October tax deadline warning – what you need to know

Taxpayers need to note that the 2022 Individual Filing Season is closing earlier than usual – with the deadline set for Monday, 24 October.

Individual tax affairs have been processed through auto assessments this year. Auto assessments started rolling out on 1 July, and over 3 million individual non-provisional taxpayers were assessed by the revenue service.

Taxpayers satisfied with the outcome of the auto-assessment do not have to file a tax return – the return will be regarded as submitted and final in that instance.

If the taxpayer finds that there is missing or inaccurate information pertaining to either income or expenses, which may have affected the outcome, it must be declared to SARS within 40 business days of the auto assessment notification by submitting a tax return to SARS.

Where taxpayers submitted a return, thus indicating that they are not in agreement with SARS’s auto assessment, SARS will process the return and issue a revised assessment, which may result in a different financial obligation, e.g. reduced refund, increased refund or payment due to SARS.

If not in agreement with the revised assessment, a taxpayer can initiate an objection through the normal SARS objections process.

Non-Provisional taxpayers who did not get an auto-assessment and are required to file have until 24 October to do so.

Provisional taxpayers, as well as trust submissions, have until 23 January 2023 to file their returns.

SARS said that taxpayers who have two or more outstanding income tax returns for years of assessment and do not submit their tax returns would be charged an admin penalty.

“The administrative non-compliance penalty for the failure to submit a return comprises fixed amount penalties based on a taxpayer’s taxable income and can range from R250 up to R16,000 a month for each month that the non-compliance continues,” it said.

The new system falls under the big push by SARS commissioner Edward Kieswetter to use data to the revenue service’s advantage. Through accessing data from input sources like employers, banks, medical schemes and retirement annuity funds, SARS can uncover a possible tax rebate without the taxpayer’s input.

“We use data and artificial intelligence to select taxpayers for further auditing or investigation, but we also use data and technology to provide a seamless experience for most taxpayers,” said Kieswetter.

SARS has also been on a crackdown on non-compliance this year, instituting new units that target specific taxpayers with high net worths or those suspected of being involved in financial crime.

Read: New features coming to Shoprite stores and delivery services