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Outstanding tax return is holding up my refund, I cannot get the IRP5 as employer is deceased.

Posted 20 July 2015 under Tax Questions



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Dylan says:
16 July 2015 at 10:44

Hey Taxtim. I submitted my tax returns on the 10th of July this year. SARS informed me that I would get a refund of about R17000, which I desperately need. After a few days I called them to ask when I might receive this refund, they informed me that they are not going to give it to me yet as I have outstanding tax returns for 2012.

I did not have this issue last year when I filled or the previous year. I worked for a company from February 2011 until August 2011, I was never issued an IRP5 or any payslip.

The owner of the company passed away in September 2011. I did not work in 2012 at all, but began a new job in January 2013. In July 2013 this new company issued me with an IRP5 and I submitted my tax returns. I received a small refund. The following year I received a bigger refund.

My question is, how do I go about filing the outstanding tax return (Which I assume is for the tax year starting in February 2011 and ending in March 2012) as it is simply impossible to get that IRP5 and I desperately need SARS to pay me my refund. Please tell me what my options are?

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TaxTimTaxTim says:
16 July 2015 at 11:03

Did that company take any money off each month? Do you remember having a contract of employment?


Dylan says:
16 July 2015 at 11:18

The employer was my mother, I never knew if they were taking tax off each month or not, I was a student at the time and what makes matters more difficult is that my mother also gave me pocket money. SARS informed me that they knew I worked there, so I have NO clue how they got that information. The only way they have that info is because someone must have filed on my behalf.


TaxTimTaxTim says:
16 July 2015 at 11:20

Your mother must have been paying PAYE on that amount so they were aware - companies have to supply the information of the people that work for them. The best you can do is get an affidavit stating that you cannot get the IRP5 and why and take that to SARS.


Dylan says:
16 July 2015 at 13:50

Thanks for that info.

What I don't understand is that SARS says you don't have to file a tax return if you earn under a certain amount, don't have more than one income etc. Why is it then that if you do not need to file a tax return and you hence do not file a tax return that year that in later years when you file a tax return they refuse to refund you due to outstanding tax returns which you have no obligation to file in the first place?


TaxTimTaxTim says:
16 July 2015 at 19:46

We fully agree and have been lobbying for this to change for some time and have made several complaints through several channels. Taxpayers are being totally caught out because of this and really it is unfair to taxpayers. We advise taxpayers to always submit every year.


Dylan says:
20 July 2015 at 13:40

Just wanted to update you. I eventually managed to track down the accounting firm that was used, they, after 3 days of beating around the bush, managed to find my IRP 5.

My current accountant submitted the tax return for the outstanding year (2012) and in my ITA34, where it says selected for audit or verification, it said yes. SARS then sent a Verification of Income Tax Declaration. What I find funny is, I DO NOT WANT THAT MONEY BACK, I JUST WANT THEM TO CLOSE THAT YEAR SO WE CAN MOVE ON.

The letter says:

"Dear Taxpayer
VERIFICATION OF INCOME TAX DECLARATION FOR THE 2012 YEAR OF ASSESSMENT
Your declaration in respect of the 2012 year of assessment is subject to a verification by the South African Revenue Service (SARS) in
terms of the Tax Administration Act.
This is the result of certain declarations that were made which appear not to be correct or in agreement with other data which SARS has
in its possession.
You are requested to urgently correct any errors by submitting a revised declaration at your nearest SARS branch or correcting the
return online if you are an SARS eFiler. Click the Request Correction button after opening the relevant tax return on SARS eFiling.
If you believe the declaration to be correct, please submit to SARS A4 copies of the relevant material in support of the following
declarations:
For source code 4102, a PAYE Credit of R2,696.56 has been assessed against your ITR12 tax return."

Anyway, I wish I could just say to SARS, forget about the refund, in fact, forget about the refund you are withholding for this year as well (Which is R17700 and was not selected for verification) Keep my money, just set those years as complete so I can get a tax clearance certificate and make my plans to immigrate!


TaxTimTaxTim says:
20 July 2015 at 21:46

I understand your frustration, we deal with tens of thousands of taxpayers in similar positions as you. If you send them the IRP5 from that year it should all clear up.


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