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.
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.
If you dispute the assessment, you can file your edited tax return electronically by 16 November.
“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.
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.
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.
Alternatively, you could face tax penalties if SARS later confirms that you earned income that wasn’t declared.
Source: Business Insider.