CA Viewpoint July 2022

Dear FC client

IMPORTANT DATES

Please take note of the following important dates:

  •  Income tax season 2022 opening    1 July 2022 – 24 October 2022
  • EAAB annual report    31 August 2022
  • Attorney’s Trust Audit    31 August 2022
  • First 2023 Provisional Tax Submission    31 August 2022

This newsletter will serve as a guideline on the new auto- assessment system implemented by SARS for the
2022 income tax season. It remains your responsibility as a law-abiding citizen of South Africa to adhere to
all tax laws and submit your income tax return within the dedicated timeframe. At FC Chartered
Accountants we can assist you with tax planning services and provide advice on business structures.

Contact us for more information.

Kind regards,
The FC CA team

SOUTH AFRICAN REVENUE SERVICES: AUTO ASSESSMENT

How does an auto-assessment work?

An auto-assessment is based on data that SARS has received from third parties such as employers, medical aids, banking institutions and retirement/investment funds. Once SARS has completed the auto-assessment, the system will notify you as the responsible taxpayer via SMS or email. You will then be able to view the return on the eFiling website.

Auto-assessments issued by SARS for the 2022 year of assessment does not require manual intervention if the taxpayer agrees with the assessment. If the taxpayer or tax practitioner disagrees with the outcome of the auto-assessment issued by SARS, the following actions maybe executed:

  • The auto-assessment return submitted by SARS must be edited on the eFiling website.
  • All changes must be done on the edited return requested by the taxpayer or tax practitioner
  • Taxpayers’ have 40 business days from the date of original assessment to submit an amended return to SARS.
  • One of the following assessments will be issued by SARS once the amended return has been submitted:
    • Additional Assessment or
    • Reduced Assessment

Indications that your auto-assessment might be incorrect.

The following income and expenses will not be included in the auto-assessment:

  • Income:
    • Income derived from the letting of property
    • Farming activities
    • Profit or loss from a business or trade (commission earners, partnership, etc.)
    • Income accrued to an individual as a beneficiary of a trust
    • Foreign income
    • Capital gain and loss not included on IT3(c) certificates
    • Cryptocurrency profit or loss
    • Any other income not listed above or not included on IRP5’s
  • Expenses:
    • Additional medical aid expenses not listed on the medical aid tax certificate
    • Section 18A donations made
    • Travel claims with valid SARS logbook
    • Home office expenses
    • Section 12J venture capital contributions
    • Foreign tax credits

If I accept my auto-assessment, and my auto-assessment is incorrect, am I exempt from penalties/legal actions?

No, you are not exempt from penalties or legal action. It is your responsibility to ensure you report all of your income and expenses accurately to SARS. If you accept your auto-assessment and you failed to declare some of your income, SARS could levy a penalty of up to 200% of the tax payable (plus interest) should an audit be performed.

Honesty is the best policy

Good to know

The deadline for EAAB audit report submission has been extended from 30 June 2022 to 31 August 2022.

Attorney’s audit requirements for the business. Legal practitioners with registered entities at CIPC are subject to comply with the laws set out in the Companies Act. The funds allocated to the trust accounts held and held by attorneys are defined in the Act as funds held in a fiduciary capacity in the ordinary course of business. The company will be subject to a mandatory business audit per the Act if the trust account exceeds the value of R 5 million at any time during the financial year. The legal practitioner will therefore be required to provide a trust audit report to the Legal Practice Council and a business audit report to CIPC.

SPOTLIGHT: ANJA’S TEA GARDEN @ HOME

We have a new monthly section where we will be giving a general overview of one of our clients. We see it as a networking segment where we introduce a company to your network. It is a free opportunity for you to inform our readers about your company and what you do. If you are interested send a short profile about your company and what you do as well as your company logo and contact details.

On this month’s issue we would like to introduce ANJA’S TEA GARDEN

Sit down under our trees and enjoy the peacefulness

From our:

  • Small ‘’Sereni – Tea Garden’’, that has 5 special tables available. (Tue to Sat) to our;
  • Picnic basket and self-service concept.

Private functions on our stoep, eg. High tea for a birthday celebration.

Homemade fresh/frozen ready meals, cakes are available from our cute new shop.

072 153 6732

@anjasteagarden

tea@anjasgarden.co.za

anjas_tea_garden

www.anjasgarden.co.za

Private functions, Frozen Meals, Fresh Bakes,

Weekly Lekker fresh specials.

Download this issue of Viewpoint here