Debit pull discontinued

November 14th, 2013, Published in Articles: Vector

The South African Revenue Service (SARS) has announced the discontinuation of the debit pull option as a means of paying SARS as of the end of October 2013.

Debit pull transactions were discontinued for ABSA, FNB, Investec, Nedbank and Standard Bank account holders. Taxpayers are advised to set up a credit push payment option or to use an alternative method of payment.

With debit pull, the taxpayer or their representative may authorise SARS to collect the money owed directly from their bank on their behalf, meaning that SARS initiates the collection directly from their bank. SARS does so by instructing the bank to collect the amount from the taxpayer’s bank account. There are several problems associated with this:

  • Payment is not guaranteed and can be reversed at the request of the client and can also be rejected due to insufficient funds.
  • SARS is unable to validate that the person authorising it to initiate the debit pull is mandated to do so. This can result in payments withdrawn from the wrong accounts, placing SARS at risk as a result of such unauthorised actions.

It is in the interest of the client not to allow unauthorised withdrawals from their accounts.

More information is available at www.sars.gov.za

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