Tax Administration Act, 2011 (Act No. 28 of 2011)Chapter 14 : Write off or Compromise of Tax debtsPart D : Compromise of tax debt204. Procedure for compromise of tax debt |
| (1) | To "compromise" a tax debt, a senior SARS official and the "debtor" must sign an agreement setting out— |
| (a) | the amount payable by the "debtor" in full satisfaction of the debt; |
| (b) | the undertaking by SARS not to pursue recovery of the balance of the tax debt; and |
| (c) | the conditions subject to which the tax debt is "compromised" by SARS. |
| (2) | The conditions referred to in subsection (1)(c) may include a requirement that the "debtor" must— |
| (a) | comply with subsequent obligations imposed in terms of a tax Act; |
| (b) | pay the tax debt in the manner prescribed by SARS; or |
| (c) | give up specified existing or future tax benefits, such as carryovers of losses, deductions, credits and rebates. |