HomeHome SearchSearch MenuMenu Our productsOur products

Do you understand the consequences of a tax debt compromise?

by , 18 September 2014
According to the experts behind the Practical Tax Loose Leaf Service, a tax debt compromise is a request to SARS asking it to 'park' your outstanding tax debt, if you're in financial distress.

Whether all or only part of a tax debt is parked, will depend on your financial circumstances and how much SARS can realistically recover.

As with everything else, a tax compromise comes with consequences.

Keep reading as we tell you about the consequences of a successful and unsuccessful tax debt compromise so you'll comply with tax law.


The consequences of a tax debt compromise are as follows 


The Practical Tax Loose Leaf Service outlines the consequences of a successful tax debt compromise:
 
  • You must stick to any conditions SARS attaches to the tax debt compromise.
 
  • SARS gives you a clean slate on your tax account.
 
  • The tax debt SARS parks doesn't attract interest.
 
  • You must always be up to date with your tax affairs. If you do something wrong, SARS might withdraw the tax compromise and reinstate the tax debt for collection.
 
  • Your statement of account won't show the large tax debt due to SARS anymore. Just remember SARS has parked the debt, not written it off! It hasn't disappeared, it's still there, just hiding in the wings.
 
Now let's get to the bad news: The consequences of an unsuccessful tax debt compromise.

 
*********** New release ************
 
31 Ways to slash your company's tax bill

Save your business thousands of rands with these 31 tax breaks

Click here to find out what they are

**************************************
 

These are the consequences of an unsuccessful tax debt compromise

 
  • SARS might immediately seek other action against you.
 
  • Your tax debt is still due in full.
 
  • You may have to go through a SARS audit.
 
  • You have to reapply for a tax compromise. Don't give up on the tax compromise if you believe and can prove that the compromise will make the best of a bad situation that both you and SARS find yourselves in.
 
Now that you know the consequences of a tax debt compromise, comply with tax law.
 
PS. Get the answers 65 of the most frequently asked company car and travel allowance questions right here.


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>