What is deemed a Tax Debt?
A tax debt includes any and all taxes due to SARS, for which the taxpayer has failed to adhere to the stipulated payment deadlines.
A tax debt may arise for various reasons, the most common of which are:
- a simple error or miscalculation while submitting your annual tax returns
- inaccurate advice from your accountant or financial advisor
- neglecting personal income tax or not submitting annual returns
- not ceasing your tax residency while working abroad
- purposely withholding tax
- not disclosing all your earnings, investments or assets
SARS’ aggressive collection steps when faced with outstanding tax returns, often result in the revenue authority helping themselves to your bank balance, or garnisheeing salaries.
Received A Letter Of Demand? Now What?
What starts as a final letter of demand for arrears owed to SARS, can quickly escalate to collection measures being implemented against you, while the arrears owed continues to balloon due to interest and penalties imposed by SARS.
In order to correctly prevent the implementation of these collection measures, SARS must be approached legally for the most viable solution to be reached, in the form of:
- A Suspension of Payment Application;
- A Compromise of Tax Debt Application; or
- A Deferral of Payment Application.
Know Your Legal Rights – We Can Help
If your outstanding liability with SARS has you facing the prospects of costly litigation in the Tax Court, whether by circumstance or by accident, it is of pivotal importance to know your legal rights and exactly where you stand as a taxpayer. The various alternate relief mechanisms available to you, to either Suspend the immediate payment of the liability, or reach a settlement on the total outstanding amount, must be fully understood, and where SARS is approached correctly, they are most amicable to aiding the struggling taxpayer.
We are there to engage SARS, with both financial and legal assistance, and negotiate the most viable solution for both the revenue authority and taxpayer, being the best possible outcome for all parties concerned, at the lowest cost.
