Q: Could you please advise me, according to the
new Tax Administration Act (TAA). Is SARS able to claim PAYE and UIF that was
not paid about ten years ago? They have not communicated that these amounts
were outstanding. Of course they have been charging interest for all these
years. What recourse does my client have?
A: Once an amount of PAYE or UIF becomes payable it
is an outstanding tax debt in terms of the section 1 of the TAA definition of
"tax” read with section 169. The recoverable debt only prescribes after 15
years from date of assessment in terms of section 171 of the TAA, which for PAYE
& UIF are self-assessment taxes will be the date of submission of the
client will first have to determine whether the returns and payments for the
relevant periods were in fact done. If so, then an affidavit can be submitted
to SARS declaring that these returns and payments were made and if possible,
relevant evidence should be submitted, including indirect evidence such as
statement of accounts showing these periods as submitted and paid.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.