PKF South Africa

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The compromise of tax debt: fact or fable?


In current economic times, some taxpayers may prefer to follow the “head-in-sand” approach when it comes to outstanding tax debts it has no means of paying. Unfortunately, this approach will not make the tax debt go away, but rather give rise to interest being levied in respect thereof.

In certain limited instances it may be possible for the taxpayer to enter into a compromise arrangement with SARS in terms of Chapter 14 of the Tax Administration Act No. 28 of 2011 (“the TAA”).

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