EXTERNAL GUIDE CHANGE OF BANKING DETAILS

TABLE OF CONTENTS
PURPOSE 3

INTRODUCTION 3

CORPORATE SAVER TYPE OF ACCOUNTS 4

REQUIRED SUPPORTING DOCUMENTATION 5

ESTATES 5

THIRD PARTY BANK ACCOUNT 5

DEFINITIONS AND ACRONYMS 6

‌PURPOSE
The purpose of this document is to assist individual taxpayers/representative taxpayers/employers/representative employers/VAT vendors/representative vendors and tax practitioners to understand their obligations when they need to change banking details at the South African Revenue Service (SARS).

This guide prescribes all the legal requirements and the manner in which a taxpayer can request a change in banking details.

This guide in its design, development, implementation and review phases is guided and underpinned by the SARS values, code of conduct and the applicable legislation. Should any aspect of this guide be in conflict with the applicable legislation the legislation will take precedence.

‌INTRODUCTION
Due to the immediate risk associated with the change of banking details and refunds being paid into incorrect bank accounts causing a revenue loss to SARS and unsuspecting taxpayers, it was decided to identify possible verification methods to eliminate fraud and streamline the process.

Change of bank details can be requested via one of the following channels:

“In Person” at a SARS branch (SARS’s preferred channel)

eFiling under Maintain Taxpayer Registered Particulars menu

For Personal Income Tax, individuals may change banking details when completing and submitting an individual Income Tax Return (ITR12) and at

SARS Mobile Tax units.

SARS will under no circumstances accept a request for change of banking details, if the request is received via:

Telephone,

Facsimile,

Post,

Drop-box, or

E-mail.

Taxpayers’ bank account details must comply with the following:

It must either be a South African cheque, savings or transmission account;

The account must be in the name of the taxpayer.

Credit card, bond and foreign bank accounts are not permitted.

The change of banking details can be requested by:

Requestor with mandate: Personal Assistant/Clerk/Administrative officer to the tax practitioner, Tax Consultant, Director, Fund Administrator, Secretary, Attorney, Advocate, Legal Advisor, Auditor, Bookkeeper; etc. A Requestor with a once off mandate will not be able to change banking details on eFiling if he/she is not linked to a tax practitioner on eFiling.
Representative: A representative must be a natural person, e.g. Treasurer, Partner, Public Officer, Member, Accounting officer, Curator, Liquidator, Executor, Director Executor, etc. that has been registered as the official representative of a legal entity (such as a company) on the SARS system.
Tax Practitioner: is a person registered with a controlling body and SARS. The person is assigned with a unique identification number (A SARS allocated PR number). Tax practitioners will still be required to present a valid POA if they act on behalf of an entity. Tax Practitioners that currently have active eFiling profiles for the represented entity will still have access to represented entity services.
The requestor with mandate can change banking details only for exceptional circumstances.

Exceptional circumstances under which SARS will allow a request for change of banking details to be done by a person who is not the account holder and who has power of attorney or other proof (e.g. letter of authority) are:

Any estate;

Where the taxpayer is incapacitated / terminally ill;

Where the taxpayer is a non-resident (emigrant, expatriate, foreigner or SA citizen temporarily outside the Republic);

Where the taxpayer is imprisoned;

Where a trustee is appointed to act on behalf of an insolvent individual and/or trust;

Where the taxpayer is a minor child;

Shared Account (Spouse’s Account);

Income below tax threshold/Impractical; and

Where distance of the taxpayer from the SARS branch is more than 200km.

Note: Such a person will still have to visit the SARS branch with the relevant supporting documents applicable to effect the change.

Any person who is granted a power of attorney can enquire, complete and sign the necessary tax returns or other documents regarding the taxpayer’s tax affairs. The appointed person with a POA must therefore submit the taxpayer’s bank statement as well as the other required supporting documents.

If the taxpayer is coded as a deceased estate, only the person appointed by the Master of the High Court with the letter of Authority or letter of Executorship can request the changes. However, authority can be delegated to a registered tax practitioner or an agent to act on behalf of the executor. The tax practitioner or agent must have POA from the executor and all required supporting documents for the change of banking details and authenticating the tax practitioner or agent.

An agent may include an attorney, auditor or trust company which in turn may nominate an employee to administer the estate. The nominated employee is required to present a Power of Attorney to act on behalf of the executor.

The SARS Power of Attorney form is available on the SARS website www.sars.gov.za.

In the case where SARS does not have valid banking details and have valid cell phone numbers and/or email addresses for taxpayers; notifications will be sent to taxpayers/representative taxpayers via SMS or email to submit valid banking details and the relevant supporting documents to SARS.

