NATIONAL NEWS - To date the South African Revenue Service (Sars) has received 1 213 646 applications for tax directives for withdrawals from the Savings Withdrawal Benefit of the two-pot system.
Of the total number of applications 1 148 729 tax directives were approved for funds to be released.
The remainder were declined for a variety of reasons, including incorrect identity numbers and tax numbers.
A total gross lumpsum of R21,4-billion has been paid out to date.
Taxpayers are reminded that tax is imposed on a withdrawal at a marginal tax rate ranging between 18%-45% depending on their scales.
Sars Commissioner Edward Kieswetter says he is deeply concerned that 213 654 taxpayers 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.”
Go digital
In line with Sars’ intent for taxpayers to use digital channels, it announced that the simulated WhatsApp calculator was used 51 547 times since implementation of the process.
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.
Taxpayers are encouraged to continue to use the digital channels, which are simple, easy and user-friendly. Using these channels means taxpayers do not have to leave their homes or places of employment to stand in queues.
SARS would like to thank retirement fund management entities for their friendly and professional co-operation that has allowed SARS to play its part effectively and efficiently by speedily issuing the volumes of tax directives needed to date.
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