It is that time of the year again… the dreaded tax season. Do you submit a return or don’t you?
The introduction of auto-assessments has answered that question. But now that SARS is auto-assessing, is your responsibility as a taxpayer done? The answer is a resounding No.
When is an Auto-Assessment Correct?
For a salary earner with one IRP5, a medical aid, and absolutely nothing on the side, the auto-assessment will mostly be correct. For everyone else, the auto-assessment is merely a starting point, not the final answer.
10 Critical Gaps SARS Frequently Misses
The auto-assessment is built purely from what third parties report to SARS. The most common missing pieces include:
- Rental income from property investments
- Side-hustle earnings and casual income
- Sole proprietor business income
- Home office expenses for remote workers
- Travel claims and logbook deductions
- Crypto disposals and digital asset trading
- Foreign income earned abroad
- Retirement Annuity (RA) top-ups paid outside of your standard payroll
- Section 18A donations to registered charities
- Out-of-pocket medical expenses not cleared by your medical aid
The Cost of Pressing “Accept”
If you press “Accept” and any of these gaps apply to you, your assessment is legally wrong.
- Massive Shortfalls: Understatement penalties can reach up to 200% of the shortfall, plus interest.
- Delayed Audits: SARS will not chase you next week. They typically audit two to three years later, long after you have forgotten the tax year existed.
- Legal Liability: The legal responsibility for the accuracy of the return rests entirely with you, not with SARS—even if SARS issued the assessment.
Act Now to Protect Your Finances
Reviewing your auto-assessment is not optional. It is a critical financial shield that can save you thousands of Rands in penalties.
Contact Consulting Cave today. Let us review your auto-assessment, put your mind at ease, and stop that future penalty letter before it is ever written.