What Is An It34?

Quick Summary
An IT34, also known as an ITA34, is a Notice of Assessment issued by the South African Revenue Service (SARS) to individuals and businesses. It shows whether you owe money to SARS or if you have a refund due for a specific tax year. This blog post provides a comprehensive guide on how to find, interpret, and apply for an IT34, as well as the importance of IT34s for loan applications and the difference between an ITA34 and a Statement of Account (SOA).

Introduction

The South African Revenue Service (SARS) plays a crucial role in the collection of taxes and ensuring compliance with tax laws. As part of this process, SARS issues various documents to individuals and businesses to provide information about their tax obligations. One such document is an IT34, also known as an Income Tax Assessment Report.

In this blog post, we will explore what exactly an IT34 is, how you can find it on eFiling, why banks may request it for loan applications, how to interpret its contents accurately, and more. Understanding the purpose and significance of an IT34 can help individuals stay informed about their financial standing with SARS.

So let’s dive into the details!

What is an IT34?

Definition of an IT34: An IT34, also known as an Income Tax Assessment Report or Notice of Assessment (ITA34), is a document issued by the South African Revenue Service (SARS) to individuals and businesses after they have submitted their income tax returns. It provides detailed information about the amounts due to SARS or refundable from SARS for a specific tax year.

Purpose of an IT34: The main purpose of issuing an ITA34 is to inform taxpayers about their financial obligations towards SARS. It shows whether they owe money in taxes or if they are eligible for a refund based on their declared income, deductions, and other relevant factors.

Importance of an IT34 for individuals and businesses:

For Individuals:

Verification: The individual can use the information provided in the notice to verify that all details regarding personal earnings, expenses, allowances claimed are accurate.
Payment Obligations: If there’s any outstanding amount mentioned on the notice indicating unpaid taxes owed by them; it serves as proof that payment needs immediate attention.
Refunds: In case there’s mention of refunds due from previous years’ overpayments made; this helps claim those funds back promptly through proper channels with supporting documentation attached along when filing subsequent returns.
Tax Planning & Compliance: An Individual taxpayer can utilize these notices while planning future investments/financial decisions keeping into consideration past trends observed via such assessments.

For Businesses:

Financial Management: The business owner gets insights into how much profit has been generated during each fiscal period which aids better decision making.
Loan Applications: Banks often require recent copies before approving loans so having updated ones ready saves time otherwise spent requesting new documents every time you apply somewhere else too!
Audits & Investigations: Serves as evidence/documentation required whenever audits/investigation takes place ensuring compliance with regulations set forth under various acts governing taxation matters.

In conclusion, an IT34 is a crucial document that provides individuals and businesses with valuable information about their tax obligations or refunds. It helps taxpayers verify the accuracy of their financial details, fulfill payment obligations promptly if any taxes are owed, claim refunds for overpaid amounts in previous years, plan future investments or financial decisions effectively while ensuring compliance with taxation regulations.

How to find your IT34

Finding your IT34 on eFiling is a straightforward process that allows you to access and view your Notice of Assessment. Here’s a step-by-step guide:

Step 1: Log onto eFiling

Visit the SARS website (www.sars.gov.za) and log into your eFiling account using your username and password.

Step 2: Navigate to SARS Correspondence

Once logged in, click on the “SARS Correspondence” tab located at the top menu bar. This will direct you to a page where all correspondence from SARS is stored.

Step 3: Request Historic IT Notices

On the “SARS Correspondence” page, look for an option called “Request Historic IT Notices.” Clicking this link will take you to another screen where you can select specific tax years for which you want to request notices.

Step 4: Select Tax Year(s)

Choose the relevant tax year or years by ticking their respective checkboxes. You may choose multiple tax years if needed. Once selected, click on the ‘Request’ button below.

Note:

It’s important only tick those boxes corresponding with actual returns submitted.
If there are no historic notices available for any particular year requested it means either none were issued or they have been archived offline; contact our call centre should further assistance be required.”

Step 5: View Your Notice of Assessment

After clicking ‘request’, wait momentarily while the system processes information before being redirected back towards the ‘Historic Documents’ section displaying a list containing links to related documents, including the Notice of Assessment (ITA34).

Clicking on the desired document name opens up the PDF version within the browser window, allowing viewing/printing/downloading options as per user preference.

Importance of keeping track of your IT34s

Keeping track of each year’s Notice Of Assessments (ITA/ITR12), commonly referred to as “IT” forms, is crucial when managing personal or business finances. Here are a few reasons why it is important to keep track of your IT34s:

Verification and Accuracy: Your IT34 provides an overview of the amounts due to or refundable from SARS for each tax year, ensuring that you have accurate information about your financial obligations.
Tax Compliance: By reviewing your Notice Of Assessment (IT) forms regularly, you can ensure that all taxes owed are paid on time and in full compliance with South African tax laws.
Financial Planning: Accessing previous years’ IT34s allows individuals and businesses to analyze their income patterns over time, helping them make informed decisions regarding future financial planning strategies.
Loan Applications: Banks may request copies of recent IT34s when assessing loan applications as part of their risk assessment process since they provide insights into personal earnings and other sources of income.

