In just over a month since the implementation of South Africa’s two-pot retirement system, the South African Revenue Service (SARS) has announced that R21.4 billion has been paid out to taxpayers withdrawing from their Savings Withdrawals Benefit, Cape {town} Etc reports.
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More than 1.2 million South Africans have applied for the necessary tax directive, with approximately 1.14 million applications approved.
The remaining applications were declined for various reasons, including incorrect identity and tax numbers.
SARS has urged taxpayers wishing to make withdrawals to verify their tax and identity numbers and ensure they have no outstanding debts with the Revenue Service.
Once a registered taxpayer submits their application, a successful tax directive will inform the fund management of the tax to be deducted from the withdrawal. SARS accepts directive applications 24/7, processing them within an hour on any day of the year, provided submissions are made during operational hours.
If taxpayers are compliant, the fund will receive the response swiftly. SARS also noted that if a taxpayer has outstanding debt, deductions will occur unless a payment agreement is established. Before any final payout to applicants, the pension fund will be notified to deduct any debts owed to SARS.
SARS Commissioner Edward Kieswetter has raised concerns about tax evasion, revealing that 213 654 taxpayers have reported incorrect taxable income to gain a lower tax rate.
He emphasised that understating income constitutes tax evasion, which can lead to penalties. Kieswetter cautioned against such practices, warning that they carry serious consequences. To facilitate taxpayer engagement, SARS encourages the use of its digital services.
Since the new system was introduced, the simulated WhatsApp calculator has been utilised 51 547 times.
Additionally, the online query system has seen 655 801 uses, while the voice channel received 53 519 queries, and 8 655 were handled in-person at branches.
SARS promotes these digital channels as simple and user-friendly alternatives, allowing taxpayers to avoid lengthy queues and manage their tax affairs conveniently from home or work.
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Picture: Josh Appel / Unsplash
