THE end of the 2016 tax season is near and the country’s working force has until 25 November to submit their income tax returns. And while many people file on time, some late there are still quite a few tax myths that abound
1. Employees who are subjected to Pay As You Earn (PAYE) do not have to submit income tax returns.
“False. Only if you receive a salary from one source do you not pay tax. Provided that the salary doesn’t exceed R350 000 per annum,” said Keelen Snyders, tax trainee at BDO South Africa.
2. Money made over the internet is tax free.
False. You must include all money made via a trade over the internet in your gross income, she said.
3. SARS is legally obliged to refund taxes overpaid without delay.
SARS will only refund an amount to a taxpayer if the system did not detect any flags for an audit.
4. You can be too young to pay taxes.
The legal employment age is 15. If you are 15 years old or older you must file income tax returns, said Snyders.
5. Once I receive my refund I may no longer be subject to an audit.
False. SARS may conduct an audit at any time.
6. If you use e-filing you end up going into a SARS branch in any event.
False. Unless there is a change of information or any other unusual circumstance you are not requited to visit a SARS branch.
7. You can claim pets as dependants.
This is untrue, said Snyders.
Important tax documents:
To get ready to submit your tax return, you will need to gather all your supporting documents which include the following, IRP5/IT3(a) certificate(s) from your employer or pension fund, IT3(b) certificates for investment returns, financial statements, if applicable, medical aid contribution certificates and receipts, retirement annuity fund certificates, certificates you received for local interest income earned, logbook and other documents in support of business travel expenses, completed confirmation of diagnosis of disability form (ITR-DD), if applicable, any other relevant income and deduction information and bank account details.
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