Question:
my question is, if I am paying someone else's RA (that person is unemployed due to illness), can I and how do I claim back from SARS. this person does not get an IRP5 form. I am listed at the institution as the Payer please advise Regards Shane
Answer:
Shane, You cannot claim a tax deduction on contributions made to someone else's retirement annuity, otherwise this would become an all-to-obvious tax evasion opportunity, if one party claimed a deduction but the proceeds were taxed in another person's hands. Note that you could become liable for donations tax if this is not your spouse and SARS found out.
The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.
