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Thread: eFiling - Reduced Assessment - How is it supposed to work?

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    Bronze Member rfnel's Avatar
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    eFiling - Reduced Assessment - How is it supposed to work?

    Hi Folks

    I submitted my tax return via eFiling. After doing so, the system indicated that I owe SARS around R4600. I then phoned the call centre to query this, and it turned out that I had made a mistake on my return - I included my retirement annuity only on my IRP5, whereas I should've captured it next to code 4006 under the "Deductions" section as well.

    As per the call centre's instructons, I requested a correction on my IT12, I captured the RA amount and I resubmitted. After this second submission, the system indicated that SARS owed me +- R4800. SARS then requested supporting documentation, which I submitted. A week so later, I received a letter stating that everything is in order, and that my assessment has not been modified - and then SARS paid just under R200 into my account.

    I phoned the call centre twice thereafter - the agent that I spoke to initially told me that my return was modified, even though I received communications stated otherwise. After double-checking the correspondence that I received (i.e. the letter stating that my assessment wasn't modified), I phoned them again and requested that they provide some form of documentation which indicates why I was paid a lesser amount. They then provided me with a Statement of Account, which shows three transactions for 2013 - my original assessment, claiming that I owe then R4600, my reduced assessment, claiming that they owe me R4800 - and a payment of the balance of R4600 - R4800 (R200). This finally shed some light on the matter.


    Is this correct though? Shouldn't the correction (i.e. the second assessment) "override" the first assessment? I cannot understand why both assessments are taken into account for my refund. I expected a payment of the full amount on the corrected return.

    Can someone please clarify this? Is my understanding incorrect?

    Thanks,
    Riaan
    "Fortune favours the bold" - Virgil
    Riaan Nel
    Freelance Software Development | LinkedIn | Skype

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    Gold Member IMHO's Avatar
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    Oh my word! What is next? You owed us, but actually we owe you. But first we deduct what you wrongfully owed us. What a joke our country has become. But BEE, affirmative action is a huge success.

    Riaan, I do not believe in coincidences. Your take on it must be right, else the R200 is just a coincidence. Be sure to give us feedback on how they spin this one next.
    ~Expenses will eat you alive! - My first Boss~

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    Hi Riaan

    SARS's revised assessments works cumulatively, it does not replace your original assessment, which means SARS reduced your Original assessment with R4800 and in the end they owed you R200. You can request a Statement of account to confirm this. This is how SARS has always done it. I understand the confusion and I feel SARS needs to explain a bit better on how it works. Hope this helped

  4. Thank given for this post:

    Dave A (02-Dec-13), rfnel (01-Dec-13)

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    Bronze Member rfnel's Avatar
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    Thanks Wildsniper, much appreciated. This is what I suspected, based on the Statement of Account that they sent me - I just wanted to confirm that it is how it's actually supposed to work.
    "Fortune favours the bold" - Virgil
    Riaan Nel
    Freelance Software Development | LinkedIn | Skype

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    Gold Member IMHO's Avatar
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    And it always worked like that? WTF?
    ~Expenses will eat you alive! - My first Boss~

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    I cannot see how just changing the RAF contribution from being on your IRP5 to just being on your return, could change your tax payable / receivable.

    This does not seem right rfnel...

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    Bronze Member rfnel's Avatar
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    Quote Originally Posted by dellatjie View Post
    I cannot see how just changing the RAF contribution from being on your IRP5 to just being on your return, could change your tax payable / receivable.

    This does not seem right rfnel...
    As I understand it, after a very helpful and knowledgable call centre agent explained it to me, the RA contributions specified on the IRP5 are not actually taken into account when calculating the value of your return - i.e. regardless of whether or not the RA is included on the IRP5, only the value next to code 4006 is taken into account. Therefore, my RA was not taken into account at all on my original submission.
    "Fortune favours the bold" - Virgil
    Riaan Nel
    Freelance Software Development | LinkedIn | Skype

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