What every South African taxpayer should know this tax season

At Tax Debt Compliance, we’ve seen first-hand how filing season can expose unresolved tax issues and how simple mistakes (especially in today’s data-driven SARS environment) can quickly snowball into serious consequences.

Here’s what every taxpayer should understand this year, and how you can use this season not just to file, but to fix.

The basics: Key tax season dates for 2025

Before diving into the risks and remedies, let’s recap the core filing deadlines:

• 7–20 July 2025: SARS auto-assessment notices are issued to qualifying taxpayers

• 21 July 2025 – 20 October 2025: Filing period for individual (non-provisional) taxpayers

• 21 July 2025 – 20 January 2026: Filing period for provisional taxpayers

(If you are unsure whether you’ve been auto-assessed or are expected to file manually, you can check your status via the SARS assessment lookup tool.)

The risks of filing without fixing your past

One of the biggest misconceptions we encounter is that filing a return somehow "resets" your broken relationship with SARS. Unfortunately, the opposite is often true. Filing while you are currently non-compliant, whether it be due to historical debt or unresolved discrepancies, can:

• Trigger penalties or interest on past-due amounts

• Alert SARS’ systems to the inconsistencies between current and historical submissions

• Lead to account flagging, additional verification requests, or even audits

What’s more, filing a return without the intention (or capacity) to pay, especially in the case of self-assessed provisional tax, can now lead to criminal implications under the Tax Administration Act.

Auto-assessments and SARS’ growing use of third-party data

Over the past few years, SARS has significantly enhanced its digital capabilities, evolving from a primarily paper-driven institution into a data-intensive compliance authority. As part of this digital transformation, the auto-assessment process has become a key feature of the South African tax landscape, especially for non-provisional, salaried taxpayers.

The concept is simple: based on third-party data collected throughout the year, SARS automatically generates a pre-filled tax return on your behalf. If all the data looks accurate, you may not need to make any changes, and you save a ton of time and effort. However, beneath this apparent simplicity lies a complex web of data validation, which carries significant compliance implications.

Where does SARS get its data?

SARS draws from a range of third-party institutions that are legally required to submit annual data returns. These include:

• Employers (via IRP5/IT3(a) certificates)

• Banks and financial institutions (interest income, capital gains, dividends)

• Medical aid providers (contributions and medical expenses)

• Retirement annuity and pension fund administrators

• Insurance companies

• Educational institutions (bursaries and scholarships)

This consolidated information allows SARS to pre-populate returns—but it also gives them powerful tools to detect inconsistencies, omissions, and understatements.

What does this mean for taxpayers?

1. Auto-assessment ≠ Accuracy

Just because SARS has pre-filled your return doesn’t mean it’s correct. You are still legally responsible for verifying and accepting the information. If something is missing, such as freelance income, rental earnings, or foreign investments, it’s up to you to correct it.

2. Higher risk of detection

With so many data points being automatically cross-referenced, the margin for error has shrunk. A mismatch between what you declare and what third-party sources have reported is likely to trigger:

• A verification request

• A SARS audit

• Penalties or interest

• Rejection of future refund claims

3. Refunds are now scrutinised

In prior years, refund processing was largely automatic. Today, SARS often delays or withholds refunds pending verification, even for what may seem to you like minor discrepancies.

4. Non-compliance can be passive

Many taxpayers believe that omitting “small” amounts or assuming SARS will catch mistakes absolves them of responsibility. In truth, failing to review and correct your auto-assessment – even unintentionally – can be deemed as negligent, or even fraudulent, under the Tax Administration Act.

Why you shouldn’t accept an auto-assessment blindly

Even if your return appears accurate at first glance, we recommend that you do a detailed review before clicking “Accept.” You should cross-reference everything.

If you discover that prior years were also based on incomplete or inaccurate submissions, now is the time to address it. The Voluntary Disclosure Programme (VDP) and tax debt relief mechanisms may still be available to you, but only if SARS hasn’t already flagged the issue.

Why tax debt should be addressed before filing

Filing your return while still sitting with unresolved tax debt might seem like the right thing to do, but in practice, it can trigger a chain of negative consequences that complicate your situation even further.

Here’s why it’s critical to resolve existing debt before submitting a new return:

• SARS is known to offset expected refunds against outstanding debt.

• If your account is flagged for non-compliance, you may not be able to generate a Tax Clearance Certificate, which could affect property sales, tenders, or emigration plans.

• Submitting a new return without addressing old debt increases your risk profile, especially if interest continues to accrue.

For these reasons, we always advise clients to address their tax debt before submitting new returns.

How to use this filing season to regain control

Rather than approaching this season as just another administrative task, use it as a strategic opportunity to bring your affairs back in line:

1. Request a full Statement of Account (SOA) from SARS

This will reveal whether you owe anything from previous years, or if any returns are missing.

2. Review your ITA34 carefully

Make sure all income streams, deductions, and contributions are reflected accurately, and that SARS hasn’t triggered a verification yet.

3. Don’t ignore debt

If you're sitting with outstanding taxes, interest, or penalties, take action before filing this year’s return. SARS is more likely to engage in a constructive manner if you do so voluntarily.

4. Get professional assistance

From negotiating debt compromises to correcting old submissions, or applying under the Voluntary Disclosure Programme (VDP), working with a qualified team sees to it that your actions are both strategic and compliant.

How tax debt compliance can help

We’ve guided hundreds of clients through Tax Season – many of whom had years of unresolved tax debt, unfiled returns, or mounting penalties.

We offer:

• Tax debt compromise negotiation

• Deferral payment agreements with SARS

• SARS dispute resolution

• Legal support for compliance matters

• Voluntary Disclosure Programme (VDP) applications

If you’re worried about past returns or outstanding tax debt, we’re here to help you move forward by resolving what’s behind you.

Final thoughts

The start of the 2025 Tax Season brings opportunity along with it – an opportunity to set things straight, clear your name with SARS, and move into the second half of the year on stronger financial footing.

If you’ve fallen behind, feel overwhelmed, or just want to be certain that you’re ticking every box, get in touch. We'll assess your situation confidentially and guide you toward full compliance.