Four things you can do if SARS holds you personally liable for a tax debt that isn’t yours

Simangele Mzizi, Fsp Business, 05 Sep. 2014

Tags: sars, tax debt, personal liability, representative person

If you’re a representative person, SARS can hold you personally liable for another person’s tax debt.

For example, if you’re a business owner and have appointed your financial manager as the person responsible for the company’s taxes, he’ll be personally liable for your company’s tax debt.

But it’s not only financial managers and accountants who can be held personally liable. As a business owner, you’re also considered a representative person. So you can’t escape personal liability.

Now the big question is: What can you do when SARS holds you personally liable for a tax debt?

Read on to find out the four things you can do.

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Follow these four steps when youre held personally liable for a tax debt

Step 1: Get all the details of SARS’ claim. You can use the number 0800 00 7277 or go into any SARS branch.

According to the Practical Tax Loose Leaf Service, the SARS branch will look into the case and give you notes and reasons for a specific decision. This’ll ensure you understand what, and whose taxes it’s holding you personally responsible for.

Step 2: Get all the necessary documentation and information together about SARS’ claim.

Step 3: Send an objection to SARS within 30 working days of the date of assessment. You can submit the objection electronically or you can fill in an ADR 1 form and send it to SARS.

Step 4: Submit your objection and make sure you have proof of submission from SARS (electronic verification or SARS’ stamp on the documents).

Remember to submit the objection within 30 days of the first assessment to ensure you’re within the time frame allowed. This way you’ll avoid being penalised for being late.

Don’t panic when SARS sends you a letter to tell you it’s holding you personally liable for a tax debt. Get the facts, react and wait for SARS’ final decision on the matter.

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