Personal Finance will over the next few weeks be publishing details of the most common problems being experienced by taxpayers in filing their tax returns for this year.
This week, Personal Finance, with the co-operation of the South African Revenue Service (SARS), lists avoidable errors that have been made by some of the more than one million taxpayers who have already submitted their returns to SARS:
- Submission of documents. This year, you must not submit any supporting documents with your returns. You must, however, keep the documents for five years.
- Proper completion. You must complete all relevant sections of the form before you submit it. Some sections may be pre-populated (already filled in) by SARS for you. You should only complete the pre-populated sections if the information provided is incorrect or incomplete.
- Banking details. Ensure that your banking details are correct. If SARS does not have your banking details, you must provide these because, from this year, refunds will be paid only into a valid bank account.
- Local interest income. You will find this information on the IT3(b) certificate you receive from your bank or other financial institutions. If you have more than one IT3(b) certificate (that is, you have received interest from more than one source), add all the interest received and enter it as a single amount. Do not fill in the cents of the amount. Round off the amount to the nearest rand.
- Enter amounts only once. Remember that details of each IRP5/IT3(a) certificate must be entered once only. Space has been provided for details from three different certificates. If you have more than three certificates, you have the incorrect tax return. You need to complete an IT12C return, which is available from www.sarsefiling.co.za under the link "Returns".
- Medical scheme deductions. Record only the rands and not the cents.
- Retirement fund contributions. Pension fund contributions are recorded on your IRP5 certificate, which you should have received from your employer. Retirement annuity (RA) fund contributions are recorded by your RA fund on an IT3, which is normally one of the life assurance companies.
- Sign your return before submitting it to SARS.
- Travel allowance claims. Remember to calculate and record the kilometres travelled, even if you are using the deemed method of claiming.
Note: To ensure your assessment is speedily processed, you can opt to use the eFiling system, an electronic version of the tax form SARS mailed to you.
You first need to download the Adobe 8.1 program from www.sarsefiling.co.za to eFile your return. This return can be completed, signed and posted to SARS or submitted electronically.
SARS deadlines
- If you prefer to use pen and paper, you have until October 31 to submit your tax return.
- If you opt to use the eFiling system, you can submit your return by January 31, 2008 without receiving a penalty for late submission. You should also receive a refund within days of submitting your return.
- You have until February 29, 2008 to pay any outstanding tax you owe once you have been assessed.