Sars ordered to pay R1m over wrongful tax debt deductions
A high court has ordered Sars refund Ferrari logistics, from which it wrongfully collected more than R1 million from its bank account by means of a third-party appointment.
The order indicated that Sars has three days to repay Ferrari logistics the amounts previously collected by Sars together with interests and costs.
Tax Consulting South Africa was approached to assist in getting the funds repaid urgently.
Jean-Louis Nel, an Admitted attorney at Tax Consulting SA, explained that Sars had initially collected the proceedings in late 2020.
Sars did not extend a letter of demand before the third-party withdrew the funds.
Even after Tax Consulting SA engaged Sars on the matter, the tax authority seized the balance of the client’s account at the end of November.
This has a significant adverse effect on the business’s cash flow. This is the fourth matter of its nature being heard by the Pretoria High Court alone this year.