Understanding Sars auto-assessments: Key steps to take

Understanding Sars auto-assessments: Key steps to take

By: Lambert Roberts

Sars will be issuing auto-assessments to taxpayers with straightforward tax affairs. This initiative is designed to simplify the tax season and boost overall tax compliance in South Africa. However, it’s essential for taxpayers to handle the process correctly to avoid any complications. Here’s what you need to know and do when you receive your auto-assessment notice:

Navigating Your Auto-Assessment: A Step-by-Step Guide

1. Access Your Assessment:

Upon receiving your auto-assessment notice, log into your eFiling account or the Sars MobiApp. This allows you to view your assessment and see the data Sars used to calculate it.

2. Review the Details:

Thoroughly examine all the information in your assessment. This step is crucial to ensure that your tax affairs are accurately reflected. Pay close attention to your banking details to avoid any delays or fraudulent activities.

3. If You Agree with the Assessment:

Refund Due: If your assessment shows a refund is due, you don’t need to take further action. Simply log out and wait for the refund, which should be processed within approximately 72 hours, provided your banking details with Sars are current.

Owe Sars: If your assessment indicates that you owe Sars, make the payment via eFiling or the Sars MobiApp by the payment due date specified on your “Notice of Assessment” (ITA34).

4. If You Disagree with the Assessment:

• Access your tax return through eFiling or the Sars MobiApp.

• Complete and file the return with the correct information by the due date for non-provisional taxpayers, which is October 21, 2024.

If your auto-assessment was issued after October 21, 2024, file within 40 business days from the notice of assessment.

When to Seek Professional Assistance

While auto-assessments aim to simplify the tax process, complications can still arise. Errors in preloaded information, overlooked deductions, or misreported income can lead to discrepancies. Additionally, the security of your eFiling profile is paramount, as it can be compromised even if you have done nothing wrong.

Here are situations where engaging a professional tax firm can be invaluable:

• a Security Assurance: Ensure the security of your eFiling profile, protecting it from potential hacks and unauthorized access. Where you are in the high-risk category, such as a high net worth individual, have elderly parents with wealth, or a foreigner in South Africa or South African working abroad with continued tax payable in South Africa; this is highly recommended.

• Compliance Management: Stay compliant with various Sars notices and address important items promptly.

• Comprehensive Reviews: Conduct thorough reviews of your auto-assessment to identify any discrepancies or errors.

• Timely Responses: Respond timely to important Sars notifications, avoiding penalties and interest.

• Maximizing Deductions and Exemptions: Claim all amounts to reduce your taxes, claiming Double Tax Treaty relief and other more complex available reliefs to minimizing your tax liability or maximizing your refund.

• Proactive Tax Planning: Stay ahead with tax planning and compliance, ensuring no critical items are missed.

By staying informed and taking the necessary steps, you can ensure a smooth and stress-free tax season.

* Roberts is the expatriate tax team manager at Tax Consulting SA.

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