SARS Drawing Client Funds Without Due Process

SARS Drawing Client Funds Without Due Process

By Michael Dryden (Group Director)

Over the last several months, the South African Revenue Service (SARS) has been on a relentless drive to recover any and all funds due to them by taxpayers. In so doing, SARS has taken an extremely aggressive stance by drawing the outstanding taxes directly from the taxpayer’s bank account.

Although SARS has always had the power to do this, there is a proper process that would be followed first before actually drawing the amount from the taxpayer’s bank account. This process would include several notifications to the taxpayer of their intention to act.

However, SARS seems to have decided that these processes no longer need to be followed, and a taxpayer would only receive at most, a single notification before SARS would proceed to withdraw the total amount from the taxpayer’s account within just a few days.

As the above has already affected several of our clients, we have investigated the possibility of having the transaction reversed, or nullified, but to no avail. As the taxpayer, it seems there is no recourse on the above.


taxman (1)