Special stopper placed on refunds and request to visit the SARS office
31 August 2016
Posted by: Author: SAIT Technical
Author: SAIT Technical
SAIT is currently receiving many queries from members
regarding refunds due to taxpayers and requests by SARS that the taxpayer must
personally bring supporting documents to a SARS office.
The technical team has raised this issue with SARS Head
Office and we are awaiting feedback from them.
Below is an extract of the letter that was submitted to SARS
on behalf of our members:
"A tax practitioner submits an individual’s return of income
(ITR12) by using the efiling system. A
request is then received and the supporting documents are submitted through the
efiling system. In most instances a
completion letter is then issued by SARS.
When the tax practitioner or taxpayer follows up to
determine when the refund will be made SARS responds by saying that a "special
stopper” was placed on the taxpayers account.
The tax practitioner or taxpayer is then told that he or she must go to
SARS with all the supporting documents together with banking details and proof
We don’t understand why this is required. The supporting documents were submitted as
was required. It was also received by a
SARS official as the letter of completion would otherwise not have been
sent. The bank details and address of
the taxpayer were not changed and the proof now required, has therefore been
We understand that SARS can, in terms of section 190 of the
Tax Administration Act, hold back the authorisation of a refund. In terms of section 190(3) that can only be
done until "such time that verification … has been finalised”. Clearly the letter of completion is
confirmation that the verification (review) has been finalised and the ‘special
stopper’ cannot be used to delay the refund.”
Please note that as soon as we receive feedback from SARS,
the information will be published in the next Technical Mailer.