SARS at war with the disabled community

Cius

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Jan 20, 2009
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For those that are unaware earlier this year SARS tried to change how disability expenses could be deducted on tax returns and essentially remove most of the benefit from families looking after disabled people. While most countries are moving in the opposite direction I should add, helping people like that more. A few articles where written on it like this one:


After a massive backlash from the media, Rare Diseases SA, and the chartered accounting institute they backed off. However what is happening now is they have changed tactics.

For as long as disability expenses have been allowed on tax returns the one easy deductible was expenses that medical aids did not pay for related to the disabled person. As long as the medical aid tax certificate had that break down of what you paid above the medical aid contributions it was accepted as gold. They now no longer accept the medical aid tax certificate. They now request full proof of every purchase which as it was never before required no one has really kept. They do not accept a statement from the pharmacy or medical provider either according to the call center, only actual receipts.

I have contacted a CA who is an expert in this area as well as two registered tax practitioners and they all agree this is new, and insane. It is sickening how SARS wants to target the disabled and their care considering how little the government does to help these vulnerable people and those trying to care for them. I am writing this to raise awareness and to hopefully trigger an investigation by MYBB journalists so that more media pressure can be created on SARS to resume accepting medical aid tax certificates instead of the new onerous requirements.

@Jan, please pass this on to the staff writer's. Happy to be contacted for more details. Please feel free to use the title of this thread as the article title.

I am boiling at this. We already struggle so much to pay the massive expenses for my disabled child. Some years our medical expenses over and above what a top medical aid plan covers can be in excess of R80 000. The SARS tax credit I got ended up paying a good chunk of our medical expenses as we just don't have that kind of money to pay for all that my daughter needs and what we spend is helping keep her alive. I know so many others in the same boat. If we don't get the help and support of the media on this it will be simply devastating if SARS wins.

I will also be sending all the details to SAICA and Rare diseases to add to what I assume is a growing number of similar cases. Thanks.
 

Kosmik

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We've been lucky, we have records of everything we spend and I separate the medical into two segments, general for the family and then specifically for my child with the disability. Odd that they don't accept the medical certificate though? But ours was mainly medication or doctors visits so we did submit the records with his name as patient.

It is a lot though, and I think this year I need to renew the ITR-DD as well.
 

animal531

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If you didn't keep the records yourself, can you possibly request them from wherever you spent the money? For example from the hospital/pharmacy/wherever?
 

Cius

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After discussing with some experts I decided to bombard them with info. I got full details from the medical aid, and all the providers I could access as well as a full years bank statement to back up the payments. Hoping that will look like too much work to be bothered with and they will just approve it.
 

bigboy529

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First time I hear of these changes. Is it only the medical expenses not covered by your medical aid which changed, or are there other stuff as well?
 

Cius

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First time I hear of these changes. Is it only the medical expenses not covered by your medical aid which changed, or are there other stuff as well?
Not sure. I have always only claimed for the medical aid tax certificate. It is possible to claim for more but requires a lot more energy. For instance I have a friend who also claims for travel to specialized doctors appointments for the disabled child. It requires a fairly detailed logbook. One can claim for specialized school fees if they require special schooling as well, or for a caregiver as an example. For that stuff SARS has always requested receipts so nothing would have changed there.

The big change is not accepting the medical aid tax certificate anymore and requiring the full receipts for all those expenses.
 

Cius

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After discussing with some experts I decided to bombard them with info. I got full details from the medical aid, and all the providers I could access as well as a full years bank statement to back up the payments. Hoping that will look like too much work to be bothered with and they will just approve it.
Well, SARS finalized my return by creating a new one that says I owe them thousands. Keep in mind my initial return that I could auto accept said I was owed a few thousand. Adding the disability expenses then said I was owed 10 times the initial amount. Now somehow I magically owe them close to 5K. At this point I am thinking I need to get a professional involved. Any recommendations on a good tax consultant with experience in disability claims?
 

KingMikel

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Hi Cius. Lammert at Sparrows Accounting is a tax practitioner with a disabled child of his own, we're using him. PM incoming.
Well, SARS finalized my return by creating a new one that says I owe them thousands. Keep in mind my initial return that I could auto accept said I was owed a few thousand. Adding the disability expenses then said I was owed 10 times the initial amount. Now somehow I magically owe them close to 5K. At this point I am thinking I need to get a professional involved. Any recommendations on a good tax consultant with experience in disability claims?
 

RedViking

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Feb 23, 2012
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But I thought the government cares for the disabled, women and children?

O wait, they only bring awareness.
 

Cius

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Hi Cius. Lammert at Sparrows Accounting is a tax practitioner with a disabled child of his own, we're using him. PM incoming.
Thanks. I challenged and they reviewed it all and in the end granted me about 85% of what I should have gotten and have paid it into my account late last week. At this point I am so sick of dealing with them I have decided to accept it and move on. If they had however accepted the valid medical aid tax certificate I would have had R4K more for medical bills this year which is a substantial amount for us.

Anyways, would be interested to hear if anyone else has the same experience. Next year I think I may just start by using a tax practitioner and I will definitely get in touch with the person you recommend. Thanks.
 

Veroland

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Aug 24, 2005
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SARS seems to be messed up this year. First I got the sms for verification, then for audit, then one claiming verification is complete, then one for verification again...

It's been about 7 weeks now. I only claim the school fees and and part of the medical costs the medical aid does not cover for my disabled daughter, which is not a lot.
 
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