Tax season is an important time of year for South African taxpayers. For some, it may result in a refund. For others, it may reveal an amount payable to SARS.
But regardless of the outcome, one thing is important: *your tax return should accurately reflect your financial affairs.*
With SARS increasingly using information received from employers, financial institutions, medical schemes and other third parties, much of the information on a taxpayer’s return may already be populated.
That makes the process easier — but it doesn’t mean taxpayers should stop checking.
## Why You Should Review Your Tax Return
A tax return is based on information available to SARS at the time of assessment. If information is missing, incorrect or incomplete, your assessment may not accurately reflect your circumstances.
Before accepting an Auto-Assessment or submitting your return, take the time to review the information carefully.
Check that:
* Your income has been correctly captured.
* Your IRP5 information is accurate.
* Interest and investment income has been included where applicable.
* Medical scheme information is correct.
* Retirement annuity contributions have been captured.
* Relevant deductions have been considered.
* Your banking details are correct.
* Any additional income or information that SARS may not have received from third parties has been declared.
## Don’t Forget About Additional Income
One area that can easily be overlooked is income that doesn’t come directly from an employer.
Depending on your circumstances, this could include income from:
* Rental properties
* Investments
* Freelance or consulting work
* A side business
* Interest
* Capital gains
* Other sources of taxable income
If SARS does not have the information, that does not necessarily mean it does not need to be declared.
Keep Your Supporting Documents
Your tax return should be supported by appropriate documentation.
Depending on your circumstances, this may include:
* IRP5 certificates
* Medical aid tax certificates
* Retirement annuity certificates
* Investment statements
* IT3 certificates
* Rental income and expense records
* Travel records
* Documentation relating to other deductions or income
Keep your supporting documentation safely after submitting your return, as SARS may request it during a verification or audit.
## What If Your Auto-Assessment Is Incorrect?
Receiving an Auto-Assessment doesn’t mean you are required to accept it if the information is incorrect or incomplete.
If you identify information that needs to be added or corrected, you may need to submit or amend your tax return through the appropriate SARS process.
This is one of the reasons why reviewing your assessment before accepting it is so important.
## Don’t Ignore a SARS Query
Sometimes SARS may request additional information or supporting documents after your return has been submitted.
Don’t ignore these requests.
A SARS verification, audit or query should be dealt with carefully and within the applicable timeframe. Providing the correct documentation and responding appropriately can help prevent unnecessary complications.
If you disagree with a SARS decision, there are also formal processes available to taxpayers, including objections and appeals where applicable.
## How Nett Solutions Can Help
Tax compliance can become complicated, particularly when you have multiple income sources, investments, rental properties, business interests or other financial considerations.
At Nett Solutions, we assist clients with:
*Individual Tax Services*
* Personal income tax returns
* Auto-Assessment reviews
* Provisional tax
* Tax planning and advice
*SARS Support*
* SARS queries
* Verification and audit assistance
* Tax objections
* Tax appeals
* SARS correspondence
*Business Support*
* Monthly accounting
* Bookkeeping
* Financial reporting
* Payroll
* VAT and PAYE compliance
Our aim is to make the numbers easier to understand while helping our clients remain compliant and make informed financial decisions.
## The Bottom Line
Tax season doesn’t have to be stressful.
The key is preparation, accurate information and knowing when to ask for professional assistance.
*Don’t simply click “accept” or “submit”. Take the time to understand what you’re filing.*
And if you’re unsure whether your tax return is correct, Nett Solutions is here to help.
*Professional. Ethical. Innovative.*
Nett Solutions — your trusted partner for accounting, tax and payroll.