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I have to borrow money from a friend to make ends meet, how do I get back on track with my tax?

Posted 30 March 2014

I used to be permanently employed, paid the normal PAYE every month, and all that. I dutifully submitted my tax return every year and got my refunds from SARS very promptly. I then left the company and did a brief stint at another firm whose business was totally unrelated. I then decided to go on my own and start working as an independent. Things didn't go as well as I'd hoped and I didn't earn enough to support myself and my children, let alone, pay any tax. A friend has been helping me to make ends meet on a regular basis. I haven't paid any tax or submitted a tax return in three years. I want to fix this with SARS, so my actual question is two-fold: How much trouble am I in; and what do I need to do to fix it?

TaxTim TaxTim says:
31 March 2014 at 6:18

The best thing to do is submit returns showing the little income you did earn during that period, even if it was below the threshold. You would include this income under the "local business income" section on your ITR12 and you can show all your income and expenses.

In this way all your returns will be up to date and you won't pay any taxes with SARS or penalties.

KiKi says:
31 March 2014 at 7:52

Thanks for you very prompt response. You said to "include this income under the "local business income" section on your ITR12". Do you mean just my actual income, or must I include the money I received from my friend?
I really want to get my slate clean and stay up to date with my tax returns, and I don't want to make a mess of it. Does your firm provide a service that I could use to sort this out properly? If so, what are your fees?

TaxTim TaxTim says:
31 March 2014 at 21:13

Only the income earned, not the money received from your friend.

You can go through the TaxTim process by Registering for TaxTim and then completing the chat and getting a completed return ready for filing with SARS. Our fees are R199 per return per year.

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