Do you have SARS debt?
If you have SARS debt, all is not lost. There are still some options you can exercise. This relates to any money due for any tax debt, whether it is personal income tax, business tax, PAYE etc. It is important not to wait for a final demand to be issued, but to attend to the debt as soon as possible. The following routes can be taken:
1. Payment arrangement
If it is not possible to pay the outstanding SARS debt in one payment, then a payment arrangement is the best option. It is possible to apply for an arrangement for up to 12 months on eFiling. If 12 months is not enough to pay the debt off, a manual application has to be directed to SARS. They will then consider the monthly instalments, and notify the taxpayer on whether they accept it.
2. SARS Debt compromise
When paying the whole outstanding amount is not an option, it is possible to send SARS a debt compromise. This means that if accepted, a portion of the debt will be written off. The taxpayer can then just pay the amount agreed upon. If a debt compromise is submitted, it must be accompanied by financial statements, all the assets and liabilities of the company etc.
Contact us if you need assistance with this process.