SARS querying out of pocket medical expenses
21 October 2014
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Posted by: Author: SAIT Technical
Author: SAIT Technical Q: We are
receiving requests where SARS queries the amount paid out of pocket on the
medical aid tax certificates. Is this really necessary or can we query this
with SARS and ask them to stop this, or is there a logic reason behind all of
this? A: In respect of
"qualifying medical expenses” the Act requires that these are any amounts
(other than amounts recoverable by a person or his or her spouse) which were
paid by the person during the year of assessment. The reason why SARS is asking for proof that
the ‘out of pocket’ expenses is, amongst others, most probably to determine
whether or not the expenses were in fact paid in the relevant year of
assessment. In terms of the Tax Administration Act SARS is entitled to
request support documents as part of the review of a return. The taxpayer also bears the onus to prove
entitlement to make the deduction. We don’t know why SARS requested this in your case, but as
they are entitled to do so it may well be irrelevant. If they request it, one will have to provide
it or risk an adjustment to the assessment. Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
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