SARS have again changed certain processes and requirements when dealing with auto assessments.
An important change to this process is that the auto assessment no longer becomes final after 40-working days if you do not submit a revised return. Auto Assessments are deemed final so should be checked for accuracy and if incorrect a corrected return should be submitted before cut off date of 23 October.
A notification of an auto assessment should raise the red flag and we urge our clients to contact us (tax@aven.co.za) to check the pre-populated information against your actual information.
What is an auto assessment?
Non-provisional taxpayers with a very simple return & who have no outstanding historical returns may receive an auto assessment. SARS has received information from 3rd parties (such as employers, banks, retirement fund administrators and medical aids) and they have used this data to generate your tax assessment.
Inaction could be costly!
Auto assessments do not take tax-deductible deductions into account.
This includes common deductible expenses such as medical expenses not reflecting on a medical aid certificate, donations to public benefit organisations, travel expenses, home office expenses and wear and tear.
Sars may not have all your information or could possibly have incorrect information.
Good examples of this are foreign income / interest or information from a source with whom your personal details (such as an address) do not match those on record with Sars.
If you do not correct the data or omissions and your return is selected for audit / verification later on, you will be subject to the same penalties (up to 200%) that would apply for an understatement in your tax return.
Our Fee implications
In order to check the accuracy of an auto assessment we require that you send us all the usual information we need in order to run our tax calculation.
If the auto assessment is correct we will confirm and our charges will be based on the calculation part of an end year return without the submission related costs.
If the auto assessment is incorrect we will submit the return and the usual tax return submission costs will apply