Before you apply for a tax debt write-off, you need to know that SARS won't grant you a tax debt write-off just because your business is having a tough month, says FSP Business.
'SARS 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.'
That's not all.
You must include these details in your application for a tax debt write-off.
Want to request a tax debt write-off from SARS? Have these 10 things handy
Here's what the Practical Tax Loose Leaf Service says you must include in your application for a tax debt write-off:
#1: A clear request to waive all or part of your outstanding tax debt with your reasons for seeking it.
#2: Evidence that supports your claims that you're unable to fully discharge your tax debt.
#3: A detailed statement of assets and liabilities. You must include South African and foreign assets and liabilities and their current market value.
#4: A schedule of income and expenditure covering the 12 months before the date of your request.
#5: A list of all your interests in property or funds that you've disposed of during the three years immediately preceding the date of your request.
You must also include the value of all property and funds disposed of, the name of the person who acquired them and details of any relationship that may exist between you and that person.
#6: Details of any possible future interest in property or funds (for example, by way of donation, inheritance or distribution from a Trust). Include interests that are certain and those subject to any contingency or discretionary power.
#7: A list of all property and funds you have any direct or indirect power of disposal (for example, as trustee).
#8: A list of all entities you control.
#9: A schedule of your present and likely future sources of income and their amounts.
#10: An outline of your financial plans for the future.
SARS will only consider your application for a tax debt write-off if it has the above mentioned details. So be sure to include everything.