The South African Revenue Services (SARS) has indicated that a large number of taxpayers will be auto assessed during the 2020 filing season.
What this mean for you:
SARS will indicate to you via sms or correspondence via efiling whether you have been selected for auto assessment. From the 1st of August 2020, SARS will start issuing auto assessment.
Auto assessments will be based on information SARS has received from employers, financial institutions and 3rd parties. SARS will compile your tax return from this information and will assess you thereon. You as the taxpayer will have the opportunity to accept or reject the auto assessment.
What you will need
As you would do for previous filing seasons you need to obtain copies of all your IPR5’s issued by an employer, obtain all income tax certificates from financial institutions, and all relevant medical tax certificates.
What do you need to do
Once you have been notified that your auto assessment has been issued you will have an opportunity to accept the assessment. If you are not sure I would suggest consulting a registered tax practitioner. If you do not agree with the auto assessment you will be able to submit your own amended return from 1 September 2020.
If there is a refund due to you it will be processed as per normal and if there is an amount owing by you, you will be able to pay the amount through normal channels like online banking, over the counter at your local bank.
The unfortunate consequence of accepting the auto assessment and not declaring all your income is that you could face additional tax with penalties and interest when SARS discovers this.
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