What should I do after a SARS AA88 notice?

Direct answer

An AA88 is a SARS third-party appointment used to collect an outstanding tax debt. SARS may require an employer, bank or another person holding or owing money for the taxpayer to pay an amount to SARS. Do not ask the third party simply to ignore it. Verify the appointment in official SARS records, identify the underlying debt and use the correct remedy for that debt.

If you are the appointed employer or other third party, comply with the notice and due dates unless SARS formally changes or cancels it. A taxpayer's email, verbal assurance or screenshot is not a cancellation.

What this means in practice

There are two separate jobs. The appointed third party must administer the AA88 correctly. The taxpayer must resolve the assessment, penalty, return or payment problem that produced the debt. Paying the AA88 does not necessarily correct an inaccurate assessment, and objecting to an assessment does not automatically suspend collection.

SARS says third-party appointment generally follows a final demand that was not complied with. Check the statement of account and correspondence history rather than focusing only on the latest deduction.

Step-by-step

1. Retrieve the AA88 and related letters from the genuine SARS profile or payroll system.
2. Match the taxpayer reference, amount, tax type and due dates to the statement of account.
3. Check whether returns, payments or allocations are outstanding and whether the debt is disputed.
4. If the assessment is wrong, use the applicable objection, appeal or correction route within its deadline.
5. If payment creates serious hardship, consider a payment arrangement or other debt-relief process. Do not assume an application pauses collection.
6. If you are the third party, follow the notice and remit amounts with the correct payment reference.
7. Stop deductions only after official SARS confirmation. SARS guidance for employers points to system synchronisation and a zero or credit statement together with the formal letter.

Documents and records to keep

• AA88, final demand and all SARS letters.
• Statement of account and underlying assessments.
• Payroll or bank deduction records and payment confirmations.
• Objection, suspension-of-payment or payment-arrangement submissions.
• SARS cancellation or finalisation confirmation.

Important limits and exceptions

Deadlines and remedies depend on the underlying tax debt. A request for reasons, objection, appeal, remission request and suspension-of-payment request serve different purposes. Where money was withheld but not yet paid after a valid cancellation, the appointed party should follow SARS instructions on returning it. Amounts already overpaid to SARS may be refunded only after other outstanding items are considered.

When to get tailored advice

Act quickly if the debt is unknown, the taxpayer was not given the preceding notices, deductions threaten essential expenses, or the appointment names the wrong person. Employers should obtain payroll advice if the notice conflicts with termination, insolvency or another attachment.

Related TaxProof guides

• How do I request a SARS payment arrangement?
• How do I understand a SARS letter or notice?

Sources

• SARS, Guidelines for Third Party Appointments (AA88)
• SARS, Guide to Third Party Appointments via eFiling