182.    Liability of transferee for tax debts

 

(1)     A person (referred to as a transferee) who receives an asset from a taxpayer who is a connected person in relation to the transferee without consideration or for consideration below the fair market value of the asset is liable for the outstanding tax debt of the taxpayer.

 

(2)     The liability is limited to the lesser of-

 

(a)     the tax debt that existed at the time of the receipt of the asset or would have existed had the transferor complied with the transferor’s obligations under a tax Act; and

 

(b)     the fair market value of the asset at the time of the transfer, reduced by the fair market value of any consideration paid, at the time of payment.

 

(3)     Subsection (1) applies only to an asset received by the transferee within one year before SARS notifies the transferee of liability under this section.