tax return 2011

Hi
I am a state salaried employee and normally efile my tax returns as it's pretty straight forward. I stopped working at the end of April 2010 and started working at a different state dept. in August 2010. When I initially efiled the first assessment stated that I was due for a substantial return and was thus selected to be audited.

The gepf paid out my pension from my first job to me on 10 July 2011(after SARS issued a tax directive and the tax was deducted). My new assessment which I received today now includes this pension payout and I now owe SARS for the tax on this pension payout. I have contacted the gepf and they have assured me that the necessary taxes have already been deducted but they cannot issue me with an IRP5 as this falls in the 2011/2012 tax year.

Please help.thanks in advance.
 
gopes said:
Hi
I am a state salaried employee and normally efile my tax returns as it's pretty straight forward. I stopped working at the end of April 2010 and started working at a different state dept. in August 2010. When I initially efiled the first assessment stated that I was due for a substantial return and was thus selected to be audited.

The gepf paid out my pension from my first job to me on 10 July 2011(after SARS issued a tax directive and the tax was deducted). My new assessment which I received today now includes this pension payout and I now owe SARS for the tax on this pension payout. I have contacted the gepf and they have assured me that the necessary taxes have already been deducted but they cannot issue me with an IRP5 as this falls in the 2011/2012 tax year.

Please help.thanks in advance.
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you need to contact them again as they are always doing their tax directive applications incorrectly. they will apply for the directives in the year that you leave that means that the directive sitting on the system is issued in the 2011 year but the IRP 5 will issued for the 2012 year. i have already had it out with the GEPF pension fund dept about this and told them to do this correctly. they cannot get a directive for one year and issue a certificate for the next year. section 1 says date of accrual or receipt and they are not above anyone else to ignore this. pm me i think i still have their telephone number and the team leaders name. i will need your info to get this sorted out.
 
Thanks for your reply and kind assistance. Just to be clear, the directive isn't issued when you are actually paid out but rather when you are deemed to have left the gepf????
 
gopes said:
Thanks for your reply and kind assistance. Just to be clear, the directive isn't issued when you are actually paid out but rather when you are deemed to have left the gepf????
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you do not understand - the GEPF are requesting the directives in a different year, i.e. when you leave they will apply for the directive meaning that the money will accrue to you in the 2011 year. this informs SARS that your pension lump sum will be included on your 2011 return. BUT the IRP 5 certificate is issued for the 2012 tax year the GEPF will only issue the certificate for the 2012 year and the certificate will appear on the system for the 2012.
now when SARS sees the directive they assume that you have had the money in the 2011 year and will include the lump sum on your 2011 return.
get it.
 
if you still do not understand what i'm talking about then please phone the call center and ask them for what year your tax directive is issued. they will tell you exactly what i'm trying to explain to you and it will be for the 2011 tax year. this is why you are now paying in.
 
Now I understand thanks.....sorry but I'm a bit doff as far as these things go. The problem came about that I left the gepf in the 2011 tax year but was only paid out in the 2012 tax year.I should now get the gepf to issue me with an irp5 for the tax deducted but for the 2011 tax year.
 
gopes said:
Now I understand thanks.....sorry but I'm a bit doff as far as these things go. The problem came about that I left the gepf in the 2011 tax year but was only paid out in the 2012 tax year.I should now get the gepf to issue me with an irp5 for the tax deducted but for the 2011 tax year.
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no you were paid in the 2012 tax year. the GEPF are trying to be funny here. as i've said i've already spoken to a mr govender the team leader and told him that they cannot use both "date of accrual and date of receipt" with these pension pay outs because it will lapse in both years. he told me they have been doing it for years so i told him not to be stupid this has not been going on for years, this started when someone took over the supervisory position in the GEPF. why it hasn't been fixed now is beyond me because i spoke to him beginning of last year already when 3 of my clients and another 2 of my friends clients had the same problem.
you will need to get hold of GEPF and tell them to sort it out and be stern with them they messed up.
 
Wow, SARS are quick this year! Filed on Wednesday morning, got both myself and my wife's refunds into our bank accounts this morning!
 
thanks again for your help celine........the gepf is now gonna issue me with the irp5 for same year as the tax directive, then it should be sorted.
 
When doing the travel allowance, is the value, the original value of the car ? and if it was bought second hand is it the original value or the amount you paid ?
 
Ok, tax gurus help this totally confused person please

I have a leased vehicle that is part of my total cost to company and the monthly lease payments are deducted from my salary (appears as 3802 Use of motor vehicle) on my IRP. I do not recieve a travel allowance as fuel and mileage are included in the lease payment. I was told by SARs call centre last year that for this tax year ending Feb 2011 I would have to keep a log book. On my e-filing the area where you fill in mileage is greyed out?

