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Income Tax Act, 1962 (Act 58 of 1962)

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

Part 4: Procedure for writing off a tax debt on a temporary or permanent basis

8. Procedure for writing off a tax debt on a temporary or permanent basis

 

 

1) Before deciding to write off any tax debt, the Commissioner must-
a) determine whether there are any other tax debts owing to the Commissioner by the debtor;
b) reconcile all amounts owed by and to the debtor, including penalties, interest and costs;
c) obtain a breakdown of the tax debt and the periods to which the outstanding amounts relate; and
d) document the history of the recovery process and the reasons for deciding to write-off the tax debt on a temporary or permanent basis.

 

2) In deciding whether to support an offer of compromise made to creditors in terms of section 311 of the Companies Act the Commissioner must, in addition to considering the information as contemplated in section 312 of that Act, consider the provisions of paragraph 9, 10(1) and 11 mutatis mutandis.