area�Limpopo province
1 March 2007
As part of the programme to roll out the cross boundary transfer of
personnel and assets between the Limpopo and Mpumalanga provinces, the
Mpumalanga province instructed PERSAL on 13 April 2006 to programmatically
transfer 2 541 educators to the Limpopo province with effect from 1 July
2006.
PERSAL should have obtained an instruction from the Mpumalanga province to
also transfer the tax on bonus provision programmatically, which did not
happen.
Consequently, PERSAL proceeded with the transfer but excluded the transfer
of the IRP5 accumulations based on the instruction received from the Mpumalanga
province not to include the tax accumulations. This led to the unfortunate
situation where educators who opted to pay tax bonus provision being over taxed
during the tax recalculation on the February 2007 salaries.
We have established that the officials' tax was deducted by the Mpumalanga
province and such information was not transferred to the Limpopo province.
I have instructed my officials to correct the over recovery of tax and
ensure that the affected educators are reimbursed by Friday, 2 March 2007.
We would like to extend our sincerest apologies to those educators and their
families for the inconvenience caused.
Issued by: Ministry of Finance
1 March 2007
