THIRD PARTY Appointments

What is a Third Party Appointment?

  • If a taxpayer has outstanding tax debts (this includes penalties), the Tax Administration Act empowers the Commissioner for the South African Revenue Service (SARS) to appoint a third party to recover money held by third parties on behalf of the taxpayer. Third parties could be an employer or a bank, etc.

  • The Third Party Appointment process involves the appointment of a third party (employer, bank or any other person who has the management, custody or control of any income, monies or property of the taxpayer.) to collect any outstanding taxes including administrative penalty amounts from a taxpayer. The third party is responsible to pay the relevant amount to SARS on the taxpayer’s behalf.
     
  • This means that if you do not respond to any of the notices or demands informing you of your outstanding tax debts, SARS may appoint your employer or any other third party who holds money on your behalf or owes you money, including salary, wages and other types of remuneration, to pay the outstanding amounts to SARS.

  • Failure by a third party appointment to act may lead to that third party being held personally liable for the tax debt and can also be found guilty of an offence. If convicted, the person is subject to a fine or to imprisonment for not longer than two years.
Last Updated: 14/03/2016 2:51 PM     print this page
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 Top FAQs

Why is the Penalty Statement of Account for Income Tax not available on the eFiling?
A search can be done by selecting SARS Correspondence in the left handside menu. Then select Search Admin Penalties to find the notices that has been issued.

What is an Administrative Penalty?
An Administrative penalty is a penalty imposed by SARS in respect of any incidence of non-compliance as defined in section 210 of the Tax Administration Act.

What must I do when I receive a penalty assessment notice from SARS?
A non-compliant taxpayer who receives a Penalty Assessment Notice (AP34) must do two things: 1. Remedy the non compliance, e.g submit the outstanding tax return for which

What can I do if I do not agree with the Administrative Penalty that has been levied against me?
A taxpayer, who does not agree with the imposition of the administrative penaLty must request a remission of the penalty to SARS using the prescribed RFR1 form.

What is a Request for Remission (RFR)?
Request for remission of the penalty is a means for the taxpayer to dispute the Administrative Penalty that was levied to his / her account and to request that the penalty be waived.