As the South African Revenue Service (SARS) gears up for its auto-assessment period from July 1 to July 14, 2024, taxpayers need to be proactive in ensuring their readiness. During this window, SARS will issue estimated assessments to those who meet specific criteria. If you disagree with the auto-assessment, you have until October 21, 2024, to amend your final tax assessment for the 2024 tax year. Here are essential steps to take to prepare for this process:

Confirm Your Auto-Assessment Status

To verify if you have been selected for auto-assessment, you can check through several channels:

• SARS Online Query Service
• Logging into your eFiling profile
• Using the SARS Mobi-App
• Checking your preferred SARS communication channel

Who Is Likely to Be Auto-Assessed?

The following groups of taxpayers are most likely to receive auto-assessments:

• Individuals employed by a South African employer for the entire assessment year (March 1, 2023, to February 29, 2024)
• Those contributing to local retirement and medical funds
• Individuals earning investment income from local banks and institutions

Stay Alert to SARS Communications

For taxpayers expecting a refund for the 2024 tax year, it is vital to ensure your details are correct in the SARS system before July 1, 2024. Any discrepancies, particularly with banking details, can result in delayed refunds. Given the recent uptick in fraudulent activities reported by SARS, it’s crucial to regularly review your registered details and correspondences to mitigate the risk of fraud.

Key Actions to Take

1. Verify and Update Your Details

• Confirm that your personal and banking details are current and updated on the SARS system.
• Use the SARS Online Query Service, your eFiling profile, or the Mobi-App to make any necessary updates.

2. Monitor SARS Communications

• Regularly check for updates or discrepancies in communications from SARS.
• Stay vigilant against fraudulent activities by ensuring all correspondences are legitimate.

3. Engage with Your Provider

• Consult your tax practitioner or financial advisor to ensure your details are accurately captured and maintained.
• Many tax practices use internal systems to frequently review and confirm client details, thereby reducing risks.

Taking these steps will help you navigate the SARS auto-assessment process smoothly and ensure you receive any due refunds without unnecessary delays. Stay informed, stay prepared, and ensure your financial details are up to date to avoid any complications during this critical period.

Written by Lambert Roberts, Expatriate Tax Team Manager at Tax Consulting SA