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PKF South Africa

Home News Tax The 40-day rule may be an unintended sting in the tail

The 40-day rule may be an unintended sting in the tail

Now that we have entered the 2022 Tax Season, SARS Publicity Centre will be going into overdrive as to the benefits of their New World Class Auto Assessment process. The process aims to consolidate all your known income streams and generate a prepopulated tax return and an assessment.

This is an estimated assessment and has a very complex set of rules attached to it which are inherently more complex than the category of taxpayer associated with the SARS target market of the auto assessment.

Once an estimated assessment is raised the taxpayer has forty (40) business days to lodge the corrected tax return, or request an extension to do so, otherwise the period to lodge an objection to the assessment is closed.

For the target market of the auto assessment, this is not an issue but for those who are caught in the net incorrectly, it will be an issue.

If you have received a Travel Allowance – your deemed costs will not have been auto assessed.

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No information provided herein may in any way be construed as legal and/or tax advice. Professional advice should be sought with reference to specific background facts before any action is taken based on the information contained herein. We hereby disclaim any responsibility should any person act upon the contents of this publication without due consultation.

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