‌CORPORATE SAVER TYPE OF ACCOUNTS
The corporate saver type of accounts that taxpayers are presenting at the SARS branch office for bank details must be accepted in all cases, excluding VAT.

The type of product and account type for the following banks are as follows:

Investec – Corporate Cash Manager (CCM) – Current

Nedbank – Corporate Saver – Savings

Standard Bank- Third Party Fund Administration Account- Current

Note: SARS will be in discussions with all other banks in order to determine which Corporate Saver/Cash management products they offer in order to ensure that we can accommodate all banks.
‌REQUIRED SUPPORTING DOCUMENTATION
Note: Please refer to the Supporting Document list available on the SARS website (www.sars.gov.za). The path to the Supporting Documents list is: Individuals>I need help with my tax>Your tax questions answered>Adding or Changing Banking Details> Supporting documents needed for adding or changing banking details.

‌ESTATES
Change of banking details for a deceased taxpayer can only be effected once the case has been coded as a “deceased estate”. Executors are therefore urged to wait for a letter from SARS confirming the taxpayers’ status change before attempting to change the banking details.

For second registration purposes of taxpayers who passed away on or after 1 March 2016, the bank details used in the first registration can be re–used in the second registration unless the Representative requires an update to it. The deceased estate banking details may not be of the deceased taxpayer but in the banking details of the estate.

Where more than one executor has been appointed by the Master of the High Court and one executor has been nominated by the co-executor/s to represent the taxpayer, a completed and signed SARS Power of Attorney (POA) form is acceptable. The executor must submit SARS POA form together with the above listed documents.

A registered Administrator of Estates can effect changes to banking details for a taxpayer with an insolvent estate by submitting a SARS POA form (completed and signed by the trustee) together with the above listed documents irrespective of the value of the estate.

In the case of a section 18(3) estate where the surviving spouse presents the letter of authority, the banking details can be changed to those of the surviving spouse provided that all the above supporting documents are available.

‌THIRD PARTY BANK ACCOUNT
In the case of a non-resident company or a subsidiary or holding company as defined in section 1 of the Companies Act No.71 of 2008, the following additional documents must be provided where a third party bank account is used:

If the company is a non-resident company of the Republic:

Indemnity form VAT119i;

Copy of the Memorandum of Incorporation or similar document issued indicating the country of issue;

Copy of a letter of appointment of a representative vendor; and

Valid original or a temporary identity document/passport/driving licence of an authorised signatory of a nominated bank account and a certified copy thereof.

If a company is a subsidiary company of a holding company and a holding company’s bank account is used or vice versa:

Indemnity form VAT119i;

Copy of a letter from the Public Officer confirming the group structure;

Copy of a letter of appointment of representative vendor/representative taxpayer; and

Valid, original identity document/passport/driving licence or a temporary identity document/passport/driving licence of authorised signatory of nominated bank account and a certified copy thereof.

Where the letter named above is not in one of the official South African languages, SARS will request for a translation in writing (e.g. a letter will be issued).

‌DEFINITIONS AND ACRONYMS

Commissioner

Commissioner for the South African Revenue Service

CRA01

Confirmation of Entity Residential/Business Address

IT Act

Income Tax Act No. 58 of 1962

PAYE

Pay As You Earn

SARS

South African Revenue Service

TAA Act

Tax Administration Act No.28 of 2011

Tax

In terms of the Tax Administration Act, tax includes a tax, duty, levy, royalty, fee, contribution, penalty, interest and any other moneys imposed under a tax Act

Tax Position

An assumption underlying one or more aspects of a tax return, including whether or not:

an amount, transaction, event or item is taxable;

an amount or item is deductible or may be set off;

a lower rate of tax than the maximum applicable to that class of taxpayer, transaction, event or item applies; or

an amount qualifies as a reduction of tax payable.

Taxpayer

In terms of the Tax Administration Act, taxpayer means —

A person chargeable to tax;

A representative taxpayer;

A withholding agent;

A responsible third party; or

A person who is the subject of a request to provide assistance under an international tax agreement

DISCLAIMER

The information contained in this guide is intended as guidance only and is not considered to be a legal reference, nor is it a binding ruling. The information does not take the place of legislation and readers who are in doubt regarding any aspect of the information displayed in the guide should refer to the relevant legislation, or seek a formal opinion from a suitably qualified individual.

For more information about the contents of this publication you may:

Visit the SARS website at www.sars.gov.za

Visit your nearest SARS branch

Contact your registered tax practitioner

If calling from within South Africa, contact the SARS Contact Centre on 0800 00 7277

If calling from outside South Africa, contact the SARS Contact Centre on +27 11 602 2093 (only between 8am and 4pm South African time).