The Importance of a Tax Calculation

Posted by Bernard Schoeman on 29 November 2017.

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.

As at today’s date individuals who work for a single employer and who have no other income e.g. from investments are not required to submit a tax return if their annual gross earnings is R350,000 or less.  SARS introduced this threshold to alleviate the burden of submitting a tax return by many individuals, but, also to alleviate their burden.

Experience has shown that many individuals who fit into the above category are quite happy not to look at their tax affairs any longer.  However, they may be missing out on potential refunds, especially where they have made contributions to a pension, provident, retirement and/or medical aid fund during the year and such contributions were not taking into account by their employer.

In some cases, it has been noted that such refunds could be quite substantial (running into thousands or tens of thousands of Rands) and these are simply ignored because the taxpayer has (legally) opted not to submit their tax return.

For this reason, we strongly advise all taxpayers, who are not required to submit a tax return, to have a detailed tax calculation peformed annually in order to ascertain whether it be worthwhile for them to submit their tax return.  Any Tax Shop can do this at a reasonable rate, simply request a service from The Tax Shop nearest to you.