Tax Help! noob here...

m4dh4tt3r

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Hey Mybb.

So got an SMS saying

Dear Taxpayer, A recurring administrative penalty has been imposed on you.

For more info contact the SARS contact center.

So i went ahead and called them and they told me I have a penalty of R1500 for not submitting any tax forms to them.

Im completely clueless about how the tax works in this country, What forms am I supposed to submit to them? I thought my employer deducts it monthly from my account so i dont have to deal with any of this cr@p.

Can anyone give me a small breakdown on what exactly i am supposed to give them or how can i get this administrative penalty removed? R1500 is more than 1/3rd of my salary there is no way i can afford that.

Thx for any advice given in advance:)

madh4tt3r

(sorry if i sound stupid but when it comes to tax i am just that)
 
Hi madh4tt3r. They are probably referring to your tax return. Even though your employer deducts and pay over the amounts monthly, once a year, your employer must provide you with a tax certificate, which you must then use to complete an annual tax return and submit it to SARS. In the past, you didn't have to do this for certain income brackets, but for the last year or so, everyone must do so regardless of your earnings. Best advise would be to go into your nearest SARS branch (take all the documentation you received from your employer with), ask them to assist you (need a bit of patience) and if you find someone in a good mood that day and you do teary eyes, they may reduce or remove the penalty.
 
Register on sars e-filing, go to your tax return, make sure the data from your IRP5 is reflected on it and file it.

It gets more complicated if you have an external medical aid or provident fund... Also if you have a company car you need to fill your miles in or something (never had to do this so not sure). If you get an income not stated on your IRP5 it gets complicated.

Chances are you just need to open your return on eFiling and file it.
 
Hi madh4tt3r. They are probably referring to your tax return. Even though your employer deducts and pay over the amounts monthly, once a year, your employer must provide you with a tax certificate, which you must then use to complete an annual tax return and submit it to SARS. In the past, you didn't have to do this for certain income brackets, but for the last year or so, everyone must do so regardless of your earnings. Best advise would be to go into your nearest SARS branch (take all the documentation you received from your employer with), ask them to assist you (need a bit of patience) and if you find someone in a good mood that day and you do teary eyes, they may reduce or remove the penalty.

+1. It sucks, and it is an epic waste of time, but this probably the only way you are going to solve it. And if you ignore it, it will only get worse, get there as soon as you can. Also if you choose to do nothing, they will get a garnishee against you, and just deduct from your salary until you sort it out.
 
cool, thanks for the responses all!

yea i guess ill have to request all the IRP5's from my company/previous companies, I never remember receiving them but maybe i just neglected it due to not understanding what its for or never having it explained to me.

I didnt think I earned enough to have to submit tax return forms, considering theres a penalty ill have to learn about this now as much as i can.

Thanks for the advice, I think ill try go into the branch for the first time to hopefully get the penalty waivered or atleast reduced, once i have a firm understanding of this ill just use the e-filing system.
 
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Also make sure you get this done asap - the penalties will accrue on a monthly basis now until such a time as you submit your return for each year you didn't submit. If you have multiple years outstanding and you were liable to submit for those years I would suggest you consult a decent tax consultant who will just provide you a list of things u need to provide him with and he will handle everything on your behalf.

The tax consultant will firstly contact SARS to ascertain what your current tax situation is as well as what years etc need to be completed and then basically run with it from there. Generally takes a few days but no lines, no hassles and no stress.
 
Also make sure you get this done asap - the penalties will accrue on a monthly basis now until such a time as you submit your return for each year you didn't submit. If you have multiple years outstanding and you were liable to submit for those years I would suggest you consult a decent tax consultant who will just provide you a list of things u need to provide him with and he will handle everything on your behalf.

The tax consultant will firstly contact SARS to ascertain what your current tax situation is as well as what years etc need to be completed and then basically run with it from there. Generally takes a few days but no lines, no hassles and no stress.

ok cool, I already emailed my old companies to get them to send me my IRP5's. Ive only been working since end of 2009, Well i worked in 2006 for standard bank for a year but then left to study full time for 3 years. End of the 3 years went to work again and thats when i first sent in some docs to SARS to get a tax number. Now just waiting for my IRP5 and then im sending the docs to my aunt. My mom says my aunt apparently deals with tax returns and she will do it quickly for me if i take all my docs.

So thanks to everyone for the advice, ill just chat to my aunt and im sure she will even be able to explain some more to me and give me a few hints and tips:) Definitely submitting this ASAP, so far im lucky and they havent imposed any penalties for the 2011 tax year, that R1500 is only for the 2010 tax year.
 
did you ask them what years they are wanting. you need to know what years these admin penalties are for in order to stop the recurring penalties. there's no use registering for e-filing and submitting the latest return when you have no idea what years SARS are wanting.
 
When i worked for a place in 2008 I never submitted an IRP5 as I didn't earn enough to file the return. Their accountant said there was no point.

I registered for e-filing end of 2009 and wham there it was. So - before asking all the companies for the IRP5's register for efiling and then login. more than likely that SARS have already loaded your IRP5's there. All your have to do from there is click the IT5 or ITP5 or ITR5 or whatever it is, put in your personal details and bank account details and hit submit (unless you contribute to a personal medical aid etc etc)

EDIT: just make sure all the IRP5's are there for all the years you have worked.
 
When i worked for a place in 2008 I never submitted an IRP5 as I didn't earn enough to file the return. Their accountant said there was no point.

I registered for e-filing end of 2009 and wham there it was. So - before asking all the companies for the IRP5's register for efiling and then login. more than likely that SARS have already loaded your IRP5's there. All your have to do from there is click the IT5 or ITP5 or ITR5 or whatever it is, put in your personal details and bank account details and hit submit (unless you contribute to a personal medical aid etc etc)

EDIT: just make sure all the IRP5's are there for all the years you have worked.

hmmm thanks, ill check it out.. Im battling to get hold of one of the companies i worked for, looks like they have either fallen off the face of the earth or just plain ignoring me. lets hope they uploaded the IRP5 there.
 
hmmm thanks, ill check it out.. Im battling to get hold of one of the companies i worked for, looks like they have either fallen off the face of the earth or just plain ignoring me. lets hope they uploaded the IRP5 there.

I understand your problem. I had a similar issue when I had to sort out my tax number as my previous co registered my home address and other details somewhere else and couldnt give my new employer all the correct details

Solution:Phone the old company,Assuming they pick up, Say I have a tax query that relates to SARS having a problem with the employee and employer and request to speak to human resource lady.Make sure she knows that if you cant sort the issue out this will come back to her and the company for not releasing details to help SARS and yourself in required.
Should get them wide awake.Everyone avoids SARS.

Its the same as if you see a policeman in your review mirror,you watch your speedometer like a hawk.Should be able to sort it out.Remember the E-filing is directly related to what has been filed already,it is your responsibility to prove and show it is correct or if wrong take the correct measures.
 
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