A GROSS lump sum of R21.4 billion has been paid out to South Africans who withdrew from the two-pot savings attached to their retirement savings.
The South African Revenue Services said that more than 1 million South Africans have applied for tax directives from the two-pot system – 1 213 646 applications have been received, but 1 148 729 were approved for funds to be released.
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The remainder were declined for a variety of reasons, including incorrect Identity Numbers and incorrect tax numbers.
“SARS is deeply concerned that 213 654 taxpayers have been identified where they have declared incorrect taxable income with the view to have a more favourable tax rate. If a taxpayer understates their income, they are intentionally involved in evading their tax obligation. A penalty will be imposed on taxpayers who have understated income. Finally, I wish to caution taxpayers to refrain from this conduct that borders on criminality as there are real consequences for this behaviour,” said SARS commissioner Edward Kieswetter.
Taxpayers who want to apply for a withdrawal must ensure that their tax numbers and Identity Numbers are correct and that they do not have any outstanding debt with SARS.
The simulated WhatsApp calculator was used 51 547 times while the simulated calculator on the SARS website, which forms part of the SARS Online Query System, has been used 655 801 times.
SARS has also received 53 519 queries through the voice channel and 8 655 at branches.
Directive applications are accepted by SARS 24/7 and processed within an hour, 365 days a year, from 08:00 to 19:00. Unless a directive application is submitted outside of these hours, the response, if the taxpayer is compliant, will be sent to the fund within an hour.
The pension fund will be informed to also deduct any outstanding debt on behalf of SARS before any payout is made to the member. If there is an existing debt arrangement between the person and SARS, the withdrawal will not be affected. If there is a debt owed to SARS, it will be deducted in terms of such arrangement.
For more information, please contact SARS at SARSMedia@sars.gov.za
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