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Thread: New Income Tax Return Threshold

  1. #1
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    New Income Tax Return Threshold

    My income tax prerequisites have always been met i.e. IRP5 received and tax deducted from salary, I've never actually submitted a return and I am unsure of whether its legally mandatory.

    Although I now fall below the new threshold of R500k, a friend advised that I register for efiling to make sure I don't have any previous returns outstanding, from when I was earning above the previous R350k threshold - I am reluctant because I am unaware of the income tax law, the penalties, implications etc.

    Should I let sleeping dogs lie or register for efiling and risk possible penalties (if any) for missing and/or not submitting past returns?

    What are the possible implications for not submitting an income tax return?

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    Lightbulb

    Hi, I also suggest you register and get it sorted out
    Incurring penalties will not be stopped just because you did not register and submit the return
    If there are previous returns outstanding then you just need to get it sorted out, and sticking your head in the sand is not going to make the problem go away
    You never know, once the outstanding returns are completed, then SARS might just owe you money , which you will never get if you don't complete your returns
    However not completing the returns will not stop them from tracking you down if for some reason they stumble across your IRP5 which your company submitted to them as a requirement.
    This is why I advise everyone that currently pays SARS more than R0.00 per month in TAX ,regardless what amount they earn, to complete their SARS returns or get assistance to get them completed
    There is absolutely zero downside to completing your returns, If you owe them money then they will find you anyway and add interest and penalties to your account no matter if you didn't complete your return
    However as I stated above, if they owe you money, then they won't inform you of this if you don't complete your return.

    Do you rely think they state these thresholds whether R350k or R500k to collect less tax?
    I don't think so.

    The more plausible reason would be that 90%+ of these people, does not owe them any additional taxes and they don't want to allocate resources to the processing of these returns if they are not going to get additional revenue from them
    OR they have seen that they have to process more refunds to the people below this bracket then what they get in as additional revenue.

    Remember the threshold does not state that if you earn below this amount that you are not allowed to file your return
    It merely suggests that you are not required to.

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