The South African Revenue Service (SARS) has released new tax filing guidelines for corporate and individual taxpayers for 2021 financial year and charged tax professionals in the country to enlighten taxpayers on the new requirements for timely compliance.
According to theTax Practitioner Connect, the electronic newsletter for South African tax practitioners published today, under the new guidelines for 2021 filing season, effective from July 1 this year more than three million taxpayers identified for auto-assessment will start receiving text messages indicating what they need to do to either accept or edit their auto-completed returns on eFiling by 23 November 2021.
According to the revenue agency, from July 1 to November 23, non-provisional taxpayers who were not auto-assessed can file digitally using eFiling or the SARS MobiApp while also during the period, Non-provisional taxpayers who were not auto-assessed and do not have access to digital services may be assisted at a branch by first making a booking.
Also, from July 1 to January 31, 2022, provisional taxpayers can file via eFiling or the SARS MobiApp, and Trust can file via eFiling
However, the SARS clarifies that an individual doesn’t not have to submit an Income Tax Return if She/he total salary for the year before tax (gross income) was not more than R500 000; She/he only received employment income for the full year of assessment (March 2020 to February 2021) from one employer; She/he has no car allowance/company car/ travel allowance or other income (e.g. interest or rental income); and She/he is not claiming tax related deductions (e.g. additional medical expenses that are not reflected on the medical certificate, retirement annuity contributions other than pension contributions made by your employer, travel).
The Service advises Trusts to ensure they adhere to the requirements of Filing Season for individuals by submitting their Income Tax returns between 1 July 2021 and 23 November 2021 via eFiling.
On the roles of tax practitioners in ensuring taxpayers’ compliance with the guidelines, the revenue authority urged them to remind taxpayers they represent of their responsibilities
It clarified: “Tax practitioners play an important role in compliance. While SARS respects the right of taxpayers to obtain professional tax advice, SARS would like to emphasize the need for integrity in the relationship between a tax professional and a taxpayer, as this relationship is of utmost importance for tax compliance.
“It is expected that tax practitioners, who are experts in this field, will clearly outline the tax laws and the obligations to the taxpayer; accurately and honestly assist taxpayers in the completion of their tax returns, and when appropriate, honestly and openly engage with SARS on behalf of taxpayers.
“With Filing Season around the corner, SARS would like to appeal to tax practitioners who complete and submit ITR12s on behalf of clients, to remind their clients that it remains the responsibility of a taxpayer to make an accurate declaration. Furthermore, taxpayers, in their personal capacity, remain responsible for all payments, outstanding returns and penalties raised by SARS”, the Service added.
While stressing that its recent efforts have made tax compliance easy with auto assessments, the SARS disclosed that as from July it will assess a significant number of individual non-provisional taxpayers by using the data received from employers and other third-party data providers.
This means that when SARS has received all third party data for a taxpayer, the data will be used to assess the taxpayer as well as provide the assessment result via an SMS.
On what taxpayers need to do when an auto assessment SMS is received, the Service advised that upon receiving the SMS, a taxpayer has to check the information on the return using eFiling or the SARS MobiApp. If deemed correct, the assessment should be accepted.
It added that should there be a need to edit any information on the pre-populated return, the edits can be done using eFiling or the SARS MobiApp.
“Failure to either accept or edit an auto-assessment during the period 1 July to 23 November 2021 will result in SARS raising an estimated assessment. This is a final assessment of the information about a taxpayer available to SARS. Should the taxpayer not agree, the dispute process will have to be followed”, the Service stressed.
