The South African Revenue Service (SARS) has introduced a new alert system for this year's tax filing season
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The South African Revenue Service (SARS) has introduced a new alert system for this year's tax filing season.
This is according to Nico Theron, founder of Unicus Tax Specialists SA, who said the new declaration alert questionnaire is designed to help taxpayers identify and resolve potential issues before filing their tax returns.
Theron said taxpayers will likely receive the alert before submitting their returns, warning them that certain information may be incorrect, incomplete or missing.
“Remember, SARS knows almost everything about you,” he said. “It will serve as a warning about the wealth of third-party data available to SARS and what needs to be be declared and how to declare it correctly.”
“This is a great idea, and we will have to wait and see whether it contributes constructively to the eFiling process or creates unnecessary delays and results in incorrect assessments.”
He warned that taxpayers who ignore the alert could face problems later if their returns contain errors or omissions.
“This is not advisable. If you choose to ignore it and there are errors in the return, it is highly likely that you will receive an assessment that you disagree with.”
Theron added that he suspects the revenue service will not be “too forgiving” of taxpayers who ignore the alert and submit incorrect or incomplete returns.
“Once a taxpayer receives the alert, it is advisable to get help in understanding what must be done to get it right the first time.
“Ignoring or misunderstanding the questionnaire could result in unnecessary complications, including lengthy disputes with SARS.”
He also urged taxpayers to review information submitted to SARS by third-party data providers, such as medical aid schemes and retirement funds, as these records may sometimes contain errors.
He added: “People who are most likely to receive a declaration alert questionnaire are high-net-worth individuals and taxpayers with multiple income streams.”
“It is important to pay careful attention to the questionnaire and make sure that your return is accurate.
“Receiving a declaration alert does not automatically mean that something is wrong. However, taxpayers should take the alert seriously, review the information carefully and seek professional guidance if they are uncertain how to respond. Addressing potential issues before submission is generally far simpler than resolving a dispute after an assessment has been issued.”
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