Why does the taxman hit on widows?

2013-02-27 12:53
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taxed to death
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A Fin24 user writes:

Why do we widows get taxed high after we receive so little money from our late husband's pension fund?

Actually when the tax period comes, you don't feel relieved after you've handed your tax return.

It looks like all the money you had been receiving is taken back, because you always owe the South African Revenue Service (Sars). When you ask, they tell you that you appear as somebody who earns more.

Can't something be done about this? I'm sick of owing Sars every year.

A PwC expert responds:  

If your income has remained more or less constant over the last number of years, then the tax paid on that income should in fact have reduced over this period.

This is because the income tax rates have declined for individuals for a number of years now.

Depending on the nature of your income, it is possible that due to SITE being abolished, this may have resulted in more tax, but this phase out has now been completed.

 - Fin24

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