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Did you know SARS can help themselves to your money directly from your bank account?

by , 18 February 2014
Picture this...you calculate your company's tax, budget accordingly and pay over the right amount to SARS. Next thing you know, a big chunk of money is missing from your account. So you start to investigate.

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How to make yourself invisible to SARS
 
Key to reducing how much tax you pay is staying off SARS' radar.
But SARS plans to double the 72,926 audits it managed this year. It's added 100s of new tax collectors and auditors to its payroll and each one has his own collection targets to meet. This means two things:
  1. Your chances of an audit this year has just doubled, and
  2. So has your chance of paying more tax.
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You discover SARS has helped itself to your money. You think to yourself, 'Surely SARS can't just do this'. Well the truth is it can. And will. The money in your company's bank account isn't totally under your control! 
 
But, there are steps SARS has to follow before it can just take money out of your account.
 
Let's have a look...

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Avoid financial suicide
 
Don't make one of these five tax mistakes. See how to avoid this now
 
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The process SARS must follow before it can take your money
 
SARS will always contact the person/company charged with the primary tax liability to recover the funds from them. So, if you are the person responsible, and you get a letter from SARS, open it immediately. This could save you a lot of time investigating where your money has gone. 
 
If SARS can't recover funds from you, the primary source, it'll then see if there's a third person it can hold personally liable for the outstanding tax debt.
 
Here's what the letter must contain.

 
Two vital elements the letter from SARS must contain
 
In the letter SARS sends you, it must inform you that it's holding you personally liable for a tax debt. It must also explain the reason for its assumption. SARS'll then issue an assessment of the tax debt. This'll have the same criteria as a normal tax assessment.
 
If you don't agree with the assessment, object. 
 
Don't let SARS hold your bank accounts hostage. 

Until next time



Natalie Cousens
Managing Editor: The Practical Tax Loose Leaf Service

P.S. Did you miss out on the Employment Tax Incentive Act Workshop? Get the DVD today so you know what the Act means for your business. 
 


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