What if I owe the Tax man?

What if I owe the Tax man?

No one likes owing people money. Even worse, no one likes owing the government money.

It’s especially difficult when one doesn’t know exactly how much or from how far back this debt extends, because your contact details changed, and you have missed all their correspondence.

While you may think that this is a valid excuse to get away with not paying your taxes, the law would disagree. According to the South African Revenue Service (SARS) it is each citizen’s individual responsibility to ensure that they are tax compliant.

This means that you are certain that:

• Your contact details are up to date
• You know your tax status
• You are submitting an accurate and complete return, on time
• You pay the amount indicated in communications from SARS, within 7 days.

Remember, just because you have not heard from SARS, that does not mean that you are Tax Compliant. You need to contact SARS to confirm your status as Tax Compliant by requesting a statement of account via your e-filing profile or enlisting the help of a qualified tax practitioner like us.

We understand that taxes are quite complicated and that many people do try and leave it for as long as they think they can get away with it, however we are here to help you.

Think of us as your companion in tax compliance.

Our dedicated team of highly skilled, qualified tax practitioners are here to unpack the tax process and help you get comfortable with making compliance one of your good habits!

Many of our clients make us of our tax services every year, to ensure they can cross one more thing of their list of things to do. Even if you have not joined us yet, R450 will get you the peace of mind of being in safe hands.

If you need assistance with making payment to SARS, or requesting a payment arrangement be put in place, you can contact us, and we will be there every step of the way.

Some important things to know if you are needing to request a payment arrangement:

SARS may enter into a payment agreement only if:

• The taxpayer suffers from a lack of assets or liquidity which is reasonably certain to be remedied in the future;
• The taxpayer anticipates income or other receipts which can be used to satisfy the tax debt;
• Prospects of immediate collection activity are poor or uneconomical but are likely to improve in the future;
• Collection activity would be harsh in the particular case and the deferral or instalment agreement is unlikely to prejudice tax collection;
• The taxpayer provides the security as may be required;
• All outstanding returns and/or recons are submitted.

If you are choosing to dispute the amount you owe SARS, we can assist with too, however you should be aware that you are expected to pay the amount owed, and based on the outcome of the dispute you may be credited that amount at a later date.

On a final note, remember that failing to pay your taxes without at least making an arrangement to that end, is a criminal offence. There are serious consequences if you choose to ignore SARS communications and not make payment.

SARS can, and will, institute what are called “enforcement collection actions” as follows:

• Collect the money against any third party in terms of Section 179 of the (Tax Administration Act) TAA
• Issue a Civil Judgement Court against the taxpayer
• Attach the assets of the taxpayer
• Hold the directors/members/related parties liable for the debt
• Sequestrate/liquidate the taxpayer
• Preserve the assets against the debt

So rather avoid that all together and just give your Compliance Companion a call instead!

With Legal and Tax, you’re not alone

• WhatsApp - Just type 'Hi' to start chatting
• Email
• Call 0860 587 587