Days of not declaring investment income are numbered

2012-04-19 00:00

THE South African Revenue Service (SARS) is constantly striving to ensure the completeness and accuracy of information received in respect of annual income tax returns submitted by individuals and other entities.

Another step in this direction is the new requirement for reporting institutions to furnish biannual returns in respect of money invested and interest accrued to or in favour of any person from the reporting institutions.

This disclosure requirement is for the 2013 year of assessment.

The requirement was formalised in a notice in the Government Gazette on February 29, 2012.

All banks and financial institutions, companies listed on the JSE or organs of state that issue bonds, debentures or similar financial instruments will be required to submit these returns. The returns will cover the following periods:

• March 1, 2012, to August 31, 2012, to be submitted by October 31, 2012;

• March 1, 2012, to February 28, 2013, to be submitted by May 31, 2013.

These returns are required to be submitted electronically to SARS.

The following types of information needs to be disclosed on the return for natural persons: name and surname, address, identity/passport number, tax reference number, account number, date account was opened, closing balance at the end of the period, interest received or accrued, an indicator of account verification status in terms of Financial Intelligence Centre Act, 2001 (Fica).

Companies and trusts receiving investment income would have the same requirements as a natural person except that reference numbers issued by the Companies and Intellectual Property Commission (CIPC) for companies and close corporations and the master of the high court for trusts would be required.

It is expected that taxpayer’s income tax return on e-filing will then be pre-populated with the investment income accrued for the year of assessment.

Taxpayers would be required to check that the information reflected corresponds with the information (IT3[b] certificates) received from the financial institutions.

Based on the above, the days of not declaring investment income from reporting institutions on the tax returns are numbered.

Arising from the disclosure process, taxpayers who previously did not disclose or under-declared investment income may be have their prior years of assessment queried.

Alison WalneTax Consultant

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.