Hi,

I have an issue with the tax returns done via e-filing.

A client changed jobs during the year of assessment. At Company A where she worked 3 months she had a pension fund and made a contribution of R2000 (code 4001) on her IRP 5. The employer also had a contribution of R1000 which was included as a fringe benefit (code 3817) and then deducted from her income (code 4472) as a deduction from her salary. She then moved to company B where they have a retirement annuity fund for employers. She made contributions of R25000 which was deducted under code (4006) and her employer made contribution of R25000 which was also taxed as a fringe benefit (code 3828) and then deducted under code (4475).

Her maximum allowable deduction is R96 000 which is 27.5 % of her taxable income. Her contributions made is therefore well below the capped amount.

My understanding is that she is allowed a deduction of R2000 + R1000 + R25000 + R25000 = R53 000.

My problem is as follows:

Her RAF certificate from PPS only shows the amount she contributed herself (R25 000). This is also the only amount filled in under 4006 on her tax return. Her tax calculation includes the R1 000 and R25 000 respectively as taxable fringe benefits but only her own contributions was allowed as a deduction (R2000 + R25000) = R27 000.

How should the employers contribution be filled in the tax return?

How do I prove that employer A's contribution to her pension fund and Employer B's contribution to a RAF? I asked her to contact her HR to get some sort of proof of those contribution.

Surely these should have been deducted automatically?

Please let me know if any of you had the same issues?