SARS Improving Tax Services
Despite the ease this automatic process aims to provide, taxpayers have been experiencing a few bumps in the road and have been warned to remember that they are solely responsible for the accuracy of the information used. Therefore, it is crucial that taxpayers flag incorrect auto-assessments and provide accurate information through a manual income tax submission.
Checking Your Assessment
Taxpayers are responsible for providing SARS with a complete and accurate declaration of their income and deductions. If you have been incorrectly refunded through an auto-assessment, you will be required to return those funds. Additionally, you are liable for any additional tax owed. Taxpayers who have received an inaccurate auto-assessment have until the end of October 2023 to submit the correct return via eFiling. In the event that you correct an auto-assessment, SARS may choose to verify your information, requiring you to upload supporting documents on eFiling.
Why Are Some Auto-Assessments Incorrect?
| SARS does not have all relevant tax certificates. |
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The taxpayer earns a freelance income not identified through an IRP5. |
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The taxpayer earns income from a rental property. |
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The taxpayer earns income from a foreign company that does not issue an IRP5. |
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The taxpayer has earned income from capital gains on foreign investment. |
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The taxpayer has medical expenses that can be claimed as a deduction. |
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The taxpayer has travel expenses that can be claimed as a deduction. |
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The taxpayer has home office expenses that can be claimed as a deduction. |
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The taxpayer has made tax deductible donations. |
The Expected Penalties for Non-Compliance
It is crucial to rectify any auto-assessment errors promptly and submit your return on time. SARS has emphasised the enforcement of strict and costly consequences for non-compliance with tax obligations, resulting in severe penalties. The Tax Administration Act was amended as of December 2022, introducing penalties for individuals with even a single outstanding tax return. In the first five months of this year alone, SARS imposed penalties totalling R380 million on nearly 700,000 taxpayers. The penalty for late submission, including delayed correction of an auto-assessment, varies from R250 to R16,000 per month, depending on the tax amount owed, and can be imposed for up to 35 months. Additionally, interest may be charged on any outstanding tax amounts.