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Can't afford to pay your VAT to SARS this month? Here's what you can do before SARS' new debt collectors come after you
Don't worry! The Tax Admin Act gives you a lifeline! And you don't need expensive lawyers or consultants to take advantage of it.
In chapter O04: Overdue VAT accounts
of the Practical VAT Loose Leaf Service
, we'll show you what to do when you can't afford to pay your output tax
. We give you a sample letter, a list of acceptable reasons and proof you can use to motivate your case to SARS and the entire step-by-step process you need to take. Plus, we list six documents you need to get to a successful outcome.
Get your hands on your copy of this resource today here
, before SARS' debt collectors come after you!
One of these three private debt collectors may be coming after you for a SARS tax debt
NDS Credit Management, Credit Solutions and Lekgotla Trifecta Capital Consortium are the private debt collectors SARS has outsourced to. I understand they can earn up to 10% of the debt they actually recover. SARS manages to keep its total costs to less than 1% of the revenue it collects.
But unfortunately, the payment reference numbers they quote don't correspond with SARS statements of account. So rather rely on the SARS information… although even these contain many errors and unexplained journal entries.
So if you get an SMS, phone call or the following letter from one of the appointed debt collectors, it's still best to sort out the issue with SARS. Read on below…
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In 2016 the government expects to collect R284 billion from VAT, up by 10% compared to 2015.
Considering VAT is the second source of income to the consolidated budget, your 2016 VAT returns are now SARS' favourite target for audits!
Don't let this happen to you.
Attend the VAT Masterclass 2016 and get detailed info on the VAT201 form and how to complete it correctly so SARS doesn't turn its attention on you.
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RE: OUTSTANDING SARS ACCOUNT (PAYE) - TOTAL BALANCE: R10105.39
We hereby confirm that the above-mentioned SARS account has been handed over to NDS Credit Management for collections. We would like to help you fulfil your obligation to SARS to avoid the need for SARS to pursue legal collections strategies.
SARS requires immediate settlement of this account. However, should you be unable to settle the full account at this time, please contact us so that we can assist you in concluding an acceptable payment arrangement.
A full breakdown of the outstanding account is reflected below, including the interest, penalties and additional taxes charged. Note that different tax types and different periods may require separate reference numbers when making payment. These are reflected as the "PRN Numbers" in the breakdown. Using the incorrect PRN number will result in your payment not being allocated correctly.
A breakdown of the tax returns outstanding on your account (where applicable) is also shown. Please note that it is a criminal offence to not submit your returns, so your prompt attention to this matter is required.
Payment can be made directly at any SARS branch (ensure you use the correct PRN numbers), via e-filing if you are registered, or via EFT. SARS is a pre-loaded beneficiary, so no banking details are required. Please ensure the correct PRN numbers are used throughout. E-filing is generally the most convenient payment channel for registered taxpayers.
A payment arrangement plan (deferment) can be applied for, should immediate settlement not be possible, however note that the following conditions hold:
· All outstanding tax returns must be submitted first
· An immediate part-payment is required within 7 days
· A deferment request must be completed (forms available on request from either SARS or NDS Credit) and returned to NDS Credit within 48 hours
· The required documentation must accompany the deferment request - including motivation for the requested deferment
Should you have any queries or disputes, please feel free to contact SARS directly on 0800-007-277. Alternatively, contact NDS Credit on 011-521-7233 or email firstname.lastname@example.org.
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Get back 25% of the bad debts you've incurred in the last year, thanks to this SARS tax allowance
Small businesses are going to great lengths to chase up outstanding amounts from clients and customers. Some debts will be impossible to recover, unfortunately that means your cash flow could suffer. But there's good news. You could claim a doubtful debt allowance, by deducting 25% of the debts....
Read on to find out more!
Did you get a debt collection letter from SARS' debt collectors? Here's what you need to do
Whatever you do, only pay any tax
demanded into a nominated SARS bank account. You must also get details of the payment reference number or else your money will end up in the lost and not found account. There's about R5 billion lying in this account and, after five years, these payments are forfeited to the Government.
SARS warns about scammers, so don't give any information over the phone or in response to an email. Here's a recent scam they told us about.
I've just finished reviewing the upcoming issue of the Practical VAT Loose Leaf Service.
We're sending it to the printer this week. In it, we give the five steps you need to take when you can't afford to pay SARS. Follow them all the way through and you won't have to face unnecessary fines and penalties.
If you want to receive your copy, add your name to the list before midnight tonight here…