Income Tax: Notice to Furnish Returns for the 2011 Year of Assessment

1. Notice is hereby given in terms of section 66(1) of the Income Tax Act, 1962 (Act No. 58 of 1962) (“the Act”), that every person who is personally or in a representative capacity liable to taxation under the Act, or who is required in terms of paragraph 2 to furnish a return, must furnish a return in respect of the 2011 year of assessment within the period prescribed in paragraph 4 below.

2. The persons referred to in paragraph 1 include –

(a) every company, trust or another juristic person, which is either a resident or which derives any gross income or capital gain from a source in the Republic;
(b) every company incorporated, established or formed in the Republic, but which is not a resident as a result of the application of any agreement entered into with the Government of any other country for the avoidance of double taxation;
(c) subject to paragraph 3, every natural person whose gross income for the year of assessment exceeded –
(i) R57 000 in the case of a person below the age of 65 years; or
(ii) R88 528 in the case of a person aged 65 years or older;
(d) every natural person who carried on any trade in the Republic (other than solely in his or her capacity as an employee);
(e) every natural person to whom an allowance or advance was paid or granted as contemplated in section 8(1)(a) of the Act (other than an amount reimbursed or advanced as contemplated in section 8(1)(a)(ii));
(f) every natural person who had capital gains or capital losses exceeding R17 500;
(g) every resident who during the 2011 year of assessment held any funds in foreign currency or owned any assets outside the Republic, if the total value of those funds and assets exceeded R50 000 at any stage during that year;
(h) every resident to whom any income or capital gains from funds in foreign currency or assets outside the Republic could be attributed during the 2011 year of assessment in terms of the Act;
(i) every resident who held any participation rights, as contemplated in section 72A of the Act, in a controlled foreign company;
(j) every person to whom an income tax return is issued or who is requested by the Commissioner in writing to furnish a return, irrespective of the amount of income of that person; and
(k) every representative taxpayer of any person contemplated in paragraphs (a) to (j) above.

3. A natural person contemplated in paragraph 2(c) is not required to furnish a return for his or her 2011 year of assessment, if –

(a) the gross income of that person consisted solely of gross income described in one or more of the following subitems:
(i) remuneration paid or payable to him or her –
(aa) which does not exceed the annual equivalent of R60 000 (after deduction of allowable contributions to any pension fund, retirement annuity fund and medical fund) and from which only Standard Income Tax on Employees (SITE) has been deducted; or
(bb) from one single source, which does not exceed R120 000, for the full year of assessment (all 12 months) and employee’s tax has been deducted or withheld from the full amount (after the deduction of allowable contributions to any pension fund, retirement annuity fund and medical fund) in terms of the deduction tables prescribed by the Commissioner in terms of the Fourth Schedule to the Act;
(ii) foreign dividends and interest from a source outside the Republic which do not in total exceed R3 700; and
(iii) interest income from a source in the republic not exceeding –
(aa) R22 300 in the case of a natural person below the age of 65 years; or
(bb) R32 000 in the case of a natural person aged 65 years or older,
reduced by any amount of foreign dividends and interest mentioned in item (ii) above, which is exempt from tax in terms of section 10(1)(i)(xv) (aa) of the Act; and
(b) none of the provisions of paragraphs 2(d) to (j) apply in respect of that person.

You are welcome Fanus Jonck (tax@jonck.net) to assist you in filing your income tax return!