Issues with SARS, what is the worst that can happen here?

[Sportsman]

I worked abroad for the majority of the 2023 financial year and returned to SA in January. I did not file tax returns for 2023 (I know this is my fault). SARS sent me a fine and told me to file tax returns about 2 weeks ago. I did that and signed up for Tax Tim. While on Tax Tim, I made a mistake and declared my salary from abroad as taxable and I also over-estimated conversion and the amount of money I actually earned when abroad.

The amount I earned was well below R1.2 million and should therefore be exempt from tax in SA as it was already taxed abroad.

SARS subsequently sent me a bill with an enormous amount that I owed them (I could have bought a used car with that money). I then consulted an accountant and the latest statement is that SARS owe me money. They unsurprisingly flagged me for a document verification because the values changed drastically after the tax return was changed by the accountant. I have since sent them my passport (with entry and exit stamps) and my work visa and a document proving that I was taxed abroad. They requested documentation that I was abroad and taxed abroad.

I sent the documents on Thursday and it has now been two days and they have not got back to me. This issue is causing me a lot of anxiety. I will definitely not attempt to file myself and will consult a consultant for the next return as I worked abroad as well in the 2024 tax year.

What is the worst that SARS can do here? Will they revert to trying to charge me an enormous amount or just hold back the money that they owe me? Honestly the first possibility scares me the most.

 

[NI∀ƆOƆ‾⊥ᴚ∩ʞ]

@Jack Rabbit Group

 

[ultimate]

I worked abroad for the majority of the 2023 financial year and returned to SA in January. I did not file tax returns for 2023 (I know this is my fault). SARS sent me a fine and told me to file tax returns about 2 weeks ago. I did that and signed up for Tax Tim. While on Tax Tim, I made a mistake and declared my salary from abroad as taxable and I also over-estimated conversion and the amount of money I actually earned when abroad.

The amount I earned was well below R1.2 million and should therefore be exempt from tax in SA as it was already taxed abroad.

SARS subsequently sent me a bill with an enormous amount that I owed them (I could have bought a used car with that money). I then consulted an accountant and the latest statement is that SARS owe me money. They unsurprisingly flagged me for a document verification because the values changed drastically after the tax return was changed by the accountant. I have since sent them my passport (with entry and exit stamps) and my work visa and a document proving that I was taxed abroad. They requested documentation that I was abroad and taxed abroad.

I sent the documents on Thursday and it has now been two days and they have not got back to me. This issue is causing me a lot of anxiety. I will definitely not attempt to file myself and will consult a consultant for the next return as I worked abroad as well in the 2024 tax year.

What is the worst that SARS can do here? Will they revert to trying to charge me an enormous amount or just hold back the money that they owe me? Honestly the first possibility scares me the most.

In my experience sars takes a long time before they just take money form your account so just ensure you follow up and call the to check the process and having an accountant will definitely help just with dealing with them in general otherwise probably just google Sars's PDF's are very detailed.

Otherwise submit RFR To pause the payment until it is sorted.

( NOT TAX ADVISE just a general overview, an accountant would be best able to assist)

 

[Jack Rabbit Group]

@Jack Rabbit Group

Sent you a PM @Sportsman

 

[BlueCrayon]

Sent you a PM @Sportsman

If he replies do you invoice him R1200?

 

[Smurf]

Usually Physical presence test applies The first 1.25mil is exempt if you can proof you applied the presence test, if not sadly you failed to met the requirements and will be taxed normally as per your income bracket AFAIK

Link SARS Check this document from SARS it should help you!

 

[Jack Rabbit Group]

If he replies do you invoice him R1200?

Well, my rate is R 400 (per hour) - why do you think it will require 3 hours?

 

[ultimate]

Well, my rate is R 400 (per hour) - why do you think it will require 3 hours?

To wait for Sars to answer the phone.

 

[TheJudge]

I'm assuming wherever you worked has a double-taxation agreement with SA?

 

[Sportsman]

Usually Physical presence test applies The first 1.25mil is exempt if you can proof you applied the presence test, if not sadly you failed to met the requirements and will be taxed normally as per your income bracket AFAIK

Link SARS Check this document from SARS it should help you!

I have sent them passport stamps and documents proving that I was outside SA.

 

[Sportsman]

I'm assuming wherever you worked has a double-taxation agreement with SA?

I was not meant to be taxed. I fall well below the 1.2 million threshold and was already taxed.

When I told them that, they sent a response saying "you don't automatically qualify and have to meet their rules". I've since sent them documents.

In my experience sars takes a long time before they just take money form your account so just ensure you follow up and call the to check the process and having an accountant will definitely help just with dealing with them in general otherwise probably just google Sars's PDF's are very detailed.

Otherwise submit RFR To pause the payment until it is sorted.

( NOT TAX ADVISE just a general overview, an accountant would be best able to assist)

The latest statement is that they owe me money but are now asking for documents since I amended the return and there was a big difference in numbers.

 

[ultimate]

I was not meant to be taxed. I fall well below the 1.2 million threshold and was already taxed.

When I told them that, they sent a response saying "you don't automatically qualify and have to meet their rules". I've since sent them documents.



