How long will it take to be refunded after resubmitting my tax return?

Posted 9 September 2013

Hi Tim. I submitted my tax returns and did not claim on my travel allowance, now SARS sends me an SMS stating I owe R8750. If I were to resubmit and claim on my travel allowance, how long will it take for SARS to refund, and what's gonna happen on the amount they say I owe? Regards Themba

Personal Service Provider

Posted 8 September 2013

Hi Tim

1. I am starting a company and it will be a Personal service Provider. I know tax has to be withheld at 28% by my client. What I don't understand is whether the 28% is a flat rate or does the tax payable get recalculated when I submit my ITR12?

e.g.
Say I earn 20000 a month X 28 % tax = 5600 . Tax payed for the year = R 67200.
However if I was taxed as a regular employee my tax would have been = R 37,359.75

Will SARS pay me back the difference?
...

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Do you need to supply an IRP5 for freelance workers?

Posted 5 September 2013

If we have a freelance guide that worked for us for a number of days in the year and they get an agreed payment from us (example of R 650 per day) and we do not deduct tax for this. Do we need to supply them with an IRP5? Take note that this person is not an employee of this company.

Incorporated versus sole prop for a new business

Posted 4 September 2013

Hi Tim. I am about to embark on a new venture and start up my own business. We are bound by various rules and regulations as per the HPCSA and are only able to practice in an incorporated or solus practice. I am feeling very unsure as to which is the best option tax wise? The gross monthly income of the practice is expected to start off at and vary between R30 000 and R50 000 per month. I will not have any partners or permanent employees. I work from home 50% of the time and am onsite (travellin...

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Tax advantages of leasing a car?

Posted 2 September 2013

Hi, What are the advantages of leasing a vehicle for a business, tax benefits? Can I write off the lease payments made on the vehicle as expenditure and claim back from SARS?
Thanks.

I started TaxTim then my consultant did my ITR12 for me. Must I still pay?

Posted 2 September 2013

Hi Tim

I have very ignorantly gone through the steps in completing the return on your system and had entered incorrect information. My confusion resulted out of the fact that my employer issued two returns - one for the commission and one for my basic salary. Not knowing what to do, I spoke to my ex consultant and he submitted the ITR12s for me.

Would I still need to pay you?

Can appeals be made to have assessment for previous year to be redone, with new evidence?

Posted 1 September 2013

Hallo. For the last number of years my wife has been paying for our medical aid, via a direct debit every month. The medical aid is however in my name.

I have found out, from SARS, that my wife can get the benefit from this on her tax return, all she needs to do is to provide proof, e.g. bank statements etc, that she has paid for it or get letter from medical aid in that regard. This would suffice for this tax year. However last tax year, we did not do it like this, since I submitted it with my tax return and got no benefit from it, since my income was not large enough...

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Can I re-do my return on SARS efiling?

Posted 29 August 2013

Hi Tim,I submitted my tax return today through efiling, but after going through your blog I realised I did some things incorrectly, as I was out of the country for more than 6 months working on a company project. Is there any way that we can redo the return to include this?

Can I have three travel codes on one IRP-5? 3701+3702+3703?

Posted 28 August 2013

Some consultants at SARS says I am allowed to have three travel codes on my IRP5, namely 3701, 3702 & 3703. Other SARS officials says it's not permitted! Who is correct and why?

Deductions against professional fees

Posted 28 August 2013

I have done private consulting for the last 5 months of the 2013 tax year. I have not been formally employed for this period. What can I deduct against professional fees earned? Home office? All travel to and from clients using vehicle cost tables? Cell Phone (ratio business/personal call accepted or actual business calls only)? Other?

I did not keep a vehicle logbook and now SARS wants more details

Posted 28 August 2013

I did not keep a log book but when I did efiling I said I do have one. Now Sars wants me to forward them more details, what do I do? I have a desk job and don't really travel.

Travel Claim against car not in my name

Posted 27 August 2013

Hi Tim

I get a travel allowance but the vehicle is not in my name, SARS have done an audit and now I need to submit the Purchase / lease contract in respect of motor vehicle(s) against which I claimed. Is this a problem, will I be penalised?

Can a non-resident South African citizen take out inheritance from SA?

Posted 23 August 2013

I've lived out of SA for 22 years and have held dual nationality (SA and UK) for the last 12 years. I rarely visit SA and have not spent more than 3 weeks there in any of the last 20 years. My question is about inheritance. If I inherit in SA, will I be allowed to take my inheritance out of SA? I have never formally emigrated, still hold a SA passport in addition to my UK one and have no assets in SA. Would it make things easier if I renounced my SA citizenship?

