Struggling with a Large Tax Debt?

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 SARS has several powerful tools to collect the money. Here’s what they can do:

• Take money from third parties who owe you or hold your funds — like your employer, bank, or customers
   
• Get a civil judgment against you, which can ruin your credit record
   
• Seize and sell your assets
   
• Freeze your assets through a court preservation order
   
• If you own offshore assets, SARS can get a court order to bring them back to South Africa — and restrict your right to trade or travel in the meantime
   
• Liquidate your business or sequestrate your estate

You may qualify if:

• Your tax debt is older than 12 months and not under dispute
   
• You are not insolvent, deceased, or finally deregistered with CIPC
   
• Your debt is not related to fraud or criminal activity
   
• All tax returns are up to date, even if you haven’t paid yet
   
• You can prove you’re unable to pay the full debt (not just unwilling)
   
• You haven’t received a compromise in the last 3 years (per Section 200 of the TAA)

You won’t qualify if:

• Your business is in liquidation or business rescue
   
• You’re under criminal investigation
   
• You can afford to pay but choose not to
   
• Your tax account is under audit, suspended, or temporarily written off

Applications must be done by a registered tax practitioner linked to a Recognised Controlling Body (RCB).

You’ll need to provide:

• Financial statements
   
• Proof of income, expenses, and liabilities
   
• A 3-year financial plan
   

SARS aims to finalise qualifying applications within 4 weeks, using a dedicated team and improved internal processes.

• If approved: You pay the reduced amount, and SARS writes off the rest
   
• If you default or fall out of compliance: SARS may reinstate the full debt
   
• If not approved or you don’t meet the conditions: SARS will continue with normal enforcement (e.g. court orders, asset seizure)

A Debt Compromise is a formal negotiation with SARS. Getting it wrong can cost you the chance to settle your debt.

At ACG Consult, we:

• Check if you qualify
   
• Help you prepare a strong, complete application
   
• Handle submission and communication with SARS