If you’re a representative person, do this if you’re no longer responsible for your company’s finances

Simangele Mzizi, Fsp Business, 18 Nov. 2014

Tags: sars, representative taxpayer, duties of a representative taxpayer

In terms of tax law, a representative person (also called a representative taxpayer) is anyone who’s responsible for paying the tax liability of another person or company.

You’re a representative person if, for example, you’re:

• A public officer of a company;
• A trustee, guardian or curator of a Trust;
• The executor or administrator of deceased estates;
• The trustee or administrator of insolvent estates; and
• Responsible for accounting for the receipt and payment of moneys or funds on behalf of a foreign donor funded project.

Being a representative person comes with a lot of responsibility. That’s why you must do everything by the book. If you don’t, you’ll have trouble coming your way.

Don’t take that chance.

Keep reading to discover the one thing you must do if you’re no longer responsible for your company’s finances.

********* Advertisement *********

Do your Vat refund in ten simple steps

Calculate your Vat, submit your Vat return form and get your refund back from SARS without any delays when you follow this ten-step action plan.

Get your hands on this ten step action plan now to get your Vat refund when its due.


Here’s the one thing you must do if youre no longer responsible for your company’s finances

The Practical Vat Loose Leaf Service explains that if you cease to be a representative person, you must notify SARS within 21 business days from the effective date.
If you don’t, you’ll still be the first person SARS phones for the companies’ tax issues/debt and you’ll have to prove you’re no longer responsible.
So how do you notify SARS you’re no longer a representative person?
There’s no specific form you can use, but it’s best to send in a letter saying someone else is now the representative person.
Don’t forget to state your Vat number clearly and make a copy of the letter so the person you speak to at the SARS client service centre can stamp it.

*********** Recommended Product ************

Get your Tax invoices right, the first time, everytime

Do you know what a Tax invoice should look like?

  • What information should be where and how it must be presented so that SARS will be happy?
  • Did you know that you could get a penalty from SARS if your invoices aren't correct?

To answer all your questions, take the guess work out of invoices and avoid hefty penalties you can rely on, here’s what you need to do.


Be warned! Just because you cease to be a representative person doesn’t relieve you of the liability you had while you were responsible

It’s true.
Let’s assume Company A appoints you as its representative person and you perform your role from 1 October 2013 to 30 December 2014.
If there are any issues that arise during this time, you’ll be personally liable for them. But if anything arises before or after this time period, SARS won’t hold you responsible.
The good news is there are ways to minimise your risk of personal liability as a representative taxpayer.

Here are three good business practices to minimise your risk of personal liability as representative taxpayer

1. Make sure you have all the supporting documents when you submit any returns. This will help prove you made your tax calculations with care and diligence.
2. Verify all information before you submit to SARS and document all checks and balances.
3. Don’t put your name on the tax return as the representative person if you didn’t compile the information and don’t take 100% responsibility for the return. Put the manager or director’s name on the return instead.
Overall, being a representative person is a huge responsibility. You’re basically responsible for another person’s taxes. Make sure you account for this tax honestly and obey the relevant tax laws. And most importantly, let SARS know if you’re no longer responsible for your company’s finances.
PS: We strongly recommend you check out the Practical Vat Loose Leaf Service. It gives you tips, tools and advice to comply with the Vat Act.

Related articles:




RSS Facebook Share the experience
Accounting and Tax Club.co.za

  • Accounting
  • Allowances and deductions
  • Audit/Assessment
  • Capital gains tax
  • Dividends
  • Donations Tax
  • Exports and imports
  • Fringe benefits
  • Input tax
  • Provisional tax
  • Sars
  • Tax basics
  • Tax invoices
  • Tax returns
  • Vat basics
  • Vat registrations
  • Vat return
Premium Services
  • Company Registration
  • Objections
  • PAYE
  • Trusts
  • Turnover Tax
  • UIF
  • Wear and Tear
how to get my tax number online[read more]
Published on 16 Feb. 2018 1 answer
Need some help on correcting payslips taken over from outsourced payroll person. As soon as the company pays ANYTHING...[read more]
Published on 06 Feb. 2018 1 answer
Dear Sir, Please advise the CGT calculation in the following scenario: Close corporation with one member purchased...[read more]
Published on 18 Jan. 2018 1 answer
Video Archive Video club

Your library of Free eReports
View full library
SARS Tax Tables 2016/2017 Download

Simply click download for your FREE SARS Tax Tables 2016/2017 to ensure you calculate your tax correctly.