Subsistence allowance rate for Mozambique tax year

Posted 22 August 2013

Can you give me the subsistence allowance US$ rate for Mozambique tax year 2013 please.

Allowable vehicle expense deductions

Posted 21 August 2013

What vehicle related expenses can I claim as deductions? I am a property manager and rental agent and use my vehicle mainly for work purposes. I know that any expense incurred in the production of income can be deducted, so can the cost of my vehicle (repayments) be deducted?

Medical aid in my name, but wife pays for it

Posted 19 August 2013

The medical is in my name, but my wife pays for it. Who gets the benefit of including it on your tax tax directive? Myself or my wife, since we both have different tax numbers. Thanks. We are married, outside community of property, anti-nuptual with accrual.

Selected for audit with travel allowance. How long to resolve?

Posted 16 August 2013

Hi Tim

This is a really helpful forum.

I have a query which I require advice on or a possible solution.
I completed my tax return on the 14 July 2013. In the prior year I received my refund in 2 days but this year I had been selected for verification and I submitted all the documents (logbook etc) and then few days later (23 July 2013) I get a notice letter from SARS saying I'm referred for audit (sad I know), so I waited and yesterday I had no response from SARS regards the referred for audit. ...

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Online Admob income from a foreign source

Posted 14 August 2013

I am currently not a registered tax payer nor am I employed, I am however getting into smart phone programming and wanted to know my tax obligation when it comes to individuals who do this kind of thing in their spare time and not as a business operation.

Also - Google Admob (for smart phone app monetization) is in the U.S.A and payments are paid out when a limit of $100 have been reached. (This into bank accounts and not PayPal). At what time should I register as a tax payer and what...

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How to reflect transfer of Pension Fund to Retirement Annuity on ITR12?

Posted 13 August 2013

Hello, Within the last tax year I changed jobs and in doing so had to transfer my pension fund from my former employer to my Retirement Annuity as my new employer does not offer a pension fund. On my ITR12 issued on e-filing I can see this lump sum pension fund amount reflected on a separate page with a directive number. Also I received a certificate from my Retirement Annuity institute reflecting my contributions for the tax year and this included the lump sum the I transferred.

My ...

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Completion letter / Verification of Assessment received

Posted 13 August 2013

Hi Tim,

I submitted my return and was asked for supporting docs which I duly submitted. Today I received a Completion Letter from SARS and just uploaded it to find the following:

-------------------

Dear Taxpayer

VERIFICATION OF ASSESSMENT

We refer to the verification of your assessment for the 2013 tax period. Please note that no adjustment has been made to this assessment. However, in terms of the Tax Administration Act the South African Revenue Service reserves the right to conduct further reviews in future if required....

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R 7,000-00 once write off, what if 4 machines bought each at R 6,000-00 ?

Posted 11 August 2013

Hi Tim. Do I understand that the R 7,000-00 write value is a once write off for items less than R 7,000-00?

What is the situation then if I start my business with the simultaneous purchase of e.g. four lawn mowers at R 6,000-00 each. Total cost = R 24,000-00 but I may only write off a once R 7,000-00 ?

What then happens if six months later my business requires one additional lawn mower again at R 6,000-00, and e.g. two months a brush cutter at R 6,5000-00. What may then be written off, if anything?...

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Supporting docs for sole prop tax return

Posted 10 August 2013

What documents should you submit to SARS when they request supporting documents for income tax returns as a Sole proprietor ?

Funeral policies and back loans

Posted 7 August 2013

Hello Tim

I work on a commission basis as a hairstylist and I am currently paying various funeral policies. I also have a loan at the bank and a credit card. Am I allowed to claim for tax on those payments?

Home Office Claims (Total Cost Calculation) Code 4028

Posted 7 August 2013

If I qualify to claim Home Office (Code 4028) expenses and I want to claim this, what is applicable? Note that I own the house and I have the square meters of both my office and my house. My office adheres to the criteria. My question is related to the claim amount.

Tax specifies: A- the area in m2 of the area specifically equipped and used regularly and exclusively for trade divided by B- the total area in m2 of the residence (including any outbuildings and the area used for trade in the residence) multiply by Total Costs the costs incurred in the acquisition and upkeep of the property (excluding expenses of a capital nature)....

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Referral for audit taking ages - can I speed it up?

Posted 7 August 2013

I submitted my return and supporting documentation and I received notice on e filing that my return is referred for audit. I called SARS and they advised that the turnaround time can be anywhere from 3 to 12 months for an audit to occur. They advised that all refunds over R10 000 go for audit. Because I work on commission and claim expenses my refunds are always greater that R10 000, but never takes more than about 2 - 3 weeks.

Is there any way I can speed the audit process up for th...

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