Two important SARS tax deadlines fall on 31 January and 28 February for eFilers.
The first deadline is for provisional tax payers
to submit their 2012 income tax returns through eFiling.
Provisional tax payers receive an income other than a salary.
The second deadline is for the payment of outstanding assessed tax
by tax payers who filed their returns on eFiling.
The tax return
filing deadline was 23 November last year.
'As part of the range of incentives to use eFiling
, tax payers
are given until 31 January to make payment on an assessed tax liability
, irrespective of when they submitted their tax returns
,' SARS is reported as saying on Fin24
This gives you up to seven months interest-free to make the payment, depending on when you submitted your tax return
. But if you do so, remember there are still penalties to face. " Failure to make payment by 31 January 2013 will trigger back-dated interest," explained Bizcommunity
So what should you do if you still can't afford to pay SARS?
Don't just sit there and hope SARS
won't notice. There are five steps to take, as suggested by Rachel Paterson
in the Tax Bulletin
Five steps to follow when you can't pay SARS
Step #1: Don't forget your tax return
Submitting your tax return is separate to paying SARS
and comes with its own offences. So if you haven't submitted your provisional tax return
yet, make time to do so before 28 February!
Step #2: Provide a detailed explanation of your circumstances
Set out the circumstances, in writing, explaining why you can't pay the amount you owe SARS
and propose how you'll be able to settle the amount. Take this written explanation with you when you visit SARS
Step #3: Provide SARS with up-to-date financials
Prepare a statement of your income and expenditure, and an up-to-date statement of your assets and liabilities.
Step #4: Get your paperwork in order
Make a copy of your latest bank statement and take it along when you visit SARS
Step #5: Negotiate with SARS
Go to the SARS
client office in person and take your bank statement along with you. This will prove you don't have enough cash in hand to pay SARS
the amount you owe.
When you meet with SARS
, explain your situation and submit your circumstances in writing, together with your statements of income and expenditure, assets and liabilities, and latest bank statements.
Discuss your proposal for settling your account with the SARS official
will then discuss a set period to settle the amount you owe, based on your circumstances.
Follow these steps if you don't have enough in your bank account to pay SARS
and you should be able to reach a compromise. It's better than hiding your head in the sand and hoping SARS
To stay on top of all the tax deadline
dates in 2013 simply sign-up to receive the daily Tax bulletin newsletter