Tax3704 – Second Assignment (SEM2) 2022
QUESTION 1
1. Why did SARS change to auto assess some taxpayers?
During Covid-19 there was need for social distancing. Auto assessing taxpayers will
reduce queues.
2. What type of taxpayers are targeted by SARS and why?
- Natural persons
- Who earns income which is remuneration.
- Taxpayers who are not provisional taxpayers.
- Those taxpayers whose tax affairs are not complicated.
3. How will I know as taxpayer that I will be auto assessed? What personal information is
important to provide to SARS and why?
- I will know as a taxpayer that I will be auto assessed is I am in formal employment and
not a provisional taxpayer. A communication from SARs about my assessment for the
year will be send to me.
- Information required
Data from employers
Data from pension funds
Data from medical schemes.
4. May a taxpayer argue that an auto assessment is deemed to be correct and that the
onus is on SARS to prove that the auto assessment is correct? When does an auto
assessment become final.
- A taxpayer may argue if the auto assessment is incorrect, the onus of proof is not on
SARs to prove that an auto assessment is correct since they might not have all
information about the taxpayer for example donations and some income received which
outside employment and some tax-deductible expenses. The onus of proof is therefore
on the taxpayer to prove that SARs’s assessment is incorrect. (Section 102)
The auto assessment from SARs become final after 40 days if the taxpayer does not
correct the auto assessment. And there is an extension provided the taxpayer prove
exceptional circumstances that prevented him/her to correct within the 40 days. This
can only be done within 21 days after the expiry of 40 days.
5. If a taxpayer received rental income or made a deductible donation not reflected on
the assessment, what process must the taxpayer follow to correct the assessment?
- file in a return with the information on the rental income received and the section 18A
receipt on the donation made together with the information already captured by SARs.
- This must be done within 40 days of receiving the auto assessment from SARs.
-
6. If the taxpayer does not correct the auto assessment in time what can happen to the
taxpayer?
- The taxpayer may request an extension of 21 days after the expiry of 21 business days,
the taxpayer should provide reasonable grounds that might have caused the delay.
7. What type of assessment is an auto assessment and on what type of information is it
based?
QUESTION 1
1. Why did SARS change to auto assess some taxpayers?
During Covid-19 there was need for social distancing. Auto assessing taxpayers will
reduce queues.
2. What type of taxpayers are targeted by SARS and why?
- Natural persons
- Who earns income which is remuneration.
- Taxpayers who are not provisional taxpayers.
- Those taxpayers whose tax affairs are not complicated.
3. How will I know as taxpayer that I will be auto assessed? What personal information is
important to provide to SARS and why?
- I will know as a taxpayer that I will be auto assessed is I am in formal employment and
not a provisional taxpayer. A communication from SARs about my assessment for the
year will be send to me.
- Information required
Data from employers
Data from pension funds
Data from medical schemes.
4. May a taxpayer argue that an auto assessment is deemed to be correct and that the
onus is on SARS to prove that the auto assessment is correct? When does an auto
assessment become final.
- A taxpayer may argue if the auto assessment is incorrect, the onus of proof is not on
SARs to prove that an auto assessment is correct since they might not have all
information about the taxpayer for example donations and some income received which
outside employment and some tax-deductible expenses. The onus of proof is therefore
on the taxpayer to prove that SARs’s assessment is incorrect. (Section 102)
The auto assessment from SARs become final after 40 days if the taxpayer does not
correct the auto assessment. And there is an extension provided the taxpayer prove
exceptional circumstances that prevented him/her to correct within the 40 days. This
can only be done within 21 days after the expiry of 40 days.
5. If a taxpayer received rental income or made a deductible donation not reflected on
the assessment, what process must the taxpayer follow to correct the assessment?
- file in a return with the information on the rental income received and the section 18A
receipt on the donation made together with the information already captured by SARs.
- This must be done within 40 days of receiving the auto assessment from SARs.
-
6. If the taxpayer does not correct the auto assessment in time what can happen to the
taxpayer?
- The taxpayer may request an extension of 21 days after the expiry of 21 business days,
the taxpayer should provide reasonable grounds that might have caused the delay.
7. What type of assessment is an auto assessment and on what type of information is it
based?
