Cheque Payments

Cheque Payments

Legislation, Tax

SARS has now confirmed that as from 16 July 2012, cheque payments over R500 000 will no longer be accepted by the banks. In addition, banks will also no longer accept “split” cheques (i.e. where the total payment is broken down into a number of smaller payments thus enabling companies to get around the R500 000 single cheque limitation).

These changes are in addition to the implementation of the SARS payment rule (1 June 2011) which stipulates that SARS will not accept a cheque payment for more than R100 000.