Sars urges last-minute taxpayers to act fast before Monday’s deadline to avoid penalties and legal consequences.
As the South African Revenue Services’ (Sars) tax return deadline approaches next week, Sesethu Cekeshe, an independent tax specialist, urges freelancers, content creators and those working abroad to file immediately to avoid penalties.
The tax filing season started on 20 July and the deadline is Monday.
According to Sars, 80% of taxpayers have already filed.
Taxpayers urged to file before Monday or face Sars penalties
Cekeshe said many people, especially digital content creators, freelancers and those working abroad, tended to ignore the need to submit tax returns and end up owing Sars a lot of money.
“Creative income has always been taxed, and Sars is not singling out influencers.
Even before the influencer economy, actors, extras, musicians, stylists, photographers and performing artists were meant to declare what they earned according to the Income Tax Act.
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“And the creative economy is becoming too big to ignore. This is where tax practitioners come in,” said Cekeshe.
“Registered tax practitioners are always available to help creatives-influencers understand that tax is part of running a legitimate business in SA.
“For years, people in the creative space thought they could just declare zero and move on. Those days are over.
Freelancers, content creators risk heavy penalties for late submissions
“Sars sees everything now, whether you’re paid in cash, gifted products, or flown out for a brand trip, it all counts as income that should be declared.
“So, treat your craft like the business that it is.
“Register as a taxpayer, keep track of your payments and freebies, record your expenses and file on time,” she advised.
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Cekeshe said it was essential for everyone to pay tax as it was to build schools, fix roads, fund hospitals and support communities.
She said that the situation in which some people contribute, while others don’t creates an imbalance and is also unfair.
“So, being tax compliant is about building a better South Africa for all of us.
Tax compliance
“Most people don’t wake up one day and suddenly owe a huge amount to Sars.
“It starts with not declaring all your income, especially the freebies.
“You skip a provisional tax payment here, ignore a letter there and before you know it, the interest and penalties start to grow.
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“If you’re an influencer, artist or content creator, the work you do is a business and should be treated like one.
“That means registering as a taxpayer, keeping a record of every payment in cash or kind, tracking your business expenses, the vlogging camera purchase, editing software, internet expenses, Uber trips, etc, and filing your returns on time.”
Sars recently introduced the expedited debt compromise process which lets taxpayers in genuine financial distress settle their debt as fairly as possible.
Expedited debt compromise process
“Every person who cannot handle their taxes needs to approach a registered tax practitioner, who will assist them to understand and avoid problems.”
She said the job of a tax practitioner was not only to file returns, but also to help clients plan, structure income and understand their tax obligations.
She said that ignoring Sars is risky and could destroy somebody’s business and even negatively affect their personal life.
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With just three days left before the deadline, Sars commissioner Edward Kieswetter encourages taxpayers to take advantage of the remaining time to file their returns.
Kieswetter emphasised the legal obligation to file the returns on time and in full.
“Sars has made every effort to simplify and support the filing process.
Legal obligation to file the returns on time
“Through enhanced digital platforms, auto assessment and accessible helplines, taxpayers have been empowered to meet their obligations with ease.
“We are urging all taxpayers not to abdicate their tax obligations: failure to submit a return by the deadline is a serious offence and non-compliance can lead to administrative penalties and interest charges.”
