We've taken the most important parts of the SARS SMME Connect Newsletter and summarised them for business owners and individual taxpayers as we prepare for the start of individual tax season on the 1st of July 2023.
The SARS Commissioner announced preliminary revenue results on April 3, 2023, under the theme of building a solid foundation for sustainable revenue growth. The total revenue collection is R1,687 trillion, with the SMME segment accounting for 28% (R373 billion) of this total. The main sectors are Finance, Manufacturing, Wholesale, Retail Trade and Catering.
Research outcomes summaries (on reasons for non-filing)
The recent figures have revealed that there is a lot of work that needs to be done to improve the SMME CIT filing rate. Thus, the Segment remains committed to providing the necessary clarity and certainty to make it easier for businesses to meet their obligations.
SARS has established some of the motives and reasons for non-compliance. In fact, the SMME CIT Filing Compliance Survey Results conducted in the 2021/22 FY has given insight into this challenge. The reasons the SMMEs cited included:
- failure to file their returns.
- lack of knowledge on how to complete and file returns
- lack of adequate assistance or support from SARS
- administrative burden
- lack of awareness of submission dates
- problems relating to accessing and adequately utilising e-filing, amongst others.
This has necessitated an aggressive approach to provide the sought-after clarity and certainty to taxpayers, especially in the segment.
Top Tips: How do i pay?
If you want to make a payment to SARS, you have several options to choose from. Pay at a bank, via eFiling or via EFT. For more details on payment options, visit www.sars.gov.za.
Registered Representative
Companies are encouraged to have a Representative registered at SARS for the eFiling system to work effectively:
Registered Representatives at SARS can have the following benefits on eFiling:
Search and add their SARS registered companies on eFiling
Approve / Reject Tax Type activation
Approve / Reject Tax Type transfer
Activate the Registered Representative on eFiling to have full access
Update the company Registered details on the Registration, Amendment and Verification Form (RAV01)
For further information, contact Dispersive Consulting and by clicking here and setting up your FREE tax consultation with one of our tax practitioners.
Scam Alert
Beware of the latest email scam saying that a letter of demand which requires your attention was issued, and telling you to click on the link to open the letter. Please ignore and don’t click on any links.
If in doubt, please send an email to phishing@sars.gov.za. See an example of the latest scam.
Record Keeping
It is advisable to make duplicates of all documents and keep both hard copies as well as electronic versions of documents. Scanned copies can be safely stored online, even if the originals are lost or your computer is damaged or stolen.
Documentary proof is essential to enable you to claim actual expenses incurred.
Expenses may be overlooked, unless you record them at the time they are incurred,
Documents enable you to complete your tax returns accurately.
All documents must be kept for a period of 5 years from date of submission of the return.
Keep your invoices, till slips and other information together.
Key messages from webinars and outreach activities During October to December 2022, SARS hosted webinars to promote voluntary compliance among SMMEs. Thus, the dispute process webinar was aimed to educate taxpayers on how and when to file disputes, as well as the timeframes involved in the process. Common errors were discussed:
Submission of incorrect declarations (underestimation) then SARS will raise assessment, and this can lead to a dispute.
Not adhering to the prescribed time frames for submitting supporting documents and which leads to raising of assessments
When capturing amount in a return, cents must be excluded otherwise wrong figures are captured in a return which leads to disputes.
SMME’s that fail to submit tax returns are imposed administrative penalties and this might lead to a dispute.
Taxpayers do not stipulate the exact issues which they are filing an objection against and the legal grounds to support the objection. If this is not clear, the objection is invalidated and delays the objection process.
Dispersive Consulting is an accounting, tax and advisory firm whose mission is to help business owners operate profitable businesses. Sound financial management and a good understanding of business finance empowers business owners to make smarter, more informed decisions about their businesses.
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