Does a Company/CC by Law need to have a bank account (For SARS)? Facts and background information pertaining to query: We have a client whom SARS is forcing to open a bank account. We are aware that the Trust Act states that Trust needs to have a bank acc
Important:
This answer is based on tax law for the tax year ending 28 February 2018.
Answer:
Under section 23(2) the Value-Added Tax Act requires of the person to have opened a bank account. Without that the person would not be able to apply to be registered as a vendor. The Income Tax Act doesn’t have a similar requirement. We therefore agree that SARS can’t ‘force a taxpayer to have a bank account’. We understand that SARS, when the taxpayer applies to be registered as a taxpayer, requires this information, but it should be possible to register the taxpayer without that. This is so because a company is automatically registered as a taxpayer on incorporation.