Please advise if a financial institution(namely FNB) is allowed to refuse to issue an it3s certificate to a client purely because their contribution to a tax free investment was less than R33 000.00, they have referred the client Section 12T which I have
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
In terms of paragraph 2.13, of the most recent notice issued under section 26 of the Tax Administration Act, the following persons are required to submit a return as specified in paragraph 3: A person referred to in paragraph 2 of the Regulations issued in terms of section 12T(8) of the Income Tax Act, and who issued a financial instrument or policy in respect of a tax free investment.
The form of submission is an IT3(s); or the “Data compiled in accordance with SARS’ Business Requirement Specification: IT3 Data Submission.”
This is however to be submitted to SARS and no mention is made of it being required to be issued to the investor. We understand that the information is made available to all investors in tax free investments.
The following appears at:
https://www.sars.gov.za/TaxTypes/PIT/Pages/Tax%20Free%20Investments.aspx
Service providers will provide SARS, twice a year, with the following info:
Total contributions per tax year;
Total amounts withdrawn per tax year;
Total amounts transferred per tax year;
Total returns on investment for example: interest, dividends, capital losses and capital gains.
The service providers will provide these taxpayers with this information by issuing an IT3(s) Tax Free Investment certificate annually.
The last sentence supports your view.