Is SARS permitted to appoint external Collection Agents to recover tax debt? |
According to SARS Act section 5(1)c, it allows SARS to obtain the service of any person to perform any specific act or function necessary or expedient to perform its function. The recipient of the taxpayer information is required to protect and preserve the secrecy of that information in terms of section 67(4) of Tax Administration Act (TAA). In fact, SARS has implemented strict control measures to ensure that no taxpayer personal information is compromised by this process.
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Why was it necessary for SARS to appoint external Collection Agents? |
This was necessitated by the internal capacity and capability constraints, high debt write-offs, and an ageing debt book. Outsourcing is only one of several actions implemented to manage this. Other actions include the appointment of internal staff, improving internal skills and capabilities, and enhancing policies, processes, systems, and data.
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When will SARS appoint these Collection Agents? |
The first step is to proactively engage and assist taxpayers to settle their obligations, or if they have financial difficulties, to set up an appropriate arrangement for payment. Consequence-based collection steps and targeted enforcement, including debt outsourcing, are only implemented against taxpayers that are unwilling to comply.
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What process will SARS follow before handing over tax debts to Collection Agents? |
The first step is to proactively engage and assist taxpayers to settle their obligations, or if they have financial difficulties, to set up an appropriate arrangement for payment. Consequence-based collection steps and targeted enforcement, including debt outsourcing, are only implemented against taxpayers that are unwilling to comply.
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How will I know that my account was handed over to a Collection Agent? |
Non-compliant taxpayers SARS will receive a final notification via a formal SARS communication of their account being outsourced to a collection agent. Notify taxpayers via email that their debt was handed over. |
What do I do if I receive a SARS notification that I will be handed over? |
Make payment arrangement or settle your debt, Queries must only be emailed to [email protected], quoting your tax reference number, contact number, and other relevant details you consider necessary |
How do I make payments after receipt of this letter? |
You may contact SARS to arrange for any of the following options based on your personal circumstances: - Payment in instalments – where you are unable to pay the full amount.
- Suspension of the debt – where you intend to submit or have submitted a formal dispute.
- Apply for a compromise of a portion of the tax – This will be approved if the provides a higher return to the fiscus other than liquidation, sequestration, or other collection measures.
- Voluntary third-party appointment (TPA) – where you instruct SARS to collect directly from any of your debtors to pay-off or settle your debt.
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How do I guard against scammers posing as SARS appointed Collection Agents? |
Verify your tax number using your e-filing profile. Scammers are most likely to use incorrect/wrong tax reference numbers. Do not make payment into any third-party account EXCEPT SARS account using approved SARS Payment Options
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What will happen if I fail to respond to the notification letter and decide to not pay-off or settle my debt? |
SARS will hand over your account to the Collection Agent to collect the outstanding debt. Alternatively, SARS may enter a civil judgement against you in which case a warrant of execution may be issued for the Sheriff of the Court to attach and sell your assets, or any other avenue to collect the debt in accordance with the provisions of any applicable SARS legislation.
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