Deadline looms for tax return submissions

WITH the tax filing season for the tax year 1 March 2013 to 28 February 2014 having already started on 1 July, tax payers now have just a few days left to submit their income tax returns to the South African Revenue Service (SARS) by 21 November.
If a person who is required to submit a return does not do so by the deadlines indicated in the SARS notice, a monthly penalty of a minimum of R250 per month, that particular return is outstanding, may be charged. SARS can also estimate a person’s taxable income and issue assessments based on their estimation.
There are other specific instances in respect of which an individual will be required to submit a return. These specific circumstances are set out in the SARS Notice,” says Johan Swart, Tax Manager at Legal & Tax.
“We urge taxpayers to ensure that all their supporting documentation is in order, should SARS request this, and every effort should be made to submit returns by the due date to avoid penalties or other action which SARS may take to enforce compliance. Taxpayers, who have complicated returns, including other sources of income or expenses, should consider engaging a professional tax practitioner, like Legal & Tax, to assist them in preparing and/or reviewing their income tax return prior to submission, in order to avoid issues which may be raised by SARS at a later date,” adds Swart.
If you’ve earned an income greater than R250 000 for the tax year (1 March 2013 to 28 February 2014) you are required to submit a completed and signed income tax return to SARS. However, this is not applicable if: you earned under R250 000 for the full tax year from one employer (that’s your total salary income before tax); you have no other sources of additional income (e.g. interest or rental income); and you have no deductions that you want to claim (e.g. medical expenses, travel or retirement annuities).
For some, and especially business owners, filing a tax return is not always a straightforward task as it involves a lot of paper work and takes more time and effort than most think. Yet, those who are clued up and tax savvy are well aware that things don’t have to be like this.
Returns that are filed early are also usually processed fast, which means if you’re owed money by SARS you’ll get it quicker. Missing the 21 November deadline will lead to non-compliance penalties for each month that your return is outstanding – these penalties SARS may deduct from your salary/income or bank account.
There are also various ways to submit your income tax return. You can:
• Submit your submission online via eFiling or via your mobile device using the SARS app
• Submit your return manually by going into a SARS branch and requesting assistance from a SARS consultant
The due date for tax returns submitted via post, or delivered to SARS, was 30 September. The abovementioned submissions to SARS are the only venues for submission currently available to ensure that penalties for late submission are not levied by SARS.
Swart’s top four tips to make filing season as easy as possible:
• Collate and prepare all your supporting documents. These include your IRP5 tax certificate from your employer, tax certificates from your medical aid scheme and retirement annuity fund, receipts of medical expenses not covered by your medical aid scheme, and your car travel logbook.
• Never lie about your income or inflate your expenses. The penalties for false declarations on tax returns are steep and you could be caught out.
• Get help from a professional tax consultant at Legal and Tax to ensure you do your return correctly the first time. Legal and Tax’s consultants may also be able to help you find legal ways to reduce the amount of tax that you pay each year.
• When you file, check that the information SARS has already filled in on your return form is correct. You can fix any information that is wrong or out of date, but SARS may ask you to submit supporting documentation to explain your changes.