As the 8 July 2005 deadline for tax returns approaches, the South African Revenue Service (SARS) must remind taxpayers not to make unnecessary mistakes on tax returns which will cause the return to be rejected or delay the processing thereof.
Taxpayers should submit their tax returns with their IRP5 form as soon as they receive them from their employers. The sooner the return is submitted, the sooner the assessment is issued. Taxpayers will then either be able to make the necessary financial arrangements to pay their tax, or expect a refund in cases where refunds are due.
One of the most common mistakes SARS encounters on tax returns is the failure by taxpayers to sign them. Unsigned returns are automatically rejected. Tax returns should also include the branch number of the taxpayer's bank.
Documents which must be included with the tax return are the IRP5, the employer notification of employee earnings and deductions, a certificate from the taxpayer's medical aid fund (if applicable), a Retirement Annuity certificate and IT3(b) from the taxpayer's financial institution (if applicable) and any other documents which substantiate claims for rebates.
All employers are required to issue IRP5 forms to employees from whom they have deducted Pay as You Earn (PAYE) or Standard Income Tax on Employees. However, employees who earn less than R60 000 per annum excluding benefits are not required to fill in a tax return unless they have received one from SARS.
Employees must ensure that all details on their IRP5 are correct. This includes personal details as well as all information relating to salary, allowances and deductions for medical aid and pension. If allowances are not reflected on the IRP5 tax claims cannot be made against them.
For further media enquiries please contact Adrian Lackay at (012) 422 4000 or 083 388 2580.
ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE