Tax Administration Act, 2011 (Act No. 28 of 2011)Chapter 10 : Tax Liability and PaymentPart D : Deferral of Payment167. Instalment payment agreement |
| (1) | A senior SARS official may enter into an agreement with a taxpayer in the prescribed form under which the taxpayer is allowed to pay a tax debt in one sum or in instalments, within the agreed period if satisfied that— |
| (a) | criteria or risks that may be prescribed by the Commissioner by public notice have been duly taken into consideration; and |
| (b) | the agreement facilitates the collection of the debt. |
| (2) | The agreement may contain such conditions as SARS deems necessary to secure collection of tax. |
| (3) | Except as provided in subsections (4) and (5), the agreement remains in effect for the term of the agreement. |
| (4) | SARS may terminate an instalment payment agreement if the taxpayer fails to pay an instalment or to otherwise comply with its terms and a payment prior to the termination of the agreement must be regarded as part payment of the tax debt. |
| (5) | A senior SARS official may modify or terminate an instalment payment agreement if satisfied that— |
| (a) | the collection of tax is in jeopardy; |
| (b) | the taxpayer has furnished materially incorrect information in applying for the agreement; or |
| (c) | the financial condition of the taxpayer has materially changed. |
| (6) | A termination or modification— |
| (a) | referred to in subsection (4) or (5)(a) takes effect as at the date stated in the notice of termination or modification sent to the taxpayer; and |
| (b) | referred to in subsection (5)(b) or (c) takes effect 21 business days after notice of the termination or modification is sent to the taxpayer. |