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Annual income tax returns - IT12TR, ITR12, IT14

Annual income tax returns are submitted via SARSefiling to SARS on or before specific deadlines and each return are vastly different for each type of taxpayer (individual – ITR12, company – IT14 or trust – IT12TR).
The income tax return data for companies and trusts are compiled from the annual financial statements. The income tax return data for individuals greatly depends on the type of income the individual has earned during a specific tax year and which deductions are allowed in respect thereof.
The information that is reflected on the annual income tax return must be accurate and correct, especially pertaining to individuals, as penalties and interest would accrue due to incorrect information being furnished upon submission of the return. The new strict penalty regime is imposed as part of the Tax Administration Act (TAA) of South Africa.
Quality assurance is our standard at ShoniNelushi Accountants, we strictly adhere to this as more and more responsibilities are given by SARS to tax specialists, accountants and auditors. We do foresee that this trend by SARS will continue in the future, thereby levying more responsibility and quality verification onto the shoulders of the taxpayer and tax consultants.

Tax clearance certificate - TCC-001

A tax clearance certificate should be issued and requested by every single taxpayer. This certificate indicates to a client whether their tax returns with SARS are submitted, up to date and paid in full. This certificate is one of the many criteria pertaining to tender applications and frequently requested by various industry watchdogs, boards, creditors, and suppliers.
At ShoniNelushi Accountants we believe that this is a necessary document that each client or taxpayer should request during any period of the tax year. It validates the taxpayer's status with SARS. This certificate would not be issued by SARS if any return within any registered tax category is outstanding or if any amount is due to SARS.

Tax deduction directives (commission income) - IRP3

Tax deduction directives that are issued to individuals that earn commission income is divided into fixed percentage- or fixed amount directives. These directives in broad terms will replace the staggered tax tables for individuals (the more you earn the more you pay), with a fixed percentage or fixed amount per month deducted for pay-as-you-earn (PAYE).
It is vitally important that this method of calculating PAYE does not create a tax liability for the taxpayer once his/her return is assessed, as this would cause penalties and interest to be triggered as per The Tax Administration Act of South Africa (TAA).

Provisional tax returns - IRP6

Provisional tax returns are not issued automatically by SARS via SARSefiling. They relate to an interim 6-monthly tax return that is issued with relation to any income an individual taxpayer has earned during a tax year that was not taxed during the said tax year (for example rental income, business income, etc.). Trading companies, close corporations and trusts must be registered for provisional tax by default.
Provisional tax returns must be compiled and submitted by a tax specialist as the calculation pertaining thereto could be complicated and therefore an in depth understanding of the Income Tax Act of South Africa would be required.
Provisional tax returns are estimations during each 6-month period of the tax year in which a taxpayer would calculate how much income tax should have been paid for said period on income that is taxable, but was not taxed. The estimation must at least be 90% of the actual value of taxable income reflected once the annual tax return is submitted. Therefore, provisional tax is not a separate tax category, but forms part of income tax payable in 6-monthly periods.
Non-compliance to submit the provisional tax return, or late submission and payment would lead to penalties and interest that would accrue and must be paid once the annual income tax return is assessed for said tax year according to the Tax Administration Act of South Africa (TAA).

SARS debt management

SARS will request that debt management be done on a taxpayer if a taxpayer has an outstanding SARS account that cannot be repaid in one lump sum. The process evaluates the taxpayer's full financial position and outlook, including all income and expenses. In those cases, which have become more frequent due to the worldwide economic meltdown, SARS and the government have been lenient and do afford taxpayers the opportunity to stagger the payment towards their overdue account(s).
At ShoniNelushi Accountants, we assist our clients and intervene on their behalf with SARS to resolve any outstanding tax issues and queries so that they can become tax compliant. This could be a stressful and daunting task for a client, but it does not need to be. The Tax Administration Act of South Africa (TAA) allows taxpayers that were not compliant before "to come clean" with SARS and settle their outstanding debts amicably.


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Appeal and objections 

ShoniNelushi Accountants will only follow the procedure to appeal and thereafter object against an assessment according to the Tax Administration Act of South Africa (TAA) if all other avenues have been exhausted. Our company will advise taxpayers that only tax specialists that are highly qualified in the tax field should liaise with SARS on this level directly







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Annual processing (individuals)

 Annual bookkeeping is required for commission agents, contract workers, sole proprietors, partnerships and proprietors earning rental income.

At ShoniNelushi Accountants, quality of work is one of our cornerstones and therefore processing is done with great detail and care, thereby allowing SARS to effortlessly verify any income and/or expense items being reflected as part of the income-and-expenses statement submitted with a client's income tax return (ITR12).

Every line item is crosschecked to external documentation giving proof to the income being received and expenses being claimed, as well as various sections of the income tax act and practice notes applied in the preparation of the income-and-expenses statement



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