My client did not get his IRP5 from an employer that went into Business Rescue / Liquidation. He tried to get this from them but without any answers. What is my obligation and what is his obligation in this instance?
Important:
This answer is based on tax law for the tax year ending 28 February 2017.
Answer:
The individual has an obligation to submit a return and declare the income therein. SARS can't provide the taxpayer with a populated return nor process the return until the IRP5 tax certificate information from the employer is received.
According to information on the SARS website, “SARS won't penalise the taxpayer for the non-compliance by an employer.”
The employer is obliged to provide the employee with an IRP5. The individual may consider approaching SARS to request them to put pressure on the employer.