Tax evasion is not something you want to be a part of, and yes, it is a real thing and there are a few repercussions you should be aware of. Below we have listed five things that could happen should you miss filing your tax return.
Now on to our list:
You won’t get money owed to you
A refund is money you overpaid on your taxes and it is ultimately yours – but you can only get a refund if you file a return. Something as simple as claiming Medical expenses or working for less than 12 months of the tax year can trigger a tax refund, depending on your situation. Why let someone else keep money that is owed to you?
You may not be able to take a loan
If you want to take out a loan for a mortgage for a home, or a long-term loan of any kind in future, you may need a Tax Clearance Certificate. This can only be obtained if all your returns are up to date and filed properly.
SARS could change their mind
If you are normally on top of your filing, but this year you aren’t, SARS could administer administrative penalties later on for not being compliant – which may cost you a fortune and be an unnecessary waste of money.
You may not be able to access your retirement fund
Filing a tax return each and every year means that, should you receive a payout from a fund, you should not have any hassle withdrawing the money when you need to. If you retire or are retrenched, or just need to take money out of your fund early, you will need to be tax compliant.
Having a complete record helps in so many ways
Having a complete filing record leaves SARS with no reason to give you any hassles. Filing a tax return means you are being a good citizen and keeping up to date with legal things that just need to be done.
However, there are some exceptions. For example; SARS announced that if you earn less than R500 000 annually and fulfill a series of complicated criteria – happy days – you may not need to file a return. But you are urged to take GREAT CARE here as if this is not done correctly, you may suffer later on.
We hope this article has been a good reminder to keep your tax returns in order and up to date! With eFiling right at your fingertips, it also makes the procedure so simple and easy. Take a few minutes out of your day, complete your filing and you will never need to worry about any of the tips we mentioned above.
If you are new to tax returns or are needing some insight into the Tax Season, have a look at our previous blogs we wrote to help you out: