TAX TALK Gearing up for the 2004 tax return (Part 1)

THE 2004 tax year for individual taxpayers ended on Sunday.

This involves the onerous task for Namibians of completing their tax returns for the Receiver of Revenue covering the tax year. Taxpayers on PAYE (Pay as you earn) should receive their PAYE 5 form (usually pink) from their employer soon.In addition, they should also receive confirmation of any interest earned on a favourable bank balance, and, if they are contributing to a retirement annuity, their life assurance company should be sending them confirmation of their contributions.To avoid a penalty for late filing, they should file their tax return by the due date.Taxpayers will receive their 2004 tax form (commonly referred to as a buff form) from the Receiver of Revenue shortly.On the assumption that everything remains the same as last year, they could receive a brown, blue or yellow form.What do the different colours mean? The Income Tax Act provides for a class of taxpayer (referred to as a non-filer) who works for the same employer throughout the tax year (1 March through to 28/29 February), receives interest from a Namibian financial institution for the tax year that does not exceed N$500 and receives remuneration that excludes allowances.These taxpayers are only required to file tax forms if they receive them in the post and their colour has been brown up to now.If they correctly receive a brown form they should complete the information required and return it to the Receiver.They don’t have to attach their copy of the PAYE 5 certificate that they have received from their employer.All brown tax forms must be returned to the Receiver by 30 June each year.If taxpayers receive a blue form, it means they must submit a tax return because they don’t fall into the non-filer category.Blue forms are also for individuals who are employed but receive allowances as part of their remuneration packages.They have to satisfy the Receiver that they have incurred expenses that are deductible against these allowances.Examples of these allowances are car and entertainment allowances Blue forms must be returned to the Receiver by 30 June each year.Any tax payable in terms of their calculation must be paid on 30 June and the taxpayer uses the tear-off form on the back of the tax return to accompany the payment.If people are self-employed or are carrying on a trade in their own name (including farming), they should be completing a yellow tax form.If they receive a salary and also carry on a trade, they must use the yellow form to advise the Receiver of their earnings for the year.Yellow forms must be returned to the Receiver of Revenue by 30 September each year.Any tax that is payable in terms of tax calculations must be made by 30 September to the Receiver of Revenue and be accompanied by the tear-off form on the back of the tax return.In this series of articles, Cameron Kotze, the Tax Partner at Ernst and Young, discusses some topical tax issues for our readers.Should readers have queries, they are invited to send them to cameron.kotze@za.ey.com.Taxpayers on PAYE (Pay as you earn) should receive their PAYE 5 form (usually pink) from their employer soon.In addition, they should also receive confirmation of any interest earned on a favourable bank balance, and, if they are contributing to a retirement annuity, their life assurance company should be sending them confirmation of their contributions.To avoid a penalty for late filing, they should file their tax return by the due date.Taxpayers will receive their 2004 tax form (commonly referred to as a buff form) from the Receiver of Revenue shortly.On the assumption that everything remains the same as last year, they could receive a brown, blue or yellow form.What do the different colours mean? The Income Tax Act provides for a class of taxpayer (referred to as a non-filer) who works for the same employer throughout the tax year (1 March through to 28/29 February), receives interest from a Namibian financial institution for the tax year that does not exceed N$500 and receives remuneration that excludes allowances.These taxpayers are only required to file tax forms if they receive them in the post and their colour has been brown up to now.If they correctly receive a brown form they should complete the information required and return it to the Receiver.They don’t have to attach their copy of the PAYE 5 certificate that they have received from their employer.All brown tax forms must be returned to the Receiver by 30 June each year.If taxpayers receive a blue form, it means they must submit a tax return because they don’t fall into the non-filer category.Blue forms are also for individuals who are employed but receive allowances as part of their remuneration packages.They have to satisfy the Receiver that they have incurred expenses that are deductible against these allowances.Examples of these allowances are car and entertainment allowances Blue forms must be returned to the Receiver by 30 June each year.Any tax payable in terms of their calculation must be paid on 30 June and the taxpayer uses the tear-off form on the back of the tax return to accompany the payment.If people are self-employed or are carrying on a trade in their own name (including farming), they should be completing a yellow tax form.If they receive a salary and also carry on a trade, they must use the yellow form to advise the Receiver of their earnings for the year.Yellow forms must be returned to the Receiver of Revenue by 30 September each year.Any tax that is payable in terms of tax calculations must be made by 30 September to the Receiver of Revenue and be accompanied by the tear-off form on the back of the tax return.In this series of articles, Cameron Kotze, the Tax Partner at Ernst and Young, discusses some topical tax issues for our readers.Should readers have queries, they are invited to send them to cameron.kotze@za.ey.com.