5 points to use when requesting a payment suspension from SARS
The Tax Administration Act allows you to apply to SARS, in writing, to postpone your payment of the assessed taxes.
In other words, if you intend to appeal or object to a SARS assessment, you can ask them to suspend your obligation to pay any assessed taxes until the finalisation on your objection or appeal.
Here are 5 great sample points to use when requesting a payment suspension from SARS:
Sample point 1:
Our business has complied with all our obligations in terms of tax legislation. Therefore we're tax compliant.
Sample point 2:
The recovery of the disputed tax will not be jeopardised nor will there be a risk of the dissipation of our assets.
Sample point 3:
At first glance, there is no fraud is involved within the origin of the dispute.
Sample point 4:
Payment will result in irreparable hardship to us, not justified by the prejudice to SARS or the fiscus if the disputed tax is not paid or recovered.
Sample point 5:
It's worth noting that we haven't been found guilty of the crime of tax fraud, and so are relieved from the obligation of finishing security for the assessed taxes.
On top of the above-mentioned facts, it's advised that you also tell SARS you've raised an objection to the assessment, and that the tax court will, more than likely, stand by your objection. Also attach a copy of the objection to the application.
Also, note that your application must reach SARS within the 30 day period you have to object to the assessment. This is so that you can prevent SARS carrying out collection proceedings. SARS can't institute collection proceedings until 10 days after they've notified you of their decision to your application for a payment suspension.
*One vitally important thing to note is that you don't necessarily have to lodge your objection before requesting a suspension…. To find out more, subscribe to the Practical VAT Loose Leaf Service
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