How to avoid an unexpected tax bill

[BusinessTech]

How to avoid an unexpected tax bill

Taxpayers with multiple sources of income are often surprised during the tax return filing season when the result of their assessment indicates that they owe money to the South African Revenue Service (SARS), says Carla Rossouw, tax lead at Allan Gray.

 

[RedViking]

If you declare all your income, there should be no surprise. People who get an unexpected tax bill probably tried to hide it?

 

[longboy]

If you declare all your income, there should be no surprise. People who get an unexpected tax bill probably tried to hide it?

Gov can't tax what doesn't go into a bank account.

 

[diapason]

If you declare all your income, there should be no surprise.

Not true.

Someone who has a pension could be widowed and get a part pension from the deceased spouse's fund. Each would be taxed as though it were the only income unless the pension funds ask whether that is the only income.

Or, someone could be earning interest below the taxable threshold and then the interest rates increase and take it above that level.

Or, a regular salary earner takes on an additional part-time job but doesn't advise the part-time employer about existing earnings (although that new employer should be asking).

In all those cases all income is declared but without the complete context. Way too many people are clueless about how tax works and this is very evident even on MyBB.

 

[RedViking]

Not true.

Someone who has a pension could be widowed and get a part pension from the deceased spouse's fund. Each would be taxed as though it were the only income unless the pension funds ask whether that is the only income.

Or, someone could be earning interest below the taxable threshold and then the interest rates increase and take it above that level.

Or, a regular salary earner takes on an additional part-time job but doesn't advise the part-time employer about existing earnings (although that new employer should be asking).

In all those cases all income is declared but without the complete context. Way too many people are clueless about how tax works and this is very evident even on MyBB.

That's also true. Not even qualified accountants get it right. Our tax laws or system is unnecessary complicated.

As a freelancer with multiple sources of income I have learned the hard way. I still get an accountant to do my provisional filing (3rd or 4th one now), but still have to email them when they forget stuff or not doing the calculations properly.

But then again, I guess you also get what you pay for.

 

[Brontosaurus]

Way too many people are clueless about how tax works and this is very evident even on MyBB.

Teacher: The Mitochondria is the powerhouse of the cell.

Student: That's cool and all, but I'd really like to learn how to file my ta...

Teacher: I SAID THE MITOCHONDRIA IS THE POWERHOUSE OF THE CELL!!