A taxpayer is a widow and receives her husband's pension on a monthly basis. Whenever she does her SARS annual returns, she owes SARS a lot of money. Is there something she can do to reduce her tax liability for the current period when she does e-filing?
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
We accept that the additional tax arises because the surviving spouse is in receipt of his or her own pension or other taxable income. The employees’ tax, if any, withheld by the employer, will be less than the additional tax (because of the progressive nature on the tax tables). There is nothing that can be done when the return is filed. The taxpayer should 'save' an amount on a monthly basis or request the fund to withhold more employees’ tax. From next year, the funds will apply to SARS for a directive and the spouse would not have to request a voluntary over deduction.