Johannesburg - Tax filing season has officially opened and it comes the responsibilities of compliance for the South African taxpayers.
Nobody is exempt from tax
unless the person is earning below the threshold and there is no free pass if a
practitioner is not filing their forms correctly, so now is the time to ensure
compliance, get tax right and avoid fines and unnecessary penalties.
“It is vital that taxpayers
ensure they are compliant – that their returns are honest, all information is
accurate and that their returns reflect a true picture of what happened over
the past year,” said Sibusiso Thungo, Tax Specialist, South African Institute
of Professional Accountants.
“There are few things as
stressful, both financially and emotionally, as discovering that your accounts
are not compliant and you have huge penalties to pay to SARS.”
SAIPA recommends that every
taxpayer familiarise themselves with the correct filing dates, information,
paperwork and legalities to avoid unnecessary risk or stress. The cost of
non-compliance is far higher than the cost of time invested into ensuring that
you understand how to file your taxes correctly.
Knowledge not excuses
“If you are unsure of how to file your tax return or the paperwork required,
then it’s advisable to go to your local SARS branch where the consultants can
assist you free of charge or better still, approach a tax practitioner in your
area”.
“If you are using, or plan to use, a tax
practitioner, ensure that they are registered with a recognised controlling body.
Ask them for their PR number and contact the relevant authority to ensure it is
valid and up-to-date,” said Thungo.
The next step is to gather
all the supporting documents required by SARS. To know what document is needed,
any amount that you are claiming/declaring that does not appear on the IRP 5
pre-loaded on your Income Tax Return (ITR12) supporting documents should be
available should SARS call for them.
Create a comprehensive
checklist that covers every item required by SARS.
“Ensure the documentation is
legible and accessible, SARS will reject forms and supporting documentation
that cannot be read by their systems,” said Thungo.
“Also, some of the tax
regulations have changed as of 2017, so taxpayers need to spend some time
getting to know the new rules.”
Some highlights on the IT 12
tax return amendments; Medical aid has become more detailed and transparent and
the tax payer has to differentiate between what has or has not been paid by the
scheme throughout the year.
People with more than one
retirement annuity need to report each one separately, and travel allowance
reporting has also changed in terms of how it is claimed, and what can be
claimed.
Be alert
“There are warning signs to look out for when using a tax practitioner to
complete your returns,” says Thungo. “If they promise to get you a refund,
that’s always a warning. If they don’t ask you for proof or certificates,
that’s also a concern. Just be aware of the requirements so you can be aware of
the risks.”
To assist taxpayers in
preparing for the tax season, in 2016 Tax year SAIPA partnered with SARS to
bring the mobile units into their office block (Waterfall Office Park),
providing tax advice to all those working in the area. The consultants provided
in excess of a hundred taxpayers with free insight into their returns and
requirements.
“This year, SAIPA will be
extending this offering to nearby office complexes to bring SARS support deeper
into the community,” said Thungo.