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Audit / Verification Posts in TaxTim's Blog

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Audit / Verification: 10 most popular posts


How Long do I have to wait for my tax refund?

Posted 5 July 2019

How Long do I have to wait for my tax refund?

Like in previous years, there have always been opening tax season niggles and 2019 has been no different. Patience is a virtue, so the adage goes. And when it comes to waiting for responses from most government departments, they can certainly put your skills of tolerance to the test. Our helpdesk is inundated with questions about how long SARS will take to react or respond to certain requests or submissions. The short answer is ‘typically, quite a while’. You can imagine that during their busy filing season there are hundreds of thousands of documents being processed and not all administration can be automated...

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5 Reasons you Still Need to File your Tax Return in 2019

Posted 4 June 2019

5 Reasons you Still Need to File your Tax Return in 2019

SARS has just announced that if you earn less than R500 000 in a year, and fulfill a series of complicated criteria, you may not have to file a tax return for 2019.
Previously, SARS had communicated that if you earn less than R350 000 in a year you may not have to file a tax return.

However, we advise you to take GREAT CARE here, and understand your duties properly, because if you don't, you may suffer for it later on.

Here are the top 5 reasons why not to skip filing your tax return this season:


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Why don't I get a tax deduction for Out of Pocket Medical Expenses?

Posted 28 May 2019

Why don't I get a tax deduction for Out of Pocket Medical Expenses?

Tax season always throws up some interesting and confusing calculations, but for many, the most confusing of all is how medical aid contributions and Out of Pocket medical expenses are treated.

Effective March 2012, the Medical Aid Tax Credit was introduced. Prior to this date, your contributions to medical aid were deducted from your income earned in order to work out your tax, much like other tax deductible expenses...

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How to cruise through a travel audit efficiently

Posted 3 April 2019

How to cruise through a travel audit efficiently

Surely most of us love to travel, but traveling for business purposes is no fun when it comes to completing your tax return.

SARS has some rather onerous requirements, but as long as you know what you need, submitting your documents to SARS should be plain sailing.

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What does a Completion Letter from SARS mean?

Posted 27 November 2018

Completion Letter

You will receive a Completion Letter if all goes well and SARS is happy with your documents. This means that SARS is not adjusting your Original Assessment and if you have a refund due, it should be paid out in 7 working days (provided you have no tax debt due or outstanding tax returns from prior years). Similarly, if you owe tax to SARS per your Original Assessment, the amount you owe will remain unchanged.

An example of a...



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I submitted all my documents to SARS - They've asked again. Why?

Posted 26 November 2018

I submitted all my documents to SARS -  They've asked again. Why?

We are seeing many cases where taxpayers submit their documents to SARS, wait 21 working days (sometimes longer) only to receive a second letter on eFiling which requests the exact same documents again.

The letter we are referring to here is the generic SARS document request which looks like the below:

The South African Revenue Service (SARS) thanks you for submitting the revised income tax return for the 2018 tax period.

The revised information still does not match the information in the possession of the SARS and/or the income tax return has been identified for verification in terms of the Tax Administration Act....

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How to Change/Verify Your Bank Details at SARS

Posted 22 October 2018

How to Change/Verify Your Bank Details at SARS

SARS has recently issued a new guide with regards to updating your banking details with them. This was done in order to reduce the risk of refunds being paid into the wrong accounts and also to streamline the process, which has tended to be an onerous one in the past.

Change of bank details can be done:

  • in person at a SARS branch (SARS still prefers this way)
  • via eFiling (Go to Maintain Taxpayer Registered Particulars Menu) Note, you will still need t...


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Why is SARS asking me for outstanding tax returns?

Posted 9 October 2018

Why is SARS asking me for outstanding tax returns?

When did this happen?

Previously, assuming that SARS did not request any documents for verification and everything for the year was accepted, refunds due were typically paid out quite quickly to taxpayers within 1-2 days.

