SARS Auto-Assessments

Background information:

SARS will issue DRAFT auto-assessments to selected tax payers, where they believe the third-party data submitted to them is sufficient for an accurate assessment. For tax payers with draft auto-assessments, an eFiling screen is opened where the results of the auto-assessment is shown, as well as the option to accept or reject the auto-assessment. By accepting the DRAFT auto-assessment, an assessment is immediately issued and the refund  or tax liability payment processes initiated. A rejected auto-assessment will open a normal tax return that needs to be populated and submitted. Should the DRAFT auto-assessment be ignored, i.e. neither accepted nor rejected on eFiling, a SARS estimated assessment will be issued 3 to 5 months after the closing date of the tax season.

UNFORTUNATELY WE WILL NO LONGER BE ABLE TO ACCEPT AUTO-ASSESSMENTS ON YOUR BEHALF

From a legal liability risk perspective and an administration perspective, we will no longer accept auto-assessments on your behalf on our company eFiling profile. There is no way that we can vouch for the accuracy of the auto-assessment estimations, nor the accuracy of the personal information on eFiling, without going through the usual non-auto assessment/normal eFiling processes. Our experience with the roll-out of the auto-assessments in the 2020 tax year, was that out attempts to verify auto-assessment information took as much, if not more time than actually filing a normal return, without the normal stops and balances in place.

We will therefore not accept any auto-assessment on your behalf. You have the option to accept your auto-assessment by registering your own eFiling profile, or to allow us to reject your auto-assessment and file your return as usual at our going rates. Please see the adjacent guide for information on how to register your eFiling profile or recover your eFiling credentials if you have already registered an eFiling profile.

The third party auto-assessment data that SARS uses is likely the following:

  • IRP5/IT3(a) income/salary/annuity certificates.
  • Investment income certificates, IT3(b)’s. At this stage we are not sure if the IT3(c) capital gains certificates are included in the third party data used to calculate your auto-assessment.
  • Retirement annuity certificates (sometimes labeled IT3(f).
  • Medical aid certificates.

The auto-assessment does not cater for:

  • An additional income not reflected on an IRP5/IT3(a) certificate, including non-salaried business/trade income.
  • Capital gains income.
  • Rental income.
  • Travel allowances/use of company car claims
  • Additional medical expenses claims not reflected on a medical aid certificate.
  • Medical aid contributions where you are not the principal member
  • Donation to charities claims.
  • Home office expenses.
  • Any other income and/or expenses not catered for by third party information submitted to SARS.

BEFORE YOU ACCEPT THE SARS AUTO-ASSESSMENT, PLEASE BE SURE THAT IT IS AN ACCURATE REFLECTION OF ALL YOUR INCOME TAX INFORMATION.

You should not assume that SARS has your best interest at heart. You will forego any additional refund claims that might otherwise have been possible if you carelessly accept the SARS auto-assessment. Any undeclared income not reflected on the SARS draft auto-assessment is subject to SARS penalties and interest (and is now a criminal offense). Should your contact information not be correct at the time of accepting the auto-assessment, it would technically also be a criminal offense. Ensure that your bank details are correct on eFiling - should you receive an auto-assessment  refund, it will not pay out if your banking details are not current.

 

SARS ERRONEOUSLY FILED AUTO-ASSESSMENT ESTIMATES FOR SOME

 

NOTICE 30 JUNE2021:  A SARS SMS MESSAGE SENT TO ONE OF OUR CLIENTS THAT RECEIVED AND AUTO-ASSESSMENT/SARS SUBMITTED ESTIMATION INDICATES THAT IT WAS A MISTAKE. PLEASE SEE MESSAGE BELOW:

MY TAKEAWAY FROM THE SARS SMS:

SARS -

1) 'WE MADE A MISTAKE'

2) 'IF THE RESULTS OF OUR MISTAKE IS OKAY WITH YOU, JUST LEAVE IT'

3) 'IF YOU WANT TO CHANGE OUR MISTAKE, PLEASE DO SO - BUT YOU WILL PROBABLY GET AN AUDIT/REVIEW'

4) 'SORRY'

I will post an update as new information becomes available.

NOTICE 28 JUNE2021: SARS has changed their auto-assessment methods for the 2021 tax. Auto-assessment are now automatically issued for qualifying tax payers and corrections to these assessments can only be made by filing a correction to the auto-assessment.

How to register an eFiling profile with SARS

If you want to have access to your eFiling profile, you can request access/register at https://www.sars.gov.za/  and click on register (just below ‘login’ at the top right). It will take you through an authentication process and will use one of your cell phone or email addresses that reflects on their database.

 

FORGOT USERNAME OR PASSWORD?

If you already created an eFiling profile in the past and forgot your username or password, you need to request either of these by following the forgot username | forgot password tabs under login on the https://www.sars.gov.za/ page.

 

IF YOU ARE UNSUCCESSFUL WITH THE ABOVE, PLEASE CALL THE SARS CONTACT CENTRE 0800 00 7277