Auto-assessments - Great Until They Are Not

“Add to cart” - tap accept like a duck to water.

Auto-assessments - Great Until They Are Not

On the surface, it feels effortless. But remember: a duck looks serene while paddling furiously underneath. SARS’ auto-assessment may appear sorted at first glance, yet the unseen details, such as income and deductions that SARS never received, lie just below the surface. If you accept without checking, you could swim straight into refund reversals, interest, penalties, or an audit.

What SARS is doing (and why it matters)

In July, SARS pushed out millions of auto-assessments using third-party data (employers, banks, medical schemes, investment platforms, pension funds, etc.). It’s efficient and, for many salaried taxpayers with simple affairs, perfectly fine.

But convenience isn’t completeness.

Who should be cautious?

If any of these sound like you, don’t accept blindly, open the return and check:

• Freelancers/contractors or anyone with a side-hustle

• Landlords (residential or short-term rentals)

• Commission earners

• Investors who realised capital gains/losses

• Foreign income earners

• Deceased estates (executors filing on behalf of a deceased person)

Important: income from the sources above is not pre-populated on your ITR12 and must be manually declared. For example, rental income (and the allowable deductions) must be captured by you. Timing and directive issues (e.g., retirement fund transfers, lump sums) can also skew the return.

“But it was accepted… I even got a refund”

That can happen, and still be wrong. SARS can later reverse a refund, issue a new assessment, or request documents. If you spent a refund that wasn’t due, you’ll be back-paying with interest. The legal position is simple: when you accept the numbers, you take responsibility for what’s missing.

How the 2025 flow works

• You’ll get an SMS/email that an assessment (ITA34) has been issued.

• If you agree, no action is required—but only after you’ve adequately checked.

• If you disagree (or aren’t sure), hit Request Return in eFiling, open the ITR12, and file a corrected return.

Bottom line

Auto-assessment is a helpful start, not the final word. If your tax is anything but vanilla, open the return, complete what’s missing, and file accurately now to avoid interest, reversals, and audits later.

Don’t be the duck that dives into a pool of crocs. Read the ripples first, check the numbers, add what’s missing, then file with confidence.

Need help?

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Werner Pauw

Director