/ 7 June 2006

It’s that taxing time of year again

Your tax return needs to be completed and handed to the South African Revenue Service (Sars) by Friday July 14.

This year Sars has launched an initiative that allows individuals and businesses to submit tax returns via the internet.

From June 1, you can log on to www.sarsefiling.co.za and complete your tax return online. But only those who receive an income that consists of a basic salary plus allowances can use the service and one must have received an IT12s or IT12ss income-tax return from the receiver.

Sars may require the submission of original documents and it will carry out checks on the data submitted to ensure it is accurate, including validations against electronic IRP5s submitted by employers.

It is important to retain all supporting documents for five years as these may be required by Sars for audit purposes.

If you submit your tax return electronically, Sars will issue its assessment electronically.

Personal details, such as a change of address or bank details, can also be updated online. With the e-filing system, Sars can offer improved turn-around time in the processing of assessments, which is great if you are owed money.

It also makes completing the paperwork easier for the taxpayer as a customised tax return is presented for completion thereby eliminating questions that are not relevant to the individual.

Calculators built into the system will determination travelling expenditure and capital gains tax will be automatically calculated from the taxpayer’s information.

Whether you are submitting your tax return electronically or filling in the hard copy, you need the following documents:

  • an IRP5 certificate from employer (if you have not already received one, you can report your employer to Sars);
  • a medical-aid statement;
  • a retirement annuity contribution certificate;
  • a IT3(b) form from your financial institution; and
  • all supporting documentation to substantiate claims.

Sars is encouraging taxpayers to submit their returns on time so that the assessment process can be completed as soon as possible. Last-minute submissions usually fall within peak periods, which could delay the processing time.

While encouraging taxpayers to submit on time, Sars is committed to its service charter, which you can hold the receiver to if you are dissatisfied with the way your affairs have been handled. The charter stipulates that Sars will:

  • process and assess 80% of correctly completed and signed income-tax returns within 90 working days during peak periods (July to February);
  • process and assess correctly completed and signed income tax returns within 34 working days from the date of receipt in off-peak periods (March to June);
  • pay refunds due to the taxpayer within 30 working days from the date of notification of the assessment outcome;
  • provide courteous, professional service at all times;
  • provide clear, accurate and helpful responses to enquiries; and
  • be accessible.
  • For more information on e-filing contact the dedicated call centre on 0860 709 709, which will be in operation from June 1