The 2025 tax season is in full swing but don't panic as there are legal ways to reduce liability, maximise refunds and to protect yourself against debt tax and fraudsters.
The tax season started last week and will run until October 20 and the SA Revenue Service (Sars) has been on artificial-intelligence driven tactics to enforce tax collection, a revenue that our country desperately needs.
Roxanna Naidoo, head of global strategy at Latita Africa, a financial firm, said taxpayers shouldn't get intimidated by filing their tax returns as there are positive ways they can benefit without using nefarious means.
“Tax season is an annual opportunity to assess your finances – a tool for getting your tax affairs in order. Go have a look at what you owe Sars; you may be surprised that Sars actually owes you money,” she advised.
She said it was key to first update your details on Sars’ eFiling system to avoid penalties. Your email address, phone and banking details must be accurate, so Sars can communicate with you. This will also enable access to the auto-assessment feature and the new express filing tool, which is a pre-filled tax return based on third-party data (from your employer, bank, medical aid).
She advised users of Sars online platform to first read before they click.
“Don’t simply accept your auto-assessment without verifying it. Sars might not 100% accurately capture tax complexities, such as rental income, side-hustles and other sources of income or expenditure. Even where discrepancies are due to missing third-party data, you are liable and may face penalties later. Therefore, check everything carefully,” said Naidoo.
Don’t simply accept your auto-assessment without verifying it. Sars might not 100% accurately capture tax complexities, such as rental income, side-hustles and other sources of income or expenditure.
— Roxanna Naidoo
If you’re unhappy with the auto-assessment, click on “request amendment” and submit the corrections via eFiling.
On the issue of reducing liability and maximising refunds, Naidoo said SA tax residents must declare every income stream, even those from cryptocurrency or expat earnings already taxed overseas.
“But after declaring all your income, you can apply [for] tax deductions, exemptions and credits such as medical expenses, retirement annuity contributions, charitable donations (with s18A certificates), home office and travel expenses, as well as tax-free savings accounts or capital gains tax,” she said.
“It is crucial to retain all relevant documentation, including receipts, statements, and records of expenses, exemptions, and tax credits. It doesn’t matter how and where you file these, as long as you keep them for five years. Sars often requests backdated documentation, so make sure you have the paperwork to prove your filing was compliant.”
Those who have been penalised by Sars don't have to overextend themselves to settle their debt. Don't wait until Ssars comes knocking.
“Taxpayers have legal recourse to avoid sinking further into debt. You can, for example, negotiate to reduce the amount owed, or defer payments to ease your cash flow. Or, if Sars’ assessment is incorrect, you can submit a suspension of payment to stop them from attaching or freezing your bank account while you challenge it. And, if all fails, there’s mediation to settle a dispute cost-effectively,” she said.
Sars recently issued a warning about a new scam designed to steal personal information under the guise of a tax refund audit. The scam involves an SMS that claims that a revenue collector is auditing a tax refund.
The link leads you to a phishing website aimed at stealing your information.
Taxpayers are advised to verify that any emails or messages claiming to be from Sars are authentic before clicking on any links.
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