Personal Income tax return 2015 - ISSUES

[mango]

Hi All,

I used to get rental income in the past, the unit was sold and i didnt de-register for Provisional tax.

My returns was always done by my Tax practitioner. Since a year or two lapsed i decided to file my Annual returns myself
as there are no rental income anymore and should be straight forward.

After filing my 2016 returns i see SARS has sent me a letter stating i need to pay over R9 000 of tax from my 2015 year as its late.

After looking at everything i saw i did do my tax returns for 2015 and did not file any rental income as there weren't any ... this stopped early
in the 2014 year.

I saw that my tax return should have been edited or something as there are a rental income all of a sudden... im 200% sure i didnt do it... and the
amount that was there far exceeded any rental income i ever had.

has anyone encountered this before? I have logged a NOO (notice of objection) which SARS has denied. i logged another one which they denied again
saying "no exceptional reason supplied".

Please can anybody help me with this ...? I dont know how to prove i didnt have rental income when i didnt have any ? And how could my return now have
rental income declared (can this be done by SARS) ?

Any help will be appreciated !!!

[Andromeda]

I would suggest navigate to the incorrect year and then select the Request A Correction button and re-submit without the rental income.

They will request an audit, so I would suggest you do a sworn affidavit to the effect that you had no rental income..

[mango]

Morning,

Please tell me if you think SARS done the second submission? I filed my submission ITA34 on 26 jan which was correct, then someone else filed a second submission ITA34 on 20 June. How is this possible?

Im willing to go doe the sworn affidavit but i have no energy for another audit, i was audited in 2013 and it was a nightmare, at the end i was over with R1 ...all that effort and my things was right.

Anyway i can prevent another audit ? As i stated i filed my ITA34 and someone else dit an additional ITA34 (i think this was SARS) but dont know if they do this and why they would ?

Please help me...

[Andromeda]

You might be confusing the various tax documents.

The ITR12 is your return.

The ITA34 is the assessment of that return. Often there will be more than one ITA34. The real issue is are there more than one ITR12 and is the second one flagged as Submitted, or Saved?

[mango]

Hi,

You are right.

I filed my ITR12 which was correct and then the ITA34 got issued once done. This was on 26 January.

Then there showed up another ITA34 (additional assesment) on the 20th of June that had the extra amounts on ... was this done by SARS ? and why would they do this?

[Andromeda]

I suggest you lodge a dispute by clicking on the dispute button and carefully follow the process.

[Andromeda]

I received this email this morning and it serves to confirm some uncomfortable suspicions, and may be relevant to what you have experienced:

"It has come to our attention that there are delays in the payment of refunds by SARS.

A recent newsletter sent out by the South African Institute of Chartered Accountants (SAICA) to all its members refers to this matter.

Peter Faber, Senior Executive - Tax, reported the fact that SAICA has become aware of the current significant frustration experienced by their members regarding the SARS 'Special Stopper' verification process. The initial understanding was that the problem was limited to refunds, but it appears that the problems are much broader and more complex than was originally anticipated. He further mentioned that SAICA, as a matter of urgency, was trying to get clarity on the root cause of the problem and they were seeking to find a solution with SARS to prevent further frustration.

It seems that large multitudes of persons were instructed to visit SARS branches for seemingly no reason on multiple occasions, with some of the SAICA members reporting that no verification was required. The result is that SARS branches have been flooded with people, causing long queues and delays, therefore exacerbated the frustration experienced by people visiting branches.

SAICA continued to note that taxpayers are also experiencing increasing frustration in obtaining VAT refunds. This frustration mostly stem from deferral procedures that do not seem to adhere to standard procedures, resulting in matters such as: Multiple requests for verification documents, journals being passed to negate refunds, multiple requests for bank detail confirmations, and refunds being withheld for audits on other tax matters. These matters are seemingly not in accordance with standard procedure, therefore complicating member’s ability to use the necessary remedies available in law.

SAICA assured its members that they are engaging with SARS, along with the other recognised controlling bodies at the highest possible level, to resolve the matter.

We want to encourage you to ensure that the necessary supporting documentation (especially with regard to VAT refunds) is available immediately on request for us to submit to SARS in order to avoid further delays
in payments.

It is even more important to ensure that all accounting records are maintained accurately to enable us to answer any queries raised by SARS.

Regards,

[Chris85]

Hi,

SARS usually does raise an additional assessment when they have information for external sources (like a rental agent maybe). So if you are sure the additional assessment is incorrect, you should lodge a dispute by clicking on the "Dispute" button when you open the IT34 (additional assessment). You will be asked to submit all your supporting documents as well and an audit will be conducted by SARS.

I have had clients before that SARS said received investment income which they never did. We did the dispute and uploaded an affidavit with all the other supporting documents, and SARS revised the assessment accordingly.

I hope this helps!

Kind regards,

Chris

[mango]

Thanks to Andromeda,

To Chris85... i have done a NOO (notice of objection) on that ITA34 as you mentioned, which was declined. i did another which was declined again.

I think i should do a swarm affidavit and upload that to SARS (they want me to prove i didn't receive rental income...but how do you prove something that never happened).

[Bertievn]

Hi
You should submit notice of appeal but should have been done within 30 days after they said objection invalid but they give you a lot of grieve but will have option to state your case in person
request condemnation for late submission but sound your case a bit too old