Is My Auto-Assessment Correct? – The Steps Necessary to Ensure Compliance
Auto-Assessment Notices
Auto-assessment is aimed at streamlining tax filing by using data from employers, banks, and other sources to calculate your taxes automatically. This service is intended for taxpayers with straightforward tax situations, specifically non-provisional taxpayers.
SARS has recently announced the dates for the 2024 Filing Season, which are:
Auto-assessment notices sent out by SARS: from 1 July 2024 to 14 July 2024. These notices are sent to taxpayers.
Individual taxpayers (non-provisional): 15 July 2024 to 21 October 2024
Provisional taxpayers: 15 July 2024 to 20 January 2025
Trusts: 16 September 2024 to 20 January 2025.
Taxpayers are ultimately responsible for ensuring that their taxes are correctly filed and paid.
Tax practitioners are responsible for providing tax-related advice and ensuring that all relevant returns are submitted on behalf of their clients.
The Process to Accept or Reject the Auto-Assessment
Although the assessment is based on the information provided by third parties, there is no guarantee that it is correct. Following the steps below is crucial to ensure that the responsibilities of a taxpayer are adequately fulfilled.
Step 1. Notification of tax practitioners: SARS notifies taxpayers when an auto assessment is issued. Taxpayers should notify their tax practitioners as soon as they receive an auto-assessment notice.
Step 2. Provide all relevant documents and information: Taxpayers should provide all relevant information IRP5 and IT3 certificates, and any additional information that may be relevant to the tax return.
Step 3. Verifying the Information: Tax practitioners should verify the correctness and completeness of the information in the auto-assessment by comparing information received from the taxpayer to the SARS-generated information. This is done by logging into eFiling or MobiApp to check the assessment details.
Step 4. Decision to Accept or Modify: Decide whether the auto-assessment is accurate and either accept it or file a corrected return. If the information in the auto-assessment is found correct there is nothing further to be done. When amendments are necessary the tax return should be completed and filed on or before 21 October 2024, by visiting eFiling or the SARS MobiApp.
Checking Data Accuracy
To ensure the data SARS uses is accurate:
Log into eFiling: Access the "Third Party Data Certificate" section on SARS eFiling and check the data accuracy.
Compare to supporting documents: Compare the information on the auto-assessment to the documents submitted by the client. Confirm that the information is correctly included in the assessment and that the taxes calculated are correct.
Correct Errors: If there are errors found in the auto assessment, corrections can be made on the return by logging into eFiling or MobiApp.
Note: Filing a return after the normal due date of 21 October 2024 will attract penalties.
When a third-party certificate is found to be incorrect, the data provider should be contacted to correct it. Once SARS has updated the certificate on their system, the return can also be updated and submitted.
Client Communication is Key
Tax practitioners should ensure that their clients are well informed on what is expected of them relating to auto assessments. Early communication is key in ensuring hassle-free and correct filing season. Use the template letter below to send out reminders to your clients.
Further guidance from SARS
Read more on auto assessments from the SARS website here.
See all the frequently asked questions on auto-assessments here.
From 1 July 2024, you will be able to check your auto-assessment status here.
Use CIBA’s template letter to inform your clients on auto assessments.
Enroll For CIBA’s Tax Compiler or Tax Advisor Subscription and keep up to date with developments.
What you will learn
By subscribing to the Tax Compiler or Tax Advisor Subscription you will gain access to monthly webinars covering various topics; which will enable you to:
Be aware of the latest legislative changes and what it means for your business, practice, and your clients;
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Perform tax compiler or tax advisory services.
