We came across this article in the June edition of the Logista newsletter.
The 2011 Tax Administration Act indicated that SARS would be looking to third parties, such as banks, medical aids etc, for information to verify your tax submissions. Now they have gazetted what they actually require from these third parties.
These third parties have to make six-monthly submissions to SARS in electronic format (smaller returns of twenty records or less may be submitted manually at a SARS office) which will enable SARS to build data per taxpayer, and that data will be used to check the information you have disclosed in your tax return and to pre-populate your tax returns.
This third party information includes, among other things, rental income, disposal and buying of shares, interest and dividend income, purchase of retirement funding, medical aid contributions and insurance pay outs on death.
It will be even more important that we organise the information needed for our tax returns as SARS will know much of it anyway and the penalties for understatement are severe.
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