Urgently need assistance in notice of civil judgement -withdrawal format or form. I have a client who received it and its for 10 days and on continuation. Please advise.
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
We suspect that you are referring to the law that enables SARS to collect the tax debt even if it is under dispute and in terms of which the taxpayer would only be able to prevent that if a suspension of debt request was made under section 164 of the Tax Administration Act. We assume that no request was made by the taxpayer to suspend the debt. If our assumptions are not correct the guidance may not be appropriate.
Section 164(6) the provides that during the period commencing on the day that-
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SARS receives a request for suspension under subsection (2); or
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a suspension is revoked under subsection (5),
and ending 10 business days after notice of SARS' decision or revocation has been issued to the taxpayer, no recovery proceedings may be taken unless SARS has a reasonable belief that there is a risk of dissipation of assets by the person concerned.
We assume that your reference to the 10-day period – is to this and that the civil judgement has not been issued yet.
Section 172 deals with the application for civil judgment for recovery of tax, and reads as follows:
(1) If a person has an outstanding tax debt, SARS may, after giving the person at least 10 business days’ notice, file with the clerk or registrar of a competent court a certified statement setting out the amount of tax payable and certified by SARS as correct.
(2) SARS may file the statement irrespective of whether or not the tax debt is subject to an objection or appeal under Chapter 9, unless the period referred to in section 164(6) has not expired or the obligation to pay the tax debt has been suspended under section 164.
In any event, if SARS decided to revoke a suspension, or not to grant one, the taxpayer can’t object to that. This is a decision by SARS and the taxpayer will be able to take the matter on review – under section 9 of the Act. You may want to consult an attorney in this respect.