On 27 October 2026, SARS announced changes to its Third-Party Appointment (AA88) process. Under this process, SARS can collect outstanding tax debt directly from a taxpayer’s employer, bank or anyone else who holds money for them.
What Is a Third-Party Appointment?
The Tax Administration Act allows the Commissioner to appoint a third party to withhold money owed by a taxpayer, including administrative penalties, and pay it over to SARS. Third parties may include:
- Employers
- Banks and other financial institutions
- Attorneys, insurers and investment managers
- Medical schemes and debtors who owe the taxpayer money
SARS describes this as an enforcement step. It is only taken once SARS has tried to contact the taxpayer, there is no dispute over the debt, and a final demand has been ignored.
What Has Changed?
SARS has introduced a revised schedule for automatically processing AA88 appointments for Personal Income Tax penalties and assessed tax debt. Employers now have more time to load AA88 deductions before payroll closes, and there should be fewer repeated appointments and cancellations.
Key Points for Employers
- New AA88s are issued by the 7th of each month, so synchronise e@syFile™ Employer regularly
- Stop deductions only once SARS issues a cancellation or withdrawal, and validate it first to guard against fraudulent documents
- An employer that fails to act on an AA88 can be held personally liable for the debt and may face a fine or up to two years’ imprisonment
Why This Matters
SARS’s 2025/26 Annual Report shows receivables of around R705 billion, so debt recovery is a clear priority. Taxpayers should keep their contact details on eFiling up to date and respond quickly to any SARS correspondence so that it does not reach their payslip.
If you have received an AA88 notice, or need help settling outstanding tax debt or managing payroll compliance, GZ & Co is here to assist.
Source:
SARS – Guidelines for Third Party Appointments (AA88) — https://www.sars.gov.za/types-of-tax/pay-as-you-earn/guidelines-for-third-party-appointments-aa88/
Source: BusinessTech — https://businesstech.co.za/news/finance/881629/sars-can-take-the-money-you-owe-directly-from-your-employer/
