"2019 yamaha grizzly eps for sale in malta, ny. menneto's wildhorse powersports malta, ny (518) 371--2087 cordingly be granted the same tax treat­ ment as involuntary severance packages. we agree with the proposal that the sars completion guide be updated to remove the distinction between “volun­ tary” and “involuntary” retrenchments as this distinction does not exist in the def­ inition of “severance benefit” in the act. as a result of the submission, sars has accepted that voluntary severance packages on retrenchments should in the interim be disclosed under the “sever­ ance benefits — involuntary retrench­ ment” option in the irp3(a) form in or­ der for the “severance benefit” table to apply to such lump sums. this is the position while the sars completion guide and forms are updat­ ed to reflect the change in sars practice and policy. in terms of current tax tables, the first r 500 000 of a severance benefit (excluding leave and notice payments) received in the lifetime of the individual is exempt from normal tax, with the re­ mainder taxed at increasing marginal rates with 36% being the maximum rate. the clarification that voluntary sev­ erance packages qualify as severance benefits is to be welcomed as it has sig­ nificant financial implications to employ­ ees who are retrenched. as employers could be, among oth­ ers, personally liable for shortfalls of paye withheld, we recommend that le­ gal and tax advice be obtained as early as possible in any proposed business re­ structuring or retrenchment. — by joon chong, partner; dhevarsha ramjettan, partner; nivaani moodley, as­ sociate and belinda price, associate, at webber wentzel.