If you are over 65 and recently received a letter from the South African Revenue Service (the taxman) saying you qualified for exemption from the payment of provisional tax and are no longer required to submit the IRP6 return, do a double check.
According to Tifaine Human, manager of the compliance department at the auditing firm KPMG, many people have been given the wrong information and could pay some type of penalty if they take the taxman at his word.
Many of the taxpayers who have received this letter do not qualify for the exemption that they have apparently been given.
And don't think you can take advantage of Pretoria's mistake. as there is a heavy onus on the taxpayer to ensure he or she is aware and complies with the law.
The exemption from submitting a return only applies under the following conditions:
* The taxpayer must not receive a taxable income of over R50 000 for the year;
* The taxpayer must not be a director of a private company, a member of a closed corporation or derive an income from any business in his or her own name;
* The taxpayer must not receive income from any other source other than remuneration, pension, interest or rental from letting fixed property.