable on interest received from SARS?



Is there income tax payable on interest received from SARS?
Which section in the tax act does this come from?
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