SARS receives information from employers, medical schemes, retirement annuity providers, banks and other institutions and uses this third-party data to automatically generate an assessment or pre-populate information on the tax return.
There has been an increase in instances where third-party information is not correctly reflected on taxpayer’s tax returns or auto assessments. This can directly affect the amount of tax payable or refund due.
Examples of Errors or Incomplete Third-Party Data
Medical Aid Certificates
- Instances exist where taxpayers have changed medical aid providers during the year, only to discover later that one medical aid certificate appears on the SARS return while the other is missing.
- In other cases, no medical aid certificate appears at all.
- The tax implication may be substantial given that medical aid information determines a taxpayer’s medical tax credits which in turn impacts the ultimate tax liability or refund.
Interest Certificates
- In addition, discrepancies have been noticed between the IT3(b) interest certificates issued to taxpayers’ comparative to the third-party data provided to SARS.
- This may lead to an unintended under- or overstatement of taxable income.
Who Is Responsible for Correcting Third-Party Data?
Where a third-party certificate is incorrect or data has been erroneously submitted to SARS, the taxpayer cannot simply amend the data on the tax return.
The institution that submitted the information, such as the employer, medical scheme, bank or retirement annuity provider, must correct and resubmit the data to SARS.
Advice to Taxpayers This Tax Season
Errors in third-party data are reminders of the importance for taxpayers to review their information before accepting an auto-assessment or filing a tax return.
Taxpayer’s who received an auto-assessment, should not simply accept the assessment as correct. Taxpayers are urged to compare the information on the assessment with the tax certificates received from third party-data providers. Auto-assessed taxpayers have 40 business days from the date of the auto-assessment to request a correction.
SARS’ third-party data system is designed to make tax compliance easier; however, it should not be confused with accuracy. Taxpayers should avoid delaying the submission of tax returns until the last day of the filing season.
Submitting a tax return or accepting an auto-assessment with incorrect third-party data could lead to an incorrect tax declaration. Furthermore, non-submission of tax returns by the due date could result in unnecessary administrative penalties, whilst rectifying the data with the relevant third-party provider.
Important 2026 Tax Deadlines
- Non-provisional taxpayers: 23 October 2026
- Provisional taxpayers: 22 January 2027
Contact your nearest PKF office before the relevant deadline to assist you with the review and / or submission of your tax returns.
