Since 2020, SARS has made it easier for taxpayers to submit their annual tax returns by calculating their tax liability for the year of assessment and automatically issuing a tax assessment. SARS uses the data received from employers, medical schemes, banks, and investment funds to calculate your tax assessment.
Previously, if SARS issued you an auto-assessment and you are satisfied the tax calculation is correct, you were able to “accept” the assessment. Alternatively, you were able to “continue to edit” and submit your tax return.
This year, if you are issued an auto-assessment by SARS, and you are satisfied that the tax calculation is correct, no further action is required by you – there is no need to “accept” the tax assessment. If you are not satisfied with the assessment, you will have an opportunity to submit an income tax return with the additional information, within 40 business days from the date of the auto-assessment.
If you are auto-assessed by SARS, SARS will notify you via email or SMS to inform you that your auto-assessment is ready for you to view.
It is very important that you carefully review the auto-assessment to ensure everything is complete and correct. If it is complete and correct and a refund is due to you, you do not have to do anything. According to the updated SARS Service Charter, SARS will refund taxpayers within 72 hours. If it is complete and correct and an amount due to SARS, you will need to take note of the due date for the payment and follow the payment instructions on the statement of account. Failure to meet the due date could result in additional penalties and interest.
If you submit an income tax return to SARS within 40 business days and SARS does not accept your income tax return, SARS will let you know why not. If you disagree with SARS’ reasons you will be able to lodge an objection against the assessment of SARS.
You may ask SARS for an extension with reasonable grounds if you are unable to submit an income tax return within 40 business days. If the 40 business days have lapsed – prior to requesting an extension – you may request an extension within 21 business days after the expiry of the 40 business days, you will however need to submit reasonable grounds for the late request.
In exceptional circumstances, you can submit a corrected return within 3 years after the expiry of the 40 business days. In these circumstances, I would advise that you seek professional assistance from tax specialists such as AJM Tax.
SARS has indicated that your return will not be subject to verification if you have been auto assessed.
Do not delay the submission of your return, allow enough time to address any issues that may arise.
If you have any doubts rather seek professional advice.