A taxpayer wants to accept the auto assessment from SARS, for the 2020 year of assessment. The taxpayer’s Income on 2020 auto assessment is almost R 120 000 less than his Income for the 2019 year of assessment. The taxpayer received an increase in income in 2020. The taxpayer’s retirement annuity information could also be incorrect. Awaiting his IRP5 to confirm.
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
Not sure if you require any guidance on the interpretation of tax Acts. We have heard, and SARS said so as well in their media release and in other communications, that there are differences between the information in the sms when compared to the IRP and retirement fund contributions. Part of that is that the information obtained from third parties, employers and funds, contained errors and were, and are still being amended by employers. You are correct to check the information in the return to the IRP5's, IT3's and contribution certificates (retirement and medical). The taxpayer must not accept the auto assessment.