The first process in the tax system for Individuals:

When we receive a request to register you for an Income Tax Number we first

1. Ascertain from SARS whether you are registered or not, or have a Tax Number but is has been made inactive
2. Payment Made
3. If you have no tax number then we will complete an IT77, and apply for the number using a Year of liability from information you have supplied
4. If your tax number exists but is inactive, we will complete an IT77 and apply for reactivation using the Year Of Liability from information you have supplied
5. We make appointment with SARS (Weekly) and obtain your Tax Number
6. Advise you of the Income Tax Number
7. Wait 24-48 hours and then register your profile on our Efiling System
8. If the Tax Number is current, then we will defer the file until the relevant tax season has opened.
9. If the registration is back dated we proceed with the filing of the relevant tax returns immediately. We have a 60 day period without penalties for this class of return and can backdate for up to 5 years if required 

Next Step : TAX REGISTERED BUT RETURNS OUTSTANDING

1. If it is found from step 1 above that there is a Valid Tax Number but there are outstanding returns then we will proceed as follows:-
2. Register your profile on our Efiling system
3. Obtain the Relevant IRP5's from you or SARS or the Efiling system.
4. Obtain other relevant information from you
5. Payment Made
6. Compile the return for your approval and confirm personal particulars
7. Obtain the Mandate from you for authority to file the return
8. File the return
9. Advise you that the return has been filed and submitted to SARS
10. Wait for SARS to assess the return
11. Once we have received the Tax Form back, it is verified for accuracy against our input
12. If accurate, then the refund is verified as received by you at SARS
13. Advise you on the outcome and attach your SARS Assessment for safekeeping
14. If the Assessment is incorrect , a correction or an Objection is made to correct the Assessment
15. If this is required then authority will be obtained from you once again for additional submissions
16. A diary system entry is made and the file followed up at regular intervals
17. Reference Numbers for logging obtained and you are advised
18. If not resolved with SARS turnaround times, application is made to the Monitoring Office for intervention with the SARS branch office to obtain resolution of the matter
19. Revised Assessments received and made available once again to you
20. All returns are scanned and electronically stored
21. If a query is raised by SARS, this is dealt with by us directly and you will be advised
22. FILE CLOSED FOR TAX YEAR ON A GOOD NOTE

What about : TAX REGISTERED BUT MONIES OUTSTANDING 

1. If it is found from step 1 above that there is a Valid Tax Number but there are outstanding monies due to SARS then we will proceed as follows:-
2. Register your profile on our Efiling system
3. Obtain the Relevant SARS Tax assessments to enable us to verify that the liability is actually correct from you or SARS or the Efiling system.
4. Obtain other relevant information from you
5. If the liability is correct, we will arrange a repayment program with SARS or advise you of how best to solve the problem WITH you
6. If the Assessment is incorrect , a correction or an Objection is made to correct the Assessment
7. If this is required then authority will be obtained from you once again for additional submissions
8. Payment Made
9. A diary system entry is made and the file followed up at regular intervals
10. Reference Numbers for logging obtained and you are advised
11. If not resolved with SARS turnaround times, application is made to the Monitoring Office for intervention with the SARS branch office to obtain resolution of the matter
12. Revised Assessments received and made available once again to you with accounting verification
13. All returns are scanned and electronically stored
14. If a query is raised by SARS, this is dealt with by us directly and you will be advised
15. FILE CLOSED FOR TAX YEAR ON A GOOD NOTE

