Athletics SA faces a stack of bills and outstanding payments.
Majavu was appointed to decide how best the ASA should spend its money to get out the financial black hole it's dug itself.
But its first priority is making sure it's tax
compliant, as athletics body owed nearly R2 million to SARS for not paying SARS money deducted from staff salaries.
If this isn't paid, SARS could attach the federation's bank account.
This means SARS'll be able to take the funds it's due directly from ASA's bank account.
But don't panic just yet that you face a similar fate if your business has also run up a scary tax
bill with SARS.
Your first step is to acknowledge the problem and not stick your head in the sand, hoping the problem will go away, because it won't.
Then, you need to approach SARS for a tax
debt write off or a tax
compromise agreement, says FSPBusiness
Two situations where SARS'll grant you a tax debt write-off
debt write off would be the best solution as your tax
debt will be cleared, but be warned - SARS will only write off your tax
debt temporarily if it's uneconomical for it to chase the money, meaning the total cost of recovering the tax
debt will exceed the amount that SARS would actually be able to recover from you, says The Practical Tax Loose Leaf
And SARS will only permanently write off an amount of tax
debt when the debt is totally irrecoverable at law, even if SARS had to arrange a compromise.
So your best bet is to request a tax
debt compromise with SARS, as this will give your business a bit of breathing room.
Send this info to SARS to request a tax debt compromise…
To do so, you'll need to apply in writing, giving a detailed list of all your business assets and liabilities at their current market value.
That's why it's so important to keep an up-to-date fixed asset register, as it includes detailed information on all the assets your business owns like the fixed asset number, a description of the asset, its cost price, the purchase date and balances per class of asset, explains Henk Heymans, Editor-In-Chief of the Practical Accountancy Loose Leaf
Remember that if you also provide SARS with a detailed list of your income and expenditure for the last 12 months, as well as copies of your bank statements for the past 12 months and a reason why you need, SARS'll be more likely to agree to a tax
debt compromise for you.