It’s well-known that failing to declare all your income to SARS can lead to severe penalties, but did you know that declaring too much income can also cause major headaches?
If you’ve made a simple mistake on your tax return or declared income you expected but never received, overstating your earnings can leave you with an inflated tax bill.
Fortunately, SARS offers a way to correct genuine errors through the “Submit Correction” function on eFiling, but the process becomes more complex if the income never truly accrued to you.
When You’re Not Entitled to the Income
A landmark court case confirmed that if you were never unconditionally entitled to the income in the first place, you can have it excluded from your assessment. Since 2008, Section 23(m)(iiA) of the Income Tax Act has allowed taxpayers to claim a deduction when they are required to refund an amount they were never entitled to receive.
If you think you may have overstated your income or are facing a dispute with SARS over amounts declared, our tax experts at HVM can help you navigate the correction process and ensure you only pay what’s legally due.
Let’s discuss your tax situation and protect your financial position.