The Value of Professional Tax Advice

Today complying with tax legislation is becoming more complex and the process of applying the law even more complicated. Professional tax advice during these times can be valuable.

This was evident in a judgement in the Tax Court of South Africa on 4 November 2016. The matter was between ABC Holdings (The Appellant) and the South African Revenue Service (SARS).

The Appellant had incorrectly claimed a section 24C deduction and SARS had disallowed it as well as raising a penalty on assessment.

Kirkman Lanfear 2017 and 2018 Tax Guide

Please download a copy of the latest tax legislation with our compliments.

SARS Frustrations

Many of our clients have been due refunds from SARS, and it is becoming increasingly difficult to get them to pay out.

Bank details verification is being requested (even if the bank details have not changed for years), which we unfortunately cannot complete on behalf of our clients. In these cases the taxpayer needs to appear in person with the necessary documents at a SARS branch office.

Should you be due a refund on assessment, the chances are very high that you will be reviewed or audited.

SARS Payment Changes

SARS has changed their payment system as from 01 October 2013. No longer are we able to use the “debit pull” function on SARS e-filing.
The only payment options are as follows:

1. Credit Push

The New Tax Administration Act

This new Act commenced on 1 October 2012 and brought in a few new laws which have made dealing with SARS quite difficult.

A few that you should be aware of are:

- If SARS incorrectly assesses you, even if they are obviously wrong, an objection needs to be lodged.

- If this objection is not lodged in the required time (30 days from the date of assessment), then SARS will require a very good reason as to the delay in objection.

Important EMP 501 Information

The Interim EMP501 reconciliation for August 2012 and the accompanying IRP5 and IT3A certificates are due by the 31st of October 2012.

Should you wish to make use of our services to complete your EMP501 Reconciliation and IRP5/IT3A certificates please reply to this email by no later than Monday 8th of October 2012 in order for us to plan appropriately. Please note the IRP5 and IT3A certificates are only for SARS’ purpose and are not to be issued to the employees.

Our fees (exclusive of VAT) are as follows:

Completion of the EMP501 Reconciliation: R 1,020.00

Claiming Medical Expenses Without Penalties

SARS is levying penalties for over-claiming medical expenses.

This means that should you give your tax practitioner a figure and not have sufficient supporting documents which includes invoice AND proof of payment/receipt, the deduction will be reduced as well as a penalty levied on the adjustment amount.

See example below:

Amount on medical cert not covered by medical scheme R 5 000
Amount paid out of own pocket R 25 000
Total medical expenses R 30 000


SARS now requires that employers submit a PAYE reconciliation as at end August each year, in addition to the Annual PAYE reconciliation which is to be submitted for the full tax year ended February each year.
The pdf document explaining this procedure can be downloaded at or here.

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