There are provisions in the Tax Administration Act 28 of 2011
(the Act) which allow the South African Revenue Service (SARS) to
recover a taxpayer's tax debt from a third party who either
holds money for, or owes money to, that taxpayer. This is a very
effective method of collecting taxes which can be done by a senior
SARS official serving a notice upon the third party requesting that
the money held or owed to the taxpayer be paid over to SARS.
A tax debt includes any amount of tax due by a person in terms
of a tax Act. The money being held for or owed to the taxpayer
could include the taxpayer's pension, salary, wage or
remuneration. The SARS notice for payment may include a request for
the third party to pay over money that the third party will hold or
owe to the taxpayer. In other words, the obligation can extend to
money that the third party has not yet received.
