Yolandib

Proof of funds

Recommended Posts

Yolandib

We are about to submit our Application for express entry. We are struggling with the proof of funds. We are using a Pension Fund and two bank accounts to show the funds. The pension fund does not want to give us a letter to state what the amount will be AFTER TAX. The bank also does not want to give us letters in the required format. I am planning to submit the following LoE:

Dear Sir/Madam
RE: Proof of funds letter of explanation
Kindly see the breakdown of our available funds below, as well as an explanation for each account:
Account    Amount in Rand    Amount in CAD
Sentinel Retirement Fund    R157 963.72    $15 058,44
FNB Tax free savings account     R66 334.74    $6 323,62
FNB Savings Account     R48 465.52    $4 620,16
TOTAL     R272 763.26     $26 002,22
 *Disclaimer: Exchange rate used as 1CAD = R10,49 as on today, 17 April 2019. 

1.    Sentinel Retirement Fund
The total withdrawal benefit as on 02 April 2019 is R187 150,88. A tax exclusion of R25 000 is applicable and the remaining amount of R162 150.88 is subject to an 18% tax deduction – making the after-tax withdrawal amount available R157 963,72. The contact Centre Supervisor for Sentinel Retirement Fund, Mr. Mpho Mongae advised me that they cannot provide a letter with the after-tax amount of the benefit. The South African Revenue Services website has information on how the tax amount is calculated. Please see the link below, a screen shot of their website, as well as the table applicable to lump sum benefits.


https://www.sars.gov.za/Tax-Rates/Income-Tax/Pages/Retirement-Lump-Sum-Benefits.aspx

 


Withdrawal Benefit
2020 tax year (1 March 2019 - 29 February 2020) - No changes from last year
Taxable income (R)
Rate of tax (R)
0 – 25 000
0%
25 001 - 660 000
18% of taxable income above 25 000
660 001 - 990 000
114 300 + 27% of taxable income above 660 000
990 001 and above
203 400 + 36% of taxable income above 990 000
 


Kindly see the following supporting documents attached:
•    Statement of Estimated Benefits (annexure A)
•    Email from Mpho Mongae – Contact Centre Supervisor (annexure “B”)

2.    Sibanye Stillwater – performance incentive bonus

In February 2019 I received a performance incentive bonus from my employer, Sibanye Stillwater in the amount of R110 833,81 (After tax). I split this amount and deposited it into the following two accounts:

First National Bank Tax-Free Savings account – R66 334,74
First National Bank Savings account – R48 465,52

First National Bank has advised me that they are not willing to supply a letter in the specific format as required by the Government of Canada as they only issue standard letters. 

Kindly see the following supporting documents attached:
•    Sibanye Stillwater performance incentive bonus payslip (annexure “C”)
•    FNB Tax Free Savings account interim statement (annexure “D”)
•    FNB Tax Free Savings account transaction history (annexure “E”)
•    FNB Savings account interim statement (annexure “F”)
•    FNB Savings account transaction history (annexure “G”)

The contact details for First National Bank do not appear on their letterheads or statements, therefor I am supplying the following link to their website:
https://www.fnb.co.za/complaints-resolution/talkToUs.html
First National Bank
International contact number: +27 11 371 3711
Email address: info@fnb.co.za
Head Office physical address: Simmonds Street, Johannesburg. 
The contact details for Lindelwa Ntuli, an FNB Private Banker overseeing my accounts, are as follows:
063 956 3034 or lntuli@FNB.co.za


Do you think this will be sufficient?

Share this post


Link to post
Share on other sites
LidiaS77
Posted (edited)

Hi @Yolandib,

Personally this is not something that I would take a chance with. I would really recommend trying to get the bank statement and pension fund statements. We had no problems getting bank statements in the correct format from FNB. They were very helpful as far as I remember. They have something called an "Account Confirmation Letter" and then it is possible to print out your bank statements at the branch and they will stamp them with their official stamp. During the process we went to various branches including the FNB in the Bedford Centre, Menlyn Mall and The Grove Mall and they all helped us. I think they gave us the Account Confirmation Letter at the Grove if I remember correctly. As far as I know you can also get some bank statements through your online banking and they should also be on the letterhead. Print these out and maybe you can try to get them stamped at the bank. It is better to supply any kind of statement that you get from FNB and the pension fund even if it is before tax (you can explain that) than no statements at all (not 100% clear on if you are in fact attaching the pension fund statement before tax).

