Tax season is here. Maybe you’re not sure if you should submit your taxes with everything that’s going on, or maybe you received one of the auto-assessment SMSes from SARS and think you’ll just accept it because it’s less effort. Here’s 3 reasons you must do your taxes right this tax season – Scorpion Legal Protection explains:
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The auto-assessment from SARS may not be correct
Throughout August, SARS is assessing many taxpayers automatically. If you are auto-assessed, you will be notified via SMS. The SMS will direct you to eFiling on the SARS MobiApp to either “Accept” or “Edit” the return. If you accept the outcome, SARS says you do not have to complete a return because they would have done this for you. However, we would advise against just accepting the assessment without checking that it’s correct. There are things that SARS may not have calculated as part of your taxes like travel allowances, medical expenses paid from your own pocket, etc. and you could have problems later on (because SARS can come back at a later stage and say you owe them).
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You could miss out on a refund
You can only get a refund if you file a return. A refund is money you overpaid on your taxes that SARS owes back to you. Many things could trigger a refund from SARS, including things like your travel allowances, home office expenses, donations or other qualifying medical expenses that you may have had to pay over and above your medical contributions.
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SARS could give you an admin penalty if you don’t submit your taxes
Even if you think you meet all the criteria for not having to submit your taxes, tax can be complicated, and SARS could advise you later on that you’ve been non-compliant. If SARS finds that you are non-compliant, they can charge you an admin penalty for not submitting your taxes. The penalties range from R250 up to R17 000 a month for each month that your non-compliance (for not submitting your taxes) continues, up to a maximum of 35 months.
A benefit of having a Scorpion legal policy is access to the Scorpion Tax Helpdesk, which provides advice and assistance on personal income tax-related matters as a benefit that is part of our legal policies. To find out more, visit our website at www.scorpion.biz and chat to us using LiveChat or call 0861 333 333.
Tips
- Auto-assessments may be incorrect, you should check that your taxes are correct before accepting
- If you don’t file your taxes, you could become non-compliant and face penalties and interest.
If you have a query, follow us on Facebook and ask your question during our next Live Q&A (the first Thursday of every month).
* This is only basic advice and cannot be relied on solely. The information is correct at the time of being sent to publishing. Scorpion Legal Protection (RF) (Pty) Ltd is an Authorised Financial Services Provider FSP No 15960. Legal policies underwritten by Legal Expenses Insurance Southern Africa Ltd (LEZA).