Practical Guidance Completing the ITR12 - part 1
Duration: 2 hours
Price: R195.00
Practical Guidance Completing the ITR12 - part 1
Presenters : Diane Seccombe
Overview
Individuals submitting their 2025 tax returns can expect increased verification queries from SARS, particularly as the revenue authority expands its use of third-party data—most notably via the newly introduced IT3(t) form. To avoid potential audits, taxpayers must understand the legislative references embedded in the return and the documentation required to discharge the burden of proof for the information disclosed.
This session will not cover the mechanics of filing the ITR12. Instead, the focus is on unpacking the content of the return—what specific questions mean, why SARS is asking them, and how taxpayers can respond appropriately and compliantly.
Video Content
Watch this video, as we explore key SARS focus areas in the 2025 ITR12, including:
- Double Tax Agreements and annuity income received by non-resident annuitants
- Endowment and sinking fund withdrawals
- Foreign collective investment schemes
- Primary residence exclusion adjustments due to home office use or rental
- Trust distributions, including:
- Changes for non-resident beneficiaries and double taxation
- CGT consequences on disposal of trust assets
- The full impact of section 7 attribution rules
- Qualifying expenses
- Cessation of residence, including:
- Impact on the primary residence exclusion
- Capital Gains Tax disclosure
- Employment income and extended application of section 10(1)(o)
- Foreign income, with a focus on:
- Updated average exchange rates
- Rebate for foreign taxes paid
- Taxation and disclosure of offshore endowments
- Disposal of offshore assets and foreign income disclosure, including:
- Conversion of proceeds and base cost into rands—what rates to use?
- Crypto assets and compliance risks
Competencies Developed
- Ability to interpret and apply SARS’s verification focus areas for the 2025 ITR12, including implications of third-party data reporting.
- Improved understanding of legislative requirements for various income types and deductions, and the burden of proof in substantiating disclosures.
- Competency in identifying and managing tax risks related to:
- Trust distributions and section 7 attribution rules
- Double taxation and the application of DTAs
- CGT implications of residence cessation and asset disposals
- Disclosure and taxation of foreign income, endowments, and crypto assets
- Ability to assess complex tax treatment scenarios, such as annuity income for non-residents, endowment withdrawals, and adjustments to the primary residence exclusion.
- Enhanced skills in advising clients on documentation, exchange rate application, and updated SARS compliance expectations.