[imagesource: Netwerk24]

July 1 is inching ever closer.

That’s when tax season for individual taxpayers opens, with non-provisional taxpayers who use eFiling and the MobiApp having until December 4 to file their returns.

Provisional taxpayers who use eFiling have until January 31, 2022.

That’s still quite some way off, but SARS is being rather proactive this year, with the first batch of ‘welcome letters’ to high wealth individual taxpayers already sent out.

The letter details plans for SARS’ high wealth individuals unit, aimed at improving compliance amongst the country’s wealthiest citizens, and outlines nine key objectives.

Below, via BusinessTech, you can see those highlighted:

If your eyes aren’t what they used to be, here are those nine objectives laid out once more:

1. Provide clarity and certainty to taxpayers and traders of their obligations
2. Make it easy for taxpayers and traders to comply with their obligations
3. Detect taxpayers and traders who do not comply, and make non-compliance hard and costly
4. Develop a high performing, diverse, agile, engaged and evolved workforce
5. Expand and increase the use of data, with comprehensive knowledge management, to
ensure integrity, derive insight and improve outcomes
6. Modernise our systems to provide digital and streamlined online services
7. Demonstrate effective resource stewardship to deliver quality outcomes and performance
excellence
8. Work with and through stakeholders to improve the tax ecosystem
9. Build public trust and confidence in the tax administration system

The letter, signed by SARS Commissioner Edward Kieswetter, finishes as follows:

Thanks, Ed.

You can dress it up in the warmest of terms, but this unit has been established to enhance compliance among and increase collections from these high wealth individuals.

So, is it time to panic if you get one of these letters? According to tax expert Jean du Toit, that very much depends:

Depending on your point of view, falling under the jurisdiction of the unit is a godsend, he said.

“Others may see the notice as dooming, although it is phrased in the spirit of collaboration. Perhaps, unless you have something to hide, your experience with SARS may vastly improve.”

I think it’s fair to say that getting your tax ducks in a row, with professional help, may well be in order, before SARS starts poking around in your affairs.

The experts at Galbraith | Rushby offer services that include auditing and tax advisory and compliance, if you’re starting to feel a little anxious.

I suppose the ultimate upside to receiving a letter from SARS is that you’ve made the ‘high wealth individual’ threshold.

You must be doing something right, then.

[source:businesstech]