There are several mistakes you could make on your tax return. It’s sensitive and could be a minefield of errors if you don’t do the homework well before filing.
At a glance, these mistakes could be:
- Make sure you have indicated whether you have a bank account or not. SARS can check how much you have in your bank.
- Not declaring investments. Don’t think you can get away with not making clear if you have a bank account or not, and your investments in the bank.
- You may think you don’t have to file a return, and there are cases when you don’t have to. To be sure, get expert advice from a CA.
- You must declare income that has already been taxed. You may because it has been taxed you don’t need to declare it.
- Make sure that your IRP5 is correct and has all the details on it that it should have.
- Keep all your medical expenses that your medical aid hasn’t covered. You may be asked to prove what you have claimed for if you are audited.
Consult the experts
These are but a few of the many points that you will be confronted with when you are filling out your tax return. Your best way will be to consult a CA or a specialist tax consultant to solve all your queries.
This is a busy time of the year for SARS, so be sure to get started early on your tax matters. It is also a busy time of the year for the consultants and people helping at tax-help offices, so you must be prepared to be patient. That’s why it’s best to get in as early as you can.
It’s up to you, though, to become more savvy about tax. Too often people shrug their shoulders and say, “I didn’t know that!” There are certain things you can claim for as well that you might not be aware of, and a host of other things.
Take an interest in tax
To become truly financially independent, even with help at hand, you must take an interest in your tax affairs. Find out early from professional accountants or online tax services on what can be claimed for and how the whole tax system works in South Africa. This way, you can also save a lot of time during the tax period when everyone is frantically trying to get things done on time.
Also, don’t be afraid if SARS says they are going to conduct an audit on your return – unless, of course, if you haven’t been truthful and have been found out! SARS these days conducts an audit on virtually everyone, and if everything has been declared and filled in properly on your return, then there is no need to have sleepless nights.
Remember, you can make the tax season as painless as possible by reading up on SARS rules and regulations and getting in touch with a CA or any other tax expert to help you even further!
Get in early and don’t incur unnecessary penalties!