Can you request the DTI to pay your grant over to SARS?
26 May 2015
Posted by: Author: SAIT Technical
Author: SAIT Technical
have a client that owes SARS a lot of money. They are in the process of
receiving a large grant from the DTI. We would like the DTI to pay this grant
directly to SARS to cover the monies outstanding. How would we be able to cede
this grant to SARS?
request relating to the procedure to be followed to cede the amount to SARS may
require legal assistance. To the best of our knowledge there is nothing
preventing the taxpayer from requesting the DTI to pay the amount directly to
Administration Act, in Part D of Chapter 11, allows for the collection of tax
debt from third parties. Section 179(1) specifically provides that "a
senior SARS official may by notice to a person who holds or owes or will hold
or owe any money… for or to a taxpayer, require the person to pay the money to
SARS in satisfaction of the taxpayer's outstanding tax debt.”
therefore be easier to merely request SARS, their debt collection department,
to issue such a notice to the DTI.
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.