Wednesday, July 07, 2010

South African Revenue Service to start raiding taxpayer bank accounts

"Unfortunately, there is nothing in the Income Tax Act which regulates when SARS can do this: whether it is after the first, second, or third notification that you owe tax. This is where the concern lies," said Ernst & Young tax director Vedika Andhee.

Although the Income Tax Act allowed SARS to recoup money owed in this way, Andhee said there were no regulations on how many notices had to be issued first, whether the client had to be e-mailed or telephoned first, of even whether it had been confirmed that the e-mail and telephone numbers used were up to date.

Without being forewarned, a client could find this has happened only when they next attempted to withdraw money from their bank account, she said.