Your tax matters!

My name is Fareed Khan, I’m a regional director for the South African Revenue Service (SARS).

Part of my vision is to:

• Create clarity for you, the taxpayer, so you know exactly what is expected of you at all times

• Make it easy for you to meet your obligations

• Work with you to ensure that we make it both hard and costly for those who are non-compliant

As part of that vision of making it easy for you to comply with your tax obligations, and to make things clearer for those who are struggling to understand certain aspects of those obligations, I thought it would be helpful to write a regular column in this publication to answer some of your burning questions and remind you of certain key dates on the tax calendar.

The majority of you will know that our tax filing season for non-provisional taxpayers (i.e. those of you who have a full-time job with a regular salary) has just ended on 22 October for filing returns at branches, and on 16 November for submission via eFiling and the SARS MobiApp.

The next key date on our tax calendar is the deadline for provisional taxpayers to file electronically, which is 26 February 2021. These are taxpayers who have income that is not reflected on a tax certificate from an employer (IRP5) e.g. freelancers, sole traders, directors’ fees, interest, etc. We will speak more about that in our next column.

In this first column, I thought it would be useful to highlight some of the common questions we are getting right now through our contact centre and branches … and hopefully provide some clarity. These include the following:

1. I need proof of registration for personal Income tax OR I cannot remember my Income tax reference number. How do I obtain this without visiting a branch or calling the contact centre?

a. Log onto www.sars.gov.za

b. Click on “What’s my tax number”

c. Follow the prompts and complete the information requested and you can get your tax number via email or SMS (your preference)

2. I have submitted my Personal Income tax return to SARS and I have been stopped for an audit/ verification. I need to submit supporting documents to SARS but I am not registered for eFiling. How do I submit my documents without going into a branch?

Firstly, please note: There are many reasons why a person is flagged for audit. There may be some inconsistencies in what you declared relative to what we have received from a third party such as banks, your medical aid company, pension company etc. In order to submit your supporting documents electronically, you need to do the following:

a. Log onto www.sars.gov.za

b. On the landing page, click on the block “Online services”

c. Then on the far right, click on the icon “Submit supporting documents” and follow the prompts for easy submission of your documents

PS: Don’t forget to include the case number provided on the letter requesting supporting documents. This will ensure there are no delays in finalising your audit.

3. I owe SARS money but I cannot afford to make full payment immediately. Can I negotiate a payment plan with SARS so I avoid legal action from SARS?

You can make arrangements with SARS to pay off your debt over a reasonable period. We call this a deferred payment arrangement. You can request such a deferred payment plan by following the steps below:

a. Log onto www.sars.gov.za

b. In the search box type: “Owing SARS money”

c. This page will guide you on what to do if you want to apply for a deferred payment arrangement

Quick reminders:

If you have not yet submitted your personal Income tax return, do so as soon as possible using eFiling or our easy-to-use MobiApp in order to avoid incurring unnecessary penalties. You can download the SARS MobiApp from the Playstore on your smart device.

For small business owners:

1. Many small businesses face penalties for late submission of VAT and PAYE returns during the festive season. Avoid unnecessary penalties by ensuring that your business VAT returns, with relevant payment, are submitted before 25 December 2020. We recommend that you plan for this to be done before the responsible staff go on leave.

2. PAYE returns are due on 7 January 2021. Many small businesses reopen after this date and find themselves submitting these returns late and facing penalties that place pressure on the cash flow of the business. Avoid these penalties by submitting your PAYE returns before the responsible staff go on leave in December. It is better to be early and avoid penalties.

Enjoy the festive season and we will publish another update in the new year!