SARS Debt Compromise

SARS Debt Compromise: Legally Reduce Your Tax Debt

When your tax debt has become so large that paying it in full is impossible, a SARS Debt Compromise is the most powerful solution available. This formal, legal process, also known as an “Offer in Compromise,” allows you to negotiate a settlement with SARS for a significantly lower amount. Achieving a successful compromise provides a permanent resolution and a true financial fresh start.

Know More

Understanding the Offer in Compromise

A SARS Debt Compromise is not an informal negotiation; it is a binding agreement governed by Section 200 of the Tax Administration Act. Under this provision, SARS can agree to “compromise” a portion of a tax debt if a taxpayer meets specific and stringent criteria.

The fundamental principle is that it is more beneficial for SARS to collect a reduced amount than to receive nothing at all through costly and lengthy recovery actions like sequestration (for an individual) or liquidation (for a company). Once the compromised amount is paid, SARS writes off the remaining liability, and the debt is considered permanently settled.

Who Qualifies for a Tax Compromise?

SARS does not grant compromises easily. An application will only be considered if it meets strict conditions. Generally, you must be able to prove the following:
✅ Inability to Pay: You must demonstrate, with extensive financial evidence, that you lack the assets and income to pay the full amount, both now and in the foreseeable future.
✅ A “Better” Offer: The amount you offer must be greater than what SARS could reasonably expect to recover through forced collection actions.
✅ Full Compliance: You must have all your tax returns submitted and be up-to-date with your current tax obligations before an offer can be considered.
✅ No Prejudice to Tax Collection: The compromise must not endanger the integrity of the tax system.

Why Professional Representation is Critical

The Offer in Compromise application (OIC) is a complex legal and financial submission. A minor error or omission can lead to immediate rejection. Our multidisciplinary approach is designed to build the strongest possible case for acceptance.

Financial Substantiation: Our Chartered Accountants meticulously prepare the required financial statements and projections to build a credible and compelling case for your inability to pay.
Legal Framing: Our tax lawyers structure the entire application within the strict legal framework of the Tax Administration Act, ensuring every legal point is addressed and defensible.
Strategic Negotiation: We have extensive experience dealing directly with the specialised SARS compromise committee. We handle all queries and negotiations, protecting you from the pressure of the process.

Other Services

We Provide Best Possible Solutions To Give Your Business A Competitive Edge

Qui dolore ipsum quia dolor sit amet, consectetur adipisci velit, sed quia non numquam eius modi tempora incidunt lores ta porro ame.

How much can my tax debt be reduced by?

This is entirely dependent on your specific financial circumstances. The reduction can be substantial, but the offer must be realistic and greater than what SARS could recover by liquidating your assets.

Is a compromise the same as a tax “write-off”?

No. A “write-off” is a separate process where SARS ceases collection on an uneconomical debt. A compromise is an active settlement where you agree to pay a reduced amount to settle the entire liability permanently.

How long does the process take?

As it is a formal legal process involving a SARS committee, it can take several months. Our active management ensures the application is processed as efficiently as possible, with constant follow-up.

Find Out if a SARS Debt Compromise is Right for You

Don’t let an impossible tax debt control your future. The first step is to determine if you are a viable candidate for this powerful solution. Contact us for a free, confidential assessment with a specialist who can analyse your situation.

Book My Free SARS DEBT Compromise Assessment

A Unified Approach to Every Case

Whichever service you require, it will be supported by the full strength of our integrated practice. This ensures every angle is covered.

Unrivaled Expertise

Our team of skilled professionals possess unmatched expertise in their respective fields, ensuring that you receive the highest level of service.

Personalized Solutions

We understand that every customer is unique, and we tailor our solutions to meet your specific needs, offering customized options that perfectly align with your goals.

Timely Delivery

We value your time and guarantee prompt delivery of our products/services, enabling you to stay on track and meet your deadlines.