As CEO of BizzVerse and founder of BizzPartner, I have witnessed firsthand the repercussions when individuals and businesses in the medical field fail to adhere to SARS’ tax guidelines.

Mark Twain once rightly said, “A tax is a fine for doing well; a fine is a tax for doing wrong”. In the spirit of this, I’d like to shed light on the 5 Don’ts of provisional tax return mistakes to ensure you prevent paying unnecessary fines:

1. Don’t Submit/File Late:

• Always adhere to the end of August and February submission deadlines for individual taxpayers.
• Legal entities with a February financial year end also have the same deadline as individual tax payers however with a seven-month deadline for the third submission.
• Legal entities with another month financial year end have to submit every 6
  months from their financial year end and their possible third submission also within 6 months after their financial year end.
• A third potential submission might arise in case of an under-declaration or short payment.
• For the 2024 Tax Year, all deadlines are thankfully mid-week. However, always ensure that you don’t miss out if it lands on a weekend or public holiday.

2. Don’t Pay Late:

• Immediate penalties amounting to 10% of the total tax payable arise with late or non-payments.
• Interest starts accruing on this outstanding balance until settled in entirety.

3. Don’t Under-estimate Your Annual Income:

• SARS’ stringent under-estimation penalties are in place to prevent inaccurate declarations.
• The two main provisional tax returns are in August (forward-looking) and February (retrospective). A possible third arises if your second estimate is under by a specified percentage based on your taxable income.

4. Don’t Be Reactive:

• If you suspect you’re a Provisional Taxpayer, ascertain this.
• The current climate shows SARS implementing stricter penalties. It’s wise to stay on top of all income streams and ensure all rebates and deductions are accurately accounted for.
• Maintain meticulous records to support your declarations and calculations.

5. Don’t Assume It’s Easy:

• The intricacies of the Income Tax Act can be bewildering. It underscores the importance of seeking expert advice, especially for those in the medical field, where financial affairs can become multifaceted.

Each medical professional, practitioner, and business in our community is distinctive. The points above serve as a guide to better navigate the often convoluted landscape of Provisional Tax Returns.

As healthcare professionals, you prioritize the well-being of your patients; in a similar vein, prioritize the health of your financial affairs by being proactive in your tax commitments.

Remember, while tax might be complex, it doesn’t need to be daunting. Equip yourself with the right knowledge, or ally yourself with tax specialists who can steer you clear of pitfalls.

Warm regards,

Hillyne Jonkerman
Group CEO, BizzVerse
Tax Specialist & Founder, BizzPartner