What happens when SARS pays a refund into an old bank account?

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What happens when SARS pays a refund into an old bank account?

• 12 October 2023
• Tax Administration
• SARS

Before submitting an Income Tax Return, ensure that all details including banking details are updated. It is a taxpayer’s responsibility to always ensure that SARS has their correct bank details.

SARS only pays refunds into valid bank accounts. If the ‘old’ bank account is still open and valid, SARS will be unable to assist the taxpayer. The taxpayer will have to consult their bank.

However, if the account is closed, the credit will be returned by the bank and automatically reversed by SARS. This also invalidates the bank details and communication will be issued to the taxpayer.

For information on how to change banking details using eFiling, please click on the following: Adding or Changing Banking Details | South African Revenue Service (sars.gov.za).

SARS will require supporting documents, the detail of which is listed as per the enclosed: Relevant Material or Supporting Documents | South African Revenue Service (sars.gov.za)c

Source: SARS

FAQs

1. What happens if SARS pays a tax refund into an old bank account?

If SARS deposits a refund into a closed or inactive account, the bank will typically reject the payment, and SARS will be notified to redirect the refund to the correct account.

2. Will I lose my refund if SARS pays into an old bank account?

No. Your refund will not be lost. SARS will take steps to redirect the payment once the bank reports that the account is closed or inactive.

3. How can I update my bank account details with SARS?

You can update your bank account via eFiling or by submitting the relevant SARS forms at a branch, ensuring refunds are paid into your current account.

4. How long does it take for SARS to redirect a refund?

The redirection process can take a few weeks, depending on the bank’s reporting and SARS processing times.

5. Does SARS notify taxpayers if a refund goes to an old account?

SARS may notify taxpayers via eFiling or SMS/email if a refund cannot be processed due to an inactive or closed account.

6. Can I contact SARS to stop a refund to an old bank account?

Yes. Contacting SARS as soon as you notice the issue can help expedite the refund to the correct account.

7. What information does SARS need to redirect a refund?

SARS will require your updated bank account details, including the bank name, branch code, and account number.

8. Can multiple refunds be affected if I changed bank accounts?

Yes. Any pending refunds will be affected until SARS has your current bank account details on file.

9. Is it safe to update my bank account with SARS online?

Yes. Updating your bank account through SARS eFiling is secure and ensures your refunds are correctly processed.

10. Why is it important to keep bank details up to date with SARS?

Accurate bank details prevent delays in receiving refunds, avoid processing errors, and ensure compliance with SARS payment procedures.

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