Stabilpave vs. SARS (Supreme Court of Appeal) 26th September 2013:
On 16 October 2006, SARS told Stabilpave they were entitled to VAT refund of over R700 000.
But SARS didn't have their banking details, so they posted a cheque.
But, unfortunately, the cheque was intercepted by a fraudster, and the money was lost.
Keep reading to find out what happened next…
Don't take up to six months to register for Vat! Here's how to do it the same day
More Than 90% of applications for Vat registrations are rejected by SARS!
But yours doesn't have to be one of them.
I have a solution to ensure you walk into a SARS office 100% prepared for your Vat registration.
Here's how you can register for Vat and get it the same day...
SARS then claimed that since Stabilpave didn't provide their banking details, it tacitly implied that SARS had permission to post a cheque.
However, and luckily for Stabilpave, the Court noted that they hadn't requested a cheque, and so the responsibility rested in SARS' hands. In other words, they had to refund Stabilpave, again.
BUT it wasn't all smooth sailing from there on out, because Stabilpave had to wait 7 years to receive their refund! This was because they had to go to the High Court AND the Supreme Court of Appeal in order to get a ruling which fell in their favour.
Can you learn from this case?
SARS has since made it compulsory to only give refunds in the form of direct electronic transfers to companies' bank accounts.
They also made some changes to the rules, transferring the risk of refunds to you, the taxpayer.
So if you give SARS the wrong banking details, or if your banking details change and you don't update your details with SARS, then YOU will incur the losses!
So don't make that mistake, ensure that your banking details are correct with SARS and always make relevant updates with SARS, where necessary.
*To learn more great VAT advice, subscribe to the Practical VAT Loose Leaf Service.