Archive for year: 2024

The recent spike in the number of SARS eFiling profiles being hacked by cybercriminals should raise red flags for every taxpayer. It’s got so bad that the Minister of Finance has given the Office of the Tax Ombud (OTO) approval to conduct a review of SARS’ service failures in assisting taxpayers timeously with eFiling profile hijacking.

This is a type of cybercrime in which fraudsters use phishing, malware, or social engineering to access and modify your personal or professional profile on a digital platform like SARS’ eFiling without your knowledge or consent.

Has this ever happened to you? 

• You receive an email, SMS, or WhatsApp, seemingly from SARS, asking you to click on a link or attachment to update your profile, verify your information, or claim a refund. It appears legitimate, and not realising it’s a fake, you just do as the message says…
• You receive a call from someone pretending to be a SARS official, asking you to confirm your personal details or to click on a link, and you do, not realising that it will install malware on your device…
• You are contacted by someone pretending to be a SARS official, offering you tax assistance or advice, and asking you to share your login credentials, OTP, or personal information with them, and you do…

Fraudsters use methods like these to trick you into revealing your login credentials. An alarming number of taxpayers have fallen victim to these unscrupulous predators, despite continuous system enhancements to secure and strengthen the security of SARS’ channels.

What could happen if my SARS eFiling profile is hacked? 

Fraudsters can access and modify your details (e.g. contact number, password) without your knowledge or consent – with serious consequences for your tax compliance and financial security.

They can then also change the bank details to divert a SARS refund due to you into their own accounts. And they can even submit fraudulent returns on your behalf to claim refunds!

How can I prevent profile hijacking?

Prevention is far better than cure. Here are a few pointers, direct from SARS.

• Use a strong and unique password for your eFiling profile. Change it regularly.
• Don’t use the same password for other online accounts or services.
• Never share your login credentials, OTP, or personal information with anyone, even if they claim to be from SARS.
• If you hear about a security compromise at any organisation you deal with, immediately log in to your account and update your password.
• Always access eFiling through the official website (https://www.sars.gov.za) or the SARS eFiling mobi app.
• Do not click on any links or attachments in emails, SMSes or WhatsApps that claim to be from SARS, and never “confirm” or submit your login details after clicking on a link.
• Keep your computer and mobile devices updated with the latest security software and antivirus programs.
• Activate multi-factor or “app” authentication on your eFiling profile. This will authenticate you every time you log in by sending an OTP message to your registered mobile number or email address or requesting you to authorise the action via your mobile phone.

We can help to keep you safe  

As your accountants, we are well versed in avoiding these scams. Whenever you receive communications that seem to be from SARS, simply contact us.

• We are alerted to all known scams claiming to be from SARS, so we can quickly help you to identify phishing attempts.
• We can check your eFiling profile and tax information regularly and report any discrepancies or unauthorized changes to SARS immediately.
• We constantly update our security details to ensure the safety of our profile and our clients’ profiles.

In summary

SARS itself recognises that profile hijacking is a serious crime that harms taxpayers. But prevention is always better than cure. Take proactive steps to protect your security and contact us whenever you receive communications that seem to be from SARS. 

• 06 September – Monthly Pay-As-You-Earn (PAYE) submissions and payments
• 16 September – Start of Filing Season 2024: Trusts
• 25 September – Value Added Tax (VAT) manual submissions and payments
• 27 September – Excise duty payments
• 30 September – VAT electronic submissions and payments, Corporate Income Tax Provisional Tax payments where applicable, and Personal Income Tax Top-up Provisional Tax payments.

 

With Tax Season 2024 for trusts opening on 16 September, there’s no better time to draw trustees’ attention to SARS’ continued emphasis that all trusts must register for income tax purposes, including dormant trusts. Once registered, trusts are obligated to submit income tax returns that are aligned with other trust reporting requirements from SARS and substantiated by extensive supporting documents and information.

Trustees are held responsible for non-registration of trusts for income tax, and they will not be able to evade enforcement actions by blaming third parties for failing to file returns. “But I didn’t know I was meant to,” is not a valid excuse.

