An unsuspecting taxpayer recently faced a dilemma when he had to do international fund transfers, but found SARS had cancelled his Tax Compliance Status (TCS) PIN approval, a critical component for taxpayers who need to transfer funds internationally or engage in other cross-border transactions.
Lovemore Ndlovu
Head of SARB Engagement and Expatriate Compliance
Without a TCS PIN approved by SARS cross-border financial transactions can be delayed and potentially damage the taxpayer’s reputation with stakeholders.
SARS informed the taxpayer the TCS PIN approval was cancelled due to insufficient and outdated documentation. From SARS notice is it clear the taxpayer could have saved himself a headache and time by submitting accurate and timely information to the tax authority for securing and maintaining tax compliance approval.
Failure to meet SARS’ stringent documentation and information standards can lead to application declines and cancellations, even after initial approval, so best ensure SARS does not find you wanting.
A cancellation can lead to:
If SARS cancels your TCS PIN, carefully review the notice from SARS to identify what went wrong; address any missing or outdated documents and ensure all information is correct; resubmit the application with updated documentation and a clear explanation. If required; engage a professional tax consultant to assist if you are unsure on how to proceed.
While a TCS PIN cancellation can be frustrating, it is often avoidable with proper preparation and attention to detail. Staying informed, maintaining updated records, and seeking professional advice when needed can go a long way in ensuring a smooth application process.
Tax compliance is a shared responsibility. Taking continued proactive measures can save significant time and reduce stress. For more information or assistance with TCS PIN applications, consider reaching out to a trusted tax advisor.
