For a SARS Letter of Final Demand to be valid, there must be delivery of the letter to the taxpayer. The letter must contain both the recovery steps which SARS is permitted to take, as well as the relief measures available to the taxpayer. Should any of these requirements be lacking, the Final Demand will be considered invalid.
If you find yourself in this unfortunate, yet common instance, you can try and resolve this by making contact with SARS’ Debt Department or airing your grievances to the contact centre, but you may find SARS is less effective in returning your money than the kind of effectiveness displayed in accessing your bank account.
We have seen a significant increase in SARS using banks to collect alleged tax debts. In order to protect yourself from SARS, it remains the best strategy that you always ensure compliance.
Where you find yourself on the wrong side of SARS, there is a first mover advantage in requesting a suspension of payment, protecting your bank balance whilst the matter is resolved. However, where things do go wrong, SARS must be engaged legally, and we generally find them utmost agreeable where a correct tax strategy is followed.
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.
Jashwin Baijoo