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JJ, Attorney
Category: South Africa Law
Satisfied Customers: 4502
Experience:  Admitted Attorney 17 years experience
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Income tax number outstanding

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I have sold a property through an agent to a Nigerian citizen. The Offer to purchase was signed on 4 June 2013 at a cash price of R3200000. A deposit of R120000 was paid within 5 days. The outstanding amount was due within 30 days, but was only fully paid about a month ago.The house was bought in a South African CC. I had occupation untill 31 Oct 2013 and the purchaser would take occupation on transfer. I have moved out and the house is empty, but still my resposibillity. The purchaser has not supplied a tax number for the cc up to date although it was requested on several occasions. At a meeting with the conveyancing attorneys today, it was also revealed that the cc is dormant and in the process of being deregistered. I requested the attorneys today to send a letter to the purchaser that, if they do not supply the tax number within 10 days, it is my right, according to a clause in the OTP, to cancel the sale. They did send this letter to the purchaser by e-mail and registered post. However, after our discussion this morning where they agreed that the deed cannot be lodged without a tax number, I received an e-mail which was sent just before 5pm, that "they took a chance" and that it was accepted on the Receiver's website! I do not want to get involved with an illegal transaction and want to know if it is possible to lodge a deed without proof of tax registration?

Hi and welcome!

My name isXXXXX you for giving me the opportunity to assist you.

Are you happy to rather cancel the deal?

Customer: replied 3 years ago.
Yes, I would rather cancel the deal than get involved with illegal activities. I quote in their own words as follow:
"We took a chance this afternoon and submitted the transfer duty declarations to SARS and they actually allowed us to make payment of the transfer duty – if they have a query on the transaction, they don’t give you access to the payment function but send you a letter containing their query."
Does this mean that they can lodge without an Income Tax number and even if the CC is dormant and in the process of deregistration?


They cannot lodge without a tax number. However, this is not your problem and not your obligation to deal with it. You just want them to proceed with the deal and all they need to do is to comply with the terms of the offer to purchase.

The ones who are going to be in trouble is going to be the lawyers and the purchaser. This however does not expose you in any way.

My view is that you should place on record that if the matter is delayed any further that you will cancel the deal.

What will happen is that SARS will come back with a query but this is after the transfer. By then they would have either registered the CC for tax or changed the entity.

Please ask more if not clear.

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