The greatest concern for most taxpayers is what collection steps SARS will implement should the final demand remain unsatisfied. Will SARS attach your property? Will the funds in your bank account be siphoned via a 3rd party appointment? These are all very drastic, and very real measures which SARS utilises on a daily basis.
There are various responses to receiving a final demand from SARS, the most unfavourable of which, especially in this current economic climate, would be paying the full amount due.
A more favourable response would be entering into a payment arrangement, of which there are 2 types, being the Debt Compromise and the Deferral of Payment.
The starting point for either agreement is the submission of a Suspension of Payment which will stop SARS dead in its tracks. Once this has been submitted, SARS may not implement any collection steps to recover the outstanding tax debt.
This allows the taxpayer time to enter into and finalise a payment arrangement, either saving themselves a large portion of the outstanding tax debt, or buying time to get together sufficient funds to satisfy such tax debt, and paying it to SARS in monthly installments.
This is certainly not the time to take risks. SARS’ approach clearly shows you are dealing with a competent revenue authority, so why risk it when you can reduce it!
Our multidisciplinary team of tax attorneys and chartered accountants have a proven track record of negotiating with SARS and have assisted many companies to successfully apply for both debt compromises and deferred payment arrangements. We guarantee legal professional privilege on your matter and follow a strict legal and compliant approach with solution-based thinking.