Tax ref. number disappeared from the system.

Navigating Tax Number Discrepancies: What to Do When Your Tax Ref Number Disappears

Imagine paying your taxes diligently for four years and then discovering your tax reference number has vanished. This perplexing situation recently arose for a 24-year-old permanent resident of South Africa. Here’s the story and what you can do if you find yourself in a similar position.

The Problem

Our subject started working for an IT company in 2020. Like all employees, he applied for a tax reference number through the South African Revenue Service (SARS). Fast forward to 2024, he resigned from his job in May and planned to leave South Africa by the year’s end. When he tried to claim his benefits from Old Mutual, they couldn’t verify his tax number. This prompted a visit to a SARS office, only to find the tax number was missing from their system.

Tax Number Disappearance

It’s alarming when something as significant as a tax number just vanishes. Having paid taxes for four years without issue, the sudden disappearance is both odd and concerning. This kind of situation might arise from data entry errors, system glitches, or bureaucratic red tape.

Immediate Steps to Take

If you find yourself in this situation, here’s what you should do:

  1. Visit a SARS Branch: As frustrating as it may sound, visiting a SARS office in person is your best bet. Make sure to go to a branch where staff can assist you directly. Bring along any documentation related to your initial tax registration and recent tax filings.

  2. Contact Old Mutual: Inform them about the situation and ask for their guidance. They can often provide additional advice on how to proceed, especially since other claimants might have faced similar issues.

Should You Get a New Tax Number?

Getting a new tax number can be a practical solution if your old number cannot be retrieved. Here are factors to consider:

  • Claim Process: You can submit your new tax number to Old Mutual. However, confirmation from SARS that all your taxes are up to date could still be required.

  • Timeline: Registering for a new tax number and waiting for its activation could take some time. If you’re leaving the country soon, factor this into your plans.

Other Options

While registering for a new tax number seems the most straightforward, explore other alternatives before doing so:

  1. Seek Help from a Tax Practitioner: A licensed tax practitioner might have additional resources or contacts within SARS to expedite the resolution.

  2. Verify Past Tax Payments: Ask for a record of your tax payments using your old tax reference number. This can prove your tax compliance over the years.

  3. Escalate the Issue: If initial engagements with SARS don’t resolve the problem, consider escalating it. Write a formal complaint or seek assistance through their helpline.

Preventive Measures for the Future

  1. Regularly Check Your Tax Status: Always confirm your tax status annually with SARS. This can help identify and correct issues before they become critical.

  2. Keep Detailed Records: Maintain copies of all SARS correspondence and proof of tax payments.

  3. Stay Informed: Keep up with SARS updates and changes in tax laws to avoid surprises.

Conclusion

While discovering a missing tax number is unsettling, taking immediate, informed steps can help resolve the issue. If necessary, registering for a new tax number is a viable option, albeit one that may involve some administrative hassle. Always stay proactive with your tax affairs to avoid these disruptions in the future.