SARS implements changes that will make filing tax returns simpler

SARS has implemented changes to its auto-assessment rules for 2022. The changes were made in an attempt to allow the process of filing income tax returns simpler for taxpayers.

What are the new changes for SARS?

The new changes will see SARS sending out an original estimated assessment to taxpayers for them to evaluate. The statement will be composed using data extracted from third parties such as banks and medical aids.

Once this has been received, and as a taxpayer you are happy, then you won’t have to do anything. Moreover, if you are entitled to a refund, it should be paid within 72 hours of the assessment being issued.

Taxpayers have the right to review the estimate

Taxpayers can then review the estimated statement and determine whether or not they are pleased with it. Moreover, if a refund is owed to a taxpayer the funds will be paid within 72 hours of the assessment being submitted.

In the event that a person feels the statement is unsatisfactory and is in need of additional information, a tax return will need to be submitted within 40 business days. The same process will need to be followed if a person feels that the estimated statement contains an error.

If a person wishes to correct the statement but is unable to submit a tax return within 40 days, an extension will need to be applied for before the end of the 40 days.

A new deadline for provisional taxpayers has been set

The new deadline for provisional taxpayers to file their returns is 23 January 2023. For non-provisional taxpayers that are not auto-assessed the deadline is 24 October 2022, reports EWN.

SARS victorious in Capitec legal battle – wins over R71m

In other news about SARS, it was previously reported that a long-running legal battle between the South African Revenue Service (SARS) and Capitec Bank has come to an end.

SARS came out victorious with the Supreme Court of Appeal (SCA) certifying its appeal against a judgement that Acting Judge Frederick Sievers handed down at the Cape Town Tax Court.

The SCA’s ruling means that SARS is now able to prevent Capitec from claiming back R71.5 million VAT return from November 2017. In 2018, SARS issued a VAT assessment that disallowed the R71.5 million claimed by Capitec as a tax deduction for November 2017. Read the full story here.

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