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.
Like in previous years, there have always been opening tax season niggles and 2017 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...
SARS has recently communicated that if you earn less than R350,000 in a year, and fulfil a series of complicated criteria, you may not have to file a tax return in 2017.
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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Penalty FAQs
Posted 6 March 2017
What is a recurring penalty? OR What are recurring SARS penalties? OR What does it mean to receive a penalty?
This is a penalty for non-submission of your returns in previous years. You need to see which returns you have not submitted and submit them ASAP. You also need to make payment to SARS for this penalty, but you would have to call them on 0800 00 7277 or log onto SARS eFiling to get a current statement of account and know exactly what they want from you.
How to Make a Payment to SARS
Posted 21 November 2016
You have filed your tax return with SARS and they have responded with your ITA34 assessment. The bad news: you have to pay SARS some additional money. The ITA34 does not explain how to go about making payment.
Follow these quick steps below to get the payment details required to make your payment to SARS by EFT:
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The Dangers of DIY Tax: How to Avoid Disaster
Posted 17 November 2016
Have you ever started one of those ‘oh, this’ll be easy’ Do-It-Yourself jobs, only to find yourself utterly frustrated half-way through wondering - what was I thinking? Pieces of wood cut just a few millimetres short of what they should’ve been. Holes drilled in the wrong places. Screwdrivers in every size except the one you need, missing bolts or the wrong colour paint! These DIY disasters can land up costing you much more time and money to salvage (or in the w...
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Special Stopper at SARS: What We Know For Sure
Posted 22 September 2016
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
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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10 Ways to Spend Your Tax Refund
Posted 8 September 2016
It’s tax season, and one of the most compelling reasons to file a tax return (besides the fact that it’s the law, of course) is the chance that you’ve overpaid the taxman and that you’ll hear that sweet SMS sound of funds deposited into your bank account from SARS. Of course the best part about a tax refund is that it’s likely you hadn’t budgeted on the extra cash, and so you’re able to spend it as you please. Whether you choose to do so sensibly or splurge a little, we’ve rounded up some ideas on how to spend or invest your tax refund.
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7 Types of Tax Directives
Posted 19 August 2016
Imagine you’re an estate agent or luxury car salesman. Chances are that you don’t earn much (if anything) as a basic salary and you rely on a few big deals and commission payments to keep you afloat during quieter months.
Or ima...
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When Will SARS Pay My Tax Refund?
Posted 12 July 2016
Now that the 2016 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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Who's (Legally) Allowed to File Your Tax Return?
Posted 6 June 2016
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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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.
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What is Turnover Tax?
Posted 23 March 2016
Turnover Tax is a simplified tax system only available to sole proprietors, partnerships, companies or close corporations with a “qualifying turnover” of less than R1m per year. These types of entities are called micro businesses.
As the name implies, Turnover Tax is a type of tax, which is calculated against the turnover of a business, as opposed to a percentage of profit (i.e. income less business expenses) as per usual business tax. This difference reduces the administrat...
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4 Common Provisional Tax Penalties - And How to Avoid Them
Posted 29 February 2016
Seasoned provisional taxpayers – those people who earn income from sources other than, or in addition to a regular ol' salary or traditional payment from an employer - are all too familiar with the process of estimating taxable income and submitting provisional tax returns. Not once - but twice a year!
Yes, it's a bit painful (although TaxTim makes it super easy) but entirely necessary if you don't want to be lumped with penalties from SARS...
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What You Need to Know About Changes to the Tax Clearance System
Posted 23 February 2016
Tax compliance makes its way into many aspects of life and business. Perhaps you’re considering applying for a tender, or for a foreign investment allowance to move funds offshore, or even looking to emigrate and leave our shores. These are just a few examples of instances where you may be asked by a third party to provide a Tax Clearance Certificate.
And until now, the course of action to obtain your certificate has been a tedious one.
Upon request, SARS would check its records and verify that the taxpayer had filed all required tax returns, paid all taxes, penalties and interest due, before releasing a Tax Clearance Certificate confirming a good standing...
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The Ins and Outs of Donations Tax
Posted 17 February 2016
Have you been the lucky recipient of a gift or donation from a generous family member of friend? Perhaps they struck it lucky on the Lotto and decided to share their winnings with you!
Or maybe you're the giving type and have donated cash, shares or even property to someone you felt deserved a little boost.
Irrespective of whether you're the giver or receiver of a donation or gift, it's good to understand donations from a tax perspective, and how to declare these to SARS.
Ready to find out?
Let's get started.
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Why is SARS asking me for outstanding tax returns?
Posted 30 October 2015
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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SARS isn't paying my refund, they want my old returns!!!!
Posted 3 August 2015
Taxpayers this year are facing a new gripe with SARS when it comes to receiving those well-earned refunds. The current two scenarios are:
- NO AUDIT: A taxpayer files a tax return, gets their ITA34 and does not need to submit supporting documents; or
- AUDIT: A taxpayer files a return and in their ITA34 is requested to submit supporting documents, after which they receives a Completion Letter stating "no adjustment made".
In both these cases a refund should be paid out a few days later (if the taxpayer is due one), however thousands of taxpayers still have not been paid their refund. Here’s why!...
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Where can I get my Medical Scheme Tax Certificate?
Posted 18 June 2015
In order to complete the Medical section of your annual tax return, you will need a tax certificate from your medical scheme (if you contributed to a medical scheme that is!).
This certificate details exactly how much was paid to the medical aid for yourself and your dependents over the course of the tax year (1 March to end Feb). It also details how much money you paid for other medical expenses, such as medicines and doctors expenses, which you claimed for, but your medical aid did NOT cover...
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Thank you Minister - we expected worse! 2015 Budget
Posted 25 February 2015
New Finance Minister Nene delivers his first budget with some “better than expected” tax increases. The fight against corruption was highlighted with the minster announcing a series of reforms and procedures to be introduced both to curb corruption and make doing business with the state easier. The minister announced that R25bn would be saved in expenditure over the next two years, but R16.8bn is to be raised this year via tax increases and a remarkably large rise in the fuel and road accident fund levies. To be honest, we expected greater tax increases from the minister, thankfully he spared us some of the pain! ...
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What's the delay with getting my SARS Refund?
Posted 6 August 2014
SARS has typically been quick to refund taxpayers who have filed their tax returns and are due a refund, with money appearing back in their bank accounts smoothly and reliably, often within a day or two.
However since the opening of this tax season on 1 July 2014, the process appears to have changed and suffered a few hiccups along the way. From the queries we have received over the last month from multiple confused taxpayers, it would seem that thousands of refunds were first paid out, then reversed...
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What to Expect after Submitting your Tax Return to SARS
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.
...
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Garnishee orders explained: How SARS can deduct penalties directly from your pay cheque and how to stop it
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...
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