We will do your assessment for you. This is the new slogan for the South African Revenue Service (SARS’) – A DANGEROUS SLOGAN. How safe are we from the jaws of the lion if we give SARS consultants such power with our Income returns? What if they make a mistake and you end up on the wrong side of the fence where you as an individual you owe them? As we all know there is no running away from that side. 

It’s Income Tax Season and for most people who are just getting their foot into the door when it comes to dealing with filing for taxes, the Income Tax Season (manual filing) runs from 31st August – 30th November and for eFiling, it runs from 1st July – 31st January. Hence the text messages most tax payers will be receiving during this period.

SARS has decided to do auto assessments starting this year 2020. You can find more information on SARS’ auto assessments on their site. If you need assistance on understanding how to file for taxes, do not hesitate to CONTACT US.

Do you seriously think SARS would want to pay you out after the billions they’ve lost? “They want to entangle you into making a mistake so they can capitalize on that and penalize you.” Do not take our word for it, you can do some findings in order to confirm this.

This means they are submitting your tax returns on your behalf without supporting documents, and we all know that’s not possible considering employers have to provide these documents for you to submit. It will be a bad idea to allow SARS to do an auto assessment on your behalf because it won’t be in your favor. They claim to do auto assessment without supporting documents at this time and you can later on provide these documents. They promise any rectifications be done when you finally bring your documents to submit should there be any errors in the current auto assessment. And if any mistake was made in their favor, it will be a tough nut to crack to let them have it changed for you to get any benefits. So when you see the text messages bearing figures such as “-R11 987.00 refund due to you,” try and “unsee” that money and become blind, don’t accept their auto assessment. 

Rather wait till 1st September 2020, then do a proper submission with your IRP5 and supporting documentation on hand. 

For additional information, SARS has announced a new COVID-19 relief package for individuals. You can claim some expenses you incurred while you were sitting at home. 

 “Where we have the required information, we will provide you with a proposed assessment without the need to file a tax return. This enables you to view, accept, or edit your proposed assessment from the comfort of your home or place of work using e-Filing or SARS Mobi App or Call SARS call center 0800007277.”

In August, SARS will assess a significant number of taxpayers automatically. If you accept the outcome, you do not have to complete a return because they would have done that for you.

“If you are auto-assessed, you will be notified by SMS in August – so there will be no need for you to call us or visit a branch. The SMS will direct you to e-Filing or the SARS MobiApp to either “Accept” or “Edit” the return or Call SARS call center 0800007277.” – says SARS

Some taxpayers may receive communication before 1st August 2020 indicating why they will not be auto assessed or alerting them to their 2019 return submission findings. This will assist them to submit the outstanding returns. 

SARS will auto-assess based on the data they received from employers, financial institutions, medical schemes, retirement annuity fund administrators, and other 3rd party data providers.

If you accept the results of your auto-assessment and if there is a refund due to you, the refund will be paid by SARS.

If you owe SARS money, you can make a payment on e-Filing, via EFT or the SARS MobiApp by the specified due date on your Notice of Assessment; so says SARS.

FOR THOSE THAT DIDN’T GET THE AUTO ASSESS NOTIFICATION; 

THESE ARE THE STEPS YOU WILL TAKE: 

  • 1 September – 16 November: Taxpayers who file online via eFiling or the SARS MobiApp
  • 1 September – 22 October: Taxpayers who cannot file electronically can file at selected SARS branches by appointment only.
  • 1 September – 29 January 2021: Provisional taxpayers who file via e-Filing.

Contact Us if you need assistance with any of the above steps.

QUESTIONS YOU MAY HAVE REGARDING THE INCOME TAX RETURNS AND AUTO ASSESSMENT

​NoQuestion & Answer​​
1​​
Question – I’ve received this SMS from SARS, what should I do?
SMS: Tax Ref: ******9201. Your 2020 Year of Assessment tax calculated results is -R0.89, based on the information at SARS disposal. You can accept or edit your return through the SARS digital channels. Failure to do so may result in SARS raising an estimate assessment. For more info, visit the SARS website  

Answer – Go to www.sars.gov.za, click on the e-Filing login and follow the easy steps below to accept or edit your Auto-assessment or Call SARS call center 0800007277.
​2

Question – After receiving the Auto-Assessment SMS from SARS, when I log into e-Filing, what do I do?

Answer – Click on the left menu on “Return Issued”, then “Personal Income Tax (ITR12)”, then on the top right, click on “Request Return” for the year 2020. A pop-up message will be displayed informing you of the auto assessment results. Click “Continue” to view the results and summary of the underlying data used for the auto assessment.
​3​
Question – On my Auto-Assessment screen, I have a source code 4029 with the description Retirement Fund. I don’t have a Retirement Fund, why is it displayed?

Answer – The source code 4029 with the description Retirement Fund takes into account contributions for (i.e. Retirement Annuity Fund/Pension Fund/Provident Fund). So, if you have a Pension fund, and not a Retirement Annuity Fund for example, it’s the correct code.
​4​

​Question – On my IRP5 my pension contribution shows R375 000, but on the Auto-Assessment, it shows R350 000. Why is there a difference in the amounts?

Answer – Retirement Fund contributions are capped at R350 000, so even if your contribution was more, it will remain R350 000 on the Auto-Assessment.
​5​
Question – ​I don’t see my Medical Deductions on the Auto assessment?

Answer – Medical aid contributions and additional medical aid expenses are included on Rebate under Tax Calculated.
​6​

Question –If I agree with Auto-assessment, what should I do?

Answer – If you agree with the details of the auto assessment; click the Accept button. A confirmation message will be displayed, click on Confirm to complete the auto assessment process. If you accept the proposed auto assessment results, SARS will automatically submit a tax return on your behalf and issue a notice of assessment (ITA34). To access the ITA34, click on the “View Assessment” tab on the e-Filing Menu or Call SARS call center 0800007277.
​7​

Question – What if I disagree with the auto assessment results or the information used by SARS?

Answer – Click on the “Edit Return” button to amend the return. SARS will provide you with a pre-populated return that you can edit and submit. Once you are satisfied with the information declared, click on the “submit” button. SARS will process the return and issue the Notice of Assessment.