Did you receive an SMS from SARS showing your tax calculation?
Here’s why you received it: SARS has access to many sources of information about taxpayers, including information already on the SARS system. Based on this information, SARS can make a tax calculation and arrive at an outcome before you even lift a finger. This outcome will show whether you would get a refund or owe SARS money if you were to file a return. So, the reason why you got a tax calculation this year is because you filed a return last year when you were not required to do so. This method was introduced by SARS as a way of assisting taxpayers to avoid unnecessary filing of returns.
What do you need to do?
If your financial circumstances have not changed since February 2018 then you do not need to file a return.
Will SARS impose penalties if you do not submit a return?
No. SARS will not impose any administrative penalties and you will not have any outstanding returns under your profile because the taxpayer is not required to file by law.
Will you be refunded if you are eligible to receive any refund?
In terms of legislation, SARS is only eligible to refund an amount greater than R100.
Can you file a return if your circumstances have changed since February 2018?
Yes, you can. We recommend professional advice be sought in this regard.
Why is SARS not refunding amounts below R100?
Normally there are costs involved to pay out refunds as is the case when SARS needs to collect tax that is due. It is therefore not cost effective to refund or collect an amount as low as R100. This however does not mean that the tax debt disappears, it will still remain due by or to the taxpayer and will be carried forward to either set-off future tax debt for the same tax type or will be added to any refund which is higher than R100 when applicable.
Should you require any assistance in this regard please do not hesitate to contact us in this regard.