VERIFICATION OF INCOME TAX RETURN - what needs to be submitted?

[Intothedeepbluesea]

I got this notice after submitting ITR12, I am a sole prop:

"VERIFICATION OF INCOME TAX RETURN

IRP5/IT3(a) employee income tax certificates in respect of remuneration income and lump sums from your employer/pension fund
IT3 certificates (for example IT3(b) and (c)'s from financial institutions in respect of interest and capital gains)
Medical scheme certificates and receipts
Income Protection and retirement annuity certificates
Your travel logbook and/or invoices or detailed calculation in respect of travel claims
Any other documents relevant to your declaration."

I'm clear on all the things except exactly what they want here, got conflicting explanations from the sars telephone agents:
Your travel logbook and/or invoices or detailed calculation in respect of travel claims

Do they want the detailed logbook with a full break down of business travel trips and expenses AND a scan of all the supporting docs(petrol and maintenance invoices) or just the condensed totals of the logbook/expenses and no supporting docs at this stage?

Any other documents relevant to your declaration
I am lead to believe that would be a copy of the financials - the Balance Sheet & Income Statement?

[Beancounter]

If the travel claim is against a travel allowance, then upload only the log book (and the source documents you used to complete the return i.e. IRP5's etc). If the travel claim is against commission income or against business income, then the log book and proof of fuel, maintenance and insurance paid as well as a schedule detailing wear and tear. If there are too many documents to scan and upload, a schedule of each one of the different expenses i.e. fuel, maintenance etc. should suffice.

If the return was for a sole proprietor, you must upload the financial statements and any other relevant information you disclosed or claimed i.e. medical, annuities, interest IT3(b)'s etc. Should SARS require further details of the items in the Income Statement, they will indicate that accordingly.

When uploading schedules of expenses, always remember to also upload a letter stating that you could not upload all source documents due to the volume restriction on eFiling and that detailed schedules are being supplied, that you believe that this will be sufficient to extinguish the burden of proof and that they may contact you for further information.

[Houses4Rent]

I had the same more than once. They also said their records do not match what I decalred. I and went on a mission to find out from SARS what they need/what does not match in order to allow me to satisfy their needs. Nobody could tell me. I conclued that their letter is from a computer who just sends defaults templates. I just uploaded things which I guessed they want to see and their computer was satisfied and stopped pestering me. I was tempted to upload naughtly pics just to see whether their compluter liked them, but then left it to rather stay under their radar...

[Mike C]

I was tempted to upload naughtly pics just to see whether their compluter liked them, but then left it to rather stay under their radar...

[Intothedeepbluesea]

Can someone please help me with the Asset register
What should be on there, Fixed assets only above R2000?
What value must I use, the historic or current value after depreciation?
I'm a bit confused

[dellatjie]

Well, I would think that they would like to see the following to confirm depreciation claimed:

Description of Asset Date Acquired Cost Price Wear and Tear Accumulated Wear and Tear Book Value

[Intothedeepbluesea]

Well, I would think that they would like to see the following to confirm depreciation claimed:

Description of Asset Date Acquired Cost Price Wear and Tear Accumulated Wear and Tear Book Value

And if the equipment was below R7000, written off as expense in the first year, must that go on the register/what value?

[dellatjie]

Yes, I would still keep it on the register for record purposes.

Say for example the asset's cost is R5 000:

Description of Asset Date Acquired Cost Price Wear and Tear Accumulated Wear and Tear Tax Value

Computer 2013/03/01 5000 4999 4999 1

[Intothedeepbluesea]

Is the wear and tear recorded as R4999/value R1 for accounting purposes?
How would that item now worth R1 affect the business equipment and implements value you submit on your ITR12 tax return? Say you also had a piece of equipment worth R25000 bought in the same tax year, depreciated R5000 in that year would your business equipment and implements value you submit on your ITR12 tax return be R20001 or just R20000?

[dellatjie]

Yes, for accounting purposes we usually depreciate an asset until it is worth R1, unless there is a residual value. Your value for this item would therefore be R1 on your return.

[Dave A]

Looks like we were on the right track last night Intothedeepbluesea.
Whew!

[Mike C]

The ITR12 asks for Assets and Liabilities at cost. Doesn't this mean the amount that the Asset was purchased for?