Written by Marc
Posted 23 July 2014
As soon as tax season opens in July, many taxpayers rush to submit their ITR12 tax returns as early as possible, eagerly hoping for a nice refund. After the rush, when nothing happens, they often ask us "Ok I have submitted. What happens now?" In most cases where an income tax refund is due to a taxpayer, SARS pays it out within one or two days. However there are many instances when this does not happen, leaving people feeling unsure as to what is happening with their tax return and tax refund. ...
Written by Marc
Posted 14 November 2013
The last days of the month are often the most exciting for employees as they look forward to spending their monthly pay cheques. Unfortunately for many taxpayers anticipation quickly turns to grief when the money they receive in their bank account is suddenly less than they had expected. Stress and anxiety then result in light of impending debit orders and monthly expenses that need to be paid.
Apart from the ordinary deductions that your employer takes off your salary each month - expenses for your benefit such as medical aid or a retirement / pension plan - there is another deduction that can take place unexpectedly: a garnishee order...
Written by Marc
Posted 18 June 2013
Severe Anxiety from Revenue Services (SARS) is a common affliction affecting millions of South Africans in all major city centres every year. Historically, symptoms begin to present themselves in the winter season from 1 July and continue to increase in severity towards a statistical peak for the epidemic on 22 November every year...
Written by Marc
Posted 6 September 2012
A question often asked is, "If my boss pays over my tax then why do I have to do anything?"
If you earn below R160 000 per year, SARS does not require that you complete and submit an ITR12 tax return. HOWEVER SARS will charge you an admin penalty for not submitting a return AND if you don't mention all your deductions you can't maximise your potential refund. So rather submit a return every year and stay tax compliant. With TaxTim it's easy. Remember as well that SARS doesn't know everything about you so you need to tell them to maximise your potential refund!
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Written by Marc
Posted 6 September 2012
If you have ever survived a SARS audit, you may have been issued with a "revised assessment" or second ITA34 that doesn't make much sense. It probably says that you now owe SARS some money, despite being due a refund. Don't be alarmed though, if you read lower down the new ITA34 you will find that in fact you are still due a refund, only it is probably smaller than before.
For example:
First IT34A (before audit):
SARS says: "Your assessment has been concluded and reflects an amount refundable to you of R-16 636.10"...
Written by Marc
Posted 13 August 2012
For most people upon submission of their year-end income tax return, either nothing much will happen or a refund will be due, this being paid back within a matter of days. However in a small number of cases SARS requires extra documentation or proof to be submitted so that they can verify that everything you submitted in your tax return is correct. Don’t be afraid, although many people consider this an “audit” it isn’t nearly as frightening as that and doesn't mean you have done anything wrong. A true audit would be SARS requesting years of past documentation and opening up for examination all your tax affairs from previous years. ...
Written by Marc
Posted 16 May 2012
Did you know that it is your duty by law to register with SARS (the
South African Revenue Service) as a taxpayer if you earn above R63 556
per tax year? By registering and completing your tax returns regularly
each year, you will become a tax compliant, proud South African. You
can register for a tax number with SARS in person (at their offices in
all major centres), or send the required documents by post or email.
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Written by Marc
Posted 23 February 2012
Eagerly anticipating the budget this year and forever the optimist, Finance Minister Pravin Gordhan started off well: R9.5bn of individual tax savings and revenue collection up by R10bn from the latest estimates. However, for the individual taxpayer, things went slightly downhill from there... Let’s unpack this a bit.
Not all Doom and Gloom
Ok, ok so maybe I have been too harsh as only certain individuals (the richer ones) will actually be subject to greater tax, the lower end income earners will benefit quite a bit from the new tax changes...
Written by Marc
Posted 21 February 2012
The 2012 tax year has almost come and gone, and being annual budget time, anxious taxpayers are unsure what to expect. Is there any room to be taxed further? All will be revealed on Wednesday the 22nd, but in the meantime let's focus on the new medical aid tax regime.
Gone are the days of paying your spouse's medical aid and claiming the deduction just because you are in a higher tax bracket. From the 2013 tax year onwards that deduction is no longer allowed. Instead it will be replaced with a tax credit per dependent. "What is the difference?" I hear the average taxpayer ask, and "How does it affect me?"
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