Share

Law lets Sars collect first, argue later

Johannesburg - The conditions under which taxpayers can be exempted from the pay now, argue later rule in tax disputes have been clarified by a legal change that took effect on February 1, the South African Revenue Service (Sars) said on Monday.

The Taxation Second Laws Amendment Act confirms the long-standing rule that disputed tax can be collected despite an objection from the taxpayer, Sars said.

It also gives guidance on which factors Sars has to consider when a taxpayer asks that payment be deferred until the dispute is decided.

These include the taxpayer's history of compliance, the risk of dissipation of assets during the suspension period and whether the taxpayer can provide adequate security for the amount claimed.

Sars will also consider whether paying the tax would result in "irreparable financial hardship" or whether the objection to paying it was "vexatious and frivolous".

The amendment also stipulates that, should the taxpayer pay the amount demanded and the dispute is later settled in his favour, Sars would pay the same interest it normally charges on outstanding debt when reimbursing the money.

At the moment, interest on outstanding debt is 9.5%.

Sars spokesperson Adrian Lackay said existing Sars decisions to suspend payment of a disputed amount will remain valid until the date stipulated in the decision or July 31, whichever was earlier.

      
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.42
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders