Ask Fixed Accounting to change your banking details online

Tax rates around the world: Individual income ...

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Banking detail changes will be verified before profiles can be updated.

SA Revenue Services (Sars) has implemented new fraud prevention procedures and processes regarding the way in which taxpayersbanking detail changes will be implemented.

From now on, any changes to banking details will be verified before an individual or company banking profile can be updated and if any refunds are due, these will only be processed after the receipt and verification of the new banking details.

The new procedures will improve security and reduce fraud. Banking details can be changed in person at any Sars branch or the change can be made when an individual Income Tax return is submitted. Supporting documents must be provided.

As part of the general Sars encouragement of electronic submissions, banking details can also be changed via the Sars eFiling system when submitting an ITR12 Individual Income Tax return, but Sars may still ask the taxpayer to go to a branch to verify the change.

via Moneywebtax – Sars`s stringent new fraud measures – Income tax

Top tips for filing your 2011 tax return

Logbook aboard the frigate Grand Turk.

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Don’t wait until the last day of submission to file your return. In the past the e-filing server could not handle all the traffic on the last day. As a result, many people were unable to submit their returns on time. SARS will not give extended deadlines;

Disclose everything, even the smallest amount of interest. Many people also don’t disclose a lump sum paid out by a pension/provident fund. This will cause SARS to include the taxable amount in the assessment, but disallow the tax deducted from it, which will result in the taxman claiming a large sum of money;

Get your medicalaid claim right. A common error is to not show how many members were on the medical aid during the year. This must be completed to ensure that SARS applies the correct tax break for all members concerned;

When there is a medical-aid code 4005 on your IRP5, you are not allowed to insert your medical contributions again (next to code 4040) in the medical-aid section of the tax return. You must insert a “0” in this column;

It is compulsory to keep a detailed travel logbook to show all the kilometres travelled for work, and make sure it is up to date. It is against the law to prepare a logbook with incorrect figures or to ask someone (even your tax consultant) to compile one for you;

When completing your travel claim, make sure to use either the actual cost method or the travel claim method. When using the travel claim method, do not fill in any actual costs like fuel, maintenance costs or wear and tear. SARS will use the default calculation on the actual costs. In most cases the travel claim method is the most effective way to claim against your travel allowance;

If you have been out of South Africa for more than 183 days, of which 60 days must be consecutive, you are allowed to claim a foreign exemption under section 10(1)(o)(ii).

Initially, SARS will disallow the claim, which will result in an assessment showing a large amount due to SARS. You will have to object to this assessment to claim for the exemption. You also need to submit copies of your passport, employment contract and a breakdown of the days you were out of the country as supporting documents;

via Top tips for filing your 2011 tax return – Business LIVE

Keep your tax payments uptodate

President's Advisory Panel for Federal Tax Reform

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The  South African Revenue Service (SARS) has extensive powers to collect tax. These powers are contained in various tax laws and are intended to facilitate the prompt collection of tax that is due. There have been a number of court cases dealing with the limitations of SARS’ collection powers.

The Western Cape High Court recently gave judgment in a case dealing with SARS’ collections powers. The case related to a judgment obtained by SARS against Fastmould Specialist CC in respect of Value-Added Tax (VAT) and employees’ tax. The VAT Act and the Income Tax Act both contain provisions allowing SARS to obtain judgments against taxpayers by filing a statement with the clerk or registrar of any competent court. The taxpayer is not afforded an opportunity to oppose the granting of the judgment.

via Court affirms SARS’ power to collect tax

What is eFiling?

SARS eFiling was launched in 2003 as a free online replacement process for the manual tax return submissions. This free service allows individual taxpayers, tax practitioners and businesses to register for free and submit tax returns, make payments and perform a number of other interactions with SARS in a secure online environment.

The eFiling service is on a par with international standards, being comparable with services offered in the US, Australia, Singapore, Ireland, Chile and France.

SARS has seen eFiling in South Africa grow significantly since it was initiated. For the 2009 tax year, more than 2.7 million individual tax returns were submitted through eFiling and annually over 7.5 million returns are submitted by businesses and practitioners.

Fixed Accounting is one of those practitioners who can assist you with your tax submissions – see our Services page above. Alternatively, visit the eFiling site here.