CAMAF Member Option Guides & Info

Guide on the Determination of Medical Tax Credits

Issue link: https://www.hub.camaf.co.za/i/984824

Contents of this Issue

Navigation

Page 29 of 42

Guide on the Determination of Medical Tax Credits (Issue 9) 27 service provider. The medical statements, which are generally released by each medical scheme in February or March each year, usually reflect the total amount for the year of assessment. Taxpayers could be asked to prove that they have paid the amounts disclosed on the medical aid certificates. • A completed list of amounts not submitted to or recoverable from the taxpayer's medical scheme, together with proof of such amounts incurred and paid. • In cases where receipts have been made out in the name of a dependant, or contributions or fees in respect of a dependant have been made to a different medical aid to the one to which the taxpayer belongs, SARS will accept a sworn affidavit in which the taxpayer indicates that the contributions, fees or qualifying expenses claimed for the dependant, have actually been paid by the taxpayer (either directly or indirectly). • A letter from the taxpayer's medical scheme, stating that the benefits allocated to certain medical procedures are exhausted, when applicable. • A duly completed and signed Confirmation of Disability (ITR-DD) form, if applicable. The aforementioned documentation as well as receipts must not be submitted with the annual income tax return, but must be stored and made available on SARS's request, in the event that a taxpayer is required to substantiate the medical claims. A taxpayer is required to keep records such as receipts, paid cheques, bank statements, deposit slips and invoices for five years from the date of submission of the return. 42 In cases where objections and appeals have been lodged against assessments, the taxpayer must keep all records and data relating to the assessments under objection or appeal until such time that the objection or appeal has been finalised, even if the timeframe for finalisation exceeds five years. 4.2 Persons not registered for income tax Taxpayers who are not required to submit tax returns are generally either employees, or are taxpayers whose income is below the tax threshold. These taxpayers may have an MTC or AMTC that was not taken into account during the year of assessment. The mere submission of a tax return will have no effect on the taxpayer's tax liability if the employer has already taken the MTC or AMTC into account. The MTC or AMTC will also not create a refund if the taxpayer has no liability for normal tax. Taxpayers must request an income tax return at the local SARS branch office, via the SARS Contact Centre or online through the SARS eFiling website (www.sarsefiling.co.za) if there is an MTC or AMTC that has not been taken into account, and if the taxpayers wish to apply for a refund. Should the MTC or AMTC result in a reduction of the tax paid, the taxpayer will become entitled to a refund. 42 Section 29(3) of the Tax Administration Act.

Articles in this issue

Links on this page

view archives of CAMAF Member Option Guides & Info - Guide on the Determination of Medical Tax Credits