Sometimes life just throw a curve ball and you get behind on your SARS taxes in such a huge way, that you just will not be able to catch up with any repayment plan. SARS do offer a SARS tax debt relief plan, called a compromise or settlement agreement.
With a compromise or settlement agreement you can make SARS an offer to settle all your outstanding taxes with an amount lower than the actual amount owed. When you do decide to take this route, you need to keep a few things in mind:
- You need to be 100% honest with SARS regarding your assets and liabilities.
- If your net asset value of your business is very high SARS will not accept an offer. The net asset value is the assets less liabilities.
- A compromise application can be done once and thereafter you will bind yourself to be 100% compliant in the future.
You would need a lot of documents for this application, and we will be able to assist you with this.
The following will be needed:
- Last 6 months bank statements.
- Financial statements for the latest complete financial year.
- Management statements up to latest month completed.
- Cash flow forecast for the following 12 months.
- Motivation letter for the compromise or settlement application
- The necessary application forms.
Feel free to contact us
for assistance with the application.
We are currently members of the Institute of Accounting & Commerce (The principle director JN Basson are registered with practice number AO652993) & South African Institute of Tax Practitioners.
Please complete the enquiry form below and we will get in touch with you.