Top 5 Mistakes That Can Get You Penalised During Tax Season in South Africa

Tax season in South Africa can be stressful for individuals and businesses alike. At Biz Evolution, we help our clients avoid costly mistakes that could lead to penalties from SARS (South African Revenue Service). Knowing what to watch out for is the first step to staying compliant and stress-free.

Here are the top 5 mistakes that can get you penalised during tax season — and how to avoid them.

1. Missing the Tax Filing Deadline

One of the most common mistakes taxpayers make is missing the SARS tax return deadline. Whether you’re an individual or a business, late submission attracts penalties and interest on any amounts owed.

Tip: Keep an eye on the SARS deadline announcements each year and prepare your documents early. If you’re unsure of the dates, speak to an accountant at Biz Evolution — we’ll help you plan ahead.

2. Underreporting Your Income

Some taxpayers fail to declare all their sources of income — whether intentionally or by mistake. Remember, SARS has access to third-party data from employers, banks, and investment companies. If your declared income doesn’t match their records, you could face penalties or even audits.

Tip: Keep track of all earnings — including freelance work, rental income, and investments — and disclose everything in your return.

3. Incorrect or Incomplete Information

Filing incorrect information — such as wrong bank details, incorrect tax numbers, or missing supporting documents — can delay your refund or trigger penalties.

Tip: Double-check all the information before submission. Better yet, let a professional like Biz Evolution handle your tax return to ensure everything is correct and compliant.

4. Overclaiming Deductions or Expenses

While claiming deductions can lower your tax bill, overclaiming or claiming for ineligible expenses can get you in trouble. SARS scrutinises these claims closely and may impose fines or disallow your deductions.

Tip: Only claim deductions you’re legally entitled to, and keep receipts and records for at least five years in case of an audit.

5. Ignoring SARS Notices

Many taxpayers ignore communication from SARS, thinking it’s not important or too complicated to deal with. Failing to respond to SARS notices or verification requests can result in assessments, penalties, and even legal action.

Tip: Always open and read any emails, SMSs, or letters from SARS and respond promptly. If you’re unsure what to do, contact us — we’ll handle it on your behalf.

Stay Compliant and Stress-Free with Biz Evolution

At Biz Evolution, we help individuals and businesses across South Africa navigate tax season smoothly. Avoid mistakes, stay compliant, and maximise your refunds with our professional accounting and tax services.

👉 Start now — thank yourself later!

Contact us today to book a consultation.