1. Taxpayer Registration and Identification: This auxiliary function is critical for the seamless operation of South African Revenue Services (SARS) as it involves the process of registering taxpayers and providing them with unique identification numbers. This function ensures that the individuals or entities liable to pay tax are correctly identified and included in the tax system. The registration process typically requires gathering personal or business information, verifying documentation, and assigning a tax identification number. It further enables SARS to maintain an accurate database of taxpayers, their contact information, and compliance records, making it easier to monitor tax obligations, issue assessments, and communicate with taxpayers.
2. Tax Return Processing and Assessment: Another crucial auxiliary function for the seamless operation of SARS is tax return processing and assessment. This function involves the collection, verification, and evaluation of tax returns submitted by taxpayers. Tax returns allow individuals and entities to declare their income, deductions, and other relevant information required for determining their tax liabilities. SARS processes these returns using automated systems or manual reviews to ensure accuracy and compliance with tax laws. The assessment phase determines the taxable income, applicable deductions, and tax liability, either by automated calculations or manual review. This function allows SARS to efficiently manage the processing of a massive number of tax returns, assess tax liabilities, and issue tax assessments or refunds to taxpayers.
Name and describe any two auxiliary functions that are critical for the seamless operation of South African revenue services
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