Penalties Posts in Tax Q&A

Where to put interest earned on income tax return

Where do I complete interest earned on my return?

How to calc and when to pay CGT on a once off payment?

received a once off payment in June 2014 from a trust and my company asked Phillipp Haut for an opinion on how it should be taxed. His response was
What is certain though, are the following:
1. The beneficiary must disclose the capital gain in his or her tax return. 2. This involves showing the relevant portion of the trust?%u20AC%u2122s proceeds and base cost of the shares. 3. No employees?%u20AC%u2122 tax needs to be withheld. 4. The capital gain must be taken into account in the employee?%u20AC%u2122s second provisional tax return for the year in which the gain is distributed to him or her. My questions are:...

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What declaration must a partner in an investment partnership include within his/her tax returns?

A number of individuals contribute monthly towards a partnership whose sole business is investing in the stock market. This results in capital gains and interest being earned on an annual basis. The administrator of the partnership issues an annual statement which reflects the % holding, interest and capital gains/losses which were derived during the relevant tax period. This annual statement is issued by the administrator for purpose of the individual partner's tax declaration in respect of the...

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Is a loan to an employee a S11a deduction?

If a company borrows e. G R5000 to an employee, with no interest, Is it a S11 (a) deduction? where do I work it in, in the taxable income of a company?

What must I submit to SARS by the end of January 2015?

After submitting my normal Income tax return for 2013-2014 around August last year I was advised by SARS that I was a provisional taxpayer and should submit a return by August 2014. As this deadline had passed I was advised by a SARS consultant to submit the second return by February this year 2015. I see from your reminder that Provisional tax returns is required to be submitted by the end of January 2015 for the 2013/2014 tax year. As I was not advised that I was a Provisional tax payer at tha...

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Tax payment for over 65 years?

I am 65 years old married in community of property, I receive a monthly annuity of R5,000, I also receive interest from fixed deposits of R16,000 per month, what would my tax payment per annum be.

No returns and tax number but have been earning a salary.

What would happen if you have no income tax number and have not submitted returns for 5 years. What happens when you withdraw?
your pension.

Can I cash out my UK pension in SA?

Hi, I've been living in the UK for 6 years and want to return to South Africa at the end of the year. I have a private pension here in the UK. It's not worth much - probably under 10,000. I would like to find a way to 'cash out' this pension in the most cost effective way. I'm nowhere near retirement age - I'm 33. From what I can find on the net, it seems like I would need to transfer the funds to an SA pension provider. Is this really required? Is there any way ar...

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Are there ANY tax on foreign pensions ? (in the country of origin ?)

A widow whose husband was employed in Germany now lives in SA. She receives her late husband's pension. Germany want to back date tax on her pension paid to her in SA - back to 2006.
We are aware that there is no tax in SA on foreign pensions. Is it fair then to tell the German authorities that the widow taxpayer IS registered in SA for tax, so they must NOT tax the pension at source ?.
All the articles talk about no tax in SA on these pensions but don't seem to address the issue of w...

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Funds transfers and tax liability?

We came to SA in 1976 with permanent residency we left in 1999. We returned in 2012 thinking we still had permanent residency bringing our savings with us. We subsequently found that we had to reapply for permanent residency as it had expired. We are here on relatives visa but want to return to UK. How does that affect transferring our saving back to UK we are pensioners and have only received UK pensions and paid tax on that at source. We have received interest on savings @ 3.5% per annum.

Medical scheme fee tax credit is greyed out and no credit amount reflex on IRP6.

On the provisional tax for individuals 2nd period 2015 the the medical scheme fee tax credit is greyed out and no credit amount reflex in this column on the IRP6. On the first period this was correct for two people with an amount of R6168.00 was filled in. After various calls S.A.R.S they cannot give me a reason and for a month have not come back to me with any answers.

Tax Refund Calculator?

The calculator....."Work out salary tax (PAYE), UIF, taxable income and what tax rates you will pay"...does not include interest (local foreign), dividends (local foreign), rent, "other" income...

Can I still claim my taxes this year?

Can I still claim for my taxes this year and what is needed?

Tax on Interest only income?

I'd like to know how tax works based on this assumption:
I have only one income and it's purely from interest earned off of investments (simple investments that give a fixed rate monthly so nothing funny about offshore, shares, etc.)

My guess is that it's the equivalent of earning a salary (i.e. if you earned R3500 in interest monthly that you'd look up the tax rate in the current tax booklet and therefor have to pay nothing as tax appears to only be required when earning more than R5891 monthly)...

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SARS delay in refunding?

Hi Tim..I submitted my outstanding returns for 2012 on the 02 Dec and 2013 on the 09th Dec. The first one was selected for verification/audit and I submitted the supporting doc on the 3rd, there was a refund due of r971. The second one reflected a refund due to me of r13k, and was not selected for audit as per the notice that is viewable on efiling. I tried calling the contact centre but its a a nightmare to get through. I decided to send a request via email all I needed to know is when the ...

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When do you deduct penalties - before or after PAYE?

Hi. I am a freelance writer. 25% PAYE is deducted from each episode as we submitted. In our contracts, it states that if we miss our deadlines, a fee will be deducted. I have since realised that the accounts department minuses the 25 % PAYE from the gross, then minuses the penalty. Shouldn't it be that they deduct the penalty from the episode fee, then deduct 25%?

Hi how do I Declare rental income on my tax form?

How do I declare rental income on my tax form? If my rental income is less than my bond, municipal and levy costs do I have to declare as I am at a loss?

Penalty for late submission to SARS?

I submitted my tax return for the 2014 period right on the deadline date. However my 2012 return was not submitted, I finally managed to get the IRP5 and did the submission. In both returns I have a quite high refunds, I was wondering if SARS will penalise me for late submission? Or will they penalise me for the 2012 return only. Last year I was due a refund and they paid it out without any problems.

Claim full loan premium vs only interest paid

For investment properties, how do I declare the full debit order amount as a loss, instead of only the interest paid on the loan?

Previous company did not forward IRP5 , now I am being penalized.

I really hope that you can help me. I have incurred a penalty because my previous employer did not forward my IRP5 for this passed financial year and therefore I did not file for that job's IRP5. Is there anyway that I can resubmit with the additional form? I was owed a rebate but now with the penalty, that is no more, and also if it is possible to resubmit, will a once again receive a rebate?

I really hope that there is a way to rectify this.

Debit Loan Accounts & DWT

I'm the sole member of a CC & have a debit loan account amount of approx R200,000 for the 2014 tax year.I believe that this raises certain DWT issues etc and was wondering if the CC charges me market related interest on this amount for the year & adds this amount to my loan account, would this solve my problem & not have to declare a dividend to balance the loan?If also heard that if the deemed dividend rule (DWT) will not apply if the loan is repaid or otherwise extinguished by...

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Started late in the year - when do I file and will I receive a refund?

I started working at a company in August of this year (2014).My gross annual salary is R360,000/year.Since I am paying taxes based on a full 12-month cycle but would only have worked 7 months by End of March 2015, when do I need to file my first tax return and would I be eligible for a refund?Many thanks,Gideon

Am I deducted or refunded?

I am from the SARS for the first time in my life to submit my tax returns, I have received a sms Amount -R1459.79 does this mean its penalty or its an amount I receive on my bank?

If I have rental income can I claim the interest paid on my mortgage as an expenditure?

If I have rental income can I claim the interest paid on my mortgage as an expenditure?

Bonds and Levies Tax deductable?

1st time submitter, just completed and wanted to know if property costs like levies and bonds are factored in, as well as rental income?
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