You should receive an email or SMS from SARS informing you that you have been selected for auto-assessment. The process started in July 2022. But, this is not the first time SARS has issued an auto-assessment. They also issued these in the 2021 tax year.
What should I do if I receive an auto-assessment?
SARS says if you agree with the aut0-assessment, you do not have to do anything. However, should you be in disagreement, you have just 40 working days from the date of assessment to file a correction (edited tax return.)
What happens if you miss the 40 days?
If you feel the 40 working days are too little, you can request an extension on eFiling before the 40 days have expired. SARS will require “reasonable” grounds for the request. if you miss the deadline, you will have an additional 21 working days to submit a request for an extension on the same terms. If both 21 and 40 days have passed and you still were not able to submit a correction, you will need to provide “exceptional circumstances” to justify a delayed request for extension.
NOW TO THE BIG QUESTION, SHOULD I ACCEPT THE AUTO-ASSESSMENT?
We think this is a risky move if (and SARS may not pick up these things on an auto-assessment:)
1. You have qualifying donations you would like to claim
2. You have qualifying out-of-pocket medical aid expenses
3. Your medical aid is being paid for by someone who is not the principal member (normally the person paying for the medical aid would be the one to claim the medical tax credits.)
4. You have capital gains on assets that you sold that fall outside the scope of an auto assessment
5. You are a crypto or share trader
6. You have a side business or rental income (profit or loss)
7. You have and qualify for a home office expense claim (deductions)
8. You would like to claim your business travel kilometres
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