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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

204. Procedure for compromise of tax debt


(1) To "compromise" a tax debt, a senior SARS official and the "debtor" must sign an agreement setting out—
(a) the amount payable by the "debtor" in full satisfaction of the debt;
(b) the undertaking by SARS not to pursue recovery of the balance of the tax debt; and
(c) the conditions subject to which the tax debt is "compromised" by SARS.


(2) The conditions referred to in subsection (1)(c) may include a requirement that the "debtor" must—
(a) comply with subsequent obligations imposed in terms of a tax Act;
(b) pay the tax debt in the manner prescribed by SARS; or
(c) give up specified existing or future tax benefits, such as carryovers of losses, deductions, credits and rebates.