Caution over two-pot

WITHDRAWALS: SARS REVEALS THAT SOME DECLARED INCORRECT INCOME

- Ina Opperman

The South African Revenue Service (Sars) has received 1.2 million applications for withdrawals under the two-pot retirement system since it was implemented on 1 September. However, more than 200 000 applications were declined because some of the applicants lied about their taxable income.

A total gross lump sum of R21.4 billion has been paid out to date, according to Sars, but it did not say how much was deducted for tax.

Finance Minister Enoch Godongwana said in his Budget speech in February that he expected R5 billion in tax from withdrawals under the two-pot retirement system.

He will probably give a figure in his medium term budget policy statement on 30 October.

In a statement issued late on Friday, Sars said it had received 1 213 646 applications for tax directives for withdrawals from the savings withdrawal benefit of the two-pot retirement system, but only approved 1 148 729 for funds to be released.