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Great news! If you answer 'no' to these six questions, SARS will accept your tax debt compromise application

by , 05 September 2014
If you're battling with tax debt, there's a tax lifeline. It's called a tax debt compromise.

It's a request to SARS asking it to 'park' any outstanding tax debt if you're financially distressed.

By parking the debt, SARS will agree not to demand payment and this will allow you to repay the debt in installments.

Now there are six questions SARS will ask you once you submit your tax debt compromise application. If you answer 'no' to all of them, SARS will accept your application.

Keep reading to find out what these questions are so you'll increase your chances of success when it comes to a tax debt compromise.


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SARS will ask you these six questions when it receives your tax debt compromise application


Experts behind the Practical Tax Loose Leaf Service say, if your answers to these questions are 'no', then you stand a good chance of SARS undertaking your compromise:

Question#1: Will SARS get more tax back by continuing to demand payment, or taking money out of your bank account?

Question#2: Will SARS recover the outstanding tax debt from a third party, like debtors who owe you money, debit owner loan accounts

Question#3: Will SARS get more money through the courts (considering the lengthy timeframe and costs involved) as opposed to the compromise?

Question#4: Will SARS get more money if they liquidated or sequestrated you (considering the lengthy timeframe and costs involved) than through the compromise?

Question#5: Will compromising the tax debt result in SARS taking longer to recover a tax debt (or part thereof) than by any other means available to it?

Question#6: Are there any other options available to SARS to recover the outstanding tax debt?


Why does SARS ask these questions?


Because SARS is removing your obligation to pay an outstanding tax debt, it will want to know if the compromise will secure the highest net return on the outstanding tax debt.

It's that simple.

The bottom line: If you answer 'no' to these six questions, SARS will accept your tax debt compromise application.
 
PS. Find out how to take the hassle out of tax, audit-proof your business and make the Receiver your friend!


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