SARS has announced that in August, they will assess a significant number of taxpayers automatically. If you accept the outcome, you do not have to complete a return because SARS would have done that for you.
If you are auto assessed, you will be notified per SMS in August. The SMS will direct you to eFiling or the SARS MobiApp to either “Accept” or “Edit” the return.
Some taxpayers may receive communication prior to 1 August 2020 indicating why they will not be auto assessed or alerting them to their 2019 return submission findings. This will assist the taxpayer to submit their outstanding returns.
Please adhere to the communication and submit any outstanding returns as soon as possible, to avoid delays in filing your 2020 return, and to ensure a seamless experience this year.
For SARS to be able to reimburse refunds we cannot emphasise that it is vital for taxpayers to update and verify your personal information and banking details.
The auto-assessment will be based on the available third-party information from employers, banks and financial services companies, which administer retirement fund and pension schemes, Medical Savings and Insurance Schemes, that submit the relevant tax certificates.
However, even if you have a single IRP5, but you may receive a car allowance or wish to claim other deductions not reflected on your IRP5, such as retirement annuities, medical aid etc, it is strongly recommended that you submit your tax return as per normal. Should you receive more than one IRP5 or have other income such as taxable interest, capital gains, rental income etc, it is recommended that you do a normal 2020 tax submission, even if for some reason SARS performs an auto assessment on your behalf.
It is very important to note that if you accept an auto-assessment and SARS later finds out that you have underdeclared other earnings of which it was unaware of, you will be liable for potential interest and penalties. Accordingly, you should only accept SARS auto-assessment if you are fully satisfied that such auto-assessment is a true reflection of your tax affairs for the period 1 March 2019, to 29 February 2020.
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