In our current economic climate South African businesses find themselves in a constant battle for positive cash flow in order to effectively run their businesses as well as pay their creditors. Unfortunately due to many factors, achieving a positive cash flow is just not always possible.
Businesses face the very real choice between either paying their employees and other necessary expenses in order to keep to doors open or to pay VAT and/or PAYE to SARS. In almost all circumstances businesses choose the former. This choice leads to action from SARS, as not paying these registered taxes are against the law.
SARS’ pursuit of these outstanding taxes are in most cases very hostile and businesses are threatened with multiple collection steps in order to collect these taxes.
Businesses either find themselves in a situation where:
They cannot or do not know how to approach SARS in order to structure an agreement that is both affordable by the business and acceptable to SARS and therefore ignore the requests; or
They accept terms given by SARS, that in most instances are not affordable and then default on the agreement.
Both of these instances lead to further collection steps where businesses one day wake up with money been taken out of their account or the sheriff at their doors.
The question is then how can a business manage this process by achieving terms that are both affordable to the business and acceptable to SARS and still continue to trade without SARS closing the business down.
The Tax Administration Act makes provision for either a settlement in the form of a Compromise or payment agreement in terms of a Deferment agreement.
It is from these two broad line options we construct formal arrangements with SARS in order to halt further collection steps and assist the business to become fully compliant with SARS.
Each business is unique and their situation is different, from the need of time to acquire funds to the need of a Tax Clearance Certificate, each business has its own set of circumstances and needs. Taking that into consideration as well possible solutions we assess each case and then formulate a strategy with the business in order to solve the tax debt with SARS. We therefore remove the burden from the business to deal with SARS directly and that allow them to focus on their business and the success thereof.
Here are some of the services we offer with regards to tax disputes:
Objections and Appeals;
Suspension of Payment;
Acquiring Tax Clearance Certificate;
Review to High Court;
We have many years of experience in this field and proud to say we have 100% success rate, where no client has lost its assets or their business by working with us in a deferment or compromise process. There can obviously be no guarantees on terms and amounts to be achieved at SARS, as this is a constant negotiation. However there will always be a guarantee that the best terms will be fought for.
Allow us to help your business by removing this burden and expertly assisting you in the resolution of the tax debt.
Meet the team that will be assisting you:
Gerhard Truter is a director specialising in commercial and tax law. He holds and LLB from the North West University and HDIP Tax diploma from the University of Johannesburg. He has been practising as an attorney for 7 (seven) years and has been employed in the capacity of director at Barnard Inc for a period of 5 (five) years. The focus of his practice is in commercial and tax queries and he holds vast experience in contract law, liquidation proceedings, compromises (in terms of Company Law and Tax law), commercial, civil and commercial crimes litigation and corporate restructures (with focus on tax implications and BBEEE compliance) within South Africa. In addition he has assisted many clients in the abovementioned fields throughout the African continent.
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