They do ...... not sure how this guy got away with it, but hey come second after employees.I thought SARS had an automatic personal surety from directors/members on debts owed to them?
They do ...... not sure how this guy got away with it, but hey come second after employees.I thought SARS had an automatic personal surety from directors/members on debts owed to them?
He may just not be aware of it, but when you register as the public officer, you automatically become personally responsible for any outstanding taxes.
This is the reason, that one must be extremely careful when accepting this position in a company. If you are not personally responsible for the finances in the company, then DO NOT ACCEPT this responsibility!
Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za
Hi Busfact
If the business in liquidation has SARS as a creditor as a result of an assessment, whether arising from self assessment or by them, then that amount is claimed from the insolvent estate.
On the other hand, assume the entity had not submitted returns for a number of periods, SARS will not attempt (and I doubt they are able to) claim amounts from the estate in respect of those non submissions.
In other words they will only claim amounts that have been raised by assessment but that are unpaid.
Rubbish. This is precisely the sort of myth that SARS loves to see propagated so that they can scare representative taxpayers into assuming personal liability. Section 155 of the Tax Administrative Act clearly sets out the circumstances under which a public officer (or other representative taxpayer) can be held personally liable. It is most certainly not automatic.
Founder of Growth Surge - Helping entrepreneurs create more wealth and enjoy more freedom.
I notice that have answered quite strongly about a public officer but not about the SARS issue ??
I have posted correct information, perhaps that is the reason?
Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za
I may also have misinterpreted this section
THE IMPORTANT ROLE OF THE PUBLIC OFFICER IN A COMPANY
Has your company* appointed a public officer and notified
SARS of the appointment?
The Income Tax Act requires that all companies have to
appoint a public officer. The appointment must be made within
one month of the company commencing business activities, or
acquiring an office in the Republic. Where there is a change of
public officer, the company must notify SARS within 14 days
of the change taking effect.
Failure to do so may result in hefty penalties, and SARS will,
by default, designate a director, member, or company
secretary as the public officer. In addition, the nonappointment
of a public officer does not exonerate the company from complying with the
provisions of the Income Tax Act.
The role of the public officer is of extreme importance in a company. He is the “face of the
company” for tax purposes. All actions carried out in his capacity as a public officer are
deemed to have been done by the company.
His duties are to attend to the tax affairs of the company, including (but not limited to)
attending to the submission of annual and provisional tax returns, registration of the
company as taxpayer and employer, submission of employee tax, monthly declarations, and
acceptance of notices served against the company. He should be empowered by the
company to properly fulfil these duties.
By signing returns, the public officer declares that all the information provided therein is true.
Where the information is found to be false, action may be taken against the public officer in
his personal capacity.
Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za
I picked this up from The Public Officer: A Vital Appointment
Originally Posted by
Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za
Founder of Growth Surge - Helping entrepreneurs create more wealth and enjoy more freedom.
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