Unable to Pay SARS: What Happens Next in South Africa? The South African Revenue Service (SARS) is responsible for collecting taxes on behalf of the government, and failure to pay taxes can result in serious consequences. However, what happens if you cannot afford to pay SARS? In this article, we will explore the options available to South Africans who are unable to pay their tax obligations and the potential consequences of not paying SARS.
What Happens if you can’t Afford to Pay SARS
- Options Available: If you are unable to pay SARS, there are several options available to you.
- Firstly, you can apply for a payment arrangement with SARS. This means that you can make smaller, more manageable payments over a longer period of time.
- Secondly, you can apply for a compromise agreement, which is an agreement between you and SARS to settle your tax debt for less than the full amount owed. Finally, you can appeal against your assessment if you believe that it is incorrect.
- Consequences of Non-payment: If you fail to pay SARS, there are several consequences that you may face.
- Firstly, SARS can issue a final demand for payment, which can result in legal action being taken against you.
- Secondly, SARS can issue a judgment against you, which can lead to the attachment of your assets or garnishing of your salary.
- Thirdly, SARS can blacklist you, which can affect your ability to obtain credit in the future. Finally, SARS can initiate criminal proceedings against you, which can result in fines or imprisonment.
- Seeking Professional Help: If you are unable to pay SARS, it is recommended that you seek professional help from a tax practitioner or a debt counselor. They can assist you in negotiating with SARS, applying for payment arrangements or compromise agreements, and help you avoid legal action or criminal proceedings. It’s important to seek help as soon as possible to avoid further penalties and consequences.
Conclusion
In conclusion, not being able to pay SARS can have serious consequences in South Africa. However, there are options available to help manage your tax obligations, such as payment arrangements and compromise agreements. It’s important to seek professional help if you are unable to pay SARS to avoid legal action, judgments, blacklisting, and criminal proceedings. Remember to act quickly to avoid further penalties and consequences.