Value-Added Tax Act, 1991 (Act No. 89 of 1991)

Part VII - Representative Vendors

48. Liability of representative vendors

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[section 48 was repealed by the Tax Administration Act, 2011 (Act No. 28 of 2011)]

 

1)For the purposes of this section "representative vendor" means-

a)in relation to any company, public authority, municipality, body, trust fund or person referred to in section 46, the person who is in terms of that section responsible for performing the duties imposed under this Act on such company, public authority, municipality, body, trust fund or person; and

b)in relation to the other person referred to in section 47, any person declared by the Commissioner under that section to be the agent of that other person.

 

2)Every representative vendor shall as respects moneys controlled or transactions concluded or anything done by him in his representative capacity be liable for the payment of any tax, additional tax, penalty or interest chargeable under this Act in relation to such moneys or transactions as though such liability had been incurred by him personally, but such liability shall be deemed to have been incurred by him in his representative capacity only.

 

3)For purposes of subsection (2), any tax, additional tax, penalty or interest payable by any representative vendor in his representative capacity shall be recoverable from him, but to the extent only of any assets belonging to the person whom he represents which may be in his possession or under his management, disposal or control: Provided that any tax, additional tax, penalty or interest payable by a company shall not be recoverable from the public SARS official of the company but shall be recoverable from the company.

 

4)Every representative vendor or other person who is personally liable, who, as such, pays any tax, additional tax, penalty or interest due under this Act shall be entitled to recover the amount so paid from the person on whose behalf it is paid, or to retain out of any moneys that may be in his possession or may come to him in his representative capacity, an amount equal to the amount so paid.

 

5)Every representative vendor referred to in section 46(g) who, as such, pays any tax, additional tax, penalty or interest due under this Act by any deceased person shall be entitled to recover the amount so paid from the estate of such deceased person or to retain out of any moneys of the estate of such deceased person that may be in his possession or that may come to him as executor or administrator of such estate, an amount equal to the amounts so paid.

 

6)Every representative vendor shall be personally liable for the payment of any tax, additional tax, penalty or interest payable by him in his representative capacity, to the extent that it remains unpaid,-

a)he alienates, charges or disposes of any money received or accrued in respect of which the tax is chargeable; or

b)he disposes of or parts with any fund or money belonging to the person whom he represents which is in his possession or comes to him after the tax, additional tax, penalty or interest has become payable, if such tax, additional tax, penalty or interest could legally have been paid from or out of such fund or money.

 

6A)The additional tax, penalty or interest payable by any representative vendor in terms of subsection (6) shall be recoverable by the Commissioner from that representative vendor.

 

7)Every person who becomes a representative vendor (other than a person representing a company, public authority or municipality as contemplated in section 46(a), (b) or (c) or a person appointed as an agent under the provisions of section 47) shall within 21 days after becoming responsible for performing duties under this Act on behalf of any other person notify the Commissioner in such form as the Commissioner may prescribe, of the fact that he has become a representative vendor of that other person.

 

8)Every representative vendor contemplated in section 48(1) shall remain responsible for performing the duties imposed on him by this Act until such time as he notifies the Commissioner in writing that he no longer acts as representative vendor, or until the Commissioner has been notified of the name and address of another person who shall act as representative vendor.

 

9)Where a vendor is a company, every member, shareholder or director who controls or is regularly involved in the management of the company’s overall financial affairs shall be personally liable for the tax, additional tax, penalty or interest for which the company is liable.