Suspension of payment
Where an assessment is disputed, a taxpayer may request suspension of payment while the dispute is dealt with. A dispute on its own does not automatically suspend payment or collection. SARS considers a suspension request on its facts and may impose conditions or revoke a suspension where the statutory requirements are no longer met.
Instalment payment arrangement
A payment arrangement may be appropriate where the taxpayer accepts the debt but cannot settle it immediately and has a credible ability to pay the full balance over time. SARS states that qualifying criteria apply, interest continues on unpaid debt and outstanding returns or reconciliations should be brought up to date.
Tax-debt compromise
In certain circumstances a taxpayer may request a compromise of tax debt. This is not an automatic write-off. The application generally requires full and accurate disclosure of the taxpayer’s financial position, assets, liabilities, income, expenditure and recovery prospects. SARS retains the statutory decision-making power.
Third-party appointments
Section 179 of the Tax Administration Act permits SARS, in qualifying circumstances, to appoint a third party that holds or owes money to the taxpayer—such as an employer or bank—to pay amounts to SARS. When a third-party appointment is disputed, the assessment, the collection authority, notices, dates and funds recovered should be reviewed urgently.
Refund and collection disputes
A refund may be withheld or applied against recorded debt. The correct response depends on whether the underlying assessment is correct, whether returns or verifications remain outstanding, and whether the collection or set-off process was properly applied. A refund query does not replace a dispute against an incorrect assessment.
Information normally required
• Statements of account, assessments, final demands and collection notices.
• Proof of payments, refunds, set-offs or amounts recovered from a third party.
• Filed returns and details of any pending objection or appeal.
• For arrangements or compromise: current financial information and complete compliance history.
• Bank or employer correspondence relating to a third-party appointment.
Related service
Use the linked service request form below for SARS debt and collection assistance.
https://www.candidaccountants.co.za/helpdesk/client-service-requests-1
Official SARS references
Official SARS guidance on amounts owing and third-party appointments is linked below. The correct remedy depends on the assessment, collection status, available evidence and statutory requirements. No payment arrangement, compromise, suspension or refund outcome is guaranteed.
https://www.sars.gov.za/individuals/how-do-i-pay/owing-sars-money/
https://www.sars.gov.za/faq/faq-what-is-an-ita88-third-party-appointment/