SARS cancels Julius Malema's tax compromise. Here's how you can avoid this happening to you
In 2014, Julius Malema came to an agreement with SARS to park his tax debt. But SARS isn't going to honour their original agreement.
SARS has found five grounds for the compromise agreement not to be binding anymore.
Julius has gone to the high court to get SARS to honour the agreement but the high court has told them to go to trial over the matter.
All because SARS believes Julius Malema hasn't kept his tax affairs current. Which is just one of the requirements for SARS to park your tax debt.
When can SARS cancel a tax compromise agreement?
SARS can bring back a compromised tax debt if you contravene any tax law or obligation going forward. Even if you forget to submit one return, SARS is within its rights to withdraw the compromise and put the entire tax debt back on your account for immediate collection.
If SARS becomes aware that any of the information or facts you give, aren't accurate or you didn't supply certain information, it can cancel the agreement.
Also keep in mind that if you're sequestrated, or your business is liquidated after SARS grant the compromise but before
you settle the agreed amount, SARS can cancel the agreement and reinstate the parked tax debt.
This means you have a responsibility to ensure you're always compliant – at all times!
Don't let this happen to you.
If you're about to apply for a tax compromise, get your hands on the Practical Tax Loose Leaf.
It covers everything you need to know about tax compromises and what you have to do to apply for one. AND make SARS stick to it.
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