SOUTH CAPE NEWS - Taxpayers should be aware that if you have outstanding tax debt, SARS has the power to reach into your bank account and take the outstanding funds by instructing your bank.
As its agent, sometimes even without notifying you. Chances of this happening increase especially where the end of the tax year is approaching and where SARS is below budget.
The Tax Administration Act (TAA) provides that SARS may notify any third party to pay any money it holds on your behalf to them. Failure to comply makes the bank or even your employer personally liable for your debt.
Taxpayers are especially annoyed if SARS acted on a false tax debt or if proper procedure was not observed. SARS is required to adhere to the procedure prescribed by the TAA, which imposes procedural requirements onto them, for example, to send final demand ten business days before it proceeds with the collection.
Taxpayers must be alert when it comes to any attempts from SARS to communicate with them, as ignorance of the legal process will be to your detriment.
Almost always the biggest mistake taxpayers make is ignoring their tax status, perhaps hoping the problem will go away.
Alarmingly, however, there are cases where SARS have withdrawn funds from taxpayers' accounts without them being notified.
Whether this is a result of deficient communication from SARS or a flagrant disregard for the prescribed tax procedure, is not relevant, as the withdrawal can be reversed either way.
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