FAQ: What is an ITA88 Third Party Appointment?

If a taxpayer has an outstanding administrative penalty and does not respond to any notices or demands in respect of the outstanding penalty, SARS may under Section 179(1) of the Tax Administration Act, No.28 of 2011 , appoint any third party, including an employer where the taxpayer is an employee, who holds money on behalf of or owes money to the taxpayer, who is then obliged to pay the amount of the tax owed over to SARS.

An agent appointment may be effected without any further notice to the taxpayer or qualifying third party. Where SARS, for example, appoints your employer as an agent, the employer is obliged to deduct the outstanding amount from your salary or wages and pay it over to SARS.

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