171. Period of limitation on collection of tax
Proceedings for recovery of a tax debt may not be initiated after the expiration of 15 years from the date the assessment of tax, or a decision referred to in section 104(2) giving rise to a tax liability, becomes final.
184. Recovery of tax debts from other persons
(1) SARS has the same powers of recovery against the assets of a person who is personally liable under section 155, 157 or this Part as SARS has against the assets of the taxpayer and the person has the same rights and remedies as the taxpayer has against such powers of recovery.
(2) SARS must provide a person referred to in subsection (1) with an opportunity to make representations-
(a) before the person is held liable for the tax debt of the taxpayer in terms of section 155, 157, 179, 180, 181, 182 or 183, if this will not place the collection of tax in jeopardy; or
(b) as soon as practical after the person is held liable for the tax debt of the taxpayer in terms of section 155, 157, 179, 180, 181, 182 or 183.
Part B
Judgment procedure
Part E
Assisting foreign governments
172. Application for civil judgment for recovery of tax
(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.
(3) SARS is not required to give the taxpayer prior notice under subsection (1) if SARS is satisfied that giving notice would prejudice the collection of the tax.
185. Tax recovery on behalf of foreign governments
(1) If SARS has, in accordance with an international tax agreement, received-
(a) a request for conservancy of an amount alleged to be due by a person under the tax laws of the other country where there is a risk of dissipation or concealment of assets by the person, a senior SARS official may authorise an application for a preservation order under section 163 as if the amount were a tax payable by the person under a tax Act; or
[Paragraph (a) substituted by section 58 of Act 23 of 2015 effective on 1 October 2012]
(b) a request for the collection from a person of an amount alleged to be due by the person under the tax laws of the other country, a senior SARS official may, by notice, call upon the person to state, within a period specified in the notice, whether or not the person admits liability for the amount or for a lesser amount.
(2) A request described in subsection (1) must be in the prescribed form and must include a formal certificate issued by the competent authority of the other country stating-
(a) the amount of the tax due;
(b) whether the liability for the amount is disputed in terms of the laws of the other country;
(c) if the liability for the amount is so disputed, whether such dispute has been entered into solely to delay or frustrate collection of the amount alleged to be due; and
(d) whether there is a risk of dissipation or concealment of assets by the person.
(3) In any proceedings, a certificate referred to in subsection (2) is-
(a) conclusive proof of the existence of the liability alleged; and
(b) prima facie proof of the other statements contained therein.
(4) If, in response to the notice issued under subsection (1)(b), the person-
(a) admits liability;
(b) fails to respond to the notice; or
(c) denies liability but a senior SARS official, based on the statements in the certificate described in subsection (2) or, if necessary, after consultation with the competent authority of the other country, is satisfied that-
(i) the liability for the amount is not disputed in terms of the laws of the other country;
(ii) although the liability for the amount is disputed in terms of the laws of the other country, such dispute has been entered into solely to delay or frustrate collection of the amount alleged to be due; or
(iii) there is a risk of dissipation or concealment of assets by the person,
the official may, by notice, require the person to pay the amount for which the person has admitted liability or the amount specified, on a date specified, for transmission to the competent authority in the other country.
(5) If the person fails to comply with the notice under subsection (4), SARS may recover the amount in the certificate for transmission to the foreign authority as if it were a tax payable by the person under a tax Act.
(6) No steps taken in assistance in collection by any other country under an international tax agreement for the collection of an amount alleged to be due by a person under a tax Act, including a judgment given against a person in the other country for the amount in pursuance of the agreement, may affect the person’s right to have the liability for the amount determined in the Republic in accordance with the relevant law.
173. Jurisdiction of Magistrates’ Court in judgment procedure
Despite anything to the contrary in the Magistrates’ Courts Act, 1944 (Act No. 32 of 1944), the certified statement referred to in section 172 may be filed with the clerk of the Magistrate’s Court that has jurisdiction over the taxpayer named in the statement.
Part F
Remedies with respect to foreign assets
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.