Retirement Annuity
Can SARS deduct tax that I owe from my retirement fund?
SARS does inform you. It sends out an annual assessment, either by mail, orelectronically (if you use SARS e-filing). Of course, this does requireyou to submit a tax return, and to follow up on your assessment. SARS doesnot use your retirement fund lump sum to deduct tax that you owe in respectof income - this is not permitted by the Pension Funds Act. But SARS doesrequire you to submit outstanding returns and pay amounts that are longoverdue before issuing your tax clearance certificate.
