Results 1 to 6 of 6

Thread: SARS Tax Return - Donations Disallowed

  1. #1
    New Member
    Join Date
    Oct 2015
    Location
    Azaadville
    Posts
    3
    Thanks
    0
    Thanked 0 Times in 0 Posts

    SARS Tax Return - Donations Disallowed

    Hi

    I hope somebody can explain this to me, I am a new (individual) taxpayer and I have used efiling for the first time this year, so I'm still learning how it all works.

    I recently submitted my 2015 income tax return where i made a declaration for donations I made to PBO's. I received a notice of assessment, but I was not my paid my tax return. After inquiring as to why I was not paid, I was requested to send through all my supporting documentation. So I sent everything via efiling including the three separate tax certificates I had received for my donations. After this, SARS sent another assessment to me which reduced my tax return. The grounds for assessment was declaration incorrect and the adjustment reason was donations disallowed.

    I don't understand why it has been disallowed when the amount I declared is correct, and all my tax certificates are from legitimate organizations.

    Does anyone have any idea as to why SARS would have disallowed this? or should I lodge an objection?

  2. #2
    Full Member Jane123's Avatar
    Join Date
    Aug 2015
    Location
    port Elizabeth
    Posts
    26
    Thanks
    5
    Thanked 0 Times in 0 Posts
    Did they disallow ALL the donations? Because there used to be a limit (think about 10% of your taxable income)... not sure on current structure though.

  3. #3
    New Member
    Join Date
    Oct 2015
    Location
    Azaadville
    Posts
    3
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Quote Originally Posted by Jane123 View Post
    Did they disallow ALL the donations? Because there used to be a limit (think about 10% of your taxable income)... not sure on current structure though.
    Yes, they disallowed all of them, and my donations amount is well below 10% of my taxable income.

  4. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,979
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by Shubz26 View Post
    After this, SARS sent another assessment to me which reduced my tax return. The grounds for assessment was declaration incorrect and the adjustment reason was donations disallowed.

    I don't understand why it has been disallowed when the amount I declared is correct, and all my tax certificates are from legitimate organizations.
    Are you sure you're not getting confused by the dumb way SARS reports their reasons for adjustments?

    i.e. Did the tax increase or decrease?
    The trouble with opportunity is it normally comes dressed up as work.

  5. #5
    New Member
    Join Date
    Oct 2015
    Location
    Azaadville
    Posts
    3
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Quote Originally Posted by Dave A View Post
    Are you sure you're not getting confused by the dumb way SARS reports their reasons for adjustments?

    i.e. Did the tax increase or decrease?
    My tax return has decreased.

    In the original assessment that i received, my donations were included in the assessment, and I was due to receive a certain amount from SARS. After they requested my supporting documents, they sent me an additional assessment, which reduced my original assessment amount claiming that my donations declaration was incorrect. As far as i know, my declaration was correct, and matched the amount shown on the section 18A tax certificates that I sent to SARS.

  6. #6
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,979
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by Shubz26 View Post
    My tax return has decreased.
    I'm still struggling with your terminology here - Do you perhaps mean Tax refund (money due back to you)?
    A tax return is more commonly understood to be a form submission made by the taxpayer to SARS.

    Quote Originally Posted by Shubz26 View Post
    or should I lodge an objection?
    If you're confident the Section 18 A receipts from the PBOs are in order, probably the way to go.
    The trouble with opportunity is it normally comes dressed up as work.

Similar Threads

  1. SARS VAT return negative output tax
    By miriam790 in forum Tax Forum
    Replies: 1
    Last Post: 24-Jun-14, 02:37 PM
  2. [Question] Donations made by Company - Donations tax implications
    By dellatjie in forum Tax Forum
    Replies: 6
    Last Post: 24-Feb-14, 10:08 AM
  3. Replies: 6
    Last Post: 27-Jun-13, 03:33 PM
  4. SARS ANNUAL RETURN
    By Ikgantsheng in forum General Business Forum
    Replies: 6
    Last Post: 09-Nov-10, 03:29 PM
  5. Problems with personal return on SARS efiling
    By duncan drennan in forum Tax Forum
    Replies: 0
    Last Post: 11-Oct-07, 09:39 PM

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •