So Another lady was doing our payroll, and submitted the recon, now that im doing my tax and comparing my actual income to my IRP5, im wondering where SARS came up with these amount or if the IRP5 was wrong to begin with (I have seem QBP pull out random numbers to put on IRP5's before)
Here is the situation, there is taxable income on the Payslip of lets say 300 000, a medical aid fringe benefit of 10 000, and a deduction for a car allowance for say 25 000.
As I underdstand it, the car allowance is 80% tax deductable (or whatever this figure is), so my total taxable income will be 300 000 + 10 000 (this is taxable part of medical aid) + 80%(25 000) = Taxable income right?
Income on my IRP 5 increased by a magical 200k! With no logical explanation. The tax paid is correct according to my payslips. but now I owe a huge amount on income I never got.
I just need to know who to fight with, and alter the IRP5 to my correct amounts?