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Can you request the DTI to pay your grant over to SARS?

26 May 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: We 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?

A: The 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 SARS.  

The Tax 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.”  

It may 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.


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.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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