FILING SEASON OPENS - STANDARD SIMPLE AND COMPLEX RETURNS

You hear about doing Tax and are intrigued as to what you can expect  

1. Documentation is either emailed or faxed to us. A list of requirements can be found under Forms and Downloads
2. Obtain other relevant information from you
3. Payment is made
4. We prepare the Tax Analysis with calculations for your Approval
5. The Mandate is completed, signed and returned together with personal particulars or outstanding documentation
6. Return is Efiled within 24 hours of approval and payment
7. Advise you that the return has been filed and submitted to SARS
8. Wait for SARS to assess the return
9. Once we have received the Tax Form back, it is verified for accuracy against our input
10. If accurate, then the refund is verified as received by you at SARS
11. Advise you on the outcome and attach your SARS Assessment for safekeeping
12. If the Assessment is incorrect , a correction or an Objection is made to correct the Assessment
13. If this is required then authority will be obtained from you once again for additional submissions
14. A diary system entry is made and the file followed up at regular intervals
15. Reference Numbers for logging obtained and you are advised
16. If not resolved with SARS turnaround times, application is made to the Monitoring Office for intervention with the SARS branch office to obtain resolution of the matter
17. Revised Assessments received and made available once again to you
18. All returns are scanned and electronically stored
19. If a query is raised by SARS, this is dealt with by us directly and you will be advised
20. FILE CLOSED FOR TAX YEAR ON A GOOD NOTE

 PROVISIONAL TAX

Provisional Tax returns are rendered every 6 months, every August and February withe the option of a top up payment in September

1. Any person who derives income that is not remuneration (as defined) or an allowance or advance (Section 8(1)).

2. Any Company

3. Any person notified by the Commissioner that they are considered Provisional Tax Payers

4. There are exemptions ( as always) please contact us if you are not sure what category you fall into.

5. In the case of an Individual taxpayer, the payment must be made not later than 31 August of the preceeding year

The First amount payable is computed by (due 31 August)

1. estimating the total expected taxable income for the year

2. calculating the tax payable on this taxable income

3. deducting the rebates

4. dividing the tax payable in two

5. deducting any employees tax paid for the first six months of the tax year as well as any foreign  taxes which will be for a rebate (Section 6Quat) and

6. paying the resultant difference (if Any ) to SARS by the respective due dates

The Second amount payable is computed by (due 28 February)

1. Tax must be calculated on the total estimated taxable income for the year

2. Rebates are deducted

3. Employees Tax paid for the 12 months must be deducted as well as any foreign taxes subject to the rebate (Section 6Quat)

4. The first provisional tax payment must be deducted (If Any); and

5. Any remaining difference must be paid to SARS on the due date

PROVISIONAL TAX PENALTIES AND INTEREST

When there is an underestimate or non-submission:

Although the first provisional tax payment cannot be based on a figure which is less than the basic amount, as adjusted if necessary, unless prior permission of the Commissioner is obtained. Please keep in mind that there is a two tiered system- refer to us for any clarification.

Where there is Late Submission of Provisional Returns:

The Act does not provide for a penalty where the first provisional payment estimate is not submitted timeously but does fine other late submissions at a 20% of the excess of normal tax (i.e tax liabilities on annual assessment). Further there could br administrative penalties imposed in addition to these penalties (Section 20A and 75B) In addition interest at the prescribed rate is also levied (Section 89bis)

Where there is late payment

The Act provides that if any provisional tax is not paid within the period allowed for payment, a penalty of 10% of the amount payable will be levied. In addition interest at the prescribed rate is also levied (Section 89bis)

PROVISIONAL TAX RETURNS

Where provisional returns are required to be submitted we will:-

1. Communicate with you and requested relevant information in order to calculate the tax payable (if any)

2. Submit the return via e-filing

3. Advise you of the end result per email

4. If any payment is due, make the necessary arrangements for this payment.

COMMISSION EARNERS

Where the commission element of remuneration is generally more than 50% of the total remuneration, deductions are allowable against the commission element. (Section 23(m)).

List of Allowable expenditures are:-

• Retirement Annuity and Pension Fund Contributions

• Restraint of Trade Payments or refunds of salary

• Wear and Tear Allowance

• Legal Expenses Deduction

• Bad Debts Allowance

• Doubtful Debts Allowance

• Insurance premiums on Income Replacement Policies

• Expenses incurred in the production of income

There are very technical issues relating to these claims and we highly recommend that professional advice be obtained in these situations.