How many times can I apply for a tax debt compromise on the same tax debt?
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.
In this article
Before we get to how many times you can apply, let's look at what a tax debt compromise is
, 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?
Find out how to avoid tax penalties of up to 200% today...
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We are a team of tax experts and we'd like to show you how to avoid nasty tax penalties from SARS and save you thousands of rands… maybe even R1 270 150.
Imagine SARS calls you and says they will be doing an audit of your business, you're not worried as you know your accountant has paid all your taxes on time and your finances are up to date.
Following the audit you get an assessment saying you owe penalties of 200% and interest on all the money you owe, which means you will have to liquidate your business!
This is what happened to Mr Da Costa because he didn't know anything about taxes and relied on his accountant to ensure he was paying the correct amount of tax… and paying it on time. Instead he got an assessment of R1 270 150!
If you know your rights and what you should be checking every month you can prevent this situation from happening to you. Here's how
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