stated above the deadline for the submission of the second return
for the 2015 tax year is 27 February 2015. Preparation of the data
that is required to do this in many instances can be time
consuming. However, of greater concern is the accuracy of any
estimates that a taxpayer uses in the calculation of the tax due
which is an advance payment of the liability that will be
determined once the annual tax return is assessed.
over sixty-five years, other than directors of companies or
members of Close Corporations whose taxable income is derived from
employment, interest or foreign dividends and does not exceed R
120000 are exempt from rendering provisional tax returns. Persons
under sixty-five years, who are directors of companies or members
of Close Corporations or derive income from business operations,
or rental income, are required to submit returns.
degree of accuracy of estimates depends upon the taxable income of
the taxpayer. If the taxable income is no greater than one million
rand, the basic amount that is shown on the provisional return
(IRP6) may be used without fear of attracting penalties for
under-estimation. However, if the taxpayer chooses to use
his/her/its own lower estimate and that estimate is not within 90%
when the taxable income is finally assessed upon submission of the
annual tax return (IT12/IT14), penalties will be levied.
the taxable income is greater than one million rand, the basic
amount that is shown on the provisional return (IRP6) may not be
used and estimates must be made. In this instance, the estimated
taxable income, excluding retirement fund lump sums, should be
within 80% when the taxable income is finally assessed upon
submission of the annual tax return (IT12/IT14).
to meet the above degree of accuracy will result in penalties
equal to 20% of the provisional tax that is underpaid.