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Tax on provident fund: Is R14k on R82k fair?

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A Fin24 user is questioning whether it was right to deduct R14 570 in taxes from a R82 743 provident fund.

He writes: "During Tax Year February 2015 my wife received an amount of R82 743.00 representing a surplus on valuation on her provident fund. From this R14 570.00 was deducted for tax. Alexander Forbes issued a Tax Certificate reflecting the deduction but referred to Tax Y/E 2006. 

Her tax for Y/E 2015 was nil, but SARS would not recognise the deduction. Their response was as follows:

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