A taxpayer’s estimated taxable income for the 2021 year of assessment is less than the basic amount, which is required to be used in the taxpayers 202101 provisional tax calculation. The taxpayer is in a loss position because of COVID 19. The e-Filing sys
Author: Graham Walker
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
Relevant law: Step 1: Para 19(1)(b) of the Fourth Schedule to the Income Tax Act No.58 of 1962 (“ITA”). Step2: Para 20(1)(b) of the Fourth Schedule to the ITA, as regards the possible penalty on underestimation. Other resources: · The SARS IN 1 at paragraph 4.3. Comment on member’s query: As far as we know there is only a warning message on eFiling, but it does not prevent the submission of a lower estimate. Please report back if this isn’t the case. The above guidance should lead you to the correct decision.