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Income Tax Act, 1962 (Act 58 of 1962)

Regulations issued under Section 91A of the Income Tax Act, 1962

Part 5: Compromise of tax debt

10. Request by debtor for compromise

 

 

1) A request by a debtor for a tax debt to be compromised by the Commissioner must be signed by the debtor and be supported by a detailed statement setting out-
a) all assets and liabilities of the debtor reflecting the current market value of those assets;
b) all amounts received by or accrued to and expenditure incurred by the debtor during the 12 months immediately preceding the request;
c) all assets which have been disposed of in the preceding three years, or such longer period as the Commissioner deems appropriate;
d) the value of all assets so disposed of, the consideration received or accrued, the identity of the person who acquired the assets and the relationship between the debtor and the person who acquired the assets (if any);
e) the debtor's future interests in any assets, whether certain or contingent or subject to the exercise of a discretionary power by any other person;
f) all assets over which the debtor, either alone or with other persons, has any direct or indirect power of appointment or disposal, whether as trustee or otherwise;
g) details of any connected persons in relation to that debtor;
h) the debtor's present sources and level of income and the anticipated sources and level of income for the next three years, with an outline of the debtor's financial plans for the future; and
i) the debtor's reasons for seeking a compromise.

 

2) The request must be accompanied by the evidence supporting the debtor's claims for not being able to make payment of the full amount of that tax debt.

 

3) The debtor must warrant that the information provided in the application is accurate and complete.

 

4) The Commissioner may require that the application be supplemented by such further information as may be required.