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Income Tax Act, 1962 (Act No. 58 of 1962)


2007 Regulations

Regulations issued under Section 91A, prescribing the circumstances under which the Commissioner may write-off or compromise any amount of tax, duty, levy, charge, interest, penalty or other amount

Part 3

Irrecoverable at law

7. Tax debts irrecoverable at law


(1) Subject to subsection (2), a tax debt is irrecoverable at law if—
(a) It cannot be recovered by action and judgment of a court; or
(b) It is owed by a debtor that has been liquidated or sequestrated and it represents the balance outstanding—
(i) after notice was given by the liquidator or trustee that no further dividend is to be paid or a final dividend has been paid to the creditors of the estate; or
(ii) following the termination of a compromise or arrangement as contemplated in section 311 of the Companies Act, with the debtor’s creditors, which has been sanctioned by a court.


(2) A tax debt is not irrecoverable at law if the debtor is a company or a trust and the Commissioner has not first explored action against or recovery from the personal assets of any director, shareholder, trustee or persons acting in the management of that debtor.