In this Bulletin:

• You have three months to pay up...
• Don’t ignore the warnings
• Get an update from SARS, before it’s too late
• Tip: Get yourself out of the firing line

So said SARS Commissioner, Oupa Magashule this week. Repeat tax offenders have until September to pay up their taxes, otherwise, the taxman will use the dreaded IT88 form to take money out of your bank account.

Dear Reader,

You have three months to pay up...

If you don’t pay up by September this year, then you could wake up to find that SARS has dipped into your bank account, and taken what you owe. And when you complain, it’ll tell you to read Section 99 of the Income Tax Act. This says that the taxman is permitted (and protected!) under the law, to recruit your bank or your employer as an agent to hand over the tax money you’ve neglected to pay – whether you like it or not.

Don’t ignore the warnings

If you’ve been a good tax citizen, it won’t happen out of the blue. You’ll first get a penalty assessment notice from SARS to warn you that you’re in trouble. Ignore the first warning, and you’ll get a second, attached to an even bigger penalty fee PLUS interest! And if you still don’t pay, your bank or employer will do so on your behalf, with your money!

Remember:

• SARS will recruit any person or company as an agent, including your employer or your bank
• SARS can collect your money without your permission, even if it makes mistakes in the notices it sends to your agent (e.g. if SARS quotes the wrong provision from the Income Tax Act)
• You won’t be able to argue against this in court!
• Don’t ignore SARS — communicate your intentions to pay
• If you’re lodging an objection, remember to request postponement of payment pending the outcome of the objection. SARS will try to collect payment of an incorrect tax liability or penalty if you don’t request postponement.

Get an update from SARS, before it’s too late

Don’t give SARS a reason to come after you. If you don’t know where you stand with SARS, get an update from it now (referred to as a ‘statement of account’, which SARS can e-mail to you). It’s the only way you can avoid waking one morning to discover your bank account is suddenly empty.

Tip: get yourself out of the firing line

If you have a good reason why you didn’t comply in the first place, and you’d like SARS to consider it, submit a Remission Request form. Submit this form immediately after you’ve received the penalty assessment notice… before SARS imposes the penalties. You must prove that there were circumstances outside of your control for your non-compliance.

Until next week

Fulvia Becatti
Managing Editor, Practical Tax Loose Leaf & Practical Vat Loose Leaf