The South African tax season ends on October 21, so taxpayers should ensure that they file their tax returns or they could face penalty of up to R16,000 a month for non-compliance.
Robyn Gilbert, Individual Tax Team Manager at Tax Consulting SA said that the South African Revenue Service (Sars) will impose a monthly penalty for failure to file.
“The penalty varies, is based on a taxpayer’s taxable income. This means that the longer you wait to file, the more you may owe. The penalties start at R250 and go up to R16,000 a month,” Gilbert said.
Taxpayers are urged to submit their tax returns by the October 21 deadline, as Sars does not provide extensions, so timely submission is crucial to avoid penalties.
“Collect all necessary documents, such as your IRP5s, bank statements, and any other relevant income or expense records for Sars in the event of a verification.”
“If you are unsure about your tax situation, it may be beneficial to consult a tax professional for assistance.”
In terms of measures by Sars to help taxpayers file their returns before the deadline, Gilbert said that the Sars eFiling platform is designed to be intuitive and accessible, making it easier for taxpayers to submit their returns online.
“Sars offers a variety of guides and resources on their website to help individual taxpayers navigate the submission process,” Gilbert said.
Many SA taxpayers do not file their tax returns because they are under the impression that they do not need file a tax return.
Gilbert said: “Many taxpayers mistakenly believe that they are not required to submit a tax return. This is one of the most common misconceptions and can lead to non-compliance.
“Some individuals may not be fully informed about tax deadlines, resulting in missed submissions.”
Another factor is that the tax filing process can be overwhelming or intimidating, especially when taxpayers are unsure how to navigate it, which can discourage them from completing their returns.
According to Gilbert, they advise all taxpayers to submit their annual returns as this is the best means of ensuring their affairs are in order and mitigate risk of being penalised by Sars.
Gilbert said that in respect of Sars, they do have their own interpretation and offer a guide questionnaire for taxpayers.
After a person completes this questionnaire, they will get a recommendation from Sars as to whether they should submit an annual return.
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