SARS appoints debt collectors to recover R16.6bn

Sars building in Krugersdorp. (Website)
Sars building in Krugersdorp. (Website)

Cape Town - The South African Revenue Service (SARS) is pulling out all the stops to collect revenue by appointing debt collectors to recover R16.6bn it is owed.

According to a statement issued by the tax authority on Friday, the objective is to boost revenue collection.

Eight debt collectors will recover older and “relatively smaller” amounts due to it and the contract will run until February 28 2019.

The agencies are CSS Credit Solution Services, ITC Business Administrators, Medaco Capital Services, New Integrated Credit Solutions, Norman Bisset & Associates Group, Revenue Consulting, Transactional Capital Recoveries and Van De Venter Mojapelo.

Currently over 2.3 million taxpayers and traders owe SARS just under R150bn.

“Taxpayers and traders with outstanding accounts will only be contacted, via electronic channels.

“The agencies will embark on the traditional debt collection activities,” SARS said. This includes outbound calls, tracing of taxpayers and sending out notices through SMSs, emails or letters.

Debtors are to make payments directly to SARS and not the agencies, the tax authority stressed.

Non-compliant taxpayers may face further interest or penalties and possibly criminal charges.

“SARS invites all taxpayers to please cooperate with the service providers above. Failure to do this could result in criminal prosecution.”

City Press reported that SARS has the power to recover outstanding funds from debtors’ accounts.

SARS has a revised target of R1.217trn. It collected R1trn by the end of February, and this week announced that it has received R2.7bn through the Special Voluntary Disclosure Programme . A further R580m will be paid to it by the end of March.

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