Sars has published the proposed draft Rule amendment to the Act (insertion of Rule 120.12) for the reduction in the limit of the amount for which cheques may be made out to Sars from R100 000 to R50 000. Comment is due by 20 March 2014. The amendment is intended to be effective from 01 April 2014.
By the insertion after rule 120.11 of the following heading and rule: “Payment by cheque 120.12 (a) No payment by cheque in excess of R50 000, including any payment relating to value-added tax on imported goods as contemplated in the Value-Added Tax Act, 1991 (Act No. 89 of 1991), unless the Commissioner, having regard to the circumstances, directs otherwise. (b) For the purposes of paragraph (a), the total payments by cheque by any person on any day may not exceed R50 000 for any number of payments required to be made on that day. (c) No payments may be made by cheque if any person has, in the preceding three years, made two payments by cheque to Sars that were “referred to drawer”.