174. Effect of statement filed with clerk or registrar
A certified statement filed under section 172 must be treated as a civil judgment lawfully given in the relevant court in favour of SARS for a liquid debt for the amount specified in the statement.
186. Compulsory repatriation of foreign assets of taxpayer
(1) To collect an outstanding tax debt, a senior SARS official may apply for an order referred to in subsection (2), if-
(a) the taxpayer concerned does not have sufficient assets located in the Republic to satisfy the tax debt in full; and
(b) the senior SARS official believes that the taxpayer-
(i) has assets outside the Republic; or
(ii) has transferred assets outside the Republic for no consideration or for consideration less than the fair market value,
which may fully or partly satisfy the tax debt.
(2) A senior SARS official may apply to the High Court for an order compelling the taxpayer to repatriate assets located outside the Republic within a period prescribed by the court in order to satisfy the tax debt.
(3) In addition to issuing the order described in subsection (2), the court may-
(a) limit the taxpayer’s right to travel outside the Republic and require the taxpayer to surrender his or her passport to SARS;
(b) withdraw a taxpayer’s authorisation to conduct business in the Republic, if applicable;
(c) require the taxpayer to cease trading; or
(d) issue any other order it deems fit.
(4) An order made under subsection (2) applies until the tax debt has been satisfied or the assets have been repatriated and utilised in satisfaction of the tax debt.
194. Application of Chapter
Parts C and D of this Chapter apply only in respect of a tax debt owed by a ‘debtor’ if the liability to pay the tax debt is not disputed under Chapter 9 by the ‘debtor’.
[Section 194 substituted by section 54 of Act 44 of 2014 and section 60 of Act 16 of 2016 effective on 1 October 2012]
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 intends to dispute or disputes the liability to pay that tax under Chapter 9.
(3) A senior SARS official may suspend payment of the disputed tax or a portion thereof having regard to relevant factors, including-
(a) whether the recovery of the disputed 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;
(d) whether payment will result in irreparable hardship to the taxpayer not justified by the prejudice to SARS or the fiscus if the disputed tax is not paid or recovered; or
(e) whether the taxpayer has tendered adequate security for the payment of the disputed tax and accepting it is in the interest of SARS or the fiscus.
(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.
175. Amendment of statement filed with clerk or registrar
(1) SARS may amend the amount of the tax debt specified in the statement filed under section 172 if, in the opinion of SARS, the amount in the statement is incorrect.
(2) The amendment of the statement is not effective until it is initialled by the clerk or the registrar of the court concerned.
CHAPTER 12
INTEREST
Part B
Temporary write off of tax debt
Part C
Taxpayer account and allocation of payments
176. Withdrawal of statement and reinstitution of proceedings
(1) SARS may withdraw a certified statement filed under section 172 by sending a notice of withdrawal to the relevant clerk or registrar upon which the statement ceases to have effect.
(2) SARS may file a new statement under section 172 setting out an amount of the tax debt included in a withdrawn statement.
(3) If SARS is satisfied that a person has paid the full amount of the tax debt set out in a certified statement filed under section 172 and has no other outstanding tax debts, SARS must withdraw the statement if requested by the person in the prescribed form and manner.
187. General interest rules
(1) If a tax debt or refund payable by SARS is not paid in full by the effective date, interest accrues, and is payable, on the amount of the outstanding balance of the tax debt or refund-
[Words preceding paragraph (a) substituted by section 59 of Act 23 of 2015 effective on 1 October 2012]
(a) at the rate provided under section 189; and
(b) for the period provided under section 188.
(2) Interest payable under a tax Act is calculated on-
(a) the daily balance owing; or
(b) the daily balance owing and compounded monthly, which method of determining interest will apply to a tax type from the date the Commissioner prescribes it by public notice.
(3) The effective date for purposes of the calculation of interest in relation to-
(a) tax other than income tax or estate duty for any tax period, is the date by which tax for the tax period is due and payable under a tax Act;
(b) income tax for any year of assessment, is the date falling seven months after the last day of that year in the case of a taxpayer that has a year of assessment ending on the last day of February, and six months in any other case;
(c) estate duty for any period, is the earlier of the date of assessment or 12 months after the date of death;
(d) a fixed amount penalty referred to in section 210, is the date of assessment of the penalty, and in relation to an increment of the penalty under section 211(2), the date of the increment;
(e) a percentage based penalty referred to in section 213, is the date by which tax for the tax period should have been paid;
[Paragraph (e) amended by section 59 of Act 23 of 2015 effective on 8 January 2016]
(f) an understatement penalty, is the effective date for the tax understated;
[Paragraph (f) amended by section 59(1)(b) of Act 23 of 2015 and by section 31(a) of Act 24 of 2020]
(g) an outstanding tax debt referred to in section 190(5), is the date of payment of a refund which is not properly payable under a tax Act; and
[Paragraph (g) added by section 59(1)(b) of Act 23 of 2015 and amended by section 31(b) of Act 24 of 2020]
(h) an erroneous payment referred to in section 190(1)(b), is the date 30 days after the date that the payment was made.
[Paragraph (h) added by section 31(c) of Act 24 of 2020]
(4) The effective date in relation to an additional assessment or reduced assessment is the effective date in relation to the tax payable under the original assessment.
(5) The effective date in relation to a jeopardy assessment is the date for payment specified in the jeopardy assessment.
(6) If a senior SARS official is satisfied that interest payable by a taxpayer under subsection (1) is payable as a result of circumstances beyond the taxpayer’s control, the official may, unless prohibited by a tax Act, direct that so much of the interest as is attributable to the circumstances is not payable by the taxpayer.
(7) The circumstances referred to in subsection (6) are limited to-
(a) a natural or human-made disaster;
(b) a civil disturbance or disruption in services; or
(c) a serious illness or accident.
(8) SARS may not make a direction that interest is not payable under subsection (6) after the expiry of three years, in the case of an assessment by SARS, or five years, in the case of self-assessment, from the date of assessment of the tax in respect of which the interest accrued.
[Subsection (8) added by section 59 of Act 23 of 2015 effective on 8 January 2016]