Common issues and solutions when accessing your IT34

While accessing your Notice Of Assessments (ITA/ITR12), commonly referred to as “IT” forms, on eFiling is generally straightforward, there might be some common issues users encounter along the way. Here’s how these problems can be resolved:

Issue 1: Forgotten Username/Password

Solution: If you’ve forgotten either the username or password used during the registration process, you’ll need to reset your credentials by clicking the ‘Forgot Password?’ link located below the login fields. This will prompt the system to send an email containing instructions for resetting your password or retrieving your username associated with the account registered mobile number or email address.

Issue 2: No Historic Notices Available

Solution: In case no historic notices are available after requesting specific tax year(s), it could mean none were issued or archived offline. In such cases, it’s advisable to contact the SARS call centre for assistance and further clarification.

By following this step-by-step guide and being aware of potential challenges encountered while trying to access historical documents like Notice of Assessments (ITA/ITR12) through the eFiling platform, you should now be able to easily find, view, print, and download your IT34s. Remember, keeping track of these documents is essential for financial planning and tax compliance purposes.

How to interpret your IT34

Understanding the information on your IT34:

The Notice of Assessment, also known as an ITA34, is a document issued by the South African Revenue Service (SARS) that provides important information about your tax liability or refund for a specific tax year. Interpreting this document correctly is crucial in understanding whether you owe money to SARS or if you are eligible for a refund.

Different sections and their meanings:

Personal details:
This section includes personal information such as your name, ID number, contact details, and taxpayer reference number. It’s essential to ensure that these details are accurate and up-to-date.
Tax calculation summary:
Here you will find detailed calculations related to income earned during the specified tax year along with deductions claimed against it.
- Total Income: This refers to all taxable income received from various sources like employment salary/wages, rental properties’ earnings, investments returns, etc.
- Deductions/Expenses: These include allowable expenses incurred while generating income e.g., medical expenses not covered by insurance schemes; retirement annuity contributions made within prescribed limits; donations made towards approved public benefit organizations, etc.
Tax payable/refundable amount:
This section indicates whether there is any outstanding balance owed by you (tax payable) or if SARS owes you money (refund). The figure displayed here represents either what needs settling with additional payment(s), including penalties where applicable OR how much should be refunded back into the bank account provided at the time of filing the return, respectively.

How to determine if you owe money or have a refund:

To ascertain whether there’s an outstanding balance due/payable after considering taxes already paid through the PAYE system & other credits applied throughout the financial period under review – compare the “Tax Payable” value shown on the assessment notice versus the total payments reflected therein i.e., summing-up amounts deducted monthly via employer payroll systems plus voluntary contributions made towards tax liability settlement.

If the “Tax Payable” amount is greater than total payments, it means you owe money to SARS. Conversely, if your total payments exceed the “Tax Payable,” then you are eligible for a refund from SARS.

It’s important to carefully review all sections of your IT34 and seek professional advice or contact SARS directly if there are any discrepancies or concerns regarding its interpretation.

Why banks may request an IT34

Banks play a crucial role in providing financial assistance to individuals and businesses. When it comes to loan applications, they need accurate information about the applicant’s financial situation to assess their creditworthiness and determine whether they can repay the loan. One of the documents that banks often require is an IT34.

How banks use IT34s to assess loan applications

An IT34 provides detailed information on an individual or business’s income tax assessment for a specific tax year. Banks use this document as evidence of your annual personal earnings, including any additional income from other sources such as investments or rental properties.

By reviewing your IT34, lenders gain insights into your overall financial health and stability. They analyze factors like taxable income, deductions claimed against taxes owed (if applicable), refunds received from SARS if you have overpaid taxes during that particular period – all these details help them evaluate how much money you are likely able to allocate towards repaying loans without compromising your ability meet other obligations.

Importance of accurate and up-to-date IT34s for loan approvals

Having accurate and up-to-date copies of your latest ITA34 is crucial for loan approvals. Banks rely on this document to verify your income and assess your ability to repay the loan. If the information on your IT34 is outdated or inaccurate, it may lead to delays or even rejection of your loan application.

How to apply for an IT34

Overview of the application process for an IT34:

Applying for an IT34, also known as a Notice of Assessment (ITA34), is a straightforward process that can be done online. Here’s a step-by-step guide on how to apply:

1. Visit the SARS eFiling website:

– Go to www.sarsefiling.co.za and log in using your username and password.

2. Access Correspondence section:

– Once logged in, navigate to the “Correspondence” tab or menu option.

3. Request historic IT notices:

– Within the Correspondence section, look for options related to requesting historic tax information or notices.

4. Select desired tax year(s):

– Choose which specific tax year you would like your ITA34 from by selecting it from the available options.

5. Requesting your notice:

– Click on the ‘Request’ button next to the relevant tax year.

6. Viewing Your Notice:

– A link will appear once the request has been processed. Click this link to open up the document.

