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Six methods SARS can use to recover the outstanding funds you owe it

by , 27 August 2014
Did you know: SARS has the power to just take money out of your bank account if you owe it money? But it'll only do this if it can prove you owe it money and still haven't paid it.

But this isn't the only thing SARS can do if you have outstanding taxes. There are, in fact, six methods it can use to get the money you owe.

It'll decide on which one to use depending on the situation and on how much money you owe it. Here are the six methods it may use...


Here's what you and SARS should do before it has to try to recover the funds

SARS will give you a notice of tax liability due and payable and will demand payment within a specific period. You can then arrange with SARS payment options including a three months repayment option - by phoning the SARS contact centre on 0800 00 7277. 
You should arrange anything higher than that with credit control through a formal application. 
In some generous instance, SARS may allow you to pay off the debt over a fixed term. It may even in times of financial distress compromise of tax debt.
But if you don't make any effort to repay SARS, this is what it'll do.
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Avoid costly tax issues

These are the six methods SARS uses to recover outstanding funds

1. Initiate civil judgement procedures;
2. Initiate sequestration and liquidation procedures;
3. Request a third person who holds monies for a liable person to pay over the funds;
4. Seek personal liability from a responsible person who is your financial manager;
5. Tax representative who can be held personally liable; and
6. Seek personal liability from a withholding agent.
SARS won't ignore outstanding tax debt. Its purpose and mission is to collect any tax due under the relevant Tax Acts. So if you owe SARS money, rather pay it A.S.A.P. instead of forcing it to use one of these six methods.

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