SARS Automatic Assessments for Individual Taxpayers

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In line with SARS’ new “auto-assessment” process, SARS will be issuing assessments automatically to some taxpayers without submission of a tax return.

Auto assessments will be based on data received from employers and third-party data providers (e.g. medical schemes and financial institutions) – if you have not received your IRP5/IT3(a) or any other tax certificates for the 2020 tax year, you should contact your employer, medical scheme, RAF or other financial institutions.

In August 2020 SARS will automatically assess a number of taxpayers – if you have been selected for auto-assessment, SARS will send you an SMS. You can either accept the assessment (if accepted you do not have to submit a tax return at all) OR make changes to your tax return from 1 September 2020 via efiling.

Taxpayers would need to scrutinise their tax returns to ensure that the correct information is reflected – especially that certain tax deductions are not missed as you could be paying too much tax:

  • Donations to qualifying Public Benefit Organisations (Section 18A certificates required)
  • Travel allowance claim with substantiating logbook
  • Medical expenses not covered by the medical aid/extra medical expenses never submitted to the medical aid
  • Other qualifying tax deductions – where applicable (i.e. home office expenses or expenses relating to commission income earned)

SARS would also not have any data relating to possible Trust distributions and Capital Gains Tax for the 2020 tax year.

NB!
It is important that the auto-assessment is reviewed before accepting as the onus is on you as the taxpayer to ensure that this assessment is 100% accurate. And you do not want to pay too much tax.

Please advise me if you receive any communication from SARS directly to assist you with this new process and to ensure your 2020 affairs have been correctly assessed.

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