NEWS | Tax tips as we head into the 2023 tax season
Tax tips as we head into the 2023 tax season
The end of February sees the tax year draw to a close – an opportune time to ensure that your tax affairs, and tax details, are up to date, and to consider taking full advantage of the government’s tax incentives, which encourage us to save. Carla Rossouw offers some practical tips.
Tax efficiency is a key aspect of a healthy financial plan. By making sure your tax affairs are in order, considering the tax implications of your investment decisions, and maximising the tax benefits on offer, you can improve your financial flexibility.
Make sure your tax affairs are in order
When you earn above a certain threshold, whether from an employer or through other sources of income, including your investments, you are required to register with the South African Revenue Service (SARS) and complete a tax return to report on your activities. However, SARS does not only get your information through your disclosures – your investment manager and other third parties are also obligated to share information with SARS, so that all your income is accounted for.
It is important to be aware that as of October 2022, SARS can automatically register you for personal income tax if they detect economic activity on your profile from the data third parties submitted to them.
If your tax affairs are considered not to be in order, SARS may view you as being non-compliant, which means you may be subject to administrative penalties until the issues are resolved. SARS currently only charges administrative penalties when you fail to submit a tax return on time, but other acts of non-compliance may also be subject to penalties in the future.
February 16 2023 By Carla Rossouw - Allan Gray @noblewealthmanagement, #noblewealthmanagement, #noblewealthmanagementtwitter, #noblewealthmanagementfacebook
