1) Does debt to SARS ever prescribe? 2) What do we do as SARS has now held a client to ransom for debt previously written off in 2011 by SARS, NOW they are not allowing the client submit his returns ITR14 for 2012 onwards?
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
Section 171, of the Tax Administration Act deals with the period of limitation on collection of tax and reads as follows:
“Proceedings for recovery of a tax debt may not be initiated after the expiration of 15 years from the date the assessment of tax, or a decision referred to in section 104(2) giving rise to a tax liability, becomes final.”
We have not heard of instances where SARS prevented the taxpayer from filing returns – this should not be the case. You may want to lodge a complaint to SARS.
Did a senior SARS official authorise the permanent 'write off' of an amount of tax debt or did they decide to temporarily 'write off' the amount of tax debt?