What happens if the employer made a mistake on the IRP5s resulting in employees owing SARS?

  Written by Marc   Posted 6 July 2013

Employer forgot to include medical contributions' taxable fringe benefit in the calculation of tax payable but reflected the deemed amount under code 3810, 4005 and 4474. As a result of the changes on the way the allowable medical expenses are claimed at assessment, employees end up owing SARS. What options does the employer have to remedy the situation?

Completion Letter and Verification of assessment

  Written by Marc   Posted 6 July 2013

Hi Tim

Fantastic Blog.

I received a completion letter from SARS saying that my audit is done after I submitted supporting docs. Then immediately after that the verification of assessment letter. It basically is very threatening and the tone of the letter is such that they were not too pleased with the documents submitted but they will clear the refund with no changes to the original assessment BUT, they then add the punchline that they can audit me at ANY time they so wish.

So if I return my IRP5 for tax return will I get something? for the money that I have been taxed

  Written by Marc   Posted 5 July 2013

- R5000 that I have paid for tax

Why am I paying lot of money for a year and when I return the IRP5 I get less than R200?

  Written by Marc   Posted 5 July 2013

Am paying at about R5000 yearly

SARS Return Status.

  Written by Marc   Posted 5 July 2013

What does a SARS status of "Return - Data submitted to ITS" mean. I already have a ITSA. Just wondering about the status.

No IRP5 for previous years?

  Written by Marc   Posted 5 July 2013

Thanks for a great site! My question is I did my return on the 2nd July and I'm due for a refund. My concern though is I have been working for - 5years but this was my first return. Is it possible that SARS can penalise me for not filing in the previous years? There are no other IRP5's loaded on my profile so how would I know if I would need to file for those years.

Please assist, thanking you in advance!

Medical Aid & Retirement Annuity for pensioners?

  Written by Marc   Posted 5 July 2013

I am a pensioner so I filled in my medical aid under Code 4040 R16 446.00.

I also filled in Code 4006 for a small Annuity I have R198 per year.

When I run the calculation I have to pay in an enormous amount for a Pensioner. Have I inserted the above under the right Codes?

Medical tax credit on my income tax return?

  Written by Marc   Posted 5 July 2013

I do not belong to a medical aid but I had medical expenses of R14 356.00. I work and paid PAYE. Will I have any claim for the expense even though I did not belong to a medical aid.

What deduction can be claimed against income code 3713?

  Written by Marc   Posted 5 July 2013

What deduction can be claimed against income code 3713. What allowable expenses can be claimed by an individual if they earned R162 650 Code 3713 R37 106 Code 3606.....?

Commission earned for tax purposes?

  Written by Marc   Posted 5 July 2013

If I earn some commission in addition to my salary, can I claim my travel expenses and cellphone bills.

Reimbursive Travel Expenses -when is it taxable or non-taxable?

  Written by Marc   Posted 5 July 2013

My total reimbursive travel expenses are R13 802 for the 2013 tax year. My company rate is R4,30 p/km and I have received no travel allowances during the year. My IRP5 shows both 3072 R12 319 and 3073 R1 483. What code and amount should I put on my tax return?

Can I deduct car finance payments for tax purposes against a travel allowance?

  Written by Marc   Posted 5 July 2013

I do not lease a car, but I receive a car allowance. Can I deduct my car finance payments or the interest?

I was selected for an audit, received a letter of completion now how long must I wait?

  Written by Marc   Posted 5 July 2013

How long must I wait before getting a refund?

I submitted my tax returns via efiling, however I was chosen to submit documents for verification.

  Written by Marc   Posted 5 July 2013

How long will it take before I get my refund? I have uploaded my documents the same day that I had the request sent.

Medical aid deductions for tax purposes?

  Written by Marc   Posted 5 July 2013

I noticed a deduction on my IRP5 under code 4005 - medical aid contributions. But my employer does not pay my medical aid - I pay the full amount myself after receiving my salary. I asked them about it and they claim that I get the tax benefit on my medical aid monthly. They don't show any deductions/income of this kind on my payslip.

