SAIT has received numerous queries regarding an error received on eFiling when using the SARS calculator or submitting a return containing the source code 3603. The alert reads:
“9858 Carry over values for section 10C not verified”
We have addressed this issue with SARS and received the following response from their offices:
“With the full implementation of the section 10C exemption for filing season 2015 on 11 September 2015, where a taxpayer qualifies for the section 10C exemption, in other words the taxpayer has declared compulsory annuity income on the ITR12 – 3603, 3610 or 3653 – and there is a carry-over available on our tax system for any retirement fund (Pension, provident, RA, Pension-Arrears, provident-arrears, RA-arrears), SARS will automatically route the assessment for manual intervention in order for SARS to verify and approve the accuracy / correctness of the carry-over balance on our tax system.
Henceforth, the “alert – code 9858” is part of SARS procedure effective from 11 September to notify the taxpayer that manual intervention from SARS is required before the assessment can be finalised.”
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.