Avoid procrastinating this tax filing season
With the tax-filing season opening on 1 July, the South African Institute of Professional Accountants (SAIPA) is advising taxpayers to file their taxes as soon as possible, and to approach the process methodically.
"Taxes have to be paid. It is effort well spent to get the submission right and on time," says Ettiene Retief, chairperson of the National Tax and SARS Stakeholders Committees at SAIPA.
SAIPA says by following these tips, taxpayers can streamline their efforts and avoid unnecessary stress.
Confirm accuracy of documentation
Most of one's income is now recorded on tax certificates issued by employers, banks or investment houses. Salary payments, deductions and benefits are found on the IRP5 issued by the employer, while any other income earned (such as interest and dividends) is reflected on various ITC3 certificates.
It is important to ensure that your sensitive information, such as contact and banking details, are correct. Make sure they are current-especially if you are expecting a refund.
Compare
Use the previous year's return as a guide, as this comparison will alert you to changes and even omissions.
Allocation of expenses
Apportion expenses accurately. If any expense has a dual purpose, only that portion used for business can be claimed. Thus, a self-employed person cannot simply claim all phone costs as a business expense-only the proportion used for business can be claimed.
Keep your vehicle logbook up to date. This is essential if you receive a travel allowance or make use of a company car.
A logbook must be kept, containing the necessary information regarding business travels, which includes at least: date, destination, reason for travel and kilometres travelled (including start and finish odometer readings).
Keep paperwork - ask for help
Paperwork for your tax return should be kept together in case SARS calls for any of it. Scanning and storing it as a matter of routine is highly recommended, as it needs to be retained for a minimum of five years.
If all else fails consult an expert if your matter is complex or you have a dispute. Don't just submit a return if you are uncertain about something or file an objection if you have a dispute without the required grounds or knowing the procedural rules, Retief advises.
Tax filing closes for postal submissions on 23 September and 25 September for manual submissions delivered to a SARS office. The deadline for e-filing is 25 November and for provisional tax on 31 January 2017.