Third-Party Appointments by SARS – A Look into the Future

Initially, third-party appointments relating to income tax and value-added tax were regulated by section 99 of the Income Tax Act and section 47 of the Value-Added Tax Act. The essence of these provisions was that a third party could be appointed by the Commissioner of SARS to satisfy the tax debt of a taxpayer from any money that was held by the third party or due by him or her to the taxpayer. An additional provision, added as section 179(1) of the Tax Administration Act, further provides that the appointment may relate to “a person who holds or owes or will hold or owe any money”. The inclusion of this provision relating to third-party appointments for the future is not unique to South Africa. In both Canada and New Zealand, the respective revenue authorities are empowered to make such third-party appointments. The article explores what this new addition to third-party appointments in South Africa entails