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Everything you need to know to tackle your tax in 2019

Everything you need to know to tackle your tax in 2019

The 2019 tax season for individuals officially opened on 1 July for all taxpayers who use efiling. If however, you wish to submit your tax at a SARS branch, this will be possible from 1 August. This year SARS has implemented several changes to the entire process of filing income tax returns. Here is a summary of what they entail.

 

Drive to go online

To encourage people to file online SARS has extended the deadline for SARS efiling and submissions by the SARS MobiApp to 4 December 2019. If however, you wish to file your income tax returns at a SARS branch, your deadline for submission is 31 October 2019.

 

Changes to the income threshold

SARS has also increased the tax submission threshold from R350 000 to R500 000. This means you don’t have to submit a tax return if your total employment income for the year is not more than R500 000 and you only receive income from one employer for the full tax year. You also must have no other forms of income like a car allowance, rental income, taxable interest or income from any other job. Finally, to be eligible you must have no additional allowable tax-related deductions to claim like retirement annuity contribution or medical expenses.

If you don’t have to submit a tax return, you will receive a simulated calculation from SARS via SMS based on the information given to SARS by your employer. This will show you what you can expect if you file a return for yourself. You can either choose to accept this calculation or resubmit the return with the changes you would like to make.

 

SARS is tightening up

SARS has also announced they will be stepping up their enforcement of penalties for non-compliant taxpayers. The following areas will receive particular focus:

  • Outstanding or late returns: SARS will be closely monitoring these and will be stepping up the enforcement of penalties.
  • Rental and Capital Gains Tax: SARS is aware that many taxpayers do not declare rental income from properties and will be closely collaborating with the Deeds Office to track non-compliance with regard to Capital Gains Tax.
  • Commission earners: SARS will be scrutinising closely all individuals who receive a commission as part of their earnings
  • Trusts: SARS is concerned about the accuracy of declarations to and from trusts to beneficiaries and will be keeping a close eye on these.
  • Fabricated expenses: SARS has noticed that there has been an increase in fabricated expenses and will be closely monitoring this
  • The super-rich: SARS is also increasing their focus on high-net-worth individuals who often have their finances arranged in a complex manner to minimise their tax payments.

To prevent fraudulent individuals from avoiding paying tax or claiming multiple returns, SARS will be working closely with the SA Police Service and the National Prosecuting Authority to criminally prosecute fraudsters.

 

Stay compliant with the GG Group’s expert tax services

Our tax team will ensure you stay compliant with SARS’s changing legislation and will calculate, prepare and submit your income tax returns. Our tax services are open to individuals, companies, trusts and businesses of all sizes. For more information about our holistic tax solutions, contact us today.