You might have been told by someone, maybe even SARS that you don’t need to file a tax return this year. Take it from us, it’s always best to rather file every year to stay tax compliant with SARS.
1. You miss out on your refund
Why let SARS keep your money if you are due a refund? A refund is money you overpaid on your taxes and it belongs to you. You can only get a refund if you file a return. Something as simple as claiming Medical expenses or working two jobs can trigger a tax refund, depending on your situation.
2. You may not be able to borrow money
If you wish to borrow money in the form of a mortgage for a home, or a long-term loan of any kind in future, you may need a Tax Clearance Certificate. This can only be obtained if all your returns are up to date and filed appropriately.
3. SARS might change their mind
If you normally submit, but this year you don’t, SARS could impose administrative penalties later down the line for not being compliant.
4. You may not be able to access your retirement fund
Filing a tax return each and every year means that should you receive a pay-out from a fund at any stage, then you won’t have hassles in getting the money. If you retire or are retrenched, or just need to take money out of your fund early, you need to be tax compliant.
5. A complete record stands in your favour
Having an unbroken filing record leaves SARS officials with no reason to suspect that you are hiding information from them, thus triggering an audit next year. Filing a tax return means you are being a good citizen and contributing towards society!
Tax Shop Blaauwberg
26 Humewood Drive, Parklands, Milnerton 7441
021 556 6800 / 08 2504 7000
Tax Practitioner – PR 0027936 | SAIT – Reg. n#19404856