Julius Malema's SARS
tax woes just won't stop
Now, it turns out his Ratanang Family Trust wasn't registered for tax either, The Namibian reports
Hoping to avoid similar protracted litigation, retail giant Edcon has chosen to settle its tax debts with SARS
based on its'tax treatment of interest payable on the financing of the acquisition of the group by Bain Capital,'writes Sasha Planting on Moneyweb
'We believe we were in compliance with applicable South African tax laws and regulations
,' says Edcon CFO Mark Bower in Planting's article.
'Nevertheless, we perceived it to be beneficial to engage in settlement discussions and we entered into a tax settlement agreement
If you're in a similar boat, and you're struggling to pay SARS the tax debt you owe, there's help on hand!
If your company is in a similar situation, you can submit a request to SARS
to write-off the tax debt
you owe it, writes FSP Business
won't grant you a tax debt write-off
just because your business is having a tough month.
will only write off your tax debt
temporarily if it's uneconomical for it to chase the money. This is when the total cost of recovering the tax debt
will exceed the amount that it'll recover from you now.
The following five factors will determine whether SARS writes off your tax debt or not:
1. The amount of your tax debt.
2. How long your tax debt
has been outstanding.
3. The steps you've already taken to recover the tax debt
and the costs involved in taking those steps, including steps taken to locate or trace you.
4. The likely costs of continuing the action to recover the money, weighed against the actual return.
5. Your financial position, including assets and liabilities, cash flow and possible income streams.
doesn't allow a tax debt write-off,
you can still apply for a tax compromise agreement
, which lets you to pay the tax debt
in instalments, adds FSP Business
But this should be your last resort because your application for a tax compromise agreement
could result in SARS
auditing your family or business associates.
For more information on SARS
' rules on writing off tax debt
get your hands on the Practical Tax Loose Leaf
. In the Practical Tax Loose Leaf
we've got a dedicated chapter on your tax payer rights. In it you'll discover
What are your rights when you're audited?
How long does SARS have to issue another assessment?
Tax evasion will get you 5 years in jail
Get the Practical Tax Loose Leaf here.