SA’s local government association is proposing that legislation be amended to allow Sars to divert tax refunds from individuals who owe municipalities money to help pay for the outstanding debt municipalities have been struggling to recover.

“We can improve municipal revenue collection instruments through measures such as amending the Tax Administration Act so that before Sars pays tax refunds, it first checks if the particular taxpayer [has] monies due to their municipality,” SA Local Government Association (Salga) president Thembi Nkadimeng said on Tuesday...

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