The South African Institute of Chartered Accountants (SAICA) encourages and warns all to submit their tax returns as soon as possible.
SAICA in a statement encourages all companies with a financial year ending during the 2014 calendar year, and all other taxpayers in respect of which the tax year of assessment ended on 28 February 2014 (1 March 2013 to 28 February 2014), to start submitting their tax returns.
According to a SARS Notice issued on 25 June 2014, this year’s tax season runs from 1 July 2014 to 30 January 2015 for all taxpayers except companies.
Somaya Khaki, Project Director of Tax Suite at SAICA advises “Individuals, both provisional and non-provisional taxpayers, are required to submit an Income Tax Return during the tax season.
“In addition, any non-resident trust or business which carried on a trade through a permanent establishment in South Africa or derived any service income or capital gain from a source in South Africa, must supply an income tax return,” Khaki continues.
“Non-residents whose gross income consisted of interest from a South African source and which was not exempt from tax, must also submit an income tax return,” Khaki added.
Different deadlines apply to different types of taxpayers, as set out in the SARS Notice:
• 26 September 2014-in respect of individuals, as well as trusts and other juristic persons are for all returns submitted manually;
• 21 November 2014 -for electronic submissions at a SARS branch or via eFiling (non-provisional taxpayers); and
• 30 January 2015 – for provisional taxpayers who submit their returns via eFiling.
• Companies must submit their returns within twelve months of their relevant financial year end, and this submission must be done via eFiling.
“As South African citizens it is our duty to pay income tax on a yearly basis and the following age groups and gross income earners are to contribute in the 2014 year of assessment:
• individuals younger than 65 years of age and whose gross income exceeds R67 111,
• individuals 65 years and older (but under 75) and your gross income exceeds R104 611,
• individuals who are 75 years or older and whose gross income exceeds R117 111,” says Khaki.
“However, not all individuals who are liable for income tax will be obligated to submit a return, for instance:
• If an individual taxpayer’s gross income is less than R250 000,
• the individual’s remuneration is from one employer,
• remuneration is for a full year of assessment (1 March 2013 – 28 February 2014),
• No subsistence, travel or other similar allowances are received and the employer has withheld employees’ tax from payments made to the individual taxpayer.
If the individual has deductions to be claimed (for example, medical aid or retirement annuity fund contributions), a return will need to be submitted,” explains Khaki.
Khaki warns “If a person who is required to submit a return does not do so by the deadlines indicated in the SARS notice, that person may be liable, on conviction, to a fine or to imprisonment for not more than two years.
“With respect to individuals, SARS may also estimate taxable income and impose a penalty of between R250 and up to R16 000 per month, depending on that individual’s prior year’s taxable income. 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.
“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 CA(SA) tax specialist 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.”
