Tax Administration Act, 2011 (Act No. 28 of 2011)Chapter 11 : Recovery of TaxPart D : Collection of tax debt from third parties182. Liability of transferee for tax debts |
| (1) | A person (referred to as a transferee) who receives an asset from a taxpayer who is a connected person in relation to the transferee without consideration or for consideration below the fair market value of the asset is liable for the outstanding tax debt of the taxpayer. |
[Section 182(1) substituted by section 69 of the Tax Administration Laws Amendment Act, 2013 (Act No. 39 of 2012)]
| (2) | The liability is limited to the lesser of— |
| (a) | the tax debt that existed at the time of the receipt of the asset or would have existed had the transferor complied with the transferor's obligations under a tax Act; and |
| (b) | the fair market value of the asset at the time of the transfer, reduced by the fair market value of any consideration paid, at the time of payment. |
| (3) | Subsection (1) applies only to an asset received by the transferee within one year before SARS notifies the transferee of liability under this section. |