SARS took money out your bank account for someone else's tax!
The money in your company's bank account isn't totally under your control!
If you submit a tax return for your client as their representative and they don't pay their tax bill, SARS will come after you to collect their tax debt! And it's completely legal!
SARS has the power to freeze your bank account or get a third party to collect their tax debt.
Ignorance is no excuse!
Read on to stop SARS from taking money out of your bank account.
Know your rights!
How to make yourself invisible to SARS
The key to reducing how much tax you pay is staying off SARS' radar.
SARS conducted 1.8 million audits. It's added hundreds of new tax collectors and auditors to its payroll and each one has his own collection targets to meet. This means two things:
But I have a perfectly legal way for you to reduce your risk, including... Click here for more
If you're not compliant, your chances of an audit this year has just doubled, an
You will pay more in penalties.
You need to know what your rights are and what actions you must take to avoid SARS taking advantage of you!
SARS has to issue you with a tax assessment before it can collect the third parties debt form your account;
If SARS is under the impression you'll dispose of funds to avoid paying the outstanding debt, it will go ahead and remove the necessary funds;
SARS has the same rights and powers to recover assets from a third party as it has against the principle taxpayer. But the third party also has the same rights and remedies as the principle taxpayer. So use this to your advantage, object if you don't agree with the assessment; and
If you object to a tax liability, ask for a suspension of payment. You should apply for the suspension of payment before you lodge the objection.Has SARS taken money out your account?
Read on for three more steps on how to protect yourself against SARS.
Business owners: Is your accountant an undercover agent for SARS?
Is your accountant willingly handing over your company's money to SARS every month thinking he's paying the right amounts of tax for your business?
Is he missing tax deadlines because he doesn't remember the submission dates?
Costing you more and more in penalties and interest?
Don't get me wrong. I don't literally mean your accountant might be an undercover agent for SARS removing money from your company.
Here's what I do mean
Three steps to protect yourself from SARS, if it took money out your bank account!
If money was deducted off your bank account and you're liable for someone else's tax liability, follow these three easy steps:
Get your supporting documents in order and write down a detailed explanation of the facts. Go to the bank and ask them to send you the request from SARS (IT88) to deduct the taxes.
Go to your nearest SARS branch and ask to see a SARS official. Gather as much information as you can on the situation.
Remember to write down the date, time, and who you spoke to. If you decide to call the call centre instead, take down the case number and who you spoke to.
This will only help your case if you go to the SARS offices or the tax ombudsman.
Make an objection against the tax liability. The SARS official will help you in completing the relevant from. There are different forms for different situations.
Until next time,
Managing Editor: The Practical Tax Loose Leaf
P.S. Haven't received that email from SARS yet? That doesn't mean you can relax! This is the perfect time to make sure your business is audit-proof. Learn more here…
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