Tax relief may be available where a taxpayer cannot settle an outstanding SARS debt in full, either through a compromise of part of the debt or an approved payment arrangement.
Tax relief can be best described as restructuring your tax debts, either through a compromise of a tax debt / “tax write-off” or deferral of payment arrangement.
This is known as a tax compromise, or a section 200 application, where you apply to SARS to legally “write off” or reduce a company’s tax debt.
A senior SARS official may, in terms of section 200 of the Tax Administration Act 28 of 2011 (‘TAA’), write off a portion of a company’s tax debt on good cause shown.
Tax Relief Applications must comply fully with the requirements contained in section 201(1)(a) to (h) of the TAA for the taxpayer to be successful in its application for a “write off”. It is critical to employ the services of a professional with a good working knowledge of the TAA as well as good relations with SARS to prepare and present your application.
At Andrew Venter Attorneys we are geared to prepare and present properly motivated and compliant Tax Relief Applications to SARS successfully.
A taxpayer may apply to SARS for a deferral of payment arrangement in terms of section 167 of the TAA.
Deferral of payment is where you apply to SARS to pay a tax debt in instalments over an extended period instead of paying one large lump sum. Such an arrangement will assist in the management of the taxpayer’s cashflow. The arrangement will also allow a taxpayer to avoid imminent judgment and execution against its assets.
At Andrew Venter Attorneys we are equipped to prepare and present a properly motivated and compliant application to SARS and increase your chances of a successful deferral of payment arrangement.
