Author: admin_kmos

Section 168 (TAA) – Criteria for instalment payment agreement

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168.    Criteria for instalment payment agreement

 

A senior SARS official may enter into an instalment payment agreement only if-

 

(a)     the taxpayer suffers from a deficiency of assets or liquidity which is reasonably certain to be remedied in the future;

 

(b)     the taxpayer anticipates income or other receipts which can be used to satisfy the tax debt;

 

(c)     prospects of immediate collection activity are poor or uneconomical but are likely to improve in the future;

 

(d)     collection activity would be harsh in the particular case and the deferral or instalment agreement is unlikely to prejudice tax collection; or

 

(e)     the taxpayer provides the security as may be required by the official.

Section 167 (TAA) – Instalment payment agreement

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167.    Instalment payment agreement

 

(1)     A senior SARS official may enter into an agreement with a taxpayer in the prescribed form under which the taxpayer is allowed to pay a tax debt in one sum or in instalments, within the agreed period if satisfied that-

 

(a)     criteria or risks that may be prescribed by the Commissioner by public notice have been duly taken into consideration; and

 

(b)     the agreement facilitates the collection of the debt.

 

(2)     The agreement may contain such conditions as SARS deems necessary to secure collection of tax.

 

(3)     Except as provided in subsections (4) and (5), the agreement remains in effect for the term of the agreement.

 

(4)     SARS may terminate an instalment payment agreement if the taxpayer fails to pay an instalment or to otherwise comply with its terms and a payment prior to the termination of the agreement must be regarded as part payment of the tax debt.

 

(5)     A senior SARS official may modify or terminate an instalment payment agreement if satisfied that-

 

(a)     the collection of tax is in jeopardy;

 

(b)     the taxpayer has furnished materially incorrect information in applying for the agreement; or

 

(c)     the financial condition of the taxpayer has materially changed.

 

(6)     A termination or modification-

 

(a)     referred to in subsection (4) or (5)(a) takes effect as at the date stated in the notice of termination or modification sent to the taxpayer; and

 

(b)     referred to in subsection (5)(b) or (c) takes effect 21 business days after notice of the termination or modification is sent to the taxpayer.

Section 166 (TAA) – Allocation of payments

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166.    Allocation of payments

 

(1)     Despite anything to the contrary contained in a tax Act, SARS may allocate any payment made in terms of a tax Act against an amount of penalty or interest or the oldest amount of an outstanding tax debt at the time of the payment, other than amounts-

 

(a)     for which payment has been suspended under this Act; or

 

(b)     that are payable in terms of an instalment payment agreement under section 167.

 

(2)     SARS may apply the first-in-first-out principle described in subsection (1) in respect of a specific tax type or a group of tax types in the manner that may be prescribed by the Commissioner by public notice.

 

(3)     In the event that a payment in subsection (1) is insufficient to extinguish all tax debts of the same age, the amount of the payment may be allocated among these tax debts in the manner prescribed by the Commissioner by public notice.

 

(4)     The age of a tax debt for purposes of subsection (1) is determined according to the duration from the date the debt became payable in terms of the applicable Act.

Section 164 (TAA) – Payment of tax pending objection or appeal

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164.    Payment of tax pending objection or appeal

 

(1)     Unless a senior SARS official otherwise directs in terms of subsection (3)-

 

(a)     the obligation to pay tax; and

 

(b)     the right of SARS to receive and recover tax,

 

will not be suspended by an objection or appeal or pending the decision of a court of law pursuant to an appeal under section 133.

 

(2)     A taxpayer may request a senior SARS official to suspend the payment of tax or a portion thereof due under an assessment if the taxpayer—

 

(a)     intends to dispute or disputes the liability to pay that tax under Chapter 9; or

 

(b)     intends to request or requests SARS to make a reduced assessment in terms of section 95(6).

[Subsection (2) substituted by section 18(a) of Act 4 of 2026]

 

(3)     A senior SARS official may suspend payment of the tax under subsection (2) or a portion thereof having regard to relevant factors, including—

 

(a)     whether the recovery of the tax will be in jeopardy or there will be a risk of dissipation of assets;

 

(b)     the compliance history of the taxpayer with SARS;

 

(c)     whether fraud is prima facie involved in the origin of the dispute or the return referred to in section 95(6);

 

(d)     whether payment will result in irreparable hardship to the taxpayer not justified by the prejudice to SARS or the fiscus if the tax is not paid or recovered; or

 

(e)     whether the taxpayer has tendered adequate security for the payment of the tax and accepting it is in the interest of SARS or the fiscus.

[Subsection (3) amended by section 58(a) of Act 39 of 2013 and substituted by section 50(1) of Act 44 of 2014 and by section 18(b) of Act 4 of 2026]

 

(4)     If payment of tax was suspended under subsection (3) and subsequently-

 

(a)     no objection is lodged;

 

(b)     an objection is disallowed and no appeal is lodged; or

 

(c)     an appeal to the tax board or court is unsuccessful and no further appeal is noted,

 

the suspension is revoked with immediate effect from the date of the expiry of the relevant prescribed time period or any extension of the relevant time period under this Act.

 

(5)     A senior SARS official may deny a request in terms of subsection (2) or revoke a decision to suspend payment in terms of subsection (3) with immediate effect if satisfied that-

 

(a)     after the lodging of the objection or appeal, the objection or appeal is frivolous or vexatious;

 

(b)     the taxpayer is employing dilatory tactics in conducting the objection or appeal;

 

(c)     on further consideration of the factors referred to in subsection (3), the suspension should not have been given; or

 

(d)     there is a material change in any of the factors referred to in subsection (3), upon which the decision to suspend payment of the amount involved was based.

