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Do you know the three points your formal tax debt write off agreement must contain?

by , 16 July 2014
Financial difficulty can put you in a really difficult spot when it comes to your company's taxes. The less money your company has, the less you're willing to give SARS.

If you're not careful though this can very easily turn into tax evasion. This could land you with serious fines, penalties or even jail time.

So take action before it even gets there. If you're really struggling to pay off your tax debt, apply to SARS for a tax debt write off.

It could save you and your business...

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Here's how a tax debt write off works

When you apply for a tax debt write off, you're asking SARS to basically forget about all or part of the money you owe it.
It won't just do this for your benefit though. It'll consider the tax write off only if the cost of chasing after the money will cost it more than it'll get from you.
So let's say SARS agrees to give you the write-off. Now you need to have a formal written agreement with it to ensure both of you up hold the deal.
Here are the three things that must be in the agreement...

Ensure your formal tax debt write off agreement with SARS has these three points

1. The amount you must pay – if any – in order for SARS to consider the debt settled.
2. Any promise from SARS not to come after you for the balance of your tax debt.
3. Any other conditions SARS has for it to write off the debt.
With these three points in your formal tax debt write off agreement, you can be sure SARS will up hold its end as long as you do.
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