Sars’s burdensome new field

2011-12-13 00:00

YOU might think you have ample time to submit your provisional tax return to the South African Revenue Service (SARS) but with its decision on December 2 to introduce new fields and the holiday season coming up, you could fall short.

Colin Wolfsohn, a member of SA Institute of Chartered Accountant’s (Saica) national and Southern Region tax committee said if you consider that electronic 2011 tax returns for all provisional taxpayers, individuals companies, close corporations (CCs) or trusts have to be in by January 31, seven weeks is really not a lot of time, especially considering the holiday season and the fact that you need to collect various tax certificates, including investment returns and schedules of medical expenses should you wish to claim back tax on these.

Further, he said companies, CCs, trusts and individuals that are provisional taxpayers also need to submit their IRP6 provisional returns on February 28, 2012. Companies, CCs and trusts will now have the added requirement of reflecting turnover as part of SARS’s modernisation process to try to gauge the reasonableness of taxes being paid and to aid SARS in its revenue-estimation process.

These taxpayers “need to prepare financial statements and estimate their turnover for the year ended February 2012, something that can be very difficult to do”, reckons Wolfsohn.

On this matter SARS’s head office has advised Saica, said Wolfsohn, that there won’t be any penalties if you are out with your turnover estimates but it is a lot more work for tax practitioners.

Penalties will, however, be payable if provisional taxpayers completing the IRP6 with taxable income over R1 million fail to estimate it to 80% of the actual taxable income figure or if they fail to make an estimate and/or make provisional payments in time.

For those using tax practitioners the employer monthly declaration (EMP201), return for payment of provisional tax (IRP6) and VAT vendor declaration (VAT201) returns have been updated to include fields for tax practitioners’ registration numbers and telephone numbers. These changes became effective to deal with practitioners who are not registered with SARS, said Wolfsohn.

Other deadlines that are coming up include:

• January 31, 2012, for Turnover Tax Return: TT03;

• February 28, 2012, for corporate tax returns with a February year end.

— Moneyweb.

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