What to do if your second ITA34 assessment says you now owe SARS money

Posted 6 September 2012

If you have ever survived a SARS audit, you may have been issued with a "revised assessment" or second ITA34 that doesn't make much sense. It probably says that you now owe SARS some money, despite being due a refund. Don't be alarmed though, if you read lower down the new ITA34 you will find that in fact you are still due a refund, only it is probably smaller than before.

For example:

First IT34A (before audit):
SARS says: "Your assessment has been concluded and reflects an amount refundable to you of R-16 636.10"...

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SARS is asking for more documents. Are they auditing me?

Posted 13 August 2012

For most people upon submission of their year-end income tax return, either nothing much will happen or a refund will be due, this being paid back within a matter of days. However in a small number of cases SARS requires extra documentation or proof to be submitted so that they can verify that everything you submitted in your tax return is correct. Don’t be afraid, although many people consider this an “audit” it isn’t nearly as frightening as that and doesn't mean you have done anything wrong. A true audit would be SARS requesting years of past documentation and opening up for examination all your tax affairs from previous years. ...

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How do I calculate my earnings after tax? Try our income tax calculator

Posted 6 June 2012

Most employees negotiate their salary based on the gross amount (or cost to company) - the whole amount paid by their employer. Since income tax is deducted from this gross amount, in most cases the taxpayer doesn't know how much money actually goes into their bank account each month, after tax.

SARS levies employee's tax monthly and employers must pay that over to SARS every month. This tax is called PAYE (Pay As You Earn). PAYE is calculated based on your taxable income. This is different to your gross income and is calculated as follows: ...

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How to become tax compliant in South Africa

Posted 16 May 2012


Have you registered as a taxpayer?

Did you know that it is your duty by law to register with SARS (the
South African Revenue Service) as a taxpayer if you earn above R63 556
per tax year? By registering and completing your tax returns regularly
each year, you will become a tax compliant, proud South African. You
can register for a tax number with SARS in person (at their offices in
all major centres), or send the required documents by post or email. ...

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South African budget 2012/2013 - "Tax by stealth"

Posted 23 February 2012

Eagerly anticipating the budget this year and forever the optimist, Finance Minister Pravin Gordhan started off well: R9.5bn of individual tax savings and revenue collection up by R10bn from the latest estimates. However, for the individual taxpayer, things went slightly downhill from there... Let’s unpack this a bit.

Not all Doom and Gloom

Ok, ok so maybe I have been too harsh as only certain individuals (the richer ones) will actually be subject to greater tax, the lower end income earners will benefit quite a bit from the new tax changes...

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New tax credit to replace medical aid deductions in post 2012 Tax Year

Posted 21 February 2012

The 2012 tax year has almost come and gone, and being annual budget time, anxious taxpayers are unsure what to expect. Is there any room to be taxed further? All will be revealed on Wednesday the 22nd, but in the meantime let's focus on the new medical aid tax regime.

Gone are the days of paying your spouse's medical aid and claiming the deduction just because you are in a higher tax bracket. From the 2013 tax year onwards that deduction is no longer allowed. Instead it will be replaced with a tax credit per dependent. "What is the difference?" I hear the average taxpayer ask, and "How does it affect me?" ...

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What is the benefit of actually spending time looking at your tax return?

Posted 16 January 2012

You always hear of people saying they are terrified of Tax and they just hand it over to some accountant who does it for them and they never actually see it until the next year when the whole process starts again.  In most cases the accountant never even asks for any information and just submits a tax return based on a simple IRP5. Now that may be great for someone who earns a salary and has absolutely nothing else going on, tax related that is, but the poor ignorant taxpayer is potentially throwing away hundreds of Rands on an "expert" who isn't even doing their job properly. Not to mention the possible refund the taxpayer is missing out on. ...

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