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.