Trust tax returns can be filed from 16 September 2024 (much later than the usual June/July opening) until 20 January 2025.

Along with the new filing season dates, trusts also face several onerous compliance requirements – and some stiff potential penalties.

Onerous requirements

• SARS introduced changes to the Income Tax Return for Trusts (ITR12T) last year, with additional probing questions, and even more mandatory supporting documents.
• The range of mandatory and supporting documents that must be submitted with the ITR12T depends on the trust type, and may include:
  • All certificates and documents relating to income and deductions
  • Trust Deed and Letters of Authority
  • Resolutions/minutes of trustee meetings
  • Details of the ‘Main’ Trustee (the SARS registered representative)
  • Financial statements and/or administration accounts
  • Particulars of assets and liabilities
  • Confirmation of banking details
  • Proof of payment of any tax credits
  • Supporting schedules
• Detailed disclosure of the beneficial ownership, including the submission of identity documents of all beneficial owners. This information will be checked against the beneficial ownership register lodged with the Master of the High Court. Non-compliance could result in a trustee receiving a fine of up to R10 million, a prison sentence of up to 5 years – or both.
• To provide SARS with a clearer understanding of the assets, income and activities within trust structures, trust returns now feature additional questions such as any local or foreign amounts vested in the trust as a beneficiary of another trust.
• Information reported on the trust tax return must also align with the IT3(t) reporting of prescribed information by trusts, now also mandated by SARS. It includes trust distributions and their beneficiaries, trust and beneficiary demographic information, trust financial flows, and amounts vested in a beneficiary, including net income, capital gains and capital amounts. The first IT3(t) certificates are due to be submitted at the end of September 2024 for the 2023/24 tax year, and then on an annual basis.
• Despite the above reporting deadline, SARS confirmed that trust beneficiary income tax returns will not be pre-populated with IT3(t) data for the 2024 year of assessment. This means trustees must also provide details of trust beneficiaries’ 2024 trust earnings timeously to the beneficiaries for inclusion in their personal income tax returns, for which the submission deadlines remain unchanged despite the change in the trust tax filing season.

We can help you survive Tax Season 2024!

Without professional assistance, surviving trust Tax Season 2024 would be a tough ask. The complexity of the processes and the new requirements exponentially increase the risk of errors. And that’s before you factor in the significant time required to manually upload the extensive list of supporting documents – especially in light of SARS’ increased efforts to improve tax compliance and the severe penalties for non-compliance.

 

 

 

 

 

 

• 07 August – Monthly Pay-As-You-Earn (PAYE) submissions and payments
• 23 August – Value Added Tax (VAT) manual submissions and payments
• 29 August – Excise duty payments
• 30 August – VAT electronic submissions and payments, Corporate Income Tax Provisional payments where applicable, and Personal Income Tax Provisional payments.

 

Tax rebates, deductions and incentives provide relief to taxpayers by reducing the amount of tax payable to SARS, resulting in welcome tax savings. But how do you figure out which rebates, deductions or incentives apply to you – and what’s the procedure for claiming them?

This is where we come in. Chances are we’ve already applied a number of these rebates, deductions or incentives to your tax returns. But here’s a list of some of the tax rebates, deductions and incentives that could make a substantial difference to your SARS bill for the 2024 Tax Season. Some of them are fairly wellknown, but others are pretty obscure.

If you think you qualify for additional rebates, deductions or incentives, please do get in touch. We are committed to ensuring that you don’t pay more tax than you should.

