Auto Assessments
Last year, SARS introduced a new feature – the Auto Assessments. The auto assessment is based on what SARS has received from third party data. Based on this, the tax assessment has been prepared without a need to file a tax return. No further action is required by you. However, should you, after reviewing this auto assessment, establish further income or tax deductibility, then you need to know that a 40-day timeline has been set down by SARS to amend your tax return. In time, we do see SARS imposing penalties on under declaring taxable income with these Auto Assessments. Of course, they will not allow tax deductions too if the 40-day rule applies. It is very important to study and ensure the corrections of these Auto Assessments!! Yes, the investment houses and medical aid companies are obliged to send this data to SARS. SARS does work for us!!
Out- of- pocket medical expenses are not processed by your medical aid and will not be included in the third party data information that SARS would have obtained. Donations to charities are also not included in this third party data information.