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I am an employee, how come I owe SARS more money?



My payslip shows all the deductions including tax that I pay monthly, so I don't understand how I got to owe SARS R1700 where as I pay monthly via PAYE?

TaxTim TaxTim says:
19 July 2012 at 10:36

It would depend on whether your employer has correctly calculated the PAYE when taking off the amount. Do you possibly also earn other income such as a commission, or did you get a bonus perhaps? These could affect the tax amount. Is this the only income you earned or did you show anything else on your tax return?

phyllis says:
2 September 2012 at 20:35

I did not submit IRP5 last year as they wanted a medical aid certificate and I did not have one so what must I do this year as I o not have medical certificate there is penalty for not submitting IRP5 even though my employer pays TAX for me every year?

TaxTim TaxTim says:
3 September 2012 at 8:52

Hi Phyllis,

I understand your frustration, but unfortunately the requirement to submit a tax return falls on the taxpayer. If there are no other amounts other than what is on your IRP5 then you just need to log onto eFiling, check that the IRP5 details are actually filled in correctly and click file. You don't need to submit any actual documentation to SARS unless they ask for it.

Although your employer pays over the tax on a monthly basis, in situations where you don't work a full year or there are other amounts in a month which you receive, the tax is calculated as if you worked for a full year or received that money for a full year. So by submitting your return you could actually be entitled to a tax refund in some cases. There are other deductions and incomes that your employer doesn't always know about so SARS wants to ensure that these are still taken into account every year and so makes the Taxpayer submit their own returns.

I hope this helps?

Regards,
Tim

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