SARS’ newly implemented auto-assessments system has started, but it seems there might be some teething problems as some taxpayers claim to have received refunds without prior notification, reports The Citizen.

‘That’s not possible! SARS is not Father Christmas to simply give payouts,’ said SARS’ head of communications, Siphithi Sibeko.

SARS announced in June plans to introduce an automated approach to tax returns for a simplified process.

According to a SARS statement, taxpayers with refunds due would have their payouts deposited directly into their bank accounts, within 72 hours of receiving an auto-assessment notification.

When asked about possible flaws of the newly introduced auto-assessments which is still in its infancy stage, Sibeko assured the process is ‘100% solid’ having undergone rigorous testing.

According to Sibeko, taxpayers may still manually file tax returns to disclose deductions which were not reflected in their auto-assessment.

However, Sibeko warned taxpayers against ‘taking chances’ with the revenue collector’s system, by inflating figures to save on tax and claim a higher refund.

‘SARS is not the lottery,’ said Sibeko.

But Thys van Zyl, head of Product Development at Everest Wealth, said taxpayers who are automatically assessed by SARS should not simply accept the assessment.

‘The auto-assessments don’t include additional allowable tax deductions such as additional medical expenses, donations, home office or travel allowance,’ cautioned Van Zyl.

Full report in The Citizen