Author: Cecile Bothe
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
If a taxpayer is declared insolvent the existing tax reference to date of insolvency is closed and the taxpayer must apply for a new tax reference number after date of insolvency. The employer must apply for a tax directive on the new tax reference number and reflect the retrenchment package with the correct income source code on the relevant IRP5 certificate. There is no alternative to claim the tax relief.