From 2015, SARS has implemented a new requirement that ALL tax returns, since the first year a taxpayer registered for a tax reference number, must be submitted before any refund is paid out.

...

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When Will SARS Pay My Tax Refund?

Posted 6 July 2018

Now that the 2018 tax season is open and hundreds of thousands of South Africans are filing their annual tax returns, every day people ask us “when will I get my refund from SARS?”.

While we’re not involved in the payments of tax refunds, we can provide a little insight into the SARS processes and timelines. So here goes …

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What to expect in 2018 after submitting your tax return to SARS

Posted 1 July 2018

What to expect in 2018 after submitting your tax return to SARS

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 what is happening to their refund? In most cases where an income tax refund is due to a taxpayer, SARS pays it out within one or two days...

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Medical Aid contributions paid on behalf of a dependent

Posted 4 June 2018

Date
Taxpayer's Full Name
Address

 

To Whom It May Concern,

Subject: medical aid contributions paid on behalf of a dependant

This letter serves to confirm that I, ________________________(taxpayer's full name), __________________________(ID number) am contributing to a medical aid on behalf of _______________________________(name of dependant),___________________(ID number). He/she is/is not  financially dependent on me a...

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Foreign Employment Exemption Letter

Posted 4 June 2018

COMPANY LETTERHEAD



Date
Employee's Full Name
Address


To Whom It May Concern,

Subject: Confirmation of foreign employment

This letter serves to confirm that____________________________(Name of employee) _______________________(ID number) is employed by __________________________(company name) in the capacity of__________________________(position).
He/she is contracted to work overseas in _______________ (country)  from ______________dd/mm/yy to ________________dd/mm/yy.  ...

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Home Office Letter

Posted 4 June 2018

COMPANY LETTERHEAD



Date
Employee's Full Name
Address

 

 To Whom It May Concern,

Subject: Permission to work from home

This letter serves to confirm that _______________________________ (Name of employee), _____________________ (ID number) who is employed by our firm ___________________ (Company name) in the capacity of __________________________ (Position) has permission to work from home in order to fulfil his/her duties to the company.  ...

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Letters you may need to provide to SARS

Posted 4 June 2018

After submission of your tax return, SARS may request certain documents from you.
These may include a letter if you claimed any of the following deductions:


- Home Office
- Wear and Tear on personal devices used for work e.g laptop or cellphone.
- Foreign Employment Income Exemption...

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The 3 R's: Returns, Rebates and Refunds Explained

Posted 20 March 2018

The 3 R's: Returns, Rebates and Refunds Explained

When it comes to tax jargon, most people prefer to bury their heads in the sand instead of trying to understand all the confusing terms that tax practitioners use. Taxpayers just want to do their tax quickly and easily, and if they’re due - receive some money back from SARS. A lot of confusion surrounds the process, but by understanding three simple terms you can make tax season a little bit easier.

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Who's (Legally) Allowed to File Your Tax Return?

Posted 12 October 2017

Tax isn’t the easiest of subjects to navigate. Besides the long list of legalese to master, there’s the fact that tax legislation evolves year on year. What was applicable on your tax return 2 or 3 years ago, isn’t necessarily valid on your next, and what’s right this year, may change next season.

It’s unsurprising then, that when faced with the daunting task of filing their annual tax return, many people turn to a friend, colleague or trusted broker to help them out, in the hope that they’re more proficient...

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Audit FAQs

Posted 22 February 2017

What is the meaning of an audit? What is an audit from SARS? SARS audit What is a SARS audit?
Being audited just means that SARS could be doing a random selection and checking that all the information submitted is the same as they have.

How long does it take for SARS to pay me after an audit? OR Payment pending an audit, how long is that? OR Payment still pending due to audit.
It can take anywhere from 24 hours to a few months. You will receive a letter of completion once the audit has been verified indicating if any changes have been made. You just have to sit tight and be patient....

