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Thread: Issuing an IT3(a) from my trust to myself

  1. #1
    Platinum Member Neville Bailey's Avatar
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    Issuing an IT3(a) from my trust to myself

    All my trading as a consultant flows through a family trust, and then the trust pays me a salary which I then declare when I submit my personal income tax return.

    After submitting my latest personal income tax return on efiling a week or so ago, I received correspondence from SARS, requesting me to submit an IT3(a) from my employer (trust) so that they can verify my return.

    In all the 9 years that I have been operating in this way, my trust has never issued any IT3(a) certificates to me, and it has never been an issue with SARS, but now it is. My trust is registered for provisional tax and for VAT.

    How do I get my trust to issue an IT3(a) certificate to myself?
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
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    "Give every person more in use value than you take from them in cash value."
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    Silver Member Christel's Avatar
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    Hi Neville, we have a client (also a trust) that pays director's fees once a year. This trust is not registered for PAYE either. We basically enter all the info onto Easyfile and print the IT3a directly from Easyfile, without submitting the recon to SARS (as one cannot do this as there is no PAYE number). Then we give the IT3a's to the directors asking them to declare it on their tax returns. We also write a letter to SARS and attach copies of the IT3a's. What they do with it, no one knows, but we've never had any problems (so far.... where is that piece of wood...??).
    always fear when Christel is near....

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    You can issue it on efiling, after having enabled the IT3 tax type.

    It will be issued with the Income Tax number, as opposed to a PAYE number

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    Platinum Member Neville Bailey's Avatar
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    Quote Originally Posted by CLIVE-TRIANGLE View Post
    You can issue it on efiling, after having enabled the IT3 tax type.

    It will be issued with the Income Tax number, as opposed to a PAYE number
    Thanks Clive.

    I've enabled the IT3 tax type on efiling, but I still can't figure out where/how to issue an IT3(a).
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
    View Neville Bailey Photography

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    You need to generate an EMP 501 for the relevant period by clicking on the 501 returns button (so this means you must also enable 501s on the tax types).

    So generate a 501 for the selected period. Then on the left of the screen is a two option menu; you pick the "Employee documents" and that will enable you to generate either an IRP5 or IT3(a)

  6. #6
    Platinum Member Neville Bailey's Avatar
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    I can't seem to enable 501s on the tax types.

    After I input my trust's income tax number in the box, I get a message stating "Please check that your Tax Reference Number is correct".

    Do I need to input a different tax reference number there and, if so, where do I get such a number?
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
    View Neville Bailey Photography

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    Platinum Member Mike C's Avatar
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    Hi Neville - could it be that you are trying to do this under your personal profile? You might need to open an additional profile for your Trust.
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

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    Platinum Member Neville Bailey's Avatar
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    No, I have a separate efiling profile for my trust and for myself, each with their own login details and tax reference number.
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
    View Neville Bailey Photography

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    Silver Member Christel's Avatar
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    Hi Mike,
    I don't think you can activate the EMP501 without a PAYE number.
    This is where you can find a guide to the e-filing version of the EMP501 process (http://www.sars.gov.za/AllDocs/OpsDo...al%20Guide.pdf)

    It specifies that a PAYE number must be used.

    Have you been able to submit an EMP501 with only an Income Tax number?
    We have phoned SARS and they recommended us to use the method we do - as specify in one of my posts above. I don't think there is another way.
    always fear when Christel is near....

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    Neville that is strange. Stupid questions but I assume
    1. that the trust does not have a paye number?
    2. that you are 100% sure of the tax number?
    There is no reason for it to produce that error message; I have a few clients where I have done this.
    Did it produce the message also when you enable IT3s?

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