Anyone who needs TAX / Accounting Advice

[Mike Simmonds]

No it does not fall under Section 11 (gC) or Section 23I of the Income Tax Act, the reason being that it does not fall within the definition of 'intellectual property'.

It appears that these rights are actually goodwill and therefore not tax deductable.

However if these rights actually cost 'another company' money to acquire, and in their hands it was an normal expense or a Section 24 C expense then that portion should rightfully also be tax deductible in your hands.

[dewmap]

Hi

Would appreciate some help with First Provisional submission that has to be made. The question relates to the estimated taxable income. Do I calculate that figure by using the first 6 months estimated income or do I have to estimate the income for the full year and then divide that figure by 2.

The problem I have is that we have been abroad and have only been back in SA from the 1 Aug, therefore only one month salary before the first submission. If I have to estimate on the full year the estimated income will be high compared to the tax that the employer deducted which will only be for 1 month. This will result in us having to pay in a huge amount on the first provisional submission. Am I right in this assumption or do I have it totally wrong.

Any help would be appreciated, Thanks

[Mike Simmonds]

If I have to estimate on the full year the estimated income will be high compared to the tax that the employer deducted which will only be for 1 month. This will result in us having to pay in a huge amount on the first provisional submission.

Do you receive any other income besides your salary? In other words, why are you registered as a provisional taxpayer?

[dewmap]

yes, rental income

[Mike Simmonds]

OK, what you really need to do is calculate what your total taxable income for the year will be. Then calculate the tax payable on that. Then estimate if the tax that is being deducted on your salary for the year is going to cause a shortfall or a refund. If there is a shortfall then this is the amount that needs to be paid over to SARS.

[mummy60]

Hi, My problem is with the sarsefiling site.I accidentally ran my mouse over request for historic data on the provision tax which I had returned last year. this somehow saved as version 2 and is sitting as saved not filed. I am concerned as this has a figure in that was paid last year and is incorrect for this year. I have today submitted my correct provisional tax for 2012-1 but I cannot remove the saved one which is on last years form (last years date) but showing as due 25.11.2011.

RETURN TYPE STATUS DATE DECLARED AMOUNT VERSION LAST UPDATED BY
IRP6 Filed through eFiling 2010/08/26 3557.46 version1

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

IRP6 Saved 2011/08/02 3557.46 version 2
I have contacted SARS 3 times and been given 3 different answers, none of which will work. can anyone help please?

[Mike Simmonds]

1. Check the Provisional Statement of Account to confirm that SARS has received your return.
2. Confirm that the payment is showing in the Payment History section.
3. If both of these are in place, ignore the saved return.
4. Give SARS a call and confirm receipt of return and the payment.

[geraldenek]

mummy 60 - to get rid of the return just sitting there - i would normally say submited manually - as this has been already submitted. SARS has never had a problem with this and clients stuff is up to date.

[confused]

Hi there. I need someone to help me out please. I'm terribly confused and this is really stressing me out. I have no idea how this tax thing work. All I know is that the employer is responsible to deduct PAYE from an employees salary and that it is the employer's responsibilty to register the employee for income tax etc? I have been unemployed for the last few months, but before I was retrenched my tax was deducted from my salary. I also noticed a PAYE no on my pay slip. Is that my registration no? I have never earned above R120 000 a year and therefor have never done returns and from what I read you only register for income tax if youre have to do tax returns. So what if I start a new job, do I keep the same PAYE no, am I already registered for tax, or does the new company have to register me again. Is it my responsibilty to register for income tax or the employer's? Also, what happens if I was to be employed as an independent contractor? obviously with no contract the employer is not liable to deduct PAYE until I sign a contract stating a monthly salary. but does this put more stress on me? if i was to still earn less then R120 000 a year as a independent contractor, no need to do tax returns nor register? Please confirm, I'm highly stressed out about all this. Thanks.

[Mike Simmonds]

Hi Confused, welcome to the forum.

It is your responsiblity to register for Income Tax. The PAYE reference number belongs to the employer. Independent Contractors do pay PAYE, or at least the Employer should make PAYE deductions.