By Amanda Visser.
The 2024 Tax Season kicked off on Monday, and the South African Revenue Service (Sars) has already paid R10 billion in tax refunds. The average payout to the 1.6 million early-bird taxpayers amounted to R5 900.
In total, around 5.5 million taxpayers were assessed either through an auto assessment or the submission of tax returns on Monday. The bulk, more than five million, formed part of Sars’s auto assessment drive.
Sars Commissioner Edward Kieswetter says the revenue service anticipates issuing around eight million tax assessments for individual taxpayers during the current filing season.
This does not include the filing of tax returns from prior years that taxpayers may still do to become complaint.
Kieswetter says Sars received 150 million third-party data records.
The use of artificial intelligence and enhanced machine learning algorithms enables it to automatically assess a larger number of taxpayers, pre-populate more returns, and improve the integrity of taxpayer declarations.
Fraud detection
All returns filed during the first day had been assessed by the end of the day – with around 70% assessed within five seconds of being received. This resulted in potential refunds of R17 billion.
Although R10 billion has already been paid and another R4 million is on its way to taxpayers, there is a delay with some due to outstanding tax debt or the need for Sars to complete its verification process to ensure that only valid refunds are paid out.
Increased investment in tax fraud detection capabilities and the expanded use of trusted third-party data providers prevented the outflow of R100 billion
Kieswetter has again warned taxpayers against scamsters who, pretending to be Sars officials, ask taxpayers for personal information such as credit card or banking details with the lure of potential refunds.
“Sars will never ask taxpayers for their credit card details,” he emphasised during a media briefing in Cape Town. Sars will also never send a taxpayer a hyperlink to another website or a bank.
Thorough review
Although Sars does not require a response from taxpayers who agree with the auto assessment they receive, experts advise taxpayers to thoroughly review the correctness of the data.
If their financial situation has changed, this may not be reflected correctly in the data, and they may have to alert Sars to the changes.
Kieswetter says there are instances where people become unemployed during a year of assessment but fail to inform Sars of their changed status.
He also remarked on the practice of some employers insisting that job seekers first register with Sars as a pre-condition for an interview.
This is an unnecessary burden on individuals, many of whom are already struggling financially. Once an offer of employment is made the employer has an obligation, but also the online facility, to register a taxpayer.”
A person becomes liable for tax if their gross income exceeds R95 750 (under the age of 65), R148 217 (65 or older but under the age of 75) and R165 689 (aged 75 years and older).
Taxpayers who earn a salary from one employer not exceeding R500 000 and have no additional allowances such as rental or travel do not have to file a return. If a taxpayer has not already received an auto assessment notice from Sars and is obliged to file a return, they can check their status on the eFiling platform or the Sars MobiApp.
Significant change
A significant change to the 2024 Filing Season is taxpayers’ ability to claim a rebate in respect of the solar energy tax credit or a tax deduction in respect of the renewable energy tax incentives.
With the solar tax incentive taxpayers can claim a rebate to the value of 25% (up to a maximum of R15 000) of the cost of new and unused solar panels installed at their home during the period 1 March 2023 to 29 February 2024.
If a taxpayer invested in a Section 12B or 12BA renewable energy fund or purchased qualifying assets used in the generation of electricity, they can claim 125% of their investment or the cost incurred upfront.
Haven’t filed yet?
The due dates are as follows:
- Individual taxpayers (non-provisional): 15 July 2024 to 21 October 2024
- Provisional taxpayers: 15 July 2024 to 20 January 2025
- Trusts: 16 September 2024 to 20 January 2025.