The South African Revenue Service (SARS) would like to request all employers who have not issued their employees with IRP5 tax certificates for the 2003/2004 year to do so as a matter of urgency.
All taxpaying employees countrywide ought to have received their IRP5 certificates by now and employers who have not yet issued their staff with their IRP5 documents are jeopardizing their chances of meeting the 9 July tax return deadline.
The IRP5 certificate is an employer's notification to SARS of what has been earned and what has been paid out in deductions, such as pension and medical aid contributions from an employee's salary.
"Employees must know that employers are required to issue out IRP5 certificates every year," says SARS spokesperson Sechaba Nkosi. "Those who have not yet received them need to approach their employers as a matter of extreme urgency for it."
SARS has already mailed income tax returns to employees. Employers now have the responsibility of ensuring that tax submissions are not delayed on account of the IRP5 documents not being issued in time.
Employees also have a responsibility to ensure that employers are furnished with all relevant information such as their ID numbers and dates of birth.
It is equally important for taxpayers to ensure that the IRP5 issued to them by their employer is correct.
"These incorrect tax certificates will be returned to the employer for correction, thereby delaying the finalisation of tax assessments."
"If an IRP5 has not been completed correctly, SARS will reject it on assessment. This could result in the tax paid and reflected on your tax certificate being denied to you as a tax credit," Nkosi says.
On receipt of IRP5s, Nkosi says employees must verify this document against their salary slips.
Nkosi says employers are compelled by law to issue IRP5's to their employees.
"If you, as an employee are having difficulty obtaining your IRP5, you should report the matter to the SARS PAYE inspectors, which can be done via your local SARS branch office," says Nkosi
He also advises employees to query any allowances that they may be receiving but which may not be reflected on their IRP5 documents.
"You cannot make tax claims against these allowances if they are not reflected on your IRP5," states Nkosi.
He appeals to employers to educate employees around tax issues.
"For example, employees need to be told that if they earn less than R 60 000 annually excluding benefits, they do not have to submit a tax return unless they receive one from SARS."
ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE