Can SARS decline a tax directive if you have an approved deferred payment arrangement in place?
Important:
This answer is based on tax law year ending 28 February 2018.
Answer:
We accept that the ‘approved deferred payment arrangement in place’ refers to an agreement entered into by a senior SARS official and the taxpayer under which the taxpayer is allowed to pay a tax debt in instalments – in other words, the agreement was done under section 167 of the Tax Administration Act.
Paragraph 11(a)(ii) of the Fourth Schedule, relevant to the directive, makes no reference to a tax debt of the taxpayer.
Under section 275, of the Tax Administration Act, a SARS official may provide a taxpayer with confirmation of the taxpayer’s tax compliance status as compliant only if satisfied that the taxpayer is registered for tax and does not have any—
(a) outstanding tax debt, excluding a tax debt contemplated in section 167 or 204 or a tax debt that has been suspended under section 164 or does not exceed the amount referred to in section 169(4);
We submit that the same may well apply with respect to the application for a directive.
https://www.sars.gov.za/ClientSegments/Individuals/How-Pay/Pages/Owing-SARS-Money.aspx
Any outstanding debt queries and deferred arrangements requests may be sent to the following email addresses:
Debt1@sars.gov.za for Alberton branch (including Nigel, Germiston, Brakpan, Boksburg, Benoni, Vereeniging and Springs)
Debt2@sars.gov.za for Pretoria, Limpopo and North West Provinces
Debt3@sars.gov.za for KwaZulu Natal and Eastern Cape Provinces
Debt4@sars.gov.za for Western Cape, Northern Cape and Free-State Provinces
Debt5@sars.gov.za for Megawatt Park (Including Johannesburg, Roodepoort, Randfontein and Krugersdorp)