Sars auto-assessments: ‘Do not just accept’ – expert

Sars’s newly implemented auto-assessments system starts today, but it seems there might be some teething problems as some taxpayers claim to have received refunds without prior notification of auto-assessment.

Here’s some context

The revenue collector announced back in June plans to introduce an automated approach to tax returns for a simplified process.

“From 1 July Sars will communicate directly with affected taxpayers by SMS or email, notifying tax payers of their auto-assessments,” said a Sars‘ statement.

According to the statement, taxpayers with refunds due would have their payouts deposited directly into their bank accounts, within 72 hours of receiving auto-assessment notification.

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No notification, no payout – Sars

Sars’ head of communications, Siphithi Sibeko, denies claims of payouts without prior notification.

“That’s not possible! Sars is not Father Christmas to simply give payouts,” Sibeko says.

When asked about possible flaws of the newly introduced auto-assessments which is still in its infancy stage, Sibeko confidently assured the process is “100 percent solid” having undergone rigorous testing.  

According to Sibeko, tax payers may still manually file tax returns to disclose deductions which were not reflected in their auto-assessment.

Sibeko warns taxpayers against “taking chances” with the revenue collector’s system, by inflating figures to save on tax and claim a higher refund.

“Sars is not the lottery,” Sibeko concludes.

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Why you shouldn’t simply accept auto-assessments

Thys van Zyl, head of Product Development at Everest Wealth, says taxpayers who are automatically assessed by Sars should not simply accept assessment as they might lose their refund even if they’re entitled to it.

“The auto-assessments don’t include additional allowable tax deductions such as additional medical expenses, donations, home office or travel allowance,” cautions Van Zyl.

Van Zyl says taxpayers should beware of the risks involved in blindly accepting auto-assessment outcomes.

“Just accepting an auto-assessment could mean you get less back than you’re supposed to,” Van Zyl adds. ‘Or you could be penalised later because other important information, such as additional income, wasn’t declared,” Van Zyl adds.

Since the auto-assessment process is still in its infancy stage, Van Zyl strongly advises to proceed to submit tax returns – that way you can thoroughly confirm inclusion of all deductions, which could slice your tax amount and earn you a refund.

In case you’ve received a refund, perhaps without notification or a chance to make amendments, don’t panic – there’s still hope.

“A tax return can still be submitted as normal when the tax season [begins] and there’s additional information to update,” Van Zyl assures.