Please explain the different tax numbers used for an insolvency cases. “- Based on legislation a person (purely for personal income tax purposes) may be issued with up to three tax reference numbers to finalise his/her estate. The taxpayer or the appointed trustee/administrator is required to visit a SARS Branch to request the taxpayer to be coded as an insolvent person. The tax reference numbers are defined and issued as follows:
– Insolvent Person before sequestration (Tax reference number 1) refers to the originally registered tax reference number of the taxpayer and will be recorded by SARS up to the date preceding the date of sequestration.
– Insolvent Estate (Tax reference number 2) which will be managed by the court appointed administrator/trustee.
– Insolvent Person after sequestration (Tax reference number 3) refers to the new taxpayer identity after the date of sequestration.”