The SARS AA88, also known as ITA88 or third-party appointment, is a legal mechanism used by the South African Revenue Service (SARS) to recover outstanding tax debts from taxpayers.
Employers are designated as agents responsible for deducting the debt amount from their employees’ salaries and paying it to SARS.
This tax bite is a detailed explanation of the process, legal obligations, and employer responsibilities.
An AA88 is a notice issued under Section 179 of the Tax Administration Act (TAA).
It empowers SARS to appoint third parties, such as employers, banks, or retirement fund administrators, to recover tax debts directly from funds owed to taxpayers.
Who is Affected? Any taxpayer with outstanding debts to SARS. This includes individuals with overdue income tax, penalties, or interest.
Purpose: To ensure efficient tax collection without relying on voluntary payments from taxpayers.