Sars targets bank accounts

Johannesburg - The South African Revenue Service (Sars) now has the means to deduct fines for late returns directly from your bank account.

Sars commissioner Oupa Magashula announced on Wednesday that higher fines will be levied on taxpayers who fail to register or inform Sars of personal details, as well as those who do not submit returns.

Magashula also said that agents, like banks, will be used to recoup fines. This provision has been available to Sars for several years but has not been implemented until now.

"We have always had the option to use this approach," said Magashula, "only now we're at the point where we've lined our ducks in a row so that if you don't pay over your penalty, we are going to take the money from your employer or out of your bank."

According to Magashula, Sars' no-nonsense stance towards penalties is due to the R19bn tax shortfall caused by the global recession, and the fact that its online filing system can now easily identify offenders.

Over five million returns for various types of taxes due to Sars for the 2007/2008 year are still outstanding, while Sars has already instituted legal action against 81 000 taxpayers.

"During the hard times we focus more on non-compliers. We think that not going after these people is unfair," said Magashula.

"We've been building this awesome machine to administer the penalties." Fines of R250 per month will be levied and will increase according to the offender's taxable income.

"Because of the volumes we're anticipating, we'll be phasing in penalties; the first people we'll levy penalties on will be the hardcore non-compliers - the multiple offenders," said Magashula.

"We had absolutely no choice but to come up with a regime that will be viewed as a deterrent," said Magashula.

- Fin24.com