Cape Town – SARS is pulling out all the stops to collect revenue by appointing debt collectors to recover R16.6bn owed to it.
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 co-operate 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. SARS has collected R1trn by the end of February, and this week announced that through the Special Voluntary Disclosure Programme it received R2.7bn. A further R580m will be paid to it by the end of March.
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