LEARNING UNIT 2
ADMINISTRATION, RETURNS & ASSESSMENTS
Introduction:
This learning unit discusses the administrative procedures to be followed during
a year of assessment. These procedures form a process, which can be
summarised as follows:
2.1 Background:
1
,SECTIONS 9.1 TO 9.4 (READ)
TAX ADMINISTRATION ACT
= contains certain procedures that must be followed in order to ensure that all
tax due is collected.
This is achieved through the Commissioner who has certain discretionary
powers and who must make certain decisions.
If the taxpayer does not agree with such a decision, he/she can lodge an
objection and, if the dispute is not resolved, further steps may be taken
TAA = tax admin act
ASSESSMENT
= the determination of the amount of a tax liability or refund, either by way of
Self-assessment (VAT, provisional tax, dividends tax, stamp duty or
transfer duty)
An assessment by SARS (income tax or estate duty)
SELF-ASSESSMENT
= any return in which amount of tax due appears on return
VAT return = vendor calculates VAT due & shown on return
Income tax return = amount of tax due is NOT shown on return
INCOME TAX
= calculated by SARS
(either automatically by SARS computer system when a return is
submitted by e-filing) or
(manually by means of a determination made by a SARS official)
& the tax due is shown on a separate assessment
DATE OF ASSESSMENT
1. For a self-assessment = date return is submitted
2. For a SARS assessment = date of the issue of the notice of assessment
2
, 2.2 Registration of taxpayers:
SECTION 9.5 & 9.6
WHO MUST APPLY TO REGISTER AS A TAXPAYER?
Any person (incl. individual, company or trust)
who becomes liable for any normal tax at any time or,
who becomes liable to submit any income tax return?
unless specific tax act provides otherwise
must apply to register within 21 business days after becoming obliged to
register.
PERSON APPLYING TO BE REGISTERED AS A TAXPAYER
must visit SARS branch
once application processed by SARS = applicant issued with an income tax
reference number.
SARS REQUIREMENTS
Employees receiving any form of employment income required by SARS to
register as taxpayer & acquire tax reference numbers
= all salaried employees will be registered for tax purposes by employers
if not already registered
REGISTRATION OF TAXPAYERS
Person may be obliged to register under a tax Act,
or register voluntarily (in terms of requirements of TAA)
Period of registration = set out in relevant tax Act
if not = 21 business days to register
Prescribed manner & form = if all prescribed forms not submitted = deemed
as not applied for registration
Taxpayers required to provide SARS with any change in registration = within
21 business days
Tax reference number used in all correspondence with SARS
3
ADMINISTRATION, RETURNS & ASSESSMENTS
Introduction:
This learning unit discusses the administrative procedures to be followed during
a year of assessment. These procedures form a process, which can be
summarised as follows:
2.1 Background:
1
,SECTIONS 9.1 TO 9.4 (READ)
TAX ADMINISTRATION ACT
= contains certain procedures that must be followed in order to ensure that all
tax due is collected.
This is achieved through the Commissioner who has certain discretionary
powers and who must make certain decisions.
If the taxpayer does not agree with such a decision, he/she can lodge an
objection and, if the dispute is not resolved, further steps may be taken
TAA = tax admin act
ASSESSMENT
= the determination of the amount of a tax liability or refund, either by way of
Self-assessment (VAT, provisional tax, dividends tax, stamp duty or
transfer duty)
An assessment by SARS (income tax or estate duty)
SELF-ASSESSMENT
= any return in which amount of tax due appears on return
VAT return = vendor calculates VAT due & shown on return
Income tax return = amount of tax due is NOT shown on return
INCOME TAX
= calculated by SARS
(either automatically by SARS computer system when a return is
submitted by e-filing) or
(manually by means of a determination made by a SARS official)
& the tax due is shown on a separate assessment
DATE OF ASSESSMENT
1. For a self-assessment = date return is submitted
2. For a SARS assessment = date of the issue of the notice of assessment
2
, 2.2 Registration of taxpayers:
SECTION 9.5 & 9.6
WHO MUST APPLY TO REGISTER AS A TAXPAYER?
Any person (incl. individual, company or trust)
who becomes liable for any normal tax at any time or,
who becomes liable to submit any income tax return?
unless specific tax act provides otherwise
must apply to register within 21 business days after becoming obliged to
register.
PERSON APPLYING TO BE REGISTERED AS A TAXPAYER
must visit SARS branch
once application processed by SARS = applicant issued with an income tax
reference number.
SARS REQUIREMENTS
Employees receiving any form of employment income required by SARS to
register as taxpayer & acquire tax reference numbers
= all salaried employees will be registered for tax purposes by employers
if not already registered
REGISTRATION OF TAXPAYERS
Person may be obliged to register under a tax Act,
or register voluntarily (in terms of requirements of TAA)
Period of registration = set out in relevant tax Act
if not = 21 business days to register
Prescribed manner & form = if all prescribed forms not submitted = deemed
as not applied for registration
Taxpayers required to provide SARS with any change in registration = within
21 business days
Tax reference number used in all correspondence with SARS
3
