With South African tax season officially opening on Friday 7 July, certain taxpayers will have already received notifications via SMS or email that a SARS auto assessment was automatically generated on their behalf. SARS auto assessment notifications started going out from Friday 30 June, and will run until Thursday 6 July, ahead of the start tax season.
ALSO READ: 7 things you need to know to file your tax return with ease
If you receives one, the closing date is the same as tax season – 23 October 2023. Only certain taxpayers are eligible for the SARS auto assessment, and it’s one of the ways South African tax authorities says this season will be made “easier than ever before,” thanks to improved technology.
I RECEIVED A SARS AUTO ASSESSMENT. NOW WHAT?
The experts at Taxtim warn, however, that you DO NOT have to accept a SARS auto assessment simply because you received one. Accepting it for convenience sake could negatively impact your chance of receiving a tax refund and if the information contained therein is incorrect, you could even face a hefty penalty.
WHAT SHOULD I LOOK FOR ON THE AUTO ASSESSMENT?
SARS auto assessments are generated automatically when the tax authority believes no additional input from the taxpayer is required. The assessments are based on data from your employer, medical scheme, financial institution and any third-party data providers.
Because of this, you MUST check the SARS auto assessment carefully before accepting or rejecting it. No one knows your tax situation better than you, and due to the assessment being automatically generated, there is every chance it could be inaccurate.
KEEP YOUR TAX AFFAIRS IN ORDER
Everyone’s tax affairs are different, and Taxtim offers a useful auto assessment decision tree to help you through the process, click on it HERE for advice. Your SARS auto assessment may be missing tax certificates or not have your most up-to-date information included.
FAQ: Tips to submit your 2023 SARS tax return
If you plan to include deductions like travel claims, a home office, donations to charities, travel expenses and medical expenses you will have to input them yourself. You could end up paying more tax than is necessary and not receiving the full refund you’re due.
REJECT THE SARS AUTO ASSESSMENT
If you’ve carefully gone through the SARS auto assessment and believe it is inaccurate, or missing important deductions, simply click ‘reject’ and submit your tax return as you would normally do via eFiling or the SARS MobiApp. Like all taxpayers, you have until 23 October 2023 to file your return.
INCORRECT AUTO ASSESSMENTS COULD LEAD TO FINES
If you accept a SARS auto assessment that is incorrect, you will not be exempt from penalties or legal action. It is your responsibility and yours alone to ensure you report all income and expenses accurately to SARS.
As with any income tax inaccuracies, SARS can levy a penalty of up to 200% of the tax payable plus interest and you will be audited to verify any discrepancies.
HOW ELSE CAN I SUBMIT MY INCOME TAX RETURN?
If you have not received notification of a SARS auto assessment, make sure you’re registered at www.sarsefiling.co.za and complete your tax return accordingly on the website.
You can also contact a SARS branch directly where an agent will assist you to make an appointment before visiting a branch. Insure you bring along all your supporting documents.
ALSO READ: 6 things to look for on your 2023 SARS auto assessment
Call the SARS Contact Centre on 0800 00 7277 (SARS), the centre is open between 08h00-17h00 (excluding weekends and public holidays). Only registered tax users can make an appointment with a representative. Make an appointment HERE.
Alternatively, you can SMS 47277 (iSARS) with this information and format: Booking (Space) ID number/Passport number. The SMS service is only available to taxpayers/registered representatives.
This article is for informational purposes only and should not be construed as financial, tax or legal advice. For further details consult the SARS website or get in touch with a tax specialist.
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