Tax return filing season in progress

In this series of articles, Cameron Kotze – the Tax Partner at Ernst and Young – discusses some topical tax issues for our readers.

THE 2007 tax return filing season for most individuals is in full swing. Tax returns have been received in the post by most individual taxpayers in recent weeks and taxpayers must act on the provisions of the Income Tax Act that regulate the submission of the returns.Every person that receives a tax return should submit the return to the Receiver of Revenue’s office before the deadline date to avoid being subjected to a penalty for late submission of the tax return.Payment of any tax owing for the tax year forms part of the tax filing process.Late payment of the tax owing is subject to interest.The Receiver of Revenue categorises each individual taxpayer in one of three categories.For each category the rules with regard to the filing date and payment of tax are slightly different.The first category is those taxpayers who have worked for the same employer for the full tax year (for the period March 1 2006 through to February 28 2007) and who have only earned salary income that does not include allowances from which expenses are deductible to determine the taxable income for the year and who’s interest income is less that N$500 for the tax year.These taxpayers receive a brown tax form.The Receiver of Revenue’s office must receive the tax return on or before June 30 each year.Any payment owing to the Receiver of Revenue must be made by the due date reflected on the tax assessment you receive after being assessed.The second category is those taxpayers that earned salary income during the tax year that includes allowances from which expenses are deductible to determine the taxable income for the year or who may have worked for more than one employer during the tax year.These taxpayers receive a blue tax form.The Receiver of Revenue’s office must receive the tax return on or before 30 June each year.The tax owing for the year, which is calculated by the taxpayer when completing the tax return, must be paid to the Receiver of Revenue on or before June 30 each year.If payment is due and is not made by June 30, the Receiver will levy interest on the unpaid amount at a rate of 20 per cent per year, calculated daily and compounded monthly.If you fail to submit your tax return by June 30 and you have not obtained approval from the Receiver to submit your tax return by a later date, the Receiver will levy a penalty for failure to submit the tax return by the due date.The current basis of calculating the penalty is 10 per cent of the tax that you owe on June 30.The third category is those taxpayers that conduct a trade for income tax purposes in addition to any other income they may receive during the tax year.These taxpayers receive a yellow tax form.The Receiver of Revenue’s office must receive the tax return on or before September 30 each year.The tax owing for the year, which is calculated by the taxpayer when completing the tax return, must be paid to the Receiver of Revenue on or before September 30 each year.If payment is due and is not made by September 30, the Receiver will levy interest on the unpaid amount at a rate of 20 per cent per year, calculated daily and compounded monthly.If you fail to submit your tax return by September 30 and you have not obtained approval from the Receiver to submit your tax return by a later date, the Receiver will levy a penalty for failure to the tax return by the due date.The current basis of calculating the penalty is 10 per cent of the tax that you owe on September 30.Failure to comply with the above rules will result in you having to pay unnecessary penalties and interest to the Receiver of Revenue out of your hard earned after tax income.* Should readers have queries, they are invited to send them to cameron.kotze@za.ey.comTax returns have been received in the post by most individual taxpayers in recent weeks and taxpayers must act on the provisions of the Income Tax Act that regulate the submission of the returns. Every person that receives a tax return should submit the return to the Receiver of Revenue’s office before the deadline date to avoid being subjected to a penalty for late submission of the tax return.Payment of any tax owing for the tax year forms part of the tax filing process.Late payment of the tax owing is subject to interest.The Receiver of Revenue categorises each individual taxpayer in one of three categories.For each category the rules with regard to the filing date and payment of tax are slightly different. The first category is those taxpayers who have worked for the same employer for the full tax year (for the period March 1 2006 through to February 28 2007) and who have only earned salary income that does not include allowances from which expenses are deductible to determine the taxable income for the year and who’s interest income is less that N$500 for the tax year.These taxpayers receive a brown tax form.The Receiver of Revenue’s office must receive the tax return on or before June 30 each year.Any payment owing to the Receiver of Revenue must be made by the due date reflected on the tax assessment you receive after being assessed.The second category is those taxpayers that earned salary income during the tax year that includes allowances from which expenses are deductible to determine the taxable income for the year or who may have worked for more than one employer during the tax year.These taxpayers receive a blue tax form.The Receiver of Revenue’s office must receive the tax return on or before 30 June each year.The tax owing for the year, which is calculated by the taxpayer when completing the tax return, must be paid to the Receiver of Revenue on or before June 30 each year.If payment is due and is not made by June 30, the Receiver will levy interest on the unpaid amount at a rate of 20 per cent per year, calculated daily and compounded monthly.If you fail to submit your tax return by June 30 and you have not obtained approval from the Receiver to submit your tax return by a later date, the Receiver will levy a penalty for failure to submit the tax return by the due date.The current basis of calculating the penalty is 10 per cent of the tax that you owe on June 30.The third category is those taxpayers that conduct a trade for income tax purposes in addition to any other income they may receive during the tax year.These taxpayers receive a yellow tax form.The Receiver of Revenue’s office must receive the tax return on or before September 30 each year.The tax owing for the year, which is calculated by the taxpayer when completing the tax return, must be paid to the Receiver of Revenue on or before September 30 each year.If payment is due and is not made by September 30, the Receiver will levy interest on the unpaid amount at a rate of 20 per cent per year, calculated daily and compounded monthly.If you fail to submit your tax return by September 30 and you have not obtained approval from the Receiver to submit your tax return by a later date, the Receiver will levy a penalty for failure to the tax return by the due date.The current basis of calculating the penalty is 10 per cent of the tax that you owe on September 30.Failure to comply with the above rules will result in you having to pay unnecessary penalties and interest to the Receiver of Revenue out of your hard earned after tax income.* Should readers have queries, they are invited to send them to cameron.kotze@za.ey.com