Technical Issues for Tax Season 2021

Some technical teething issues - please be patient with us



1. Retirement Annuity contributions not appearing on the Assessment (ITA34

Problem description

Returns containing RA contributions have been submitted to SARS. The submitted return in eFiling correctly reflects the RA contributions, however the assessment issued by SARS leaves off the RA contributions.  This has affected returns submitted to SARS from Friday 9 July to Sunday 11 July.

How taxpayers are affected

Taxpayers receive an assessment which does not reflect their RA contributions. This results in the tax amount due being incorrect i.e the refund is too low, or the tax due is too high.  To put it simply, the assessment is incorrect and SARS needs to re-issue another one.

Latest Status

Our tax team was in touch with SARS over the weekend to fix the error, and it is now fully corrected.

IMPORTANT: Please Login to eFiling and resubmit your 2021 return. Follow these steps below if you have not already done so. It should take less than a minute.
 
  1. Login to eFiling here https://www.sarsefiling.co.za/ 
  2. Go to your 2021 tax return, you can find here: 
    • On the left hand side menu - Cick on "Returns history"
    • Click on "Personal Income tax ITR12"
    • Click "Open" on the latest 2021 tax return.
  3. Click the "Request Correction" button
  4. Open the Saved Return
  5. You may see the Medical section highlighted red. If this is the case scroll down and answer Yes/No to the disability question
  6. Resubmit your return
 
This will ensure that you get a correct assessment and the proper refund due. 
 
 

2. SARS eFiling Connection Issue

Problem description

Taxpayers follow the steps (i.e OTP and Power of Attorney) to authorise TaxTim shared access to their eFiling profile. Once it is authorised, the transfer request no longer appears in eFiling.

In some cases, eFiling shows a message stating authorisation will take 24 hours, however after a while the authorised request disappears.

How taxpayers are affected

TaxTim cannot connect to the taxpayer's eFiling profile to import tax certificates from eFiling and T-file from TaxTiim's site directly to SARS. It also means taxpayers are unable to submit documents to SARS directly through TaxTim's site.

Please note, this issue is only affecting some taxpayers. It does not apply to all connections.

Latest Status

20 July 2021: The issue seems to be fixed, please do contact our Helpdesk if you continue to have problems connecting your profile to TaxTim.

19 July 2021: SARS has released updates to address the connection issue. TaxTim is busy assessing the changes to confirm whether they have had a positive impact.

15 July 2021: TaxTim finally received acknowledgement from a reliable source that there is indeed a SARS eFiling technical issue with transfer requests, it has been escalated and hopefully should be resolved soon.

13 July 2021: TaxTim is continuing to follow up with SARS and other regulatory bodies in the industry on a daily basis. We are aware the transfer of tax types is affecting other tax practitioners as well and not only TaxTim. Please bear with us as we wait for SARS to sort out this technical issue. In the mean time, please finish all sections on TaxTim so that your return is ready to submit as soon as we can connect to your profile.

 

3. Taxpayers with IRP5 lumpsums unable to submit corrections 

Problem description

When there is a lumpsum (retirement/severance/gratuity etc) on an IRP5, there must also be a tax directive number. When SARS receives the tax return, they compare the lumpsum data on the IRP5 to the corresponding tax directive details on their system. If the details don't match, then the IRP5 with the lumpsum needs to be updated and res-submitted. SARS will not finalise the return and issue an assessment until they have received an updated, correct tax return with an IRP5 which exactly matches the tax directive they have on their records.

Below are scenarios which would result in an issue with taxpayers' returns and cause delayed assessments:

  • employer/fund put the wrong tax directive number on the IRP5
  • employer/fund captured an amount for the lumpsum which differs from the amount on the tax directive
  • employer did not submit the IRP5 to SARS so the lumpsum IRP5 is missing from the taxpayer's tax return
  • employer/fund submitted the IRP5 to SARS after the taxpayer had already submitted their return to SARS

What is supposed to happen in these situations, is the fund/employer simply corrects their mistake and resubmits the IRP5 to SARS with the correct lumpsum data. The tax return is then 'refreshed' and a correction is submitted to SARS. 

However, due to a SARS eFiling system issue, there is no option on eFiling to submit a correction. The return remains 'in progress' on eFiling with no assessment issued and no option to submit a revised return online.

How taxpayers are affected

The taxpayer/TaxTim cannot refresh the return and submit a correction, in order to finalise it and receive an assessment.

Until SARS fixes this eFiling issue, the only option is for the taxpayer to make an online SARS appointment to finalise their return.

Latest Status

The issue has been escalated to SARS' technical team, as well as other regulatory bodies.

27 July 2021: TaxTim has clevery innovated a fix and corrections can now be submitted via the TaxTim website. Taxpayers no longer need to make appointments with SARS. Instructions have been emailed to affected taxpayers. If you need assistance to submit a correction, please contact our Helpdesk.

 

4. Estimated Assessments issued

 Problem description

SARS issued estimated assessments for some taxpayers, without notifying them that they had been auto-assessed. This meant that these taxpayers were given no chance to accept or reject the auto-assessment. In many cases, SARS also processed a refund already. 

How taxpayers are affected

If the taxpayer wanted to claim any deductions (e.g home office) they would need to submit a correction/ revised return.

Latest Status

SARS have reported this error as being a result of a software roll-out on their side. They will be sending an SMS to all affected taxpayers. In the mean time, they have communicated that taxpayers must submit a correction if they do not agree with the estimated assessment.

 

 

 

 

 

 

 



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