What am I doing wrong or did I keep a log book for nothing?:confused::sick::wtf:
 
you do not fill in travel claim for 3802. and yes you must still keep a logbook for the business and private portion of the use of company vehicle.
what you need to do here is when you complete the wizard, it will ask you if you want to claim other expenses, click yes, then near the bottom of the wizard you will see the block for other expenses, click yes.
once you have determined your business portion of the use of motor vehicle you will have to still calculate what the amount is to fill in the "other expenses". i will find out the calculation for this and get back to you. i need to make sure it is still the same for 2011.
 
Can anybody help with this please - my knowledge on tax is a bit limited and SARS's website is so unclear about this it isn't even funny. :wtf:

What does "Arrear Retirement Annuity Fund Contributions" (code 4007 on ITR12) mean? My understanding is this:

eg. In 2010 your maximum allowable RA contribution deduction was R10 000. You actually made R12 000 worth of RA contributions so you declare that on your 2010 return. My understanding is that the R2 000 that wasn't allowable as a deduction in 2010 is the "arrear RA contributions". So now in 2011 you're allowed to deduct R1 800 of that in addition to your current RA contributions. R200 will then carry over again to next year.

Is this correct?
 
Celine said:
you do not fill in travel claim for 3802. and yes you must still keep a logbook for the business and private portion of the use of company vehicle.
what you need to do here is when you complete the wizard, it will ask you if you want to claim other expenses, click yes, then near the bottom of the wizard you will see the block for other expenses, click yes.
once you have determined your business portion of the use of motor vehicle you will have to still calculate what the amount is to fill in the "other expenses". i will find out the calculation for this and get back to you. i need to make sure it is still the same for 2011.
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Thank you!
 
Rkootknir said:
Can anybody help with this please - my knowledge on tax is a bit limited and SARS's website is so unclear about this it isn't even funny. :wtf:

What does "Arrear Retirement Annuity Fund Contributions" (code 4007 on ITR12) mean? My understanding is this:

eg. In 2010 your maximum allowable RA contribution deduction was R10 000. You actually made R12 000 worth of RA contributions so you declare that on your 2010 return. My understanding is that the R2 000 that wasn't allowable as a deduction in 2010 is the "arrear RA contributions". So now in 2011 you're allowed to deduct R1 800 of that in addition to your current RA contributions. R200 will then carry over again to next year.

Is this correct?
Click to expand...


no arrear pension fund and retirement annuity fund contributions mean the following:

you working for a particular company and you start paying pension fund contributions from a specific date. most pension funds will give you the option to buy back into the pension fund making your pension payout more when you reach retirement. but you can only buy back to the age of 16. similarly this is the case with retirement annuity funds as well.
 
Celine said:
no arrear pension fund and retirement annuity fund contributions mean the following:

you working for a particular company and you start paying pension fund contributions from a specific date. most pension funds will give you the option to buy back into the pension fund making your pension payout more when you reach retirement. but you can only buy back to the age of 16. similarly this is the case with retirement annuity funds as well.
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Thanks Celine. So, will SARS automatically add the amount reflected in my 2010 ITA34 under code 4006 "Amount c/f to next year" as a deduction? I don't have to remind them of it in some way?
 
Rkootknir said:
Thanks Celine. So, will SARS automatically add the amount reflected in my 2010 ITA34 under code 4006 "Amount c/f to next year" as a deduction? I don't have to remind them of it in some way?
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if you have RAF claims for next year as well, the amount c/f from this year will be added and the amount allowable as a deduction will be given. the rest will be c/f to the following year. if there is a continual c/f this could mean that the balance will continually grow until retirement when you eventually get the lump sum paid to you in which case all c/f amounts will be added to the amount allowed as an exempt portion on your retirement lump sum portion, e.g. if your lump sum is R700 000, you will be entitled to the R300 000 exemption and any c/f amounts that are on the system.
 
I don't know anything about tax, so excuse my ignorance ;)

However, I'm curious as to how this primary rebate works. Can you then theoretically get more money back from SARS than you had actually paid in taxes? For example (made-up numbers):

Work for 1 month during tax year, PAYE withheld: R500
18% figure, according to tables: R700
Primary rebate: R10,260

Now, in this scenario, will that person receive a R500 tax refund (R700 - R10,260 = R0 effective, R500 tax in excess) or more/less?

Again, I'm a techie, not a financial guru, so feel free to correct the numerous errors that I have made :)
 
Your refund is limited to the taxes you have paid during the year.

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