As millions of South Africans receive their auto-assessed tax notifications, an expert says understanding the implications is key, and explains how to navigate this new system effectively.
This July, millions of South Africans were greeted with an unexpected surprise in their inboxes and SMS notifications — their tax returns had already been prepared for them by the South African Revenue Service (SARS). For many, this shift to auto-assessments has felt like a welcome relief from the burdensome wait, lengthy queues, and often complex paperwork associated with filing taxes. However, as the excitement settles, many are left wondering: can I really trust a tax assessment I didn’t prepare myself?
SARS officially launched its auto-assessment notices between July 1 and 12, announcing that nearly 1.9 million taxpayers had been auto-assessed as of July 2, resulting in an estimated R8 billion in refunds issued. This new programme extends beyond salaried employees to also include eligible provisional taxpayers, marking a significant evolution in the way taxes are handled in South Africa, says Jenna Wilson-Jenkins, an associate at Shepstone & Wylie Attorneys.
But what exactly is an auto-assessment? Wilson-Jenkins says essentially, it is SARS's initiative to compile your income tax return using data gathered from various third-party institutions, such as employers, banks, medical schemes, retirement fund administrators, and other approved data providers. When SARS is confident that the information it has received is complete and trustworthy, it prepares an assessment on your behalf, eliminating the need for you to log onto eFiling to fill out forms.
