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Hired on contract and permanent later



Hi Tim

Last year I was on contract from May 2011 till Nov 2011, later the same employer made me permanent. I received an IRP5 showing that I've only been employed from Dec 2011, I went to HR to ask about it and they said it was correct, therefore I submitted all the information on eFiling as it is on my IRP5. I have received a letter from SARS that they want supporting documents, and I have submitted the documents. I would like to know if was there anything I needed to do before finishing my filing?

TaxTim TaxTim says:
27 November 2012 at 18:13

The income you earned from your employer between May and November 2011 should be reflected on your IRP5 as well as, although under labour rules you may not have been permanent, you were still earning "remuneration" for tax purposes and employee's tax should have been deducted anyway. How were you paid each month and was it the full amount or an after tax amount?

Keli says:
28 November 2012 at 9:57

I was paid after tax amount. I have done my submissions with just one IRP5 that shows only the 3 months. Now SARS has come back to me saying that they've received 4 IRP5s from SARS which I didn't receive and they have charged me a penalty for my income understatement. I called the support centre and they asked to me rectify this with my HR at work and submit a notice of objection and a proof that I didn't receive these other IRP5s.

TaxTim TaxTim says:
28 November 2012 at 14:00

Why would they have received 4 IRP5s?

SARS have become incredibly difficult with penalties and are penalising many taxpayers under the new Tax Laws which came into affect on 1 October 2012.

What you need to do now, is click the dispute button under your assessment and you will be taken to a new page with a document called a Notice of Objection, you need to fill that out and submit more supporting documentation. Your best bet would be to get a letter from your employer stating you did not receive the IRP5s and submit that as supporting documentation.

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