Trouble for anyone playing fast and loose with SARS

0 SARS has amended its collection processes and can now claim any outstanding debt from a host of third parties. Here’s how … Image: File Home » Business & Finance » Trouble for anyone playing fast and loose with SARS

SARS has tweaked its third-party processes and now has the power to collect what you owe straight from them. Here’s how …

0 SARS has amended its collection processes and can now claim any outstanding debt from a host of third parties. Here’s how … Image: File SARS is getting clever about recovering some R700 billion owed in tax receivables. More than half of this is owed by just 1 690 debtors. Essentially, amendments to the Tax Administration Act allows SARS to appoint a third party. These can be anyone from your employer, bank, asset manager and even your medical aid, withholding and paying the outstanding debt on your behalf.

As such, SARS can appoint anyone who holds money or property on a taxpayer’s behalf. This includes:

However, the appointment can only be made if the revenue service has identified who holds the funds. There can be no ongoing dispute over the debt, and the taxpayer must have received a final demand and didn’t comply. Furthermore, SARS says it might not necessarily seek the full balance owing, but only a portion.

In turn, SARS has revised the taxpayer schedule so employers have more time to load AA88 deductions before payroll closes. It says this will reduce repeated appointments and cancellations, which employers have found a hassle.

SARS is using data from banks, employers, medical schemes and investment platforms to flag mismatches between declared income and actual financial activity. Flagged cases can move quickly from engagement to enforcement, so be careful. Here are this season’s remaining tax deadlines to note:

Basically, if you owe SARS, don’t ignore a final demand. Arrange a payment plan or lodge a dispute before an appointment is made. Because, after that, your employer might get a message from the revenue service asking to make the required deduction anyway …

But what do you think? Do you think this is a good initiative from SARS? Or does this cross a line and they’re getting too greedy? Please share your thoughts in the comments section below …

0 comments WIN R250 every day in The South African’s Festive Quiz. Good luck!