Many South Africans are receiving auto-assessments from SARS, making tax season seem more convenient than ever. But just because an assessment is generated automatically doesn’t mean it’s 100% accurate.
Mistakes can happen, and failing to verify your SARS auto-assessment could mean missing out on potential tax savings or facing unexpected penalties.
Why You Should Double-Check Your SARS Auto-Assessment
Even though SARS collects financial data from employers, financial institutions, and other third parties, errors can still occur. Here’s why it’s crucial to review your assessment before accepting it:
1️⃣ Accuracy Matters
SARS auto-assessments rely on pre-populated data, which may not always be correct. Even small discrepancies could impact:
✔️ Your tax refund – You might receive less than what you’re owed.
✔️ Your tax liability – A miscalculation could mean you owe more than you should.
2️⃣ Ensure All Deductions Are Included
Many taxpayers miss out on valuable deductions and tax benefits because they assume SARS has already included them. Double-check that the following are accounted for:
Medical aid contributions and expenses
Retirement annuity contributions
Work-related expenses (if applicable)
Donations to registered charities
If any deductions are missing, you could be overpaying on your taxes unnecessarily.
3️⃣ Verify Your Income Sources
SARS pulls income data from various institutions, but not all income sources may be correctly reported. Be sure to check that:
– Your salary and bonuses match what’s been submitted by your employer.
– Any rental income, freelance earnings, or side hustles are accurately reflected.
– Investment income, dividends, or interest from banks and financial institutions are correctly included.
Mistakes in income reporting could lead to an incorrect tax calculation, which may result in penalties down the line.
4️⃣ Stay Compliant and Avoid Penalties
Accepting an incorrect auto-assessment could put you at risk of non-compliance with SARS. If an error is later detected:
❌ You might have to pay additional tax and penalties.
❌ SARS could flag your return for audit or further review.
❌ You could face delays in receiving a refund you’re entitled to.
By carefully reviewing your assessment, you can correct mistakes before they become costly problems.
What to Do If Your SARS Auto-Assessment Is Incorrect
If you’ve spotted an error or missing information, don’t accept the assessment immediately. Instead:
– Log in to eFiling or the SARS MobiApp to review your tax return.
– If necessary, edit and submit your own return with the correct figures.
– Seek professional tax assistance if you’re unsure about any details.
Need Help? Our Experts Are Ready to Assist
Tax season doesn’t have to be overwhelming. If you have any doubts about your SARS auto-assessment, our team is here to help you navigate the process.
📞 Contact us today for expert advice on reviewing, correcting, and optimising your tax return to ensure compliance and maximize your tax benefits.