The latest statement is that they owe me money but are now asking for documents since I amended the return and there was a big difference in numbers.

have you worked thru this pdf:

https://www.sars.gov.za/wp-content/uploads/Ops/Guides/LAPD-IT-G29-PIT-FAQs-Foreign-Employment-Income-Exemption.pdf

 

[Mak@1]

by the sounds of it, you've already followed all the correct steps. In this case if the numbers were not correct, you request a correction with supporting documents, to obviously prove that its supposed to be different.

Had an issue too with tax certs being counted twice, had a massive debt with them, I went in corrected the info, lodged the dispute... about 12-13 days later, refund was paid after numbers were correctly assessed.

Their robot(s) is not as top tier as they think it is, but I digress, if your front door is clean, you have nothing to worry about.

 

[Smurf]

I have sent them passport stamps and documents proving that I was outside SA.

Main question they going to ask have you applied the physical presence that saying;
"An employee who is a tax resident in South Africa must be
outside South Africa for a period or periods exceeding 183 full
days (in aggregate) during any 12-month period, and a continuous
period exceeding 60 full days during that 12-month period."

The above paragraph will be the main deciding factor, as you need to be out of the country for a full 183 days in total and also a period of 60 days continuous without entering the country (RSA) during those 60 days.

 

[Smurf]

I was not meant to be taxed. I fall well below the 1.2 million threshold and was already taxed.

When I told them that, they sent a response saying "you don't automatically qualify and have to meet their rules". I've since sent them documents.



The latest statement is that they owe me money but are now asking for documents since I amended the return and there was a big difference in numbers.

Also not sure if you worked for your company abroad? saying that if you do they need to insure that your IRP5 Submission includes the correct tax code as well

 

[ThatGuyJD]

Yeah 2 days is not enough for SARS to do anything.

 

[Sportsman]

Also not sure if you worked for your company abroad? saying that if you do they need to insure that your IRP5 Submission includes the correct tax code as well

I worked for a company abroad during a career break so the employer was not even South African. The documents are not in English that I sent and I hope they can translate them and don't take issue with the fact that the tax year in the other country may not 100 percent align with SA's. The documents and fact that I was abroad surely indicate that I was taxed.

 

[Sportsman]

Main question they going to ask have you applied the physical presence that saying;
"An employee who is a tax resident in South Africa must be
outside South Africa for a period or periods exceeding 183 full
days (in aggregate) during any 12-month period, and a continuous
period exceeding 60 full days during that 12-month period."

The above paragraph will be the main deciding factor, as you need to be out of the country for a full 183 days in total and also a period of 60 days continuous without entering the country (RSA) during those 60 days.

I did photograph the passport stamps and sent it to them. I was abroad for roughly 17 months and did not set foot in SA in that time.

 

[Smurf]

I did photograph the passport stamps and sent it to them. I was abroad for roughly 17 months and did not set foot in SA in that time.

Then If I was you, I would fight them on the presence test and only be taxed on the amount above the 1.25mil.

But I will also include all the expense that I had during that time

 

[Smurf]

Yeah 2 days is not enough for SARS to do anything.

Even there 21 working days is just meh -_-

 

[Sportsman]

Then If I was you, I would fight them on the presence test and only be taxed on the amount above the 1.25mil.

I earned far less than 1.25 mil. If they translate the official document I sent, they may also be able to obviously gauge that (even though it may miss a few months as the SA tax year may not 100% line up). I hope they don't conveniently misread that.

I worked as a teaching assistant during my career break so I was not even an English teacher and it was not exactly a high paying gig.

 

[ettiene]

Send them proof they you weren't in SA.
You know photos and videos dated during this time showing your weren't in SA at your place of residence, empty rooms, empty bed etc

 

[Sportsman]

You know photos and videos dated during this time showing your weren't in SA at your place of residence, empty rooms, empty bed etc

I sent them with my passport and work visa. It shoes a 2022 entry date into the country I worked in and a January 2024 return date to SA. The stamps were on the same page.

 

[NeutronGTX]

You're stressing over nothing, you have provided the documents to them with the correct information. It can take them up to 21 working days to process your stuff. Be patient.

 

[ettiene]

That's only proof you went out of SA. Not proof you didn't sneak back in with our Zim brothers to come do manual labour at less than min wage.

 

[Sportsman]

That's only proof you went out of SA. Not proof you didn't sneak back in with our Zim brothers to come do manual labour at less than min wage.

The 2023 tax certificate from foreign country is there showing the amount of tax I paid abroad in 2023. The January 2024 entry stamp to ORT is also there.

 

[pɐlΛ‾pɐq‾ƃᴉq]

why do you think it will require 3 hours?

He eats crayons

 

[Smurf]

I sent them with my passport and work visa. It shoes a 2022 entry date into the country I worked in and a January 2024 return date to SA. The stamps were on the same page.

I do not think you have to worry bud

 

[Sportsman]

I do not think you have to worry bud

Thanks, I stress about these things. Numbers also give me a lot of stress. It dates back to high school as I had a hard time with Maths.

I guess next time, I should just not attempt it myself and leave it to pros. Even if it costs a bit, it will probably help me preserve my mental sanity, lol.

 

[🇹🇭🇪 🇩🇴🇳]

It took 10 months to verify my bank account in 2020 for my first tax return and due to this I got paid out the money owed the following tax year. And they say it takes 10 days. I would wait if I were you.