How Dimpho* Gave Away R1,65 Mil To SARS
If she contacted ThuthukaSA sooner, she would have saved over R1 million in taxes.
She phoned and asked ThuthukaSA to help her with her pension. She informed me that she had resigned after working for the company for close to 30 years. She wanted to use part of her pension to pay off debt and was not willing to wait until her retirement date because the stress of being heavily indebted was too much. When I asked about the resignation date, it was already over a month and it was too late. I told her that she had given away over R1,3 mil to SARS.
She could not believe it and I then shared with her the Lump Sum Withdrawal Table that her pension fund administrator would have used. Contact ThuthukaSA before you resign so that we can help you reduce your tax liability and save yourself money.
Pension fund value at date of resignation i.e. April 2023 = R5,07 Mil
Tax = R1,65mil
Balance received in her bank account after Tax = R3,41 Mil
After working for close to 30 years, she just gave away so much money to SARS. Such decisions are irrevocable so our advice to anyone considering taking an early retirement or resigning to cash their pension to pay off debt is that you must contact ThuthukaSA before you submit your resignation notice.
Her employer pension fund treated her withdrawal as a resignation because she was cashing her pension. She was taxed according to the Table below:
WITHDRAWAL LUMP SUM BENEFITS
Lump sums accruing between 1 March 2023 and 29 February 2024.
Dimpo* is not her real name.
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