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Beating tax returns blues with e-Filing


Johannesburg, 26 Jul 2012

The individual tax filing season opened on 1 July 2012 for the period 1 March 2011 to 29 February 2012, which is a dreaded event for many a person. e-Filing is, however, a quick, easy and efficient way of managing your tax return, says Karen Schmikl, a Legislation Manager at Softline VIP, part of the Sage Group.

“Taxpayers who correctly complete their returns and who don't require further verification of information have received their refunds within two days.”

It is, however, recommended to submit your tax return sooner, rather than later, to avoid the last-minute rush. “All manual submissions that are posted or dropped off at a SARS branch have to be finalised by 28 September 2012. Electronic submissions at a SARS branch or through e-Filing needs to be completed by 23 November, and provisional tax payers have until 31 January 2013 to do their submissions,” says Schmikl.

Who should submit tax returns?

* Individuals who are under 65 years and received income of more than R59 750.
* Individuals who are 65 to 74 years and received income of more than R93 150.
* Individuals who are 75 years and older and received income of more than R104 261.

“If the income was only employment income from one employer, in any of these three incidences, then you only need to submit an assessment if your income was more than R120 000,” explains Schmikl.

“If you conducted any trade, received a travel allowance or public office allowance or made use of a company vehicle on which fringe benefit tax was paid, then you also need to submit a tax return,” says Schmikl. “If you hold any funds or assets outside RSA to the value of more than R50 000, have local capital gains or losses of more than R20 000 or received any income or capital gain in foreign currency, then you also need to submit a tax return.”

During the completion of an e-Filing submission, individuals will complete an online personal income tax return called ITR12. “Although the submission of ITR12 does not require supporting documentation, you must, however, keep the following documentation for up to five years, because it could be requested by SARS to verify your submission,” explains Schmikl.

* Medical aid certificates
* Retirement annuity certificates
* Tax certificates from your employer(s) (IRP5s and IT3a's)
* Travel logbook
* Investment income tax certificates (IT3b's)
* Confirmation of diagnosis as being disabled
* Information relating to capital gain
* Any other documentation relating to income received and deductions you want to claim

Schmikl says SARS is making a big effort to educate and assist individuals to get to know about taxes and learn how to e-File their returns.

“SARS is hosting taxpayer education workshops across the country, focusing on the provision of information that aims to create a basic understanding of various tax types and what is expected from taxpayers in order to be compliant. YouTube videos have also been uploaded to teach taxpayers how to register for e-Filing as well as how to complete and submit their e-Filing.”

Schmikl adds that it is always a good idea to compare the tax certificates (IRP5s and IT3a's) that you receive from your employer with your information on e-Filing. “If information is not there, or if information is different from what is on the tax certificate, then you should verify your IRP5 information before completing the assessment on e-Filing. Refunds will only be made if all your tax affairs are up to date. Ensure that all your personal details are correct, such as your banking details, address and contact details,” concludes Schmikl.

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Softline VIP

Softline VIP is a leading supplier of payroll and human resource management solutions in South Africa, Namibia and Botswana. Coupled with an extensive service offering, Softline VIP is the only payroll and HR solution geared to meet the challenges of the modern payroll office. The VIP products are synonymous with ease of use, stability and reliability, with the flexibility to cater to the unique needs of every client. VIP promises long-term sustainability over and above legislative compliance. VIP understands the human resources and payroll environment and offers the client peace of mind by providing a total solution.

Softline VIP achieved an overall fourth place in the top 10 for medium businesses in the Deloitte Best Company to Work For Survey 2009, and a second place in the industry category “business and professional services”. Softline VIP also emerged one of 48 participants out of an overall 98 to score above the standard of excellence threshold of more than 75%.

Softline VIP products include

VIP Premier - Softline VIP also supplies leading technology to service large and corporate clients. VIP Premier is geared towards increasing the functionality of payroll systems and provides an uncomplicated solution for medium to large organisations. One of the key features of this product is that it is quick to implement in comparison to similar solutions. Meeting the needs of any payroll office and supplying the most suitable solution is important for Softline VIP as it strives to ensure practical solutions for all users. Our products are easy to use and reliable and the information produced is accurate and complies with all statutory requirements.

VIP Classic - VIP Classic is the perfect solution for clients with bigger operations than the one-man business. VIP Classic provides the same flexibility as larger systems but is aimed at the small to medium sector. This software offers a total solution to users.

VIP Essentials - VIP Essentials is geared to small businesses and contains the same ease of use and stability of all VIP's products. VIP Essentials is an affordable product making it an ideal solution for the small business paying less than 30 employees.

Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll and CRM software solutions that improve the efficiencies of businesses around the world.

Softline

Softline is a leading provider of business software and related services. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the business software industry. While Softline's heritage is in the SME market, the group also offers expertise and solutions that meet the needs of specific industries and larger organisations. In 2003, Softline was acquired by The Sage Group, a FTSE 100 company. Softline has a solid track record offering customers local expertise backed by the global Sage brand. The group delivers quality software solutions to make customers' business lives easier.

The Sage Group

The Sage Group is a leading global supplier of business management software and related products and services, principally for small to medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock Exchange in 1989. Sage has 6.3 million customers and 13 600 employees worldwide. Its operates in over 24 countries covering the UK, Europe, North America, South Africa, Australia, India and China. For further information, please visit www.sage.com.

Editorial contacts

Deidre Beylis
Watt Communications
(011) 425 6290
Deidre@wattcommunications.co.za