Sky Software
Help and User guide

IT12 Lump Sums

Where there is lump sum income this will normally be represented by the download of an IRP5 which will found in the IRP5 section of SKY TAX.  It is very important to know that in many instances there is a directive issued by SARS where there are adjustments to the Retirement or the lump sum payment.  In this instance it is very important that the adjustment is made on Sky Tax on the screen below.  In the example below there is an amount of R795175 being the amount paid out and SARS have made an adjustment of R156659.  Please note where this has been entered (under Re-Invested) as it will affect the calculation of tax on the lump sum.
There should be a rule in your office that whenever income is received in respect of a lump sum that the client is required to provide the directive.  It should be noted that the lump sum will not be paid unless SARS gives a directive, so therefore in all cases there will be a directive and the necessary tax will be deducted from the lump sum and should be reflected as PAYE.
16 July 2021