{"id":834043,"date":"2025-08-05T11:00:00","date_gmt":"2025-08-05T09:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=834043"},"modified":"2025-08-05T10:54:59","modified_gmt":"2025-08-05T08:54:59","slug":"sars-coming-after-salaries-and-bank-accounts-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/834043\/sars-coming-after-salaries-and-bank-accounts-in-south-africa\/","title":{"rendered":"SARS coming after salaries and bank accounts in South Africa"},"content":{"rendered":"\n

Tax experts have warned South Africans to update their communication details and keep tabs on all communication from the South African Revenue Service (SARS) before it’s too late.<\/p>\n\n\n\n

This is because any issues with tax filings and money owed to SARS are handled via letters of demand and ‘subtle’ communication that can be easily missed.<\/p>\n\n\n\n

If taxpayers do not address these letters from SARS in time, they may wake up to money being taken from their bank accounts directly, or having their salaries garnished.<\/p>\n\n\n\n

According to tax experts at Latita Africa, taxpayers could even find their bank accounts frozen.<\/p>\n\n\n\n

“A letter of demand from the taxman is like a financial fire alarm to jolt you into action to prevent the heat from turning into flames,” the group said.<\/p>\n\n\n\n

“But don\u2019t expect any shrill sirens or flashing lights to alert you to the fact that you owe taxes.”<\/p>\n\n\n\n

When a tax issue is flagged, particularly if money is owed to SARS, the service typically uploads the letter of demand on a taxpayer’s eFiling profile and also sends an email or SMS notification. <\/p>\n\n\n\n

However, it is up to taxpayers to ensure that their communication details are up to date and correct, as claiming to have not seen the letter is not a valid excuse.<\/p>\n\n\n\n

Worse yet, ignoring the communication could be deemed negligent.<\/p>\n\n\n\n

A letter of demand is a formal notice issued by SARS when the taxman believes it is owed tax. This debt is usually due to incorrect tax filings or a mismatch in data. <\/p>\n\n\n\n

It can also include penalties on late submissions or underpayments from previous years, or reversed refunds after a SARS audit.<\/p>\n\n\n\n

Latita Africa noted that SARS often sends reminders before it issues an official Final Letter of Demand, but these reminders are courtesy communications, not legally required steps.<\/p>\n\n\n\n

“SARS can send SMSes, emails, or eFiling notifications reminding you of outstanding balances. These are not legal letters and don\u2019t trigger the 10-business-day enforcement countdown.”<\/p>\n\n\n\n

“The purpose is to give taxpayers a chance to settle before formal debt collection begins,” they said.<\/p>\n\n\n\n

The final (and only) letter of demand is the first legal step in SARS’s debt collection. This is issued via eFiling, email, or physical post to your registered address. <\/p>\n\n\n\n

This starts the 10-business-day period before SARS can take enforcement action, such as taking money directly from bank accounts, garnishing salaries, or even attaching properties.<\/p>\n\n\n\n

Don’t ignore SARS<\/h2>\n\n\n\n
\"\"<\/a>
SARS commissioner, Edward Kieswetter<\/figcaption><\/figure>\n\n\n\n

The tax experts stressed that there is no escaping SARS by sticking your head in the sand and pretending not to see its communications.<\/p>\n\n\n\n

Without further warning, SARS can deduct money from your income via garnishee orders to your employer or clients. <\/strong><\/p>\n\n\n\n

The Revenue Service can also attach your bank funds, withhold tax clearances and refunds, and get a court judgment that will blemish your credit record. <\/p>\n\n\n\n

“In cases of repeat non-compliance, SARS can even refer you to the National Prosecuting Authority,” they warned.<\/p>\n\n\n\n

The experts said it is vital for taxpayers to stay on top of their tax affairs and to log in and check their SARS eFiling profiles for communication.<\/p>\n\n\n\n

If a letter of demand has been issued, and the amount is correct and you are able to pay, do it immediately.<\/p>\n\n\n\n

However, if you do not agree with the demand\u2014or cannot pay\u2014it is just as important to apply for a suspension of payment so you can dispute.<\/p>\n\n\n\n

“This legal mechanism doesn\u2019t cancel the debt but pauses SARS\u2019s ability to collect. You can apply for a suspension of payment via eFiling or your tax representative,” the experts said.<\/p>\n\n\n\n

“Attach a statement of financial hardship and your latest bank statements, or a note explaining your intention to dispute.”<\/p>\n\n\n\n

If you accept your debt but can\u2019t pay in full, SARS may agree to a deferred payment plan with instalments.<\/p>\n\n\n\n

Or you could negotiate a compromise of tax debt, where SARS reduces your debt if the full payment would cause you financial hardship.<\/p>\n\n\n\n

“If you believe the assessment is wrong, lodge a formal notice of objection on eFiling. You have 30 business days from the original assessment,” the tax experts said.<\/p>\n\n\n\n

“Clearly explain the reason for your objection, and attach supporting documentation, such as invoices, proof of payments, or bank statements.”<\/p>\n","protected":false},"excerpt":{"rendered":"

Tax experts have warned taxpayers to keep on top of their tax affairs, with SARS able to garnish salaries and take money owed directly from bank accounts if ignored.<\/p>\n","protected":false},"author":10,"featured_media":790454,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[19798,3246],"class_list":["post-834043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-latita-africa","tag-sars"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/834043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=834043"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/834043\/revisions"}],"predecessor-version":[{"id":834053,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/834043\/revisions\/834053"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/790454"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=834043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=834043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=834043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}