SARS ‘technical error’ hits pension funds
- 14 hours ago
- 1 min read
Source: Business Tech
Source article link: https://businesstech.co.za/news/finance/834430/sars-technical-error-hits-pension-funds/
A technical error at the South African Revenue Service (SARS) has caused incorrect tax assessments for some taxpayers with two-pot retirement funds, as confirmed by the fund administrator Alexforbes.
The issue stems from non-taxable transfers between the pension and provident sections of retirement funds being mistakenly classified as taxable events. This error has led to an outstanding tax balance for a limited number of affected clients.
Alexforbes has advised clients who have not yet filed their returns to wait until the issue is resolved. For those who have already submitted, the fund recommends reviewing their tax assessments to ensure no transfers were incorrectly taxed.
Those who were auto-assessed are urged to submit a Request for Correction as soon as possible to avoid a finalized debt with SARS.
Alexforbes is currently working with SARS to fix the problem.
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