203.    Circumstances where not appropriate to compromise tax debt

 

A senior SARS official may not ‘compromise’ any amount of a tax debt under section 200 if-

 

(a)     the ‘debtor’ was a party to an agreement with SARS to ‘compromise’ an amount of tax debt within the period of three years immediately before the request for the ‘compromise’;

 

(b)     the tax affairs of the ‘debtor’ (other than the outstanding tax debt) are not up to date;

 

(c)     another creditor has communicated its intention to initiate or has initiated liquidation or sequestration proceedings;

 

(d)     the ‘compromise’ will prejudice other creditors (unless the affected creditors consent to the ‘compromise’) or if other creditors will be placed in a position of advantage relative to SARS;

 

(e)     it may adversely affect broader taxpayer compliance; or

 

(f)      the ‘debtor’ is a company or a trust and SARS has not first explored action against or recovery from the personal assets of the persons who may be liable for the debt under Part D of Chapter 11.