EXTERNAL FREQUENTLY ASKED QUESTIONS

Transcription

1 EXTERNAL FREQUENTLY ASKED QUESTIONS Revision: 0 Page 1 of 5

2 1 PURPOSE These frequently asked questions (FAQ) deal with the basic principles of Power of Attorney for all tax types. This document should not be used as a legal reference. 2 SCOPE This document is applicable to all taxpayers/traders including natural and non natural persons (e.g. Company, CC, Trust, etc). 3 REFERENCES 3.1 LEGISLATION TYPE OF REFERENCE Legislation and Rules administered by SARS: Other Legislation: International Instruments: REFERENCE Income Tax Act No. 58 of 1962: Section 4; CROSS REFERENCES DOCUMENT # DOCUMENT TITLE QUALITY REQUIREMENTS AS-GN-29-FAQ2 External FAQs - Change of Banking Details All AS-IT-83 External Policy Change of Bank Details for All Individuals Income Tax AS-IT-85 Internal Policy Change of Bank Details All Company Income Tax (CIT) AS-PAYE-28 External Policy Change of Bank Details All Pay As You Earn (PAYE) AS-VAT-15 External Policy Change of Bank Details for Registered VAT Vendor All 4 DEFINITIONS AND ACRONYMS Conveyancer FAQ ID Incapacitated person PAYE POA SARS Terminally ill VAT An attorney who specialises in property law transactions Frequently Asked Questions Identity number Any person who is impaired by reason of mental illness, mental deficiency, physical illness or disability, advanced age, chronic use of drugs, chronic intoxication, or other cause (except minority) to the extent that he lacks sufficient understanding or capacity to make or communicate responsible decisions concerning his person. Pay As You Earn Power of Attorney South African Revenue Service The term terminally ill in the context of health care refers to person who is suffering from a serious illness such as cancer, etc and whose life is not expected to go beyond 24 months at the maximum. Usually a patient is considered to have a terminal illness if he or she seems likely to die despite diagnosis and treatment, although it is possible for people with a terminal illness to live for years before succumbing to the medical condition. Value Added Tax Revision: 0 Page 2 of 5

3 5 FREQUENTLY ASKED QUESTIONS QUESTION ANSWER 1. What is a Power of Attorney? It is a legal binding document appointing someone to manage your affairs. This might be in certain situations where you are still able to manage your tax affairs or where you are unable to manage your tax affairs due to ill health, etc or in a case of an estate or in case of a legal guardianship, estate, etc through Master of High Court. 2. When does SARS accept POA? 3. How do I access the POA template? 4. Will SARS accept a POA form other than the prescribed template on the SARS website? 5. Who is deemed as a taxpayer representative? 6. In what instances will SARS not accept POA from a taxpayer representative? SARS has published a standardized POA which must be signed by the taxpayer/trader being represented as well as the representative of the taxpayer/trader. If a taxpayer/trader delegates his authority to a taxpayer representative to execute his/her administrative affairs with SARS. You can access the POA template on the SARS internet; or by visiting the nearest SARS branch or call the SARS National Call Centre; Yes, only where: An Executor is issued with a POA by the Master of High Court in the case of liquidation, sequestration, insolvency, or death; or A legal guardian is issued with a POA by the Master of High Court in a case of a minor. The following persons are considered to be taxpayer representatives: Accountant; Attorney; Bookkeeper; Conveyancer in a case of Transfer Duty; Director; Employer; Executor, Fund Administrator; Insurance Broker; Relative/Parent; Secretary; or Trustee; etc SARS will not accept POA in the following instances: Where a request for change of banking details is not considered being an exceptional case e.g. Estate due to death, insolvency, liquidation or sequestration, Taxpayer who is incapacitated / terminally ill, taxpayer who is a non-resident (emigrant, expatriate, foreigner and temporarily outside the Republic), taxpayer who is imprisoned, or taxpayer is a minor child. Refer to the external bank details guide for more information on the POA requirements for change of bank details exception Where a taxpayer representative delegates his authority for change of banking details to his/her subordinate e.g. a clerk; secretary; etc. Where taxpayer representative does not have POA and request change of details other change of banking details on behalf of an incapacitated person. Affidavit with a medical certificate is required. Revision: 0 Page 3 of 5

4 QUESTION 7. In what exceptional cases will SARS accept POA for change of banking details? ANSWER There are certain exceptional circumstances under which SARS will allow verification of banking details to be done by a taxpayer representative who has power of attorney. The taxpayer representative will still have to visit a SARS branch with the relevant supporting documentation depending on the exceptional circumstances. For a list of supporting documentation required for exceptional circumstances, refer to the SARS website > I want to > Change my bank details The exceptional circumstances are: 8. For how long is the POA valid? 9. Does SARS accept a copy of a POA? 10. Do I have to bring a POA on every visit to a SARS branch? 11. Does SARS require an Identity document (ID) of a taxpayer and representative when accepting the POA? 12. When does SARS accept a copy of a certified ID? 13. How long should I keep a copy of a POA and ID as supporting documents? 14. In a case where a taxpayer is seriously ill who can sign on the taxpayer s behalf? 15. Do I need multiple POAs if appointed as taxpayer representative for all tax types? o Any estate due to death or sequestration; o Taxpayer who is incapacitated / terminally ill; o Taxpayer who is a non-resident (emigrant, expatriate, foreigner and temporarily outside the Republic); o Taxpayer who is imprisoned; and o Taxpayer is a minor. This document is valid for 2 years; however a new POA must be produced every time a change of bank details is requested. No, an original POA is acceptable. Yes, an original POA is required on every visit to a SARS branch. An original POA that confirms that the representative has authority to act on behalf of the taxpayer must be received, with an original/temporary copy of the representatives ID as well as an original/temporary copy of the taxpayer s ID. SARS accepts a copy of a certified ID if the taxpayer or taxpayer representative does not have the original/temporary ID document. However for change banking details only an original/temporary ID copy or an affidavit which justifies the unavailability of the ID is acceptable. Both the Taxpayer representative and the Taxpayer must keep the POA for a period of 5 years. The spouse/representative can sign on behalf of the taxpayer provided the following document(s) are submitted: An original POA that confirms that the representative has authority to act on behalf of the taxpayer; An affidavit with the medical certificate from the doctor must be requested in a case where the representative is acting on behalf of a taxpayer who is incapacitated. No, one POA must be completed however all the tax types must be listed. 6 QUALITY RECORDS Revision: 0 Page 4 of 5

5 7 DOCUMENT MANAGEMENT Designation Name / Division Business Owner: Executive: Contact Centre and Branch Operations Process Owner: Executive: Enterprise Business Enablement Author: S. Matimba Detail of change from previous Revision 0 - Initial Release () revision: Template number and revision POL-TM-12 - Rev 4 Revision: 0 Page 5 of 5