SARS' Direct Approach to Indebted Taxpayers

Recent developments indicate that SARS officials are reaching out directly to taxpayers facing indebtedness. The aim is to offer payment arrangements in cases where taxpayers are unable to make full payments. This strategic move comes amidst a decline in Corporate Income Tax Collection.

SARS' Return to Outsourced Debt Collection

While it may seem like SARS is extending a helping hand, these direct communications are, in reality, last-ditch efforts to collect outstanding debts. In instances where no payment attempt is made, SARS has the authority to hand over the matter to external debt collectors, creating potential stress for indebted taxpayers.

Notices of Intention – Handover to External Debt Collectors

Taxpayers may be surprised to receive a "Notice of Intention – Handover to External Debt Collectors," but this is not a new strategy for SARS. SARS resorts to external collectors when traditional collection efforts face significant obstacles.

Keeping Collectors away

In the face of mounting tax debts, proactive steps can be taken to prevent handover to debt collectors and protect financial assets from SARS attachment. In some cases, SARS has shown empathy towards taxpayers facing insurmountable debt, leading to tailored solutions to rectify historical non-compliance.

Compromise of Tax Debt as a Solution

One notable solution is the Compromise of Tax Debt, allowing both individuals and corporations to reduce their tax liability through a Compromise Agreement with SARS. This agreement significantly reduces the tax liability to an affordable amount, providing relief and aiding in financial recovery.

Pro-Active Prevention of Collection

The best strategy to protect credit records and bank balances is to ensure ongoing compliance. Seeking tax advisory and legal support at the first sign of trouble provides a first-mover advantage. This proactive approach helps protect against SARS' collection measures and potential legal debt collection.

Addressing SARS Correspondence Promptly

Any correspondence received from SARS should be promptly addressed by a qualified tax specialist or tax attorney. This not only safeguards financial interests against collection measures but also ensures accurate advice on the most appropriate and affordable compliance strategy. Contact Pursuit Finance for assistance.