The South African Revenue Service (SARS) is setting up a system that will allow you to pay money you owe to the taxman across the counter at certain selected banks. At present you can only pay the taxman by cash or cheque.
Christo Henning, media relations officer at SARS, says this will offer a more secure method of making payments to the taxman. The banks that will offer the service are still being selected but it is expected that you will be able to make payments by this method at some banks from mid-year.
It will not be necessary for you to follow up your deposit by faxing a copy of the deposit slip to the Receiver. SARS computers will be linked to the participating banks and they will be able to identify the payee immediately.
Should you get an unwelcome demand for a lump sum from your local Receiver, you need not take this lying down, particularly if you think it could be wrong.
Your assessment will show two dates.
Any objections to the assessment must be lodged by the first date shown, and the amount you owe must be paid in full by the second date, which is a month later. After the second date, interest starts to accumulate on the outstanding amount.
You can lodge your objection to the assessment in writing, but it is probably better, if you can make the time, to visit the office of the Receiver that issued the assessment and sit down with someone who can discuss your objection with you. Henning says sometimes taxpayers may have additional information which could alter their assessments.
If you do receive a demand for a large lump sum and do not have the funds available immediately to settle it, you can arrange with your local Receiver to pay in instalments. Henning says it is not possible to lay down a maximum period that applies since each case is considered individually, taking into account what the taxpayer can afford. But any arrangement will at least be aimed at ensuring that the taxpayer is servicing the interest accrued.
The interest you pay on any overdue amount, even if you have reached an agreement to pay in instalments, is currently at 15 percent a year.
You must make your arrangements to pay in instalments before the second or due date on which interest starts to accrue, and you should do so in writing or in person, not by telephone.
Most of us have heard stories about cheques made out to SARS for large sums of money going astray. Henning says with SARS, as with any business, it is dangerous to post cheques and far better to take your money in person to the cash office of your local Receiver.
Whether you take cash or a cheque, you can ask for a receipt as proof of payment. There are also boxes at various local tax offices in which you can deposit cheques, without having to queue at the cash counter. These boxes are used extensively by provisional taxpayers making payments at the end of February and August.
All cheques must be made out to The South African Revenue Service (written in full) and crossed, to be as secure as possible.