Part C
Taxpayer account and allocation of payments
Category: Part C – Taxpayer account and allocation of payments (TAA)
Section 165 (TAA) – Taxpayer account
165. Taxpayer account
(1) SARS must maintain one or more taxpayer accounts for each taxpayer.
(2) The taxpayer account must reflect the tax liability in respect of each tax type included in the account.
(3) The taxpayer account must record details for all tax periods of-
(a) the tax liability;
(b) any penalty imposed;
(c) the interest payable on outstanding tax debts;
(d) the tax liability for any other tax type;
(e) tax payments made by or on behalf of the taxpayer; and
(f) any credit for amounts paid that the taxpayer is entitled to have set off against the taxpayer’s tax liability.
(4) From time to time, or when requested by the taxpayer, SARS must send to the taxpayer a statement of account, reflecting the amounts currently due and the details that SARS considers appropriate.
Section 166 (TAA) – Allocation of payments
166. Allocation of payments
(1) Despite anything to the contrary contained in a tax Act, SARS may allocate any payment made in terms of a tax Act against an amount of penalty or interest or the oldest amount of an outstanding tax debt at the time of the payment, other than amounts-
(a) for which payment has been suspended under this Act; or
(b) that are payable in terms of an instalment payment agreement under section 167.
(2) SARS may apply the first-in-first-out principle described in subsection (1) in respect of a specific tax type or a group of tax types in the manner that may be prescribed by the Commissioner by public notice.
(3) In the event that a payment in subsection (1) is insufficient to extinguish all tax debts of the same age, the amount of the payment may be allocated among these tax debts in the manner prescribed by the Commissioner by public notice.
(4) The age of a tax debt for purposes of subsection (1) is determined according to the duration from the date the debt became payable in terms of the applicable Act.