SARS Implemented Changes – 3 Reasons You Need to Rethink Submitting Your Annual Personal Income Tax Return Today
This year SARS has not only updated their e-filing platform but also made some other notable announcements. Today we’re looking at what this means for the individual taxpayer and if these changes are something to be worried about. Let’s dig in!
In June this year SARS announced that if you (that would be all personal income taxpayers) earn less than R500,000 a year there would be no need to submit a tax return. This limit was set at R350,000 previously. While this sounded like an announcement to celebrate to most, there are hidden implications that few have thought of when they started celebrating not having to submit returns to SARS anymore. Now it also needs to be said that there are conditions attached to this announcement and this was the first bit of crucial information that I saw neglected as people started sharing this announcement in great celebratory fashion on social media. I had a distinct “uh oh” moment when I saw the comments of course, with total disregards for the conditions accompanying this announcement!
3 Possible Implications
At the moment, there are five possible implications that could be highlighted as concerns. So, why would not submitting a return this year get you into hot water later or have you pulling your hair out?
#1 An unbroken record
If you have been submitting returns for the last few years, you are already in the routine of submitting your returns. So why not continue to do so? Yes, I know you hate dealing with SARS! To tell you the truth very few people find it enjoyable, do they? The thing is, up to date you’ve had an unbroken record, don’t you think it’s worth it to keep it that way? What will happen if SARS suddenly changes their minds…AGAIN? And now you have to suddenly run around, compiling docs because you slacked off with your filing… No, that’s not for me!
#2 Need a Tax Clearance Certificate?
You might need one you. Why? To borrow money! Should there ever be a need for you to borrow money of a long term nature i.e. a mortgage for a property, you will usually be requested to provide a TCC (Tax Clearance Certificate) which can only be obtained if ALL returns are submitted and up to date with no outstanding payments, penalties or interest of course.
#3 You won’t get your refund
I left the most meaningful one (to me and of course all sole proprietors like me) for last. If you have been bargaining on that refund cause you overpaid on tax you won’t receive one cent if you don’ submit that return.
I hope you found this blog informative! Remember if you have any concerns or specific queries please do contact your registered tax practitioner with your questions. Make sure you are informed. Everything isn’t as black and white as it seems. With SARS in any case!