Stemming from SARS’ recent Revenue Result Announcement, and the pre-cursors of new compliance and collection initiatives over the last 5 years, Deferrals of Payment and Compromises of Tax Debt are all the market hype!

Just the thought of being able to legally reduce your tax debts due to SARS, although sounding like a pipedream, is a very real possibility where the circumstances, and team of professional backing you, are correct.

As we all know, SARS’ mandate has always been maximising revenue collection, by whatever means necessary, including permitting taxpayers’ partial write-off on tax debts due to SARS, in return for guaranteed settlement of the balance.

Prudence of Legal Professional Privilege 

When you venture into the realm of navigating your complex and high-value SARS Tax Debt, essentially one of the most important decisions you will ever take, the integral starting point is ensuring your chosen representative grants you legal professional privilege on information shared. 

Where the tax debt owed is in the millions, SARS are often aggressive in collections, and having an attorney with trial advocacy experience under their belt gives you an undisputed edge in negotiating on the legal papers submitted. Beyond this, where the correct legal course of action per the Tax Administration Act is followed, you will not be subjected to funds withdrawn from your bank account, without your consent.

Whilst you may be legally protected from criminal sanctions, your tax attorney is best complimented with an astute accountant or tax returns specialist, knowing the ins and outs of compliant legal disclosure, whilst mitigating financial harm. 

Experience or Manpower – Why Not Have Both

This may sound like the perfect partnership, and relatively easy to find, but what happens when SARS are unresponsive or exceptionally pedantic on documentary submissions? Quite simply, knowing who to have in the room to reach the most effective and beneficial resolution, can only come with years of experience, which will not be found with the “new kids on the block”.

Now if your practitioner or accountant is not particularly well-versed in the reading of legislative provisions and the debt relief process, as contained in the tax laws, your only hopes of success are to couple their expertise, with those of astute tax attorneys. This may give your case the legs needed to cross the finish line, in conjunction with the manpower to muscle through SARS’ queuing system, until your matter is at the top of the pile. 

This may often entail weekly, if not daily, follow ups with SARS, which requires a number of dedicated resources to apply the pressure needed, whilst continuously monitoring current compliance.

Enlist the “A-Team” – Seasoned Tax and Legal Experts

When it comes to your tax affairs, and in order to protect yourself from SARS, it remains the best strategy that you always ensure compliance! 

Where you find yourself on the wrong side of SARS, there is a first-mover advantage in seeking the appropriate tax advisory, and legal muscle, ensuring the necessary steps are taken to provide financial protection to you and your family. However, where things do go wrong, SARS must be engaged legally, and we generally find them utmost agreeable where a correct tax strategy is followed.

As a rule of thumb, any and all correspondence received from SARS should be immediately addressed, by a strong multi-faceted tax, legal, and financial team – the “A-Team”. This will not only serve to safeguard you against SARS implementing collection measures but also being specialists in their own right, you will be correctly advised on the most appropriate solution to ensure your tax compliance.

Written by Jashwin Baijoo, Head of Strategic Engagement & Compliance at Tax Consulting SA