Advice for mom whose son gets paid via her account

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Cape Town - A taxpayer is seeking advice on how to file a tax return when her son's earnings are being paid into her bank account.

To help make the filing process as seamless as possible Fin24 has joined forces with the SA Institute of Tax Professionals (SAIT), to answer users' tax questions as far as possible.

User question: My 19-year-old son, a student, is getting paid by Google (Ireland) via my bank account. What would be the best way to approach this? I presume he needs to be registered as a tax payer and declare all this income on the IT12 via eFiling? I also suppose the normal threshold will apply, R70 700 for 2015.

Piet Nel, SA Institute of Tax Professionals responds:

The obligation to register as a taxpayer is to be determined mainly under section 66 of the Income Tax Act, read with the annual notice to submit returns. 

You are correct that, in terms of the notice relevant to the 2015 year of assessment, a natural person who, at the end of the year of assessment, was under the age of 65 and whose gross income didn’t exceed R70 700, does not have to furnish a return. 

If the taxable income of the individual concerned is also less than this amount, quite likely under the circumstances, no tax would be payable. 

* Have a question? Send it to us and we will find an expert to answer.

PLEASE NOTE: The important deadline dates in the 2015 tax season are:

September 30 2015: Manual/postal submissions
November 27 2015: At a SARS branch (non-provisional)
November 27 2015: eFiling (non-provisional)
January 29 2016: Provisional taxpayers via eFiling

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