What is a request for suspension of payment?
The request for suspension of payment is a written request in terms of the Tax Administration Act, 28 of 2011 (“the TAA”), whereby a taxpayer requests that a payment be suspended pending the lodging of a dispute.
Effect of the suspension of payment
The effect of the suspension of payment is that the taxpayer’s debt is automatically suspended, from the date that the request for suspension of payment is submitted to SARS, up and until 10 business days after SARS informed the taxpayer of its decision
A senior SARS official will consider the request for a suspension of payment and will take various elements into account to assist the official in reaching a decision. It is of the utmost importance that these elements are dealt with comprehensively and motivated meticulously in the taxpayer’s request for suspension of payment to ensure that the request is granted by a senior SARS official.
Considering the strain that the economy is currently under as a result of the lockdown regulations imposed, the possibility arises that SARS will now more than ever be desperate to collect outstanding taxes from taxpayers. Where a request for a suspension of payment falls short of addressing the required elements, SARS may be inclined to reject a request for suspension of payment and the taxpayer faces the risk that SARS may commence with collection proceedings.
Tax Consulting SA has a team of highly qualified tax attorneys who will be able to assist you in drafting a compelling and well-motivated request for suspension of payment, giving you the best opportunity to suspend that immediate tax liability. Any personal information shared with our tax attorneys will be protected by legal privilege.