IRP5 query

  Written by Marc   Posted 5 July 2013

I have filled my IRP5 and pressed file, it generated a calculation and it says -R5 049
Does it mean SARS will pay me R5 049 or do I have to pay SARS this money ? I pay a lot of taxes through the company that I work for it seems pretty weird to me and after filing the details it appears on red -R5 049 and under it dispute.
in the end it says

Information declared that impacts this assessment:
Married in community of property

But I am single, could you please cl...

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Extra income earned in addition to salaried employee?

  Written by Marc   Posted 4 July 2013

I am a salaried professional employee of a private practice however in my spare time I locum and consult independent of the private practice. It is not a substantial amount of money but how do I go about declaring it in eFiling - not sure where to put it? Also can I then use my professional registration fee as tax deductible?

What must I do or what is the next step after receiving a letter(completion letter) from SARS?

  Written by Marc   Posted 4 July 2013

I filed my taxes and documents were requested by SARS which I sent through. I received a letter called a completion letter. THis is what the letter says " Dear Taxpayer

VERIFICATION OF ASSESSMENT

We refer to the verification of your assessment for the 2013 tax period. Please note that no adjustment has been made to this assessment. However, in terms of the Tax Administration Act the South African Revenue Service reserves the right to conduct further reviews in future if required....

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What is Allowable medical Deduction?

  Written by Marc   Posted 4 July 2013

When I submitted my tax return via SARS efiling last year, my tax calculation document stated that I had an "Allowable medical Deduction" (code 4008) of R8640. I am on private medical aid and my employer doesn't make contributions to my medical aid.

This year, (even though my total contributions (code 4040) for 2012/2013 have been higher), my "Allowable medical Deduction" is R0. What is this "Allowable medical Deduction" and how is it calculated?

I'm on a commission only based income - my income varies substantially monthly what should I be taxe

  Written by Marc   Posted 4 July 2013

One month I could earn R20,000.00 and the next month R5,000.00 I get no basic, allowances, pension, medical etc

Do PTY LTD companies who have paid dividends have to issue their shareholders with IT certificates?

  Written by Marc   Posted 4 July 2013

With the introduction of new dividends tax, shareholders have been taxed before their dividends are paid to them. Does the company who has paid the dividends and paid the tax to SARS now have to issue certificates to the individual shareholders confirming how much tax has been deducted? If so which certificate must be issued?

How do I claim for buying a house?

  Written by Marc   Posted 4 July 2013

I am a freelancer in the film industry. I have been told that I can claim back for buying a house and renovating it. Is this true? I would also like to claim back for my car expenses. I have receipts for fuel and maintenance and my opening and closing kilometers for the tax year. I'm not sure how to fill in the log book though, do I need to fill in for each trip?

Leave pay

  Written by Marc   Posted 4 July 2013

I work as an sales rep. I don't know how to call this. At my previous employer I got a (leave pay bonus) if I took leave. They explained it to me at the time that because I work for commission that I was entitled to the (bonus) as if I made a sale in that month so they paid me this (leave pay)

My new company does not know what I'm talking about and my previous employer has closed down.

Do you maybe know what I'm talking about?

HI TIM, Wonderful Blog

  Written by Marc   Posted 4 July 2013

I worked in South Africa for 44 days in the Financial Year 2012-2103. I went back to India.
Recently I have efiled my Income tax return via online from India and I got ITA34 with the refund amount of Rand 7288.
With in a Minute I got email from SARS to submit few Support documents. I confused what are all the document I have to submit.
So I have submit the below document.

1) IRP5_IT3a
2) Discovery_Certificates
3) IT34
4) The document which I got from SARS regarding Support Document uploads...

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What is the tax implication if have use of a company car? and can I claim any deductions on my ITR12

  Written by Marc   Posted 4 July 2013

What is the tax implication if have use of a company car and can I claim any deductions on my tax return. Do I have to keep logbook?

When submitting return what documents do I need to have?
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