Corporate Income Tax: Verification of Income Tax returns

Effective from 16 September 2022 the South African Revenue Service (SARS) discontinued the requirement to submit an IT14SD when a corporate tax return (ITR14) is identified for a verification. The IT14SD was consequently replaced with a letter requesting relevant supporting documents based on the reason for verification of the ITR14.

What does this mean?

• When an ITR14 is identified for verification, SARS issues a verification letter requesting to submit specific relevant documents based on the reason for the verification, or to submit a revised ITR14 return if it is found that an error was made on an ITR14.
  • Taxpayers have the option of submitting one correction, which may or may not resolve the verification.
  • The revised ITR14 will also be subject to a risk evaluation.
• To comply, taxpayers need to upload the requested documents using eFiling. The uploading of the relevant documents enables a SARS verifier to action the case. If the relevant documents are deemed insufficient, or additional documents are required, a letter will be issued on eFiling requesting same.
  • Taxpayers are required to provide the relevant documents within 21 business days.
  • If taxpayers do not comply with the request for relevant documents, SARS will raise a revised assessment to resolve the verification case, and will add back the related expenses, dependent on the specific relevant documents requested.

Our experience of the new process thus far has been positive. SARS’ questions and requests for additional information are based on each entity’s unique situation and financial information that was completed on the specific return, whereas the old process was very generic. This ensures that ITR14’s are completed accurately. Verifications are completed in a timelier manner as of late.