SARS Tax Return - Donations Disallowed

[Shubz26]

Hi

I hope somebody can explain this to me, I am a new (individual) taxpayer and I have used efiling for the first time this year, so I'm still learning how it all works.

I recently submitted my 2015 income tax return where i made a declaration for donations I made to PBO's. I received a notice of assessment, but I was not my paid my tax return. After inquiring as to why I was not paid, I was requested to send through all my supporting documentation. So I sent everything via efiling including the three separate tax certificates I had received for my donations. After this, SARS sent another assessment to me which reduced my tax return. The grounds for assessment was declaration incorrect and the adjustment reason was donations disallowed.

I don't understand why it has been disallowed when the amount I declared is correct, and all my tax certificates are from legitimate organizations.

Does anyone have any idea as to why SARS would have disallowed this? or should I lodge an objection?

[Jane123]

Did they disallow ALL the donations? Because there used to be a limit (think about 10% of your taxable income)... not sure on current structure though.

[Shubz26]

Did they disallow ALL the donations? Because there used to be a limit (think about 10% of your taxable income)... not sure on current structure though.

Yes, they disallowed all of them, and my donations amount is well below 10% of my taxable income.

[Dave A]

After this, SARS sent another assessment to me which reduced my tax return. The grounds for assessment was declaration incorrect and the adjustment reason was donations disallowed.

I don't understand why it has been disallowed when the amount I declared is correct, and all my tax certificates are from legitimate organizations.

Are you sure you're not getting confused by the dumb way SARS reports their reasons for adjustments?

i.e. Did the tax increase or decrease?

[Shubz26]

Are you sure you're not getting confused by the dumb way SARS reports their reasons for adjustments?

i.e. Did the tax increase or decrease?

My tax return has decreased.

In the original assessment that i received, my donations were included in the assessment, and I was due to receive a certain amount from SARS. After they requested my supporting documents, they sent me an additional assessment, which reduced my original assessment amount claiming that my donations declaration was incorrect. As far as i know, my declaration was correct, and matched the amount shown on the section 18A tax certificates that I sent to SARS.

[Dave A]

My tax return has decreased.

I'm still struggling with your terminology here - Do you perhaps mean Tax refund (money due back to you)?
A tax return is more commonly understood to be a form submission made by the taxpayer to SARS.

or should I lodge an objection?

If you're confident the Section 18 A receipts from the PBOs are in order, probably the way to go.