Well, I usually get my assessment to within R10 of my calculation, but this last year ( 2011 tax year ) things seem to have changed - I was a few grand out.
In the past, I was allowed to deduct my RA contributions up to 15% of my taxable income. But either they always got it wrong in the past, or they just changed the rules.
Appears that I can only claim up to 15% of my "non-retirement funding income", not of my salary which is classified as "retirement funding income".
Firstly, I am too sh1t scared to go query this too much, in case they go back on previous years and adjust all the assessments.
Secondly, I think this is grossly unfair. Apparently, if I had a company retirement fund ( SARS approved ) then I would get the contributions as a deduction from the taxable amount.
So now I am looking for a way to level the playing fields ....
Could I declare a reasonable monthly salary ( eg R6k ) which would be "retirement funding income" and then at the end of the year, add to the IRP5 an "Annual Payment" (code 3605) and some "Commission" (code 3606).
Would these ( 3605 & 3606 ) be in the "non-retirement funding income" field ?
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