NON COMPLIANCE

<p>When a taxpayer follows up to determine when the refund will be made SARS responds by saying that a “special stopper” was placed on the taxpayers account. The tax practitioner or taxpayer is then told that he or she must go to SARS with all the supporting documents together with banking details and proof of address.</p> <p>We don’t understand why this is required. The supporting documents were submitted as was required. It was also received by a SARS official as the letter of completion would otherwise not have been sent. The bank details and address of the taxpayer were not changed and the proof now required, has therefore been provided earlier.</p> <p>We understand that SARS can, in terms of section 190 of the Tax Administration Act, hold back the authorisation of a refund. In terms of section 190(3) that can only be done until “such time that verification … has been finalised”. Clearly the letter of completion is confirmation that the verification (review) has been finalised and the ‘special stopper’ cannot be used to delay the refund.”</p>