Taxman hires debt collectors in bid to recover outstanding R16.6-billion

The South African Revenue Service (SARS) said on Friday it has appointed eight debt collection agencies to recover as much as possible of the R16.6-billion in debt owed to it.

"The objective is to boost revenue collection by outsourcing the recovery of older and relatively small amounts due to SARS‚" the agency said in a statement.

The contract takes effect immediately and will run until February 28‚ 2019.

There are over 2.3 million taxpayers and traders who owe SARS just under R150-billion.

The agencies that have been appointed are:

• CSS Credit Solution Services (Pty) Ltd‚
• ITC Business Administrators (Pty) Ltd‚
• Medaco Capital Services (Pty) Ltd‚
• New Integrated Credit Solutions (Pty) Ltd‚
• Norman Bisset & Associates Group (Pty) Ltd‚
• Revenue Consulting (Pty) Ltd‚
• Transactional Capital Recoveries (Pty) Ltd and
• Van De Venter Mojapelo (Pty) Ltd.

Taxpayers and traders with outstanding accounts will only be contacted via electronic channels. The agencies will embark on the traditional debt collection activities‚ including outbound calls; tracing of taxpayers‚ sending out notices (can be SMSs‚ emails or letters/notices)‚ said SARS.

It cautioned: "Under no circumstances should debtors pay money directly to the debt collection agency. All outstanding taxor duties must only be paid directly to SARS via authorised payment channels". 

The debt collection agencies have also been tasked with "encouraging non-compliant taxpayers" to submit their outstanding returns to SARS so as to avoid the imposition of any further interest or penalties and criminal charges‚ SARS said.