Hide
Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
CLOSE
Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.
Try Tim Now

How to reflect transfer of Pension Fund to Retirement Annuity on ITR12?

Posted 13 August 2013 under Tax Questions



Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
Hello, Within the last tax year I changed jobs and in doing so had to transfer my pension fund from my former employer to my Retirement Annuity as my new employer does not offer a pension fund. On my ITR12 issued on e-filing I can see this lump sum pension fund amount reflected on a separate page with a directive number. Also I received a certificate from my Retirement Annuity institute reflecting my contributions for the tax year and this included the lump sum the I transferred.

My question is when filling in tax code 4006 do I include all contributions to the Retirement Annuity including the lump sum transfer taking into account it is reflected on my ITR12 as a separate page for the original pension fund?

I have submitted it to date as the full amount under 4006 as this is what the certificate I got showed it as. I have been selected for an audit and am just wondering if I have filled in something wrong as I cant see anything else incorrect. I have submitted all supporting documentation as requested but have had no feedback as yet. Each time I query the status it says that documents have been received but not yet processed, my status shows as correction filed and I have been issued an ITA34 but not sure what this means.

This entry was posted in Tax Questions and tagged , , , , , , . Bookmark the permalink.

TaxTimTaxTim says:
13 August 2013 at 20:55

When SARS have completed their assessment they will send you a "completion letter" which will indicate the results of your verification. This could take anywhere from a few days to 9 months depending on where you have fallen in the SARS audit trail.

Was any tax deducted on the IRP5 received from the fund?


Mark says:
14 August 2013 at 8:29

Hello

No tax was deducted on the IRP5 for the Pension Fund.

My question is should I include the pension fund amount under 4006?

For arguments sake lets say my total contribution to RA for the year is R 50 000 of which R40 000 is the amount transferred from the Pension Fund and R10 000 is what I contributed throughout the year. Do I reflect R50 000 or R 10 000 in code 4006

Mark


TaxTimTaxTim says:
14 August 2013 at 16:53

You would reflect the whole amount as the old policy lumpsum was paid to you and then you deposited it in the RA fund. SARS will only allow a certain amount to be deducted anyway because of percentage limitations, but will carry this forward to future years in order for you to get the deduction.


Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →