When dealing with a deceased estate, correspondence with the South African Revenue Service (SARS) can seem overwhelming. To make it simpler, we’ve put together some key tips for effective and efficient communication with SARS.

• Share Important Information: In all your interactions with SARS, be sure to provide essential details, such as the deceased person’s ID number, tax reference number, or estate number. This helps SARS accurately identify your case.
• Case Numbers Count: When you report an estate to SARS online or via email, you’ll receive a unique case number. This number is crucial for all future discussions. It’s also found in the engagement letter sent to the representative taxpayer when SARS codes the estate. Use this case number in all your future communications to keep everything connected.
• Organise Your Documents: When you submit documents to SARS, use the assigned case number for each file. Make sure to name each document clearly, indicating what it contains (e.g., “Death certificate,” “ID of the deceased,” “ID of the executor”). This structured approach helps SARS process your documents efficiently.

Understanding Deceased Estates: 

A deceased estate includes all the assets a person owned at the time of their death. An Executor manages this estate, handling tasks like settling debts and distributing remaining assets to beneficiaries.

Employer Duties: 

When an employee passes away, the employer must give the employees’ tax certificate (also called the deceased estate clearance certificate) to the executor within 14 days of the employee’s death. This obligation remains, even if the EMP501 reconciliation hasn’t been submitted yet.

Insolvent Estates and Liquidation:

Insolvent estates involve complex tax situations. Knowing the different taxpayers involved, such as the insolvent person before and after sequestration, as well as the insolvent estate, is vital. Liquidation, regulated by the Companies Act, leads to the dissolution of a company or close corporation.

Reporting an Estate to SARS: 

You can report a new estate case to SARS by emailing them or using the SARS Online Query System. Ensure you include all the necessary supporting documents to make the process smoother.

Updating Representative Taxpayer Details: 

For representative taxpayers, like Executors, it’s essential to provide SARS with official appointment documents. Keeping your personal tax profile up to date ensures smooth communication and compliance. If corporate stakeholders nominate employees for estate roles, those employees should maintain updated profiles through the prescribed channels.

Dealing with estate matters, especially when taxes are involved, can be complex. At Greenpen, we understand this and offer expert guidance to make your journey easier. Feel free to reach out to us for personalised assistance, built on our foundation of relationships, passion, excellence, and technology.

We’re here to support you in managing your estate-related taxation needs.