Submit your tax return even if you are exempt

David van Niekerk of Vantage Chartered Accountants advises

This year we saw SARS announce a dramatic increase in the income threshold for taxpayers not required to submit their personal tax returns. You may not need to submit your tax return, but here are some reasons it would be best for you to submit it anyway:

  • Applying for finance often requires you submit your latest tax assessment or income tax return, so not having these readily available can cause trouble.

  • You may well be missing out on a tax refund, since SARS is unaware of a deduction you could have claimed in your return (a great example here is donating to an approved public benefit organisation, but not deducting this donation for tax purposes).

  • SARS won’t be able to delay future refunds due to you by deciding you should have submitted a tax return in a previous year. We’ve seen this happen often, sometimes going back many years.

  • You won’t be able to obtain a tax clearance certificate if needed, and will need to remedy all non-compliance before getting this for important transactions that might need one (foreign investment, buying or selling a property, BEE verification, most trade with a government department).

  • You’ll not be left wondering whether there’s anything outstanding at SARS, and can relax in the certainty that you are compliant and owe nothing.

David Van Niekerk CA(SA), RA Partner, Vantage Chartered Accountants (SA) & Registered Auditors 021 715 3333