TAX BLOG

Debit pull transaction to be discontinued by SARS.

Currently taxpayers can authorise SARS to withdraw any funds from their account that is owed to SARS. It is claimed by SARS that there are known problems using this method.  A person can authorise SARS to do a debit pull from an account, but SARS is unable to validate if that person is mandated to do so. This is a cause of funds being withdrawn from incorrect bank accounts. Debit pulls from the correct account isn’t guaranteed as well due to insufficient funds or payment reversals by the account holder.

 

SARS has recommended that payments should be made via Credit push.


With a Credit Push, the payment is performed by you, the bank account holder. When making a payment to SARS, eFiling will send a payment request to your bank which will indicate the amount that needs to be paid and gives a payment reference number (PRN).
The taxpayer then physically authorises this request normally via internet banking. This acts as an instruction to the bank to make the payment to SARS.

Credit Push payments are considered to be irrevocable and can only be made if the account holder has the necessary funds.

 

Alternative methods of payment available include:

Over the counter payments at a bank (Limited to R500 000)
EFT – electronic funds transfer using internet banking
At a specific SARS branch (including customs) [Limited to R100 000 for certain tax types].

For the latest payments rules click here.
For more information on this topic click here.
 


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