Do We Need a Tax Calculator?

Posted by Bernard Schoeman on 22 February 2019.



Bernard Schoeman

CA(SA), Post Graduate Diploma Accounting, BCom

The Tax Shop Head Office

More about Bernard Schoeman

Bernard studied BCom majoring in information systems and accounting at the University of Cape Town and qualified as a Chartered Accountant (SA) in 1997 after completing of his articles with Deloitte & Touche. Bernard has extensive international and local experience having worked for nearly three years with financial institutions in the UK (London) and having audited numerous companies listed on the JSE in South Africa. He is a member of the South African Institute of Chartered Accountants.
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The answer, without a doubt, is a resounding YES.

For too long, practitioners have relied on the results kicked out by the online tax calculation facility on eFiling. It is our view that any practitioner worth their salt can never simply rely on what SARS has to tell them.

Over many years, our experience (at random intervals) has been that incorrect assessments are produced by SARS for the following reasons:
The actual input is calculated incorrectly, usually as a result of a programming error by SARS; and/or
The input is calculated correctly, but applied incorrectly as a result of an incorrect interpretation by SARS.
For these very reasons, it is an absolute necessity to have a way of checking the results produced by SARS. Such a check can, of course, take the form of a manual calculation performed by the practitioner. However, it is submitted that there are so many tax laws and regulations to consider that, for a practitioner to successfully perform a comprehensive manual check on a tax calculation, they would need to have a constant, extensive and up-to-date knowledge of the Income Tax Act as well as SARS practise, something which many practitioners may find difficult (if not impossible) to achieve.

As a result of these complexities, The Tax Shop created an easy-to-use tax calculator for tax practitioners and accountants. Unfortunately, there are only few software options available in SA for performing tax calculations for individuals. The products that are available are very expensive or they are not suited for quick tax calculations. We therefore embarked on a process of developing a budget and user-friendly advanced income tax calculator for individuals.

What are the advantages?

  • Out tax calculator is perfect for checking the tax calculations of individuals as assessed by SARS. As accountants, we believe it is not good enough simply to rely on the results produced by SARS.
  • Our tax calculator is a great tool for performing tax planning for clients through salary structuring and other means. By changing inputs, you can quickly determine the effect on the tax liability of a taxpayer under various scenarios.
  • Our tax calculator may be used unlimited times on the same computer meaning that, for a once-off fee, you may use our tax calculator for any number of clients or taxpayers.
  • Unlike other software, our tax calculator is extremely cost-friendly. A once-off fee is payable for each year rather than paying annual or monthly subscriptions.

To find out more?

For a quick demonstration of our tax calculator, including what is looks like and how it works, please view our video here.

To find out more or to place an order, email enquiries@taxshopservices.co.za.