 

(6)     During the period commencing on the day that-

 

(a)     SARS receives a request for suspension under subsection (2); or

 

(b)     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.

 

(7)     If an assessment or a decision referred to in section 104(2) is altered in accordance with-

 

(a)     an objection or appeal;

 

(b)     a decision of a court of law pursuant to an appeal under section 133; or

 

(c)     a decision by SARS to concede the appeal to the tax board or the tax court or other court of law,

 

a due adjustment must be made, amounts paid in excess refunded with interest at the prescribed rate, the interest being calculated from the date that excess was received by SARS to the date the refunded tax is paid, and amounts short-paid are recoverable with interest calculated as provided in section 187(1).

 

(8)     The provisions of section 191 apply with the necessary changes in respect of an amount refundable and interest payable by SARS under this section.

Section 163 (TAA) – Preservation order

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163.    Preservation order

 

(1)     A senior SARS official may, in order to prevent any realisable assets from being disposed of or removed which may frustrate the collection of the full amount of tax that is due or payable or the official on reasonable grounds is satisfied may be due or payable, authorise an ex parte application to the High Court for an order for the preservation of any assets of a taxpayer or other person prohibiting any person, subject to the conditions and exceptions as may be specified in the preservation order, from dealing in any manner with the assets to which the order relates.

 

(2)

 

(a)     SARS may, in anticipation of the application under subsection (1) seize the assets pending the outcome of an application for a preservation order, which application must commence within 24 hours from the time of seizure of the assets or the further period that SARS and the taxpayer or other person may agree on.

 

(b)     Until a preservation order is made in respect of the seized assets, SARS must take reasonable steps to preserve and safeguard the assets including appointing a curator bonis in whom the assets vest.

 

(3)     A preservation order may be made if required to secure the collection of the tax referred to in subsection (1) and in respect of-

 

(a)     realisable assets seized by SARS under subsection (2);

 

(b)     the realisable assets as may be specified in the order and which are held by the person against whom the preservation order is being made;

 

(c)     all realisable assets held by the person, whether it is specified in the order or not; or

 

(d)     all assets which, if transferred to the person after the making of the preservation order, would be realisable assets.

 

(4)     The court to which an application for a preservation order is made may-

 

(a)     make a provisional preservation order having immediate effect;

 

(b)     simultaneously grant a rule nisi calling upon the taxpayer or other person upon a business day mentioned in the rule to appear and to show cause why the preservation order should not be made final;

 

(c)     upon application by the taxpayer or other person, anticipate the return day for the purpose of discharging the provisional preservation order if 24 hours’ notice of the application has been given to SARS; and

 

(d)     upon application by SARS, confirm the appointment of the curator bonis under subsection (2)(a) or appoint a curator bonis in whom the seized assets vest.

 

(5)     A preservation order must provide for notice to be given to the taxpayer and a person from whom the assets are seized.

 

(6)     For purposes of the notice or rule required under subsection (4)(b) or (5), if the taxpayer or other person has been absent for a period of 21 business days from his or her usual place of residence or business within the Republic, the court may direct that it will be sufficient service of that notice or rule if a copy thereof is affixed to or near the outer door of the building where the court sits and published in the Gazette, unless the court directs some other mode of service.

 

(7)     The court, in granting a preservation order, may make any ancillary orders regarding how the assets must be dealt with, including-

 

(a)     authorising the seizure of all movable assets;

 

(b)     if not appointed under subsection (4)(d), appointing a curator bonis in whom the assets vest;

 

(c)     realising the assets in satisfaction of the tax debt;

 

(d)     making provision as the court may think fit for the reasonable living expenses of a person against whom the preservation order is being made and his or her legal dependants, if the court is satisfied that the person has disclosed under oath all direct or indirect interests in assets subject to the order and that the person cannot meet the expenses concerned out of his or her unrestrained assets; or

 

(e)     any other order that the court considers appropriate for the proper, fair and effective execution of the order.

 

(8)     The court making a preservation order may also make such further order in respect of the discovery of any facts including facts relating to any asset over which the taxpayer or other person may have effective control and the location of the assets as the court may consider necessary or expedient with a view to achieving the objects of the preservation order.

 

(9)     The court which made a preservation order may on application by a person affected by that order vary or rescind the order or an order authorising the seizure of the assets concerned or other ancillary order if it is satisfied that-

 

(a)     the operation of the order concerned will cause the applicant undue hardship; and

 

(b)     the hardship that the applicant will suffer as a result of the order outweighs the risk that the assets concerned may be destroyed, lost, damaged, concealed or transferred.

 

(10)   A preservation order remains in force-

  

(a)     pending the setting aside thereof on appeal, if any, against the preservation order; or

 

(b)     until the assets subject to the preservation order are no longer required for purposes of the satisfaction of the tax debt.

 

(11)   In order to prevent any realisable as sets that were not seized under subsection(2) from being disposed of or removed contrary to a preservation order under this section, a senior SARS official may seize the assets if the official has reasonable grounds to believe that the assets will be so disposed of or removed.

 

(12)   Assets seized under this section must be dealt with in accordance with the directions of the High Court which made the relevant preservation order.