SARS will request that debt management be done on a taxpayer if a taxpayer has an outstanding SARS account that cannot be repaid in one lump sum.
The process evaluates the taxpayer's full financial position and outlook, including all income and expenses.
In those cases, which have become more frequent due to the worldwide economic meltdown, SARS and the government have been lenient and do afford taxpayers the opportunity to stagger the payment towards their overdue account or accounts.
Bear in mind that interest and penalties would not be waived and interest would continue to accrue until the tax debt has been repaid in full.
At Taxrek, we assist clients and intervene on their behalf with SARS to resolve any outstanding tax issues and queries so that they can become tax compliant.
You cannot move forward before matters pertaining to your past have been resolved and settled.
This could be a stressful and daunting task for a client, but it does not need to be.
The Tax Administration Act of South Africa (TAA) allows taxpayers that were not compliant before "to come clean" with SARS and settle their outstanding debts amicably.
No one can lead until unresolved matters of the past stay unresolved.
No one can climb a mountain with a ton of bricks on their back. SARS has allowed taxpayers to be upfront with them so that they can strive towards the future without dragging behind their past indiscretions.
The debt management option is a perfect example thereof.