New penalty rule for late submissions
Non-compliance is going to cost you. That’s the be-all and end-all from SARS going forward. With effect from 01 December 2021, SARS will issue late submission penalties where one or more personal income tax returns are outstanding. Previously taxpayers were subject to penalties only if their returns were outstanding for 2 tax years, and as a transitional measure for the first year, the one-tax-return-or-more rule will apply only to the 2021 tax return. The old rule will remain in place for one more year and apply only to 2020 and earlier tax returns.
In other words: SARS will issue late penalties from 01 December 2021, so please make sure you file your tax return before the 23 November deadline. Our team will be working around the clock to assist our clients in meeting the deadline. Please contact our Tax Team if you need any advice or have any questions: email@example.com
Did you receive an auto-assessment from SARS during the month of July, with a request from them either to accept or edit the simulated assessment via eFiling, which would have been followed up by an original assessment issued by SARS? Please contact us ASAP if you accepted or requested an edit and have not received your original assessment.
No response by deadline
Taxpayers who formed part of the SARS auto-assessment system who did not accept or edit and submit a simulated assessment by the 23 November deadline, will now receive an original assessment based on an estimate by SARS (in accordance with the Tax Act). Taxpayers will not be permitted to object to or appeal these assessments. However, if you do not agree with the assessment, you will be given 40 business days to file a ‘complete and accurate tax return. Unfortunately, this return will be considered a late submission and therefore subject to penalties and interest.
It is important to note that if you have already submitted your 2021 tax return and have received your assessment from SARS, then you are 100% compliant. These updates in the tax submission process will apply to any future tax returns.
Disability Expenditure List
An important notice from SARS was issued recently that applies to taxpayers who have children living with a disability attending a private special education needs school. SARS has revised the 2012 Disability Expenditure List, and will allow taxpayers to claim the amended benefit as outlined in the revised 2020 Disability List with immediate effect.
For clients who have already lodged their tax return or are unsure of how to proceed, please contact our Tax Department and we will gladly assist. Our team is able to answer any questions you may have or assist you in logging a Request for Correction (RFQ) or an objection.