Stolen Cheques, Refunds And The Taxman
25 November 2013
Posted by: Author: Ingé Lamprecht
Author: Ingé Lamprecht (MoneywebTax)
No payments in excess of R100 000 with regards to assessed tax, value-added tax or employees tax may be made to the South African Revenue Service (Sars) by cheque anymore.
In fact, the revenue authority prefers that taxpayers pay any taxes due by way of electronic funds transfer (EFT).
While Sars still issues cheques to refund taxpayers in exceptional cases, the authority itself also favours electronic payments for refunds.
The use of cheques as a method of payment has generally declined in recent years, not only due to technological advances, but also as a result of the risks associated with cheque fraud.
Piet Nel, project director for tax at the South African Institute of Chartered Accountants (Saica), says a member recently tried to settle a tax debt of a couple of hundred thousand rand with a few cheques of a R100 000, but the tax office did not accept the payment. As soon as the assessed tax exceeds R100 000, a cheque payment will not be accepted.
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This article was first published on moneywebtax.co.za