Can you claim retirement annuity contributions if it was transferred from a provident fund to a retirement annuity fund?
Important:
This answer is based on tax law for the year ending 28 February 2020.
Answer:
In terms of section 11F of the Income Tax Act, the amounts contributed to a provident fund didn’t, as you pointed out, qualify for a deduction under the repealed section 11(k) or (n) of the Income Tax Act. Consequently they don’t qualify for a deduction under section 11F – see section 11F(3).
We submit that this amount can only reduce the lump sum withdrawn from the provident fund. The transfer from a fund to a qualifying fund doesn’t result in a taxable benefit (or doesn’t constitute a contribution made) – see the Second Schedule.