Sars toughens up on property transfers

Since publication of this statement MoneywebTax spoke to Sars, Sars has said the below statement is a storm in a tea cup, for its full response, click here. 

From this month (October 2012), a new system introduced by the SA Revenue Service (Sars) means that the transfer of any property will be subject to delay unless all the parties involved - including the estate agency - have their tax affairs in order.

A new transfer duty e-filing system is being introduced that requires the transferring attorney to fill in not only the tax numbers of the property buyer and seller, but also that of any estate agency involved - and to provide proof that those tax numbers are valid.

Clearly, Sars wants to ensure that the tax returns and payments of everyone involved in a property sale are up to date.

The tax authority has for some time now been checking to see that property sellers have paid any and all tax amounts owing before it will issue the transfer duty receipts required for transfers to be finalised.

It also has the power to instruct a transferring attorney to first pay any amount to tax that is outstanding before a property seller can receive the remainder of the proceeds of the sale.

Similarly, Sars has taken a dim view of homebuyers who are trying to acquire a property while they have any tax debts outstanding - and now, it seems, transfers could also be delayed or even stopped if the estate agency involved has not paid all its taxes - or unless it makes an arrangement to pay all or some of the commission due from the sale towards its tax debt.

*Berry Everitt is MD of the Chas Everitt, international property group

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SARS I really do think that SARS is being granted far too much power in this country, and the government needs to reel them in by not passing these Act changes that SARS are putting through. You may have a desperate seller who has been retrenched but because . .more to buyer hasn't got his tax submissions sorted out he can't sell his house so extending the sellers hardship - does these people ever look at the implications of their Act changes or do they just not care - they are just so greedy . .less by gcr on October 19 2012, 09:14 Find this comment inappropriate? Report it

Have SARS the ability to THINK Has the propeller heads in SARS thought about the consequences. I can understand that SARS would like to collect from the Seller's proceeds, but to include all the parties, estate agency and all, is just putting another bunch of red tape in place to . .more frustrate people to do business. Gordhan says one thing and does exactly the opposite when it comes to SARS. But then double talk from the ANC is normal . .less by Investor47 on October 19 2012, 09:24 Find this comment inappropriate? Report it

Well done SARS @gcr, I have no complaints about the above article. After all, I got nothing to hide. And if these measures are not put in place, where will the money come from to ensure Zuma's Nkadla compound grows??? Haibo mfetu, haibo!!! by Guru on October 19 2012, 10:05 Find this comment inappropriate? Report it

no good I don't think sars really took into consideration the economical impact of this decision on the property market... by k on October 19 2012, 10:13 Find this comment inappropriate? Report it

Vicious Circle Busy with registering a property transfer now and I can't get my SARS matters in order until it is registered as I need proof of address etc to sort out SARS. Hoping there is no delay. No property transfer, no SARS payment, no SARS detail update , no . .more property transfer. Vicious circle... . .less by Rich on October 19 2012, 10:38 Find this comment inappropriate? Report it

Wake up Wake up. This is old news. Been officially happening for more than 3 years.People with nothing to hide have nothing to fear. Eish. by Conveyancer on October 19 2012, 12:15 Find this comment inappropriate? Report it

SARS Powers Misstated The article fails to indicate that the requirement that the Tax Registration Numbers or Annual Income of the Buyer and Seller as well as the VAT Registration Number of the Estate Agency be declared has been in place for some years now. There is no power . .more given to SARS in terms of which they may withhold a Transfer Duty Receipt or Exemption if the Transfer Duty amount due is paid or secured. This "power" exists in the mind of SARS personnel and the Estate Agencies who believe them. The only power is to declare the Attorney transferring the property an agent of the Seller to recover due and payable tax from that Seller before any profit or proceeds from the Sale may be paid to him/her. . .less by Adrian on October 19 2012, 12:19 Find this comment inappropriate? Report it

Well done SARS You have been warned. They will clamp down on tax dodgers, and rightly so. The lax attidute towards paying tax is unacceptable. Remember Greece? by Country Bumpkin on October 19 2012, 13:06 Find this comment inappropriate? Report it

@ Country Bumpkin You are an idiot - this country is already headed down the Greece and Zim road. I for one am not prepared to sign blank checques to Pravin and his clowns. Time for a tax boycott and I urge all intelligent South Africans to follow suit. I have had . .more enough of this C***. . .less by Razor on October 19 2012, 13:37 Find this comment inappropriate? Report it

4Sale This standard will significantly change the way properties are sold and put on the market. A house for sale will be required to have a visable tax clearance for perusal of potential byers in order to validate the feasibility of the transaction at . .more hand...as no informed potential buyer would be interested in procuring a property not knowing if the deal would go through or not... SARS has set a global president in recent years for which I commend them. The transparancy of the legislation need to be questioned though as with any new law. How will this be enforced accross the broader demographic of South Africa as the majority of South Africans do not stay in houses that have title deeds? The introduction and eventual success or failure of the aforementioned will be subject to it being applicable to all, rich vs poor and not only burden those who can afford or understand it. . .less by @wernerdj on October 19 2012, 14:23 Find this comment inappropriate? Report it

Oh goodie On showday, I'll need to see the agency's tax clearance certificate before being prepared to deal through them. Can't wait for that look of indignation ... by Lowballer on October 19 2012, 14:52 Find this comment inappropriate? Report it

MORE RED TAPE FROM EAAB Did you know that officially, even if you just show a prospective buyer a property, say you are doing an agent a favour and take Mr.Bloggs to look at a place for ten minutes you MUST have a fidelity fund certificate. Getting out of hand nowadays. How . .more a private seller can sell without a FFC is beyond me. . .less by Davebee on October 19 2012, 15:16 Find this comment inappropriate? Report it

tax I was wondering how a potential seller will know if a property agent se taxes is up to date BEFORE instructing such agent. by Lulu on October 19 2012, 18:52 Find this comment inappropriate? Report it

Lol, well done SARS. This is the 2nd best idea the government has come up with. E-tolls win hands down. by Mohammed on October 19 2012, 18:55 Find this comment inappropriate? Report it

Well Done Excellent Work SARS Properties are changing hands in all over the country between locals and foreigners who have no intention of contributing 1c to the coffers. by Zoro on October 19 2012, 19:26 Find this comment inappropriate? Report it

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