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Delay of refund due to audit and outstanding tax returns from 2005/2006

Posted 9 December 2015 under Tax Questions



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Zevvy says:
8 December 2015 at 16:12

I have enjoyed many years of good refunds from SARS. ( round about R30 000. 00 per tax year) This year I had an audit and they then issued a letter of completion but flagged my account for an outstanding tax return for 2005 and 2006. With great difficulty I managed to get a copy of 2005 IRP5 but could only get proof of salary for 2006. These years of income were very small and simple as there was only a small car allowance to factor in. I have subsequently been selected for audit again on these small tax returns. My questions are :

1) will the fact that I have proof of income but no IRP 5 for 2006 be an issue?
2) in your opinion will SARS pay me my refund under the circumstances? I ask is in the context that there are actually not really any other supporting documents that I can supply them with, and am actually quite irritated that they are delaying the payment to me as it looks more like a stalling tactic than anything else as my tax returns are always on time, accurate, honest and complete. Your opinion will be most appreciated. Please feel free to ask for more detail if you need. I hope this can help others too. PS the refund due is in excess of 50 000 rand. Regards and best wishes

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TaxTimTaxTim says:
9 December 2015 at 14:29

1) you need to go to your local police station and Swear an affidavit stating the reasons why you are unable to obtain the IRP5. You need to submit this to SARS together with your proof of salary for 2006.

2) unfortunately SARS won't pay your refund until these outstanding tax returns have been filed. They have implemented this procedure for all taxpayers for this tax filing season and many taxpayers are in the same position as you now having to bring old filings up to date before receiving their current year refund.

It is always better (if possible) to pay closer to what is due for the tax year rather than have such large refunds due from SARS. Do you know why they owe you in excess of R50,000?

Please Register for TaxTim and let us assist you to complete and submit your tax return to SARS.


Zevvy says:
9 December 2015 at 14:36

Thank you for the response. I have already filed my tax returns for 2005 and 2006. My tax consultant said that I do not need to submit an affidavit as I have documentation to show my salary for 2006.

My tax refunds from SARS are always large as I earn over 1 million per annum from my basic salary and also have a car allowance and use my car for work extensively. I also have a new rental property which will run at a loss for a few years, hence the high tax returns amount.


TaxTimTaxTim says:
9 December 2015 at 20:40

OK, thanks for the clarification - please do come back to us if you have further questions.


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