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Clueless about tax returns

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A Fin24 user blames his lack of education about filing tax returns for his current predicament. He writes:

I have a question about tax.

In 2008/2009 I worked for a company and was paying tax on a Pay As You Earn (Paye) basis. I had slips from my company and saw my Paye come off every month. Unfortunately I was never taught about tax or how to submit a tax return.

Around that time I also received an inheritance from my mother, who passed away. She had set up a unit trust fund to pay out when I am  21 (I am now 27).

READ: Tax-free savings a reality

I went on holiday, bought a car and spent the money throughout the following year. I didn't fill out a tax return for that year.

I lost that job as the company went into liquidation and I have been struggling since, doing odd jobs for peanuts to get by.

I phoned the SA Revenue Service (Sars) to get my tax number and was told that there are outstanding tax returns to submit for 2008/2009. It was a huge shock as I had no idea I was required to submit.

I am really worried about this as I don't have all the paper work from my old job. I don't even have a savings account anymore.

I would like to resolve this issue with Sars, but am so afraid and confused. I don't know where to start.

I was never ever told or taught how to or when to submit a tax return. I am completely clueless about such things and would like to get this sorted out.

How would I go about doing this? Please help with advice if you can.

READ: Tax on earnings while working abroad

The technical department at the SA Institute of Tax Professionals (Sait) responds:

The best way to regularise your tax affairs in these circumstances would in our view be to approach Sars to discuss the matter.

This would inevitably include bringing your tax return submissions up to date as a matter of urgency.

Once you have been assessed and the outstanding tax debt has been determined, the Tax Administration Act empowers Sars to review the facts and, on your request, to either enter into an instalment payment plan or, if it is in Sars' opinion in the best interest of the tax system, they are also empowered to compromise a portion of the debt by agreeing to be paid a lesser amount than the full debt.

You would, however, need to be open with Sars with regards to your ability to pay the tax debts as the relief will be revoked if Sars is satisfied that you furnished incomplete or incorrect information when applying for the relief.

ALSO READ: Tax on provident fund payout

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

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