Question:
Well, someone I know has a retirement fund due to her in about a month's time. The problem is that she contacted the administrator of her fund and they said it wont be paid to her, but SARS, since she is outstanding on an assessment SARS made wrongfully. She quit working in 2001, but her assessment was conducted after 2006. She appealed, but they said it can't be reversed since it's "too late". Is such a thing possible? Who can she contact to ensure her getting her retirement fund?
Answer:
Gift,
You can relax, SARS cannot attach your friend's retirement fund. This is one of the advantages of saving through a retirement fund per the Pension Funds Act - it is largely secure from creditor claims, while the money is in the fund. SARS can however delay issuing a tax directive if the member's tax affairs are not in order - in which case the fund administrator cannot pay out - and with such a long-outstanding issue, this may be a very likely outcome here. So if your friend has avoided sorting out her tax problems, then now is the time to do it, possibly with the help of a tax practitioner.
