The South African Revenue Service (SARS) has announced that taxpayers and tax
practitioners have "overwhelmingly embraced" the new income tax assessment
process introduced this year to simplify and ease the burden of tax compliance.
According to the tax department, at the end of the 31 October 2007 deadline, 3.2 million taxpayers had filed
their tax returns. This was a 20% increase on last year, and represents the first time that the
3 million returns mark has been surpassed.
Tax returns for the current year (2007) numbered more than 2.3 million –
an increase of 6% - and thereby set another record. The filing of outstanding returns
also reached record numbers, with 872,000 returns filed.
However, according to SARS, the biggest success story of the 2007 filing season
campaign so far was the uptake of SARS eFiling.
"We are encouraged by the rate at which taxpayers and practitioners have adopted
electronic filing with more than 940,000 returns having been issued via eFiling
and already more than 250,000 filed. This is an increase of 600% on last year,"
the Revenue Service stated.
SARS still expects about 1 million tax returns to be filed this season, but
this can only be done via SARS eFiling by 31 January 2008. The Revenue Service
is urging those who need to register to do so at the earliest opportunity, as
it anticipates high volumes on its network during January as taxpayers rush
to meet the deadline.
SARS also stated that where the information supplied by taxpayers matches the
information in SARS’s possession, taxpayers can expect reduced turnaround
times in receiving their assessment and, where applicable, refunds. However,
where the information does not correlate, SARS intends to investigate further,
including requesting that taxpayers submit copies of their supporting documents
for review.
SARS has also introduced two new forms to speed up and simplify the objection
process. The first, a Request for Correction, is completed by taxpayers who
have made an error on their return or believe SARS to have made an error. The
second form, a Notice of Objection, is used when the information is accurate
but the taxpayer disputes SARS’s assessment.
"As we continue to roll out the new assessment process and are getting
better at providing better service to taxpayers, we are acutely aware of the
important role employers have in this tax administration process. The provision
information about employees accurately, timeously and electronically to SARS
is vital in offering honest taxpayers with the best response time," SARS
stated.
"We will be engaging with employers over the coming months to work out
systems and procedures to streamline relations with SARS especially where the
provision of taxpayer data is concerned for both this year and preparations
for next year," it added.