SARS PAYE not paid

J

JacksonR

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I think this is the right place to post.

So I received a notification that I owe SARS around 10k (exact amount of the rebate) for outstanding debts for the 2019 financial year.

Upon phoning SARS to inquire they said that PAYE has not been paid over from my previous employer, and I as the employee need to pay it back.

I’ve contacted the rest of my ex colleagues (who all left the company as well) and it’s the exact same for them.

Has anyone experienced something similar ? And what was the result ?

I’ve submitted a dispute, so still waiting for the outcome. It shows that the PAYE was deducted from my salary.
 
Tell SARS to get fked

Send them the year's payslips showing deductions.

What did your employer say
 
Enzo Matrix said:
Tell SARS to get fked

Send them the year's payslips showing deductions.

What did your employer say
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Have sent them payslips as well as bank statements.

He said he did not pay as he had cashflow problems.

It’s just tedious. I know for a fact the employee can’t be held responsible for PAYE.

Guess they are desperate.
 
JacksonR said:
Have sent them payslips as well as bank statements.

He said he did not pay as he had cashflow problems.

It’s just tedious. I know for a fact the employee can’t be held responsible for PAYE.

Guess they are desperate.
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SARS are grasping at straws. You can't pay back something that you never received in first place. If they insist on you paying, then they must calculate PAYE on the amount you received after your employer deducted PAYE.
 
deweyzeph said:
SARS are grasping at straws. You can't pay back something that you never received in first place. If they insist on you paying, then they must calculate PAYE on the amount you received after your employer deducted PAYE.
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Nope.. Sars are 100% in the right.. He will have to pay the monies himself and then try reclaim them from his ex employer.
 
www.citizen.co.za

What happens if your tax isn’t paid over to Sars? | The Citizen

Experts say the law seeks to hold both the employer and employee liable for any shortfall.
www.citizen.co.za www.citizen.co.za

Perhaps a glimmer of hope.

Keith Engel, CEO of the South African Institute of Tax Professionals (Sait), says the law seeks to hold both the employer and employee liable for any tax shortfall. “If an employer takes the employee tax money and never pays the amount over to Sars, the employee is technically liable.”

Sars effectively waives the liability if the employee can demonstrate that the amount of tax was indeed taken from them on the assumption that the money would go to Sars.

“Sars provides this relief out of fairness to the taxpayer,” says Engel. “This waiver, however, should actually be written into the law.”

There are several documents that can serve as proof that PAYE has indeed been deducted. One such document is the employment contract in which the employee was promised a certain income.

A payslip that reflects what the person has earned and what has been deducted may also help taxpayers who finds themselves in the unfortunate position of having to prove that they have paid their taxes.

The Basic Conditions of Employment Act requires of companies that employ and remunerate people to give their employees specific information on the day they receive their pay, in writing.

This includes the name and address of the employer, the name and occupation of the employee, the period for which the payment is being made, the employee’s remuneration in monetary terms and, importantly, the amount and purpose of any deduction made from the remuneration.

Sevitz says the employee is ultimately responsible for the PAYE, but if they can prove to Sars that the money was not given to them, and that the employer was at fault, then Sars should be accommodating and not demand payment from the taxpayer.
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Kosmik said:
Sars will tell you it's your problem. Report the company but you are liable for your tax burden.
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An employee can’t know if the company pays over the taxes after it’s deducted from the salary. We have reported him for tax fraud
 
ToxicBunny said:
Nope.. Sars are 100% in the right.. He will have to pay the monies himself and then try reclaim them from his ex employer.
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Do you know for a fact ? I’ve spoken to quite a few people in the tax/accounting industry and each of them said it’s the employers responsibility to pay it over as it has been deducted. It makes no sense to pay x2 taxes.


I can 100% guarantee you that he just won’t pay a cent.
 
JacksonR said:
Do you know for a fact ? I’ve spoken to quite a few people in the tax/accounting industry and each of them said it’s the employers responsibility to pay it over as it has been deducted. It makes no sense to pay x2 taxes.
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It's the employers responsibility to pay it over.. But if they don't then it becomes yours if Sars wants to get sticky about it.
 
ToxicBunny said:
Nope.. Sars are 100% in the right.. He will have to pay the monies himself and then try reclaim them from his ex employer.
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Yes correct, by law sars holds the employee accountable. But its really flippen unfair, because by law they instruct the company to withhold taxes, the employee has no option to receive the monies and pay directly to sars. Would make for an interesting court case.
 
BuckRogers said:
Yes correct, by law sars holds the employee accountable. But its really flippen unfair, because by law they instruct the company to withhold taxes, the employee has no option to receive the monies and pay directly to sars. Would make for an interesting court case.
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I agree with you. It’s impossible to know wether the employer pays tax or not.

Some of my ex colleagues won’t be able to pay the rebate back as they have been unemployed for the last 3 years. Wonder what route SARS will go then.
 
Kosmik said:
Won't stop the liability. Sars will hold them responsible. I agree it's daft and the law needs to change but that's how it stands currently.
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Remember sars needs aLl the money it can get as the cadres don’t drink cheap champagne .The law kind of bullies the small man and in Africa tax is a western concept so best to be like the taxi drivers
 
jambai said:
Remember sars needs aLl the money it can get as the cadres don’t drink cheap champagne .The law kind of bullies the small man and in Africa tax is a western concept so best to be like the taxi drivers
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This has always been the law.
 
Your IRP5 for that tax year should reflect the amount of PAYE deducted from your salary. That is all proof you need that PAYE were deducted. Hopefully you kept the original. You are obliged to keep all documentation used to submit your tax return for 5 years. If your ex employer issued you with IRP5 reflecting the amount SARS now claim from you he committed fraud and it should be their problem not yours.
It took the almost 3 years to find that they never received the PAYE payment . Really??
 
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