Auto-assessments by SARS, or the South African Revenue Service, refer to the automated tax assessment process implemented by SARS to calculate an individual taxpayer's tax liability. This process involves SARS using pre-filled data, such as employer-provided information and third-party data, to calculate a taxpayer's tax liability without the need for a manual tax return submission.

Risks:

• Incorrect Data: One of the risks associated with auto-assessments is the potential for incorrect data. If the pre-filled data used by SARS is inaccurate or incomplete, it can lead to incorrect tax calculations and assessments. Taxpayers should review the pre-filled information and ensure its accuracy before accepting the assessment.
• Missing Expenses: Auto-assessments may not include all the expenses that a taxpayer is entitled to claim. Deductible expenses such as medical expenses, business-related expenses, and other deductions may not be considered in the automated assessment. Taxpayers need to carefully review the assessment to ensure all eligible expenses are included and claim any additional deductions they are entitled to.

Duration:
The duration of the auto-assessment process can vary depending on various factors, including the complexity of the taxpayer's financial affairs and the accuracy of the pre-filled data. In general, the automated assessment is quicker than the traditional manual assessment process since it eliminates the need for the taxpayer to submit a tax return. However, the exact duration can vary from case to case.

It's important to note that SARS may allow taxpayers to dispute or request adjustments to the auto-assessment if they believe errors have occurred or if they have additional information to provide. In such cases, the resolution process may take additional time. Read more