RA and SARS, please help

[Deanoblado]

Hi guys

My wife has a RA that she stopped paying for a few years ago, the RA is still active and increasing in interest etc.
She never added her RA claim since then when doing her TAX.

My question is - can she add the RA amount even though she is not actively adding funds to the RA every month?

If yes - what will that amount be? Is it the total amount as per your policy or is a different amount worked out.
I have looked for the TAX certificate online e.g the one they sent you every year but i am not sure the one i'm looking at is the correct one. Its doesnt specifically state "Add this number to SARS claim" like my policy does.

the SARS code is 4006 - What amount should she add in there.

Thanks for the help.

 

[Sinbad]

You only put in money that you actually pay to your RA during the tax year.

 

[Mike Hoxbig]

If she's not paying then she can't claim it back.

As for the interest being earned, that will be taxed when she is paid out by the fund.

 

[Deanoblado]

Aha thanks for clearing that up.

 

[Ga77a]

If she's not paying then she can't claim it back.

As for the interest being earned, that will be taxed when she is paid out by the fund.

This is not strictly true.

SA law permits contributions that cannot be claimed in any tax year (because they exceed the limit of 15% of non-pensionable income) to be carried forward. These can be claimed in future tax years, subject to the prevailing tax limits in those years.

Our law also refers to arrears contributions, which can be claimed subject a limit of R1 800 pa. This refers to an additional current year contribution that is related to a previous tax year in which you didn’t claim your maximum allowable deduction. This extra contribution of R1 800 can be claimed annually in respect of all previous years in which you did not claim your full 15% (of non-pensionable income) deduction.



Extract from SARS website:

Retirement Annuity Contributions

Only contributions paid for a policy that you yourself will benefit from can be claimed.
Top Tip: Contributions paid on behalf of a third party, e.g. spouse, children, etc. won't be included.

Complete the contributions as shown on the tax certificate(s) received from the institution(s) to which you made the contributions.
Top Tip: The amounts shown on your IRP5/IT3(a) won't be considered as a deduction. You must use the certificate(s) received to complete this section.

Although the amount on the certificate might not be the same as on the IRP5/IT3(a), you must complete the certificate amount under the code 4006.
Top Tip: An IT3(f) is also an acceptable supporting document (relevant material). The 'Retirement Plan' amount and the 'Max Investment' amount must be added together and filled in next to code 4006.

The arrear retirement annuity amount paid during the year of assessment must be completed next to code 4007.

http://www.sars.gov.za/TaxTypes/PIT...complete-the-retirement-and-pension-fund.aspx

 

[Deanoblado]

Thanks @Ga77a

What will happen if add the amount and I was wrong. will they just decline or make the corrections or can i get into trouble for putting numbers in there. (obviously using the numbers from the statement)