Warning: SARS will take these three drastic steps if you don’t honour your installment arrangement

Simangele Mzizi, Fsp Business, 15 Oct. 2014

Tags: vat, sars, vat act, sars installment arrangement, vat installments

Let’s say, you owe SARS money and you realise you won’t be able to pay. So you approach SARS to enquire about a settlement.

After endless meetings, SARS agrees to allow you to repay what you owe in installments.

But, after a while, you fail to honour your installment arrangement.

While you may have solid reasons for failing to pay SARS, it won’t be so understanding. In fact, it will take these three drastic steps against you…

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If you don't keep to your installment arrangement or pay your Vat, SARS has the power to do the following

1. It can withdraw the money from your bank account
SARS can only do this if you have money in your bank account – not, if you’re in overdraft.
2. SARS can get a judgement against you
According to the Practical Vat Loose Leaf Service, in terms of the Tax Administration Act, SARS must give you ten business days’ written notice before it applies for a judgement against you.
If you don't react to this notice, SARS will give the court judgement to the various credit bureaus. If this happens, you won’t be able to get credit or an overdraft.
3. The taxman can attach all your assets and stock
SARS will then sell everything at an auction to secure the money!
Is there anything you can do to avoid this type of trouble?
Yes, there’s something you can do to avoid this…
Don’t sit back when you realise you can’t honour your installment arrangement. Approach SARS and see what it can arrange for you.
PS: For tips, tools and advice, we strongly recommend you check out the Practical Vat Loose Leaf Service. It will help you comply with the Vat Act and avoid harsh action from SARS.

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