Edited by LidiaS77

Share this post


Link to post
Share on other sites
Yolandib

Thank you for the advice. The money is currently in a Savings account, and according to FNB they only give account confirmation letters for Cheque accounts. We have decided to transfer the money to the Cheque account and just explain in the LOE that we transferred it because of this. We are attaching the statement from the pension fund and referencing SARS website to explain how we calculated the After Tax amount. So We are attaching the Pension fund statement, and transaction histories and interim statements for the Savings account. We will then also attach a confirmation of account letter for the Cheque account after we have transferred the money. 

 

Do you think that will help?

Share this post


Link to post
Share on other sites
logan
Posted (edited)

Hi @Yolandib,

We followed most of the advice on the forum, keeping the following in mind: PoF must show unencumbered funds. We didn't bother asking FNB for 6-month averages -- most people on the forums complain that the banks have no idea what to do unless you spend time at a branch explaining, or if you type up the letter yourself, and then go to the branch to get it signed.

Trying to avoid lengthy lines and the tedium of explaining to a bank officer what we had in mind, we did the following (our PoF is a unit trust account):

1) Got 6 months of statements of all the accounts that were material to our proof of funds account: FNB check accounts -- showing funds deposited into the unit trust. FNB Credit card statements to explain our short-term liabilities were covered.

2) 6 Months of statements for the PoF. We also did a special power of attorney since the PoF account is in my wife's name, and added the PoA, and statement showing acknowledgement of the PoA from the unit trust manager.

3) Got a statement of my provident fund, attached the SARS tax-tables that shows how to calculate withdrawal benefit, as well as a valuation of home, and a letter from FNB showing our home-loan status and owed-amount.

4) Provided the much referred to (on this forum) excel sheet (which is controversial -- some like it, some don't) which showed a summary of our financial standing. This included our PoF account: liquid assets (only unencumbered, no investment accounts), provident fund standing (using tax-tables), fixed asset valuations (and loans), movable assets (and trans-union valuation).

5) In our LoE, we didn't bother to explain any money moving between accounts -- we reasoned that 6 months of detailed statements would explain the movements and show consistent income and transfers, i.e. no "sudden windfalls" which could raise flags.

We had no follow-up questions, and our application was approved. I wouldn't presume the provide you with instruction on how to complete your application, but I thought I would share what worked for us. My approach was basically simple: show all accounts material to the PoF, the PoF, and show that the funds are unencumbered.

All the best!

 

 

Edited by logan

Share this post


Link to post
Share on other sites
PhilipCX
1 hour ago, logan said:

Trying to avoid lengthy lines and the tedium of explaining to a bank officer what we had in mind, we did the following (our PoF is a unit trust account):

We are also going to use a unit trust account (Alan Gray) for our POF. So you've used it without any hiccups? 

Share this post


Link to post
Share on other sites
logan
35 minutes ago, PhilipCX said:

We are also going to use a unit trust account (Alan Gray) for our POF. So you've used it without any hiccups? 

When I say unit trust, I mean 'money market' in particular...I'm not too familiar with financial terminology, but from what I was told a money market fund is a unit trust, and the term unit trust would be understood by the IRCC. I don't know if unit trust could be some other sort of fund. But, I used the term unit trust to refer to my money market account, and we had no hiccups.

Share this post


Link to post
Share on other sites
PhilipCX

@logan No that is perfect. I'm sure IRCC won't be too fussy about it if the institution can give you a letter that you have immediate access to it.

 

Share this post


Link to post
Share on other sites
Michael Cairns

Hi.  

Can someone please confirm if Proof of Funds from our lawyer would be accepted. We currently have funds invested at 3 of our lawyers. Each separate investment is more than enough for the minimum required amount to immigrate, so we will only use proof from one lawyer. The funds are totally unencumbered and available on immediate request. We have been investing with our lawyers for the past 14 years. 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now