I have not submitted the August return, do I send 2 in February?

My tax consultant only now told me as a provisional taxpayer I should have done a return for 2012/2013 tax year in August and a second one in February. It is now late January - so do I send in two returns or just one?

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TaxTim TaxTim says:
24 January 2013 at 20:01

When did you start earning income and when have you been registered as a taxpayer since?

Sapphire says:
25 January 2013 at 7:10

I have been earning self employed income since the beginning of 2011. My tax consultant did my return on an annual basis last year (2011/2012) but then informed me this week that I should now be paying provisional tax and that means I should have sent in the IRP6 in August 2012 and made a payment, and the second payment and IRP6 in Feb 2013.

I have been registered as a taxpayer since 2010, but was unemployed and then working in a job paying PAYE during that tax year.

Since I asked you this question I have also contacted SARS directly as I am on the borderline of the after deductions income level that you say qualifies whether you have to pay provisional tax or not, however they said that no matter what I earn if I'm self employed I HAVE to register as a provisional tax payer and will now have to pay penalties because I didnt submit a return and payment in August 2012.

I find it really confusing, this change over from one kind of tax payment to another, and no assistance from SARS (as in a small extension to pay the outstanding amount).

Thanks for your assistance!

Sapphire says:
25 January 2013 at 7:22

Sorry - I wanted to add that I am not impressed with the situation my current tax consultant has put me in, so I am planning to do it myself but have now come across your website, so will use your service to assist me.

TaxTim TaxTim says:
28 January 2013 at 11:17

If you are totally self-employed then yes the SARS call centre person was correct in saying you needed to pay Provisional Tax and submit an IRP6. The thresholds of R20 000 we speak of is for income other than a salary.

If you have not registered as a provisional taxpayer then, then you must do so by clicking on Tax Types under e-Filing and adding the provisional taxpayer block. I agree, it is confusing whether you do qualify as a provisional taxpayer or not, with little notification as to the actual procedures.

Regarding your August provisional return, it is best to submit it now, and then the second provisional at the end of February as required and make the hopefully small payment. It is difficult to argue with SARS that you were not aware of this fact, but it can be done if it was the sole responsibility of your tax consultant to advise, but this is a long and difficult process. Is the amount owing in tax quite high?

Alternatively you can submit the second IRP6 form in February and thereafter continue to submit normal year end tax returns and start the full process of IRP6's in August 2013 and so on - leaving the other one unsubmitted.

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