Close Menu
UIF

WHY didn’t I get a tax REFUND from SARS? Who qualifies for a tax refund ?

NoreenBy No Comments4 Mins Read

WHY didn’t I get a tax REFUND from SARS? Who qualifies for a tax refund? When you have submit your Tax return there alot of reasons may cause your refund to delay or even not to receive at all this article listed possible reasons for What could delay my refund from being paid

What Is a Tax Refund?

The term “tax refund” refers to a reimbursement made to a taxpayer for any excess amount paid in taxes to the federal or state government. While taxpayers tend to look at a refund as a bonus or a stroke of luck, it often represents what is essentially an interest-free loan that the taxpayer made to the government. It’s often possible to avoid overpaying your taxes so you can keep more money in your pocket each paycheck—and avoid a refund when you file your tax return.

Who qualifies for a tax refund?Tax refunds arise only when too much tax was paid by the taxpayer because either SARS or the employer was unaware of certain deductions, such as medical aid or retirement annuity fund contributions, when the monthly Pay-As-You-Earn (PAYE) was calculated and paid over to SARS. When tax season comes around and taxpayers complete their ITR12 income tax returns with all their information and the assessment results in an over payment of tax, then a refund becomes due. This is why it is important to complete your return 100% correctly and with all the possible information included, so as to maximise your chance at getting a tax refund. Unfortunately in most cases the PAYE deducted represents exactly the right amount of tax paid and neither SARS nor the taxpayer owe each other anything.

However in the case where your employer doesn’t know absolutely everything about your tax affairs, then submitting your return correctly becomes even more important as you may well have paid too much tax and be due a refund from SARS. Taxpayers should always keep in mind that it is their money being paid back to them, although a surprise refund can feel like a bonus!

What could delay my refund from being paid to me?

When you submit your tax return, the following may delay your refund from being paid (if a refund is due):

  • When your banking details have been identified for verification, the process can take up to 21 business days from the date all required supporting documents are received. Once the bank details validation process has been completed the refund should be paid within 72 hours.
  • If your Income Tax return is selected for verification, it may take up to 21 business days from the date all required supporting documents are received to conclude a verification, whereafter the refund should be paid within 72 hours.
  • Where multiple tax years are submitted and are selected for the audit verification, the verification process will be finalised within 90 business days from the date all required supporting documents were received for all the tax years being verified.
  • If your return is selected for audit, it could take up to 90 business days from the date of receipt of all the required supporting documents in a complete and correct manner unless alternative arrangements are communicated, whereafter the refund should be paid within 72 hours.
  • If you have outstanding returns the refund will not be paid until all outstanding tax returns have been submitted.
  • If your banking details are incorrect.
  • If you have outstanding debt on your account, the debt equalisation process may be initiated to deduct an amount from your refund and pay towards any outstanding tax debt prior to release of any credit available thereafter.
Share.

Related Posts

Leave A Reply