#Your Tax Matters – tips from the South African Revenue Service
In the past month we had to deal with a lot of challenges. The recent social unrest as well as the third wave of the Covid-19 pandemic impacted SARS operations and as the country went to Lockdown Level 4, SARS branches once again had to be closed for physical walk-ins. However, while the branches re-opened on 16 August, taxpayers should note that eFiling and the SARS MobiApp offer safe, easy and convenient filing from wherever you are. Just remember, if you do need to come to a branch, you first need to make a booking for an appointment (see our website www.sars.gov.za for more on how to make a booking).
Individual Filing Season opened on 1 July and is now in full swing. This month we are looking at your payment options and what you can do if you realise that you have made a mistake when completing your personal income tax return. We also touch on the various options available if you do not agree with SARS and what to do if you get an Administrative Penalty.
If I submit and owe SARS, how do I pay?
Currently there are a number of options available to you if you want to make a payment to SARS:
eFiling credit push is a secure payment instruction functionality between SARS eFiling and the bank which puts the client in control when making a payment. An eFiling payment can be initiated by any eFiler, e.g. the taxpayer, tax practitioner, bookkeeper, representative, but this payment must be approved by the bank account holder. When making a payment to SARS, eFiling will send a payment request to the account holder’s bank, it will indicate the amount that needs to be approved and it provides a payment reference number. The bank account holder must log on to his/her bank product and authorise this request, which acts as an instruction to the bank to make the payment to SARS. eFiling payments are irrevocable and cannot be recalled or reversed. The following banks participate in eFiling payments: Absa, Bidvest Bank, Capitec Bank, Citibank, FNB, HSBC, Investec, Nedbank, Standard Bank, Standard Chartered, Mercantile Bank, AlBaraka, Sasfin and HBZ.
An eFiling payment can also be made via the SARS MobiApp from your Statement of Account or your Notice of Assessment (ITA34). The principle of making a payment to SARS is the same on both accounts, however, amounts may differ. When you make a payment from your Statement of Account (SOA), you may pay an amount determined by you to SARS, whereas you must pay the full amount due by you to SARS when making a payment from your Notice of Assessment (ITA34).
- Electronic Funds Transfer (EFT)
Payment may be made via the internet banking facilities by simply using the standard drop-down listing of pre-loaded beneficiary IDs provided by the bank. All SARS beneficiary IDs are prefixed with the naming convention “SARS- ”. All internet payments must be correctly referenced to ensure that SARS is able to identify your payment and correctly allocate it to your account. You will not be able to make a payment if your reference is incorrect. The following banks support this method: ABSA, AlBaraka, Access Bank (previously Grobank), Capitec, FNB, HSBC, Investec, JP Morgan, Mercantile Bank, Nedbank and Standard Bank.
You can make cash or EFT payments at branches of the following banks: Absa, FNB, Nedbank, Standard Bank and Capitec. Please quote the correct SARS beneficiary ID and payment reference number (PRN).
What happens if I realise that I made a mistake on my tax return?
Should you realise that you made an error when completing your return, the Request for Correction (RFC) process allows you to correct a previously submitted return/declaration, provided that no verification or audit was conducted on the same tax period. The RFC can be used by eFilers to request, complete and submit the correction. Note that only one RFC is allowed and if it has already been sent you will not be allowed another.
What if I don’t agree with SARS?
Where the taxpayer is aggrieved by an assessment or decision taken by SARS and where the grounds provided in the assessment do not sufficiently enable the taxpayer to understand the basis of the assessment and to formulate an objection, the taxpayer is entitled to request reasons, making use of the Request for Reasons functionality on eFiling.
If a taxpayer does not agree with the outcome of an audit/verification, they can dispute the outcome. The taxpayer may object, using the correct form and if they don’t agree with the outcome of an objection, they can appeal. As a taxpayer you have the right to lodge an appeal where your objection has been partially allowed or disallowed. The appeal must be lodged within 30 business days from the date the objection was disallowed or partially allowed.
More information on these processes, the channels available and the specific forms to be used in each case is available on the SARS website.
Administrative Penalties
An Administrative Penalty (Admin Penalty) is a penalty levied under Section 210 of the Tax Administration Act (TAA). The Act prescribes the various types of non-compliance which are subject to fixed administrative penalties. Currently the penalty is imposed on taxpayers who do not submit their tax returns as and when required.
An administrative non-compliance penalty is made up of fixed amount penalties as well as percentage based penalties. A non-compliance penalty levied depends on the type of non-compliance. Administrative penalties recur each month that the taxpayer is non-compliant, up to a maximum of 35 months. Each recurring penalty will have a unique transaction number.
It is advisable to submit the outstanding return whether you agree or disagree with the admin penalty to stop further admin penalties from being levied.
What if I don’t agree with the Admin Penalty levied?
The taxpayer can lodge Request for Remission (RFR) to SARS in writing on the specified form via eFiling or at a SARS branch and must include:
- A description of the circumstances which prevented the person from complying with the relevant obligation; and
- Supporting documentation and information as required by SARS.
What will happen if I don’t pay my Admin Penalty debt?
If the Admin Penalty is not paid, SARS will appoint an agent (such as your employer or the bank) to collect the money on its behalf.
- Source: South African Revenue Service
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