2021 new tax legislation
29 Jun 2021
Here’s what you should know as a taxpayer
Negligent non-compliance of all taxpayers has been criminalised.
What does the new amendment of tax legislation mean for you?
The new tax legislation that has recently been put in place makes even inadvertent or unintentional errors in information submitted to SARS a criminal offence. This has serious implications for every taxpayer as it could land you in jail with a criminal record, a penalty or a prison sentence for unintentional errors in your dealings with SARS.
The new income tax season is here
The 2021 tax filing season runs from July 2021 onwards. Ensure that you submit accurate information to SARS in your annual tax returns, whether you do your own submissions or we do it on your behalf. Keep the following in mind when you do your tax return or send your information to Legal&Tax.
- Make sure all your contact details are correct:
- Physical and postal address
- Home, work and cell phone number
- E-mail address
- Make sure that SARS has your correct banking details
- Make sure that you declare all income that you receive:
- Salary, pension or annuity
- Interest earned on investments
- Rental income and business income
- Profit on the sale of assets including the sale of a home and crypto currencies
- Any deductions that are claimed must be accurate with the correct substantiating documents. Examples are your medical aid and retirement annuity contributions made to an institution other than your employer.
- Ensure that you have a current ITR-DD form completed by your medical practitioner if you claim any disability expenses for yourself, spouse or children.
How to avoid penalties
All your documents must be kept for a period of five years after the date of an assessment or date an audit or verification of a tax return was finalised. SARS is bound by the law and will levy penalties for every transgression of the Income Tax Act and Tax Administration Act. Ensure that you provide accurate and complete information should you require Legal&Tax to assist you with the submission of your annual tax return.
With Legal&Tax you’re not alone
Don’t find yourself on the wrong side of the law. Legal&Tax will assist and help you take ownership of all your tax matters. Contact us for more information.
Article sourced from Legal&Tax.