File them immediately or you will likely suffer penalties.
Every year, SARS announces its tax season – a period during which you are required to submit your annual income tax return. This year, it opened for individuals on the 1st of July and they have until the 27th of November to file their tax returns.
Who should file?
SARS says that if your total salary between 1 March 2016 and 29 February 2017 is not more than R350 000, you need not file. Provided, however, that you only have one employer. If you have two employers or two income sources e.g. rental income, late spouse income, you will need to file — even if the total is still under R350 000.
Notwithstanding this SARS recommendation, some tax practitioners strongly recommend that you file anyway.
Tax practitioner, Wiaan Pieters, told HuffPost SA: “Rather submit your tax returns, even if you earn way less than R350 000. You never know if you are in breach of a SARS condition and if you are unsure, just submit. Better safe than sorry.”
That’s because “tax can be simple until there’s a complication,” added Jacque Sourie, Director at FMJ Financial Services.
And if I haven’t filed, what happens?
If you don’t submit your tax returns at all, or on time, you may be liable for penalties. “And they will just get bigger and bigger the more you delay,” cautions Pieters.
How much are the penalties?
In Sourie’s experience, most penalties are in the range of R250 to R2 000 per month per return. However, it can reach R16 000 per month if you earn in the millions per annum, he says. The penalty can be applicable for each month a return is outstanding.
So what can I do?
Sourie advises that one speaks to a tax practitioner immediately.
“Or speak to SARS because you can make an arrangement to pay,” adds tax practitioner at Smart Tax, Michelle Kruger.
Unfortunately, points out Sourie, “SARS most likely won’t remove your penalty where a return should have been submitted and wasn’t submitted on time.”
Further, “have all your supporting documents ready, and please submit as honestly as possible,” advises Kruger. Otherwise, you may risk further penalties.
It is also worth noting that SARS not only charges a penalty for non-submission or late submission of your income tax return, but there are also penalties if you have failed to register as a taxpayer when you should have.
And if you just completely ignore this?
“It’s a huge error,” said Pieters. SARS can appoint an agent such as your bank and instruct them to deduct whatever is owed to them. They can also obtain an order of the court and ask an employer to deduct a certain amount from the taxpayer’s salary until all the penalties are paid.
If you need assistance, you can call the SARS Contact Centre on 0800 00 7277 or visit your nearest SARS branch. You can also seek the services of a registered tax practitioner.
Feel free to contact me for further information on 081 270 5802.