For individuals

• Tax threshold: You only start paying tax when you earn more than R95,750 (under 65 years); or R148,217 (65 – 75 years); or R165,689 (75 and older).
• Tax rebates: Taxpayers also qualify for a R17,235 primary rebate; an additional secondary rebate of R9,444 if over 65, and a further tertiary rebate of R3,145 if over 75.
• Medical tax credits for medical scheme contributions can be deducted from your tax payable at R364 each per month for you and your first dependent, and R246 for each subsequent dependant.
• The additional medical expenses tax credit allows qualifying out-of-pocket medical expenses to be deducted from the normal tax payable. This applies to medical expenses that were not recovered from your medical aid.
• Retirement fund contributions to a locally-registered pension, provident, or retirement annuity fund are deductible subject to certain maximum limits.
• Amounts received/accrued from tax-free investments are exempt from tax, subject to limitations.
• Donations to certain approved public benefit organisations are allowed as deductions, up to a maximum of 10% of taxable income.
• A solar energy tax credit of 25% of the cost of the solar PV panels (maximum R15,000) is available for new and unused solar PV panels acquired and used for the first time between 1 March 2023 to 29 February 2024.
• Home office expenditure: Employees who have a dedicated area used regularly and exclusively for “trade” in their home may be allowed to deduct, pro-rata, certain expenses like rent, repairs, utilities, phones and internet.
• The foreign tax credit is a rebate against income tax for foreign taxes paid on foreign-sourced income.
• Taxpayers carrying on a business in their individual capacity or in partnership may deduct business expenditure or losses on the same basis as companies.

 

For businesses

• Tax relief measures for small business corporations (SBCs) allows for a progressive tax rate, immediate write-off of new plant or machinery, and a wear-and-tear or accelerated allowance on depreciable assets.
• Tax relief for qualifying micro businesses involves a simplified turnover tax, instead of the usual taxes (income tax, provisional tax and Capital Gains Tax) payable by companies.
• Energy efficiency savings incentive provides a deduction for savings from implementing energy-efficient methods in the production of income at R0.95 for each kilowatt hour (or equivalent) saved.
• The redesigned renewable energy tax deduction for certain machinery, plant, implements, utensils and articles used in production of renewable energy allows a 125% deduction of the cost incurred for eligible assets brought into use for the first time between 1 March 2023 and 28 February 2025. Machinery, plant, implements, utensils and articles used in production of renewable energy outside of the above-mentioned period may qualify for a separate deduction (which allows a 100% deduction of costs incurred).
• Research and development (R&D) costs related to certain R&D activities are 150% deductible, while depreciation on R&D machinery and capital assets may be accelerated and buildings used in R&D may be written-off over 20 years.
• The learnership agreements tax incentive allows employers that train employees in a regulated environment an additional income tax deduction. (This is not the same as the Employment Tax Incentive (ETI) that encourages the employment of young people by reducing employees’ tax due by the company).
• Donations to certain charitable organisations approved as public benefit organisations are tax deductible, up to a maximum of 10% of taxable income.
• A depreciation (wear and tear) allowance may be deducted on movable assets used for the purpose of trade. There’s also an allowance for assets disposed of or scrapped during a year of assessment.
• Interest expenses incurred in the production of non-exempt income and for the purposes of trade are generally deductible.
• Bad debts are tax deductible under certain circumstances and a tax allowance is also provided for doubtful debts.
• The foreign tax credit is a rebate against income tax for foreign taxes paid on foreign-sourced income or a deduction against income of foreign taxes paid on SA-sourced income.
• There’s an allowance for new commercial buildings or improvements used by a business during the assessed year, equal to 5% of the cost to the taxpayer.
• There’s an allowance for certain residential units, equal to 5% of the cost to a taxpayer of new units or improvements.
• Deductions in respect of erection or improvement of buildings in Urban Development Zones have been extended until 31 March 2025.
• A Special Economic Zones (SEZ) incentive in certain SEZs includes a reduced corporate tax rate of 15%; a 10% allowance on the cost of new buildings or improvements; and an employees’ tax reduction for the employer by virtue of the ETI (with SEZs eligible for the ETI to apply irrespective of the employee’s age).

Tip of the iceberg

These are just some of the tax rebates, deductions or incentives available to taxpayers. Our expertise in correctly identifying and applying the relevant rebates, deductions or incentives to your tax matters can significantly reduce your tax burden this tax season.