With the announcements of Sars parameters of the auto-assessment for this year, there has been a flood of headlines with substantially the same message: this process offers numerous benefits, but it also requires due diligence from taxpayers who are selected.
The auto-assessment remains an estimated assessment. Taxpayers are advised to reconcile the assessment with their tax certificates, bank statements and salary slips, among other relevant income and expense items, Kabelo Moutloatse, tax accounting specialist at Latita Africa, says.
He says individuals who are generally selected for auto-assessments include employees with a single income and simple financial affairs.
Their tax disclosures have historically fit into tax certificates for medical aid and retirement fund contributions, employee tax certificates (IRP5s) or tax certificates from financial institutions if they received interest income.
Cedric Naicker, tax supervisor at Legal Tax, reminds taxpayers that your employer must issue an IRP5 at the end of every tax year, and you must ensure that you get it.
