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How many times can I apply for a tax debt compromise on the same tax debt?

by , 29 September 2014
Our tax experts have been getting a lot of questions regarding a tax debt compromise.

One question we picked from their big pile, comes from an employer who wants to know how many times she can apply for a tax debt compromise on the same tax debt.

If you want to find out the answer too, here's what you need to know so you can take advantage of a tax compromise to minimise the risk of the debt coming back to haunt you in the future.


Before we get to how many times you can apply, let's look at what a tax debt compromise is

 
In this article, experts behind the Practical Tax Loose Leaf Service explain that a tax debt compromise is a request to SARS asking it to 'park' your outstanding tax debt when 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.

You can apply for a tax compromise at any time during a tax year and you should do so as soon as you realise you can't pay any outstanding tax debt to SARS.

Now let's look at the burning question: How many times can you apply for a tax compromise on the same tax debt?

 
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There's no limit to the number of times you can apply for a tax debt compromise on the same tax debt 


You can apply for a tax debt compromise on the same tax debt as many times as SARS turns you down!

You must NEVER give up on the tax debt 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.

To find out about the process you need to follow to apply for a tax debt compromise, check out the Practical Tax Loose Leaf Service.



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