FAQ: When will a Third Party Appointment be initiated?

Although SARS may use this collection power as soon as the tax debtor is in default, in practice the defaulting debtor (taxpayer) will normally receive notices and be afforded the opportunity to pay the tax debt before third parties are appointed. This will not, however, apply in instances where there are indications that the taxpayer is taking steps to dissipate assets or otherwise place the collection of the tax debt in jeopardy.