Taxpayers may baulk at the idea of disclosing bank account details in their tax return, but the arguments for telling all are quite convincing.
Firstly, if you receive a tax refund, the money will be deposited into your bank account so you beat the vagaries of the postal service.
Secondly, the taxman already knows your details and is quite entitled to peek into your bank account without your permission.
The annual tax returns (IT12) are due on June 7.
In the first of a four-part series on you and your tax we looked at who is obliged to submit a return.In the remaining three articles we will look at the income you're obliged to declare and more importantly how to make the most of the available tax deductions.
In Part 1 (the administration stuff) you are not only asked for your personal particulars but also for those of your current spouse, if any.
This allows the taxman to check up on any income swopping. A richer spouse may be tempted to transfer income to the poorer spouse so that it is taxed at a lower rate, but there are strict provisions making this practice illegal.
Part 1 is where you sign your life away, by declaring the truth and accuracy of what is stated in your return. Remarkably enough (or perhaps not), each year the tax office receives thousands of unsigned tax returns.
Part 2 is where it all happens, where you record your gross income for the year. The basic rule is you pay tax on any income you earn here.
But, if you receive money from a foreign source, you will also be taxed on this income (example, interest on the overseas bank account you inherited from your great aunt). In some countries relief is offered through double taxation agreements.
But you are not taxed on any capital money you receive (for example, the profit on the sale of your home, provided you're not a property speculator).
Bear in mind that you don't actually have to receive the cash for it to be taxed; the rule is that if it's owing to you it is taxable. For example, you retire before the end of the tax year but receive your provident fund lump sum payout after the end of the tax year, February 29.
If you are married in community of property, filling out your tax return is more complex as each spouse legally owns (and so is taxed) half of the couple's assets.
If the couple receives investment income, including property rentals, each spouse is taxed on half the income, less expenses. But there is no sharing when it comes to trade income like business profits and salary and each spouse is taxed on their own income.
The first section of Part 2 of the tax return deals with remuneration and pension. Your salary details are recorded in your IRP 5 (the tax certificate you receive from your employer). Slot in your gross income figure (which includes taxable fringe benefits such as a travelling allowance).
If you were unemployed for part of the year, fill in that period in the space provided, because any missing months will attract a query from the tax office.
The taxman throws the tax net wide open for employees and obliges you to disclose any benefit or asset you received from your employer (example, the old computer you bought from your employer at a discount).
You are obliged to submit your IRP 5 with your tax return. No photocopies are allowed (if you've lost it apply for another one from your employer).
If you receive an annuity or pension, you are taxed on the income (there are a few exemptions on the pension side, for example a disability pension paid under the Workman's Compensation Act).
You should receive a tax certificate (IRP 5) from the retirement fund detailing the amounts to be included in your tax return.