Student Financial Aid Scheme clarifies implications of SARS’ Tax Administration Act

The National Student Financial Aid Scheme (NSFAS) welcomes the amendment of the Tax Administration Act, 2011 by the Minister of Finance, Pravin Gordhan. This development – a notice of which was issued last week Friday, 8 July 2016 – will ensure that NSFAS is now included in the list of statutory bodies who can request the South African Revenue Service (SARS) to furnish them with contact details of identified tax payers.

The promulgation makes provisions for SARS to disclose to NSFAS, debtors' names, their tax reference numbers, personal contact details, their employers’ names and contacts, and other non-financial information, at the request of NSFAS, and in the event that SARS possesses such information on the requested individuals.

These provisions are in line with section 24 of the NSFAS Act 56 of 1999 as amended, which states: “Despite section 4 of the Income Tax Act. 1962 (Act No. 58 of 1962), the South African Revenue Service must at the request of the board, furnish it with the name and address of the employer of a borrower, if such information is known to the South African Revenue Service”.

NSFAS Spokesperson, Mr. Kagisho Mamabolo said, “We would like to make it clear that SARS is not going after people who owe NSFAS. In fact, SARS will not be involved in people’s debts to NSFAS. What this Act amendment means is that if a NSFAS debtor is employed but fails to inform us or pay their loans, we can request SARS to give us their contact details, employer’s name, and other relevant information. That is where SARS’ involvement starts and ends. We as NSFAS will then make contact with our debtors,”

NSFAS is currently owed around R14 billion by beneficiaries who completed their studies at TVET colleges and public universities, and has embarked on a campaign to encourage beneficiaries who are now employed, to inform us of their employment status and make arrangements to repay their loans.

Debtors who wish to make repayment arrangements or enquire on their loan balances may contact NSFAS Contact Centre on 086 00 67 327 or email recoveries@nsfas.org.za with their personal details.

Enquiries:
Tsepo Khanye
Tel: 021 763 4720
Cell: 079 348 0894
Email: media@nsfas.org.za

Siphe Matomela 
Tel: 021 763 3200
Cell: 074 851 5277

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