Tag: Auto assessments

News: How the automated tax filing system works.

The South Africa Revenue Service (SARS) has sought to explain how its auto-assessment system operates, as it attempts to move more than 3 million taxpayers from physical filing to online filing, SABC news reported.

SARS has urged people to use their e-filing online system or mobi-app – as an option to file their tax returns this year.

“The outcome that SARS will derive, using all the data that we receive from your employer, the paperwork from your income, as well as the deductions. It’s the data we will get from your bank, pension fund and medical aid – that will be your core data. Calculation done by the risk engine, taking into account all of the data and the historical data, it will produce an outcome that should be exactly the same as if you would submit the data to us,” says Kieswetter.

SARS Commissioner, Edward Kieswetter, has also warned people to be vigilant of fraudulent emails and SMSes that claim to be from SARS.

Several taxpayers raised concerns over receiving emails and SMSes with false information – made to look as if messages were sent from SARS.

Kieswetter says they will never request banking details via email, post or SMSes.

“We became aware of a fake SMS and we would ask taxpayers to have a careful read at the SMS that is sent and our website address is very clear www.sars@gov.co.za and not to accept anything other than that and if they are not clear to rather call our call centres. We would encourage taxpayers to use the official mobile app or the e-filing system, which is the safest way to store your data,” says Kieswetter.

 If you have received a SMS from SARS, watch these easy steps in their videos on how to view the auto assessment on eFiling or on MobiApp.

 

 

News: SARS is sending out “ auto assessed” SMSes, and what you should do.

SA Revenue Service is currently sending out 3.1 million SMSes to taxpayers whose returns will be assessed automatically this year.

If you receive an SMS, this means that SARS will complete your return with all the information it received for you – gathered from your employer, bank, medical scheme, retirement annuity administrator and other companies – and send you an assessment. If you accept it, you won’t have to file a tax return at all.

By yesterday midday, 62,500 taxpayers already accepted their auto-assessments, SARS Commissioner Edward Kieswetter told Netwerk24 yesterday. Those who were automatically assessed and are owed money from SARS, will receive it in the first week of August.

How do you know if you will be auto-assessed?

  • SARS will send you an SMS by end-August to alert you that your completed return is available in eFiling or on the SARS mobile app.
  • If you accept the assessment and a refund is due, it will be paid into to your bank account by the first week of August, Kieswetter said yesterday.

What happens if you don’t accept the auto-assessment?

  • If you dispute the assessment, you can file your edited tax return electronically by 16 November.

What should you look out for?

  • Each taxpayer needs to validate their auto-prepared tax return with the information they received from third parties, before accepting the assessment, says Thamsanqa Msiza, head of individual tax returns at Tax Consulting SA.
  • Check your IRP5/IT3(a)s and other tax certificates like your medical certificate, retirement annuity fund certificate and other third-party data against the information provided in the return.
  • If you don’t have the certificates yet, contact your employer, medical scheme, retirement annuity fund and other third parties to get it.
  • “Only once a taxpayer has compared the tax documents he or she received from his or her employer, medical aid scheme, banking institutions and other parties in respect of the 2020 tax year to the SARS issued auto-assessment and agreed the figures, can one accept the auto-assessment,” says Doné Howell, director of BDO Tax Services.
  • Taxpayers who have more complex returns – i.e. travel allowance claims – will need to carefully review their auto-assessments, Msiza says.

Are there any dangers to being auto-assessed?

  • One concern is that SARS will issue auto-assessments based only on the data which third parties are obliged to submit to SARS, and to the extent that such data meets its verification process, says Howell.
  • This means that additional income or deductions may not be included.
  • For example, if you made a donation to a qualifying organisation, you may be able to claim a tax deduction. Or if you started to trade and now earn business income, this may also not be reflected in the tax return.
  • You may also have had home office expenses that can be deducted, or claims that your medical aid did not pay, which may not be reflected on your return.
  • If you accept the auto-completed tax return without adding these deductions, you may miss out on tax relief.
  • Alternatively, you could face tax penalties if SARS later confirms that you earned income that wasn’t declared.

Didn’t receive an SMS?

  • Taxpayers who aren’t automatically assessed need to submit their returns from start-September.
  • The deadline for returns submitted at SARS offices is October 22nd. Online returns need to be submitted by November 16.
  • The deadline is 29 January for provisional taxpayers.

TAX NEWS: SARS may auto assess your tax return.

This year, the SA Revenue Service says it will assess “a significant number” of taxpayers automatically according to Business Insider.

This means that it will complete your return with all the information it received for you, gathered from your employer, bank, medical scheme, retirement annuity administrator and other companies  and send you an assessment.

If you accept it, you won’t have to file a tax return at all.

How do you know if you will be auto-assessed?

According to Business Insider, SARS will send you an SMS by end-August to alert you that your completed return is available in eFiling or on the SARS mobile app.

If you accept the assessment and a refund is due, it will be paid into to your bank account.

What happens if you don’t accept the auto-assessment?

If you dispute the assessment, you can file your edited tax return electronically by 16 November.

What should you look out for?

  • Each taxpayer needs to validate their auto-prepared tax return with the information they received from third parties, before accepting the assessment, says Thamsanqa Msiza, head of individual tax returns at Tax Consulting SA.
  • Check your IRP5/IT3(a)s and other tax certificates like your medical certificate, retirement annuity fund certificate and other third-party data against the information provided in the return.
  • If you don’t have the certificates yet, contact your employer, medical scheme, retirement annuity fund and other third parties to get it.

“Only once a taxpayer has compared the tax documents he or she received from his or her employer, medical aid scheme, banking institutions and other parties in respect of the 2020 tax year to the SARS issued auto-assessment and agreed the figures, can one accept the auto-assessment,” says Doné Howell, director of BDO Tax Services.

Taxpayers who have more complex returns – i.e. travel allowance claims – will need to carefully review their auto-assessments, Msiza says.

Are there any dangers to being auto-assessed?

One concern is that SARS will issue auto-assessments based only on the data which third parties are obliged to submit to SARS, and to the extent that such data meets its verification process, says Howell.

This means that additional income or deductions may not be included.

For example, if you made a donation to a qualifying organisation, you may be able to claim a tax deduction. Or if you started to trade and now earn business income, this may also not be reflected in the tax return.

You may also have had home office expenses that can be deducted, or claims that your medical aid did not pay, which may not be reflected on your return.

If you accept the auto-completed tax return without adding these deductions, you may miss out on tax relief.

Alternatively, you could face tax penalties if SARS later confirms that you earned income that wasn’t declared.

Source: Business Insider.

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