Four reasons why you need to file a tax return
Last updated on 12th December, 2017 at 05:06 pm
No matter what you earn, there are very valid reasons for filing your tax return every year. We explain the ins and outs.
SARS has recently communicated that if you earn less than R350 000 in a year, and fulfil a series of complicated criteria, you may not have to file a tax return in 2016. However, it is worth taking great care here to understand your duties properly, because if you don’t, you may suffer for it later on.
Here are the top four reasons why not to skip filing your tax return this season:
You may miss out on your refund
Why let SARS keep your money if you are due a refund? A refund is money you overpaid on your taxes and it belongs to you. You can only get a refund if you file a return. Something as simple as claiming medical expenses or working two jobs can trigger a tax refund, depending on your situation.
SARS might change their mind
If you normally submit, but this year you don’t, SARS may administer administrative penalties later on down the line for not being compliant.
You can’t access your retirement fund
Filing a tax return each and every year means that, should you receive a payout from a retirement fund at any stage, you will not have any hassle in accessing the money. If you retire or are retrenched, or just need to take money out of your fund early, you need to be tax compliant.
A complete record stands in your favour
Having an unbroken filing record leaves SARS officials with no reason to suspect that you are hiding information from them, thus not triggering an audit next year. Filing a tax return means you are being a good citizen and contributing towards society!
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