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Thread: Very late tax return problem

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    Very late tax return problem

    Hi.

    I have recently submitted my 2009/2010 tax return and was rewarded with substantial refund. The problem however lies in that SARS won't release my refund because I have an outstanding tax returrn from 2005/2006.

    My problem here lies in that I am unable to obtain my IRP5 from that far back, so I am unable to complete this return from 2006. Needless to say, until completed, SARS won't issue my refund.

    I therefore have 2 questions:

    1. Without an IRP5, how can I obtain the information necessary to complete the return?
    2. Will I be liable for some serious penalties?

    Any assistance or advice will be greatly appreciated.

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    Quote Originally Posted by MidlandsDesign View Post
    My problem here lies in that I am unable to obtain my IRP5 from that far back
    Well, that should not be a problem by virtue of time elapsed as it's less than 5 years (which is pretty much the minimum time to keep all types of tax related support documentation). If there is any way to get a re-issue or copy, I strongly suggest you do so - for reasons that should become apparent shortly.
    Quote Originally Posted by MidlandsDesign View Post
    1. Without an IRP5, how can I obtain the information necessary to complete the return?
    Assuming there's some legitimate reason for not being able to supply the IRP 5 or a copy thereof, you could request that SARS checks against the records of your (presumably ex-) employer to see what information they may already have. If the employer did the EMP501 recon for the 2006 tax year, they would have submitted a copy of your IRP 5 with it.

    If that yields nothing, you're going to need pay slips from the period to stand any chance of putting together a reasonable return.

    If you don't have the payslips, you'll still be able to provide an estimate of earnings, but no way of proving PAYE that was deducted along the way.

    All of this will take some explaining to justify - and time elapsed probably isn't going to cut it.
    Quote Originally Posted by MidlandsDesign View Post
    2. Will I be liable for some serious penalties?
    10% of assessed taxes due + interest at least - if you're registered as a provisional taxpayer there could be other nasties too.

    But if you can give a good excuse, sometimes begging asking for leniency helps.

    Hope that helps.
    Last edited by Dave A; 11-Nov-10 at 02:10 PM.
    The trouble with opportunity is it normally comes dressed up as work.

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    Thanks Dave A. I will contact SARS and find out if they have any of this info on file.

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    I have just done a search on my eFiling for any penalty notices that may have been issued between 2006 and now and it has come up with no results. Would this mean that the a penalty assesment will only be issued once the 2006 return has been submitted?

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    Site Caretaker Dave A's Avatar
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    Yes - as the penalty is based on the assessment of the return.
    The trouble with opportunity is it normally comes dressed up as work.

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    Thanks again. I can't say I'm looking forwards to that one! Let it be a lesson :-(

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    Site Caretaker Dave A's Avatar
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    Hopefully the refund due will help offset the pain.
    The trouble with opportunity is it normally comes dressed up as work.

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    Just a quick update. I managed to get hold of my IRP5 from 2006 from my previous employer and have successfully submitted my return.

    In case anyone else is experiencing this problem, I contacted SARS a few times in this whole process and they were very helpful. It boils down to that if you do not have your IRP5, you can get a letter from your employer/previous employer stating that the information is no longer available. You then also obtain an affidavit stating as much, go to your nearest SARS office, and they can provide you with a copy of the IRP5.

    Thanks again for the advice.
    Last edited by MidlandsDesign; 12-Nov-10 at 02:21 PM.

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    Site Caretaker Dave A's Avatar
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    Thanks for the feedback. I'm sure anyone else faced with the same situation will really appreciate it

    And congrats on getting it sorted out
    The trouble with opportunity is it normally comes dressed up as work.

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