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Special Stopper at SARS: What We Know For Sure

Posted 22 September 2016

Special Stopper at SARS: What We Know For Sure

Over the last few weeks, our helpdesk has received an alarming number of queries from taxpayers asking what they can do as their refunds are being held back by SARS due to a special stopper being placed on their account. It’s a complex situation and the only advice we've been able to provide has been for the individual to make contact with SARS directly to try resolve the matter.

The South African Institute of Tax Professionals (SAIT) issued a statement on Tuesday 20 September 2016 advising that they’re looking into the issue after numerous complaints had been raised...

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Promised a Guaranteed Tax Refund? Be Afraid - Be Very Afraid

Posted 16 September 2016

Promised a Guaranteed Tax Refund? Be Afraid - Be Very Afraid

Guarantees are pretty powerful – they’re used by leading manufacturers and retailers to gain our confidence and trust. We’ve all come across them at some point or another: “Life time guarantee”, “money back guarantee”, “product satisfaction guaranteed, or your money back”. They’re a promise. A promise that your purchase will provide you with a level of value, or a return on your investment. While a guarantee is common – expected, ...

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Food for Thought on Subsistence Allowances

Posted 13 June 2016

You’ve been up since 4am in order to catch yet another red-eye flight for a 9am business meeting - 1,400km away - and you’re already onto your third coffee by the time you board the plane. While you’re fairly accustomed to the frequent business trips requiring out of town travel, you’re still somewhat confused by the tax implications of the subsistenc...

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9 Steps to File an Objection to Your Tax Assessment

Posted 1 June 2016



You’ve been diligent with your tax obligations. You’ve paid your PAYE each month without fail. You’ve kept all the supporting documents for your deduction claims. You’ve carefully filled out your tax return, making sure you’ve put all the right amounts in all the right places, against all the right codes. (Pssst, if you used T...

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Sole Proprietor or Company: What's Best for Tax?

Posted 31 May 2016

Getting a new business venture off the ground is an equally exciting and stressful time. You’re enthusiastic about getting your new product or service out into the market, but you face quite an administrative process to get it off the ground legally.

A decision that often stumps many small business owners is whether to operate as a sole proprietor or as private company, a PTY Ltd. We receive many questions about this from entrepreneurs wanting to know the tax implications of each route.

Read more →

5 Great Reasons to File Your Tax Return Early This Year

Posted 24 May 2016

Are you the type of person dashing into the store to grab a birthday gift en route to a party? Or perhaps you’ve found yourself scratching through your craft box at 11pm the night before to make a ‘World Book Day’ outfit for your son? Or possibly you’re one of the hundreds of thousands of South Africans who waits until the last week of November to file your tax return?

While I’m not suggesting that every minute of your life needs to be pre-planned and organised, there are certainly a number of benefits to getting your tax done early...

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Tax on Bonus Payments: How Does it Work?

Posted 19 April 2016

For those fortunate enough to receive bonus payments as part of your remuneration, you’ll understand the frustration of seeing one amount on your letter of bonus, but a dwindled amount reflecting in your bank account on payment.

We receive hundreds of queries from people with regards to what percentage tax they’ll have to pay on a bonus they’ll be receiving, either annually or as an adhoc performance bonus. Much like other variable incomes, such as commission, there’s a misconception that tax on a bonus payment is withheld at a higher rate.

The fact is that there’s no special ‘bonus tax rate’...

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How is Commission Taxed? 3 Ways Your Company Taxes Commission

Posted 14 April 2016

Our helpdesk receives hundreds of questions related to tax where commission is involved. A misconception that comes up time and time again is that people believe commission is taxed at a higher rate than what a fixed salary is.

This isn’t true!

Tax on commission is at exactly the same rate as a fixed salary.

The confusion comes from the fact that tax is calculated on a different amount each month (depending on your performance, of course), and this can result in different tax rates being applied month to month...

Read more →

Older posts →  1  2  3

Blog Categories

Get FREE Help with your Tax Return today from



TaxTim's award-winning tax return services are now free to all Momentum policyholders and Multiply clients:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Get started