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Tax Administration Act, 2011 (Act No. 28 of 2011)

Chapter 14 : Write off or Compromise of Tax debts

Part D : Compromise of tax debt

203. Circumstances where not appropriate to compromise tax debt


A senior SARS official may not "compromise" any amount of a tax debt under section 200 if—

(a) the "debtor" was a party to an agreement with SARS to "compromise" an amount of tax debt within the period of three years immediately before the request for the "compromise";
(b) the tax affairs of the "debtor" (other than the outstanding tax debt) are not up to date;
(c) another creditor has communicated its intention to initiate or has initiated liquidation or sequestration proceedings;
(d) the "compromise" will prejudice other creditors (unless the affected creditors consent to the "compromise") or if other creditors will be placed in a position of advantage relative to SARS;
(e) it may adversely affect broader taxpayer compliance; or
(f) the "debtor" is a company or a trust and SARS has not first explored action against or recovery from the personal "assets" of the persons who may be liable for the debt under Part D of Chapter 11.