196.    Tax debt uneconomical to pursue

 

(1)     A tax debt is uneconomical to pursue if a senior SARS official is satisfied that the total cost of recovery of that tax debt will in all likelihood exceed the anticipated amount to be recovered in respect of the outstanding tax debt.

 

(2)     In determining whether the cost of recovery is likely to exceed the anticipated amount to be recovered as referred to in subsection (1), a senior SARS official must have regard to-

 

(a)     the amount of the tax debt;

 

(b)     the length of time that the tax debt has been outstanding;

 

(c)     the steps taken to date to recover the tax debt and the costs involved in those steps, including steps taken to locate or trace the ‘debtor’;

 

(d)     the likely costs of continuing action to recover the tax debt and the anticipated return from that action, including the likely recovery of costs that may be awarded to SARS;

 

(e)     the financial position of the ‘debtor’, including that ‘debtor’s’ assets and liabilities, cash flow, and possible future income streams; and

 

(f)      any other information available with regard to the recoverability of the tax debt.