With the start of the 2022 tax season approaching, taxpayers must be aware of their tax compliance and any outstanding debt owed to the South African Revenue Service (SARS), according to Andre Daniels, legal manager: tax controversy and dispute resolution at Tax Consulting SA.
“As a practice, we are seeing SARS continue to aggressively follow collection steps against taxpayers with outstanding tax debt. This includes withdrawing funds from bank accounts, garnisheeing salaries and threatening personal liability of company representatives,” Daniels said.
“If you are in this position, it is important to know your legal rights as a taxpayer and the steps available to you. A letter of demand is usually the first step in this process.”
If you receive a letter of demand/third-party appointment, Daniels advises you not to hide your head in the sand or become a deer in the headlights.
“Being frozen with fear or indecision will not aid your cause and will only lead to SARS commencing with collection procedures in terms of the Tax Administration Act (TAA), leaving a taxpayer with little to no recourse.
“It is important to remember that a third-party appointment is not a SARS official collecting a debt, but rather SARS legally appointing a third-party in terms of Section 179 of the TAA, such as the taxpayer’s bank or employer, to withhold and immediately pay over to SARS all available funds as per the terms stipulated on the notice of third-party appointment.
“Should a third-party fail to adhere to the appointment, it may result in the third-party being held personally liable to SARS and they may also be convicted of a criminal offence.”
It is critical for taxpayers who find themselves in the aforesaid situation to quickly retain the services of an expert tax counsel who can guarantee that the legal process is handled correctly in resolving the purported tax deficit owed to SARS, according to Daniels.
Contact Tundra Tax & Accounting @ 1A Waterford Drive
Maroeladal, Fourways,2192 P.O. Box: 70141 Bryanston.2021 Johannesburg, South Africa Office no : +27 (011) 794 5856 , +27 079 871 5003
www.tundra.co.za