Late last year, SARS' new transfer duty system became fully operational. Amongst other things, it is now a requirement that, in addition to furnishing the income tax numbers of the seller and purchaser, the income tax number of the estate agent involved must also be furnished before SARS will process the application for a transfer duty receipt. SARS is hereby enabled to verify that the tax affairs of all parties involved are in order.
SARS can delay the issue of a transfer duty receipt or instruct the conveyancer to withhold parts of the sale proceeds (for payment to SARS) until outstanding tax issues have been addressed, or unless necessary arrangements are made. It is therefore imperative that agents, sellers and purchasers ensure that their tax affairs are 100% up to date.
For estate agents especially, it is important to note that the forms do make provision for the split in commission between agents, but do not provide for the scenario where the agent and the agency split the commission, which could convey an incorrect perception of an agent's actual income. It is therefore crucial to keep detailed records of all such commission splits and properly account to SARS in respect thereof.
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