201.    Request by debtor for compromise of tax debt

 

(1)     A request by a ‘debtor’ for a tax debt to be ‘compromised’ must be signed by the ‘debtor’ and be supported by a detailed statement setting out-

 

(a)     the assets and liabilities of the ‘debtor’ reflecting their current fair market value;

 

(b)     the amounts received by or accrued to, and expenditure incurred by, the ‘debtor’ during the 12 months immediately preceding the request;

 

(c)     the assets which have been disposed of in the preceding three years, or such longer period as a senior SARS official deems appropriate, together with their value, the consideration received or accrued, the identity of the person who acquired the assets and the relationship between the ‘debtor’ and the person who acquired the assets, if any;

 

(d)     the ‘debtor’s’ future interests in any assets, whether certain or contingent or subject to the exercise of a discretionary power by another person;

 

(e)     the assets over which the ‘debtor’, either alone or with other persons, has a direct or indirect power of appointment or disposal, whether as trustee or otherwise;

 

(f)      details of any connected person in relation to that ‘debtor’;

 

(g)     the ‘debtor’s’ present sources and level of income and the anticipated sources and level of income for the next three years, with an outline of the ‘debtor’s’ financial plans for the future; and

 

(h)     the ‘debtor’s’ reasons for seeking a ‘compromise’.

 

(2)     The request must be accompanied by the evidence supporting the ‘debtor’s’ claims for not being able to make payment of the full amount of the tax debt.

 

(3)     The ‘debtor’ must warrant that the information provided in the application is accurate and complete.

 

(4)     A senior SARS official may require that the application be supplemented by such further information as may be required.