TFSA Contribution and Shariah Evidence Reconciliation Checklist

A tax-free savings or investment account needs two reconciliations: contributions must align with provider and tax records, while the underlying investments must align with the household’s approved Shariah process. This checklist keeps those questions separate and traceable.

Educational information only: This is not tax advice, financial advice or a Shariah ruling. Verify current rules with SARS, product details with the provider and investment suitability and Shariah questions with qualified professionals.

1. Identify the registered provider and account

Record the legal provider, account number, owner, opening date and product terms. Check the entity through official regulatory sources and retain the signed application.

2. Build a contribution ledger

List every contribution by date, amount, payer, provider reference and tax year. Reconcile the ledger to bank records and provider statements.

3. Confirm current limits

Use the current SARS tax-free investment guidance for applicable annual and lifetime limits. Record the verification date instead of relying on an old article or remembered figure.

4. Separate returns from contributions

Classify dividends, distributions, interest-like amounts, sale proceeds and reinvestments correctly. Internal investment returns should not be confused with new money contributed.

5. Track withdrawals carefully

Record date, amount, destination and reason. Confirm the current contribution consequences before replacing withdrawn money, because a withdrawal may not restore contribution capacity.

6. Reconcile provider transfers

Keep transfer instructions, closing statements and opening statements. Confirm that a formal provider-to-provider transfer was not incorrectly processed as a withdrawal and new contribution.

7. Review underlying holdings

List funds, securities and cash balances with identifiers and units. A tax wrapper does not itself determine whether each holding meets the household’s Shariah criteria.

8. Record the Shariah methodology

Retain the screening standard, reviewer, certificate or fund mandate and review date. Document how changes in holdings or screening status will be handled.

9. Check purification requirements

Where the approved method requires purification, link calculations and payment evidence to distributions or holdings. Keep this record distinct from the contribution ledger.

10. Reconcile fees

Capture adviser, platform, administration, fund and transaction fees. Show whether each charge is paid inside the account or separately and how it affects reported value.

11. Compare performance consistently

Use the same period and cash-flow treatment when reviewing performance. Separate market return from contributions, withdrawals and fees.

12. Retain tax certificates

Save provider certificates and annual statements by tax year. Reconcile names, identity numbers and amounts, and ask the provider to correct discrepancies.

13. Review access and security

Document login recovery, contact details, authorised assistance and fraud-reporting routes. Remove obsolete phone numbers and email addresses promptly.

14. Record estate information

Confirm beneficiary or estate procedures directly with the provider and capture required documents. Coordinate the account with the household’s current estate plan using qualified advice.

15. Resolve exceptions

Maintain a register for missing statements, rejected transfers, duplicate entries, excess-contribution concerns and Shariah questions. Assign an owner and due date.

16. Complete the annual reconciliation

• Provider statements and bank records agree

• Contribution ledger uses the correct tax year

• Transfers and withdrawals are classified correctly

• Holdings and Shariah evidence are current

• Fees, certificates and estate details are filed

Useful official starting points include SARS tax-free investment guidance and FSCA regulated-entity information. Check current provider documents for the account’s actual rules and holdings.

The completed reconciliation should show how much was contributed, how transactions were classified, what the account owns and which evidence supports the Shariah review.