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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)


Municipal Supply Chain Management Regulations, 2005

Chapter 2: Framework for Supply Chain Management Policies

Part 4: Other Matters

43. Prohibition on awards to persons whose tax matters are not in order


(1) The supply chain management policy of a municipality or municipal entity must, irrespective of the procurement process followed, state that the municipality or municipal entity may not make any award above R15 000 to a person whose tax matters have not been declared by the South African Revenue Service to be in order.


(2) Before making an award to a person, a municipality or municipal entity must first check with SARS whether that person’s tax matters are in order.


(3) If SARS does not respond within seven days such person’s tax matters may for purposes of subregulation (1) be presumed to be in order.