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John says: 7 December 2015 at 11:43 My previous employer added an item to my IRP5, code 3901, for the amount of 134062. My reading of 3901 is for gratuity related to retrenchment, retirement or death. I did neither of the three, I simply resigned. Then of course, there was no such payment received by me, yet the employer claim there was. I cannot see how I can be expected to pay tax on something I did not receive nor did not qualify to receive. What to do now? |
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TaxTim says: 7 December 2015 at 18:50 Did you receive any severance pay or lumpsum related to your resignation? |
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John says: 8 December 2015 at 7:57 The only "lumpsum" amounted to R10 000 for accumulated leave. I had a lot more leave than what was paid out, because I did not work my notice period and the leave was exchanged in lieu of my notice period. It is possible that the R134 062 was the amount if I had not exchanged the leave in lieu of my notice period, but surely I don't have to pay tax on money I did not receive? My pension was transferred into a pension preservation fund, so no lump sum paid out there. Thank you! |
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TaxTim says: 8 December 2015 at 16:15 It would be best to ask your employer what that amount relates to. It sounds unlikely that it would be your leave exchanged for your notice period. Perhaps your employer has classified something using the incorrect code. |