Required information and documents for the application:

When applying for an ITA34 through eFiling, there are certain pieces of information and documents you may need at hand during this process. Here’s what you should have ready before starting with your application:

1. Taxpayer Information:

– Ensure that all personal details such as name, surname, ID number, etc. are accurate. This includes updating any changes if necessary.

2. Income Tax Reference Number:

– You’ll need accessible income reference numbers when filling out forms.

Choosing a vetted accountant & method of correspondence:

If individuals require assistance with their applications, they can choose between various accountants who provide services specifically tailored towards obtaining their own unique copy of the ITA34. ITA services offer applicants quotations based upon individual needs. The applicant then selects their preferred service provider along with the mode of communication, such as email or phone.

It is important to note that the application process for an IT34 may vary depending on individual circumstances. If you have any specific questions or concerns, it’s recommended to reach out directly to SARS or consult with a tax professional who can provide personalized guidance based on your situation.

Difference between ITA34 and SOA

Definition and purpose of an SOA (Statement of Account)

An SOA, or Statement of Account, is a document issued by the South African Revenue Service (SARS) that provides a summary of all transactions related to your tax account. It includes details such as payments made, refunds received, penalties imposed, interest charged or paid on outstanding amounts.

The purpose of an SOA is to give taxpayers an overview of their financial standing with SARS. It helps individuals track their tax liabilities and ensure they are up-to-date with any outstanding balances owed to SARS.

Key differences between an ITA34 and an SOA

While both documents provide important information about your taxes, there are key differences between them:

Content:
- An IT34 focuses specifically on assessing whether you owe money or have a refund for a specific tax year.
- An SOA provides comprehensive details about all transactions within your tax account over time.
Timeframe:
- The IT34 relates only to one particular tax year.
- The data in the statement may cover multiple years depending on when it was generated.
Purpose:
- The main purpose behind issuing the IT34 is for individuals to determine if they need to make additional payments or can expect refunds from SARS based on their income declarations.
- On the other hand, the primary objective behind providing taxpayers with statements of accounts (SOA) is so that people can keep tabs on how much has been credited/debited into/from their respective bank accounts.

When To Use An ITA34 And When To Use An SOA?

Knowing which document should be used depends largely upon what kind of information you require at any given point in time. If you want detailed transactional history including payment dates, penalties, interests, etc., then you should refer to your SOA. However, if you want a summary of the amount owed or refundable for a specific tax year, then IT34 is what will be useful.

In conclusion, the main difference between an ITA34 and an SOA lies in their content, timeframe, and purpose. The former focuses on assessing whether money is owed or refunded for one particular tax year while the latter provides comprehensive details about all transactions within your SARS account over time. It’s important to understand when each document should be used based on individual needs.

Frequently Asked Questions

Question 1: What should I do if I can’t find my IT34 on eFiling?

If you are unable to locate your IT34 on the eFiling platform, there are a few steps you can take. Firstly, ensure that you have logged in with the correct credentials and navigate to the “SARS Correspondence” section. If it is still not visible, try refreshing or clearing your browser cache.

If these troubleshooting methods don’t work, it’s recommended to contact SARS directly for assistance. You can reach out to their helpline or visit a local branch where an agent will be able to help retrieve your IT34.

Question 2: Can I request an IT34 for previous tax years?

Yes! It is possible to request an IT34 for previous tax years through the eFiling system as well. Simply follow similar steps mentioned earlier by logging into your account and navigating towards requesting historic notices of assessment (IT Notices). From there, select the desired tax year(s) and submit your request.

It’s important to note that older records may take longer than usual due processing times associated with retrieving archived data from past fiscal periods.

Question 3: How long does it take receive an ITA after submitting my return?

The time frame between filing a return and receiving one’s Notice of Assessment (ITA) varies depending upon various factors such as workload at South African Revenue Service(SARS), complexity of individual returns etc.

Typically, it takes around two weeks but during peak season this duration might extend up-to six weeks.

In case more than six week has passed since submission without any response, it would be advisable contacting SARS via phone call or emailing them regarding status update.

Question 4: Can I dispute information present in My notice Of Assesment(ITA)?

Yes, you certainly have the right to object against incorrect assessments made by SARS within a certain period.

If you believe that the information on your IT34 is incorrect or inaccurate, it’s important to take action. You can lodge an objection with SARS within a specific timeframe from the date of assessment.

To initiate this process, you will need to complete and submit Form NOO (Notice Of Objection) which could be found at the SARS website. Ensure providing all relevant supporting documents along with the form.

Once submitted, SARS will review your objection and provide feedback regarding their decision.

Question 5: How long should I keep my IT34s for?

It is recommended by SARS that individuals retain copies of their Notice of Assessments (ITAs), including the associated documentation such as tax returns, receipts, invoices, etc., for a period of five years. This duration allows sufficient time in case any queries arise or if there are requests made by financial institutions, banks, government agencies requiring proof of income history during specified periods.

By keeping these records handy, you’ll have easy access when needed without having to worry about retrieving them later down the line.