SARS: Debt Outsourcing FAQs

SARS: Debt Outsourcing FAQs

• 05 December 2023
• Tax
• South African Accounting Academy

SARS has outsourced overdue debt over three years to external third-party debt collectors since November 2023. 

The external third-party debt collectors will assist with the resolution and payment of overdue accounts where no active payment or attempts to make payment arrangements have been made. 

SARS has appointed Third-Party external debt collectors (EDC) according to the advertised tender (RFP 45/2021) to help collect long-outstanding debt owed by taxpayers. Taxpayers liable to have their debt collected through EDCs are those SARS contacted or sent letters of demand outlining debt resolution options, but who have failed to settle their accounts or formalise payment arrangements. Affected taxpayers will receive a handover notification from SARS – an example may be viewed on the SARS website.

The list of appointed external third-party debt collectors can be viewed at https://www.sars.gov.za/individuals/how-do-i-pay/owing-sars-money/ 

Click here to access the FAQs:

https://www.sars.gov.za/individuals/how-do-i-pay/owing-sars-money/debt-outsourcing-faqs/

Relevance to Auditors, Independent Reviewers & Accountants:

• Tax practitioners play a critical role in bridging the gap between taxpayers and SARS. As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for companies and tax practitioners to keep abreast of such changes so that companies continue to meet their tax obligations.

• You should be aware of the latest publications issued by the relevant regulators, e.g. SARS.

Relevance to Your Clients:

• Relevant entities should be aware of the latest publications issued by the relevant regulators, e.g. SARS.

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