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Tax clearance certificate rejection? Five instances where SARS will reject your application

by , 26 July 2013
You probably know that you must get a new Tax Clearance Certificate (TCC) every time you apply for a tender or contract. But do you know that SARS can deny your application? Read on to find out why, so you can ensure this doesn't happen to your business.

It's crucial that SARS approves your application for a tax clearance certificate...

That's because 'without a tax clearance certificate, you won't be able to attract new business or win new tenders,' says the Practical Tax Loose Leaf Service. This will have dire consequences for your business.

It's important for you to know when SARS can deny your application, so you can get your documents in order before you apply.

SARS will reject your application for a tax clearance certificate if:

  1. The forms are incorrect. In terms of section 256 of the Tax Administration Act, you must apply for a tax clearance certificate on the prescribed form called the TCC001. You can download this form on the SARS website.
  2. Your Vat payments are misallocated and it seems you owe SARS money when you actually don't. So ensure you register for eFiling so you can check that your Vat account is up to date and the payments you made went where they were supposed to.
  3. You owe SARS more than R1000.
  4. Your returns are outstanding.
  5. You're not registered for Income Tax.

What must happen next if SARS rejects your application?

If you application's rejected, you'll receive an email, fax or letter telling you your application's been denied.

You can then contact your local SARS branch or the SARS Contact Centre (0800 00 SARS (7277) to find out why your application for a TCC was declined.

To be on the safe side, just make sure you don't commit any of the above offences. If you do, you'll be practically giving SARS reasons to deny your application.

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