Why South African taxpayers should double-check their auto-assessments

MILLIONS of South Africans were auto-assessed by the South African Revenue Service (Sars) in 2024, a move designed to simplify the tax season. But with convenience comes risk.

- DIEKETSENG MALEKE

Financial experts warn that auto-assessments, which rely solely on third-party data, can contain critical errors that might cost taxpayers dearly if left unchecked.

According to Procompare, an online platform that connects South Africans with local professionals, Sars auto-assessed around 3.5 million individuals in 2024, nearly half of the country’s tax base.

The process draws on pre-submitted data from employers, banks, medical aids, and retirement fund administrators to estimate a taxpayer's return, but the estimation isn't always spot on, it says.

Procompare says errors may include omitted income, overlooked deductions, or incorrectly reported figures.

“An auto-assessment can be convenient if your tax affairs are simple, but don’t assume it’s 100% correct,” says Adriana Taljaard of AT Accounting & Taxation Solutions, an accountant affiliated with Procompare.

Tax experts list several common pitfalls with Sars auto-assessments: