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Request for an instalment payment arrangement — SARS (section 167, Tax Administration Act)
To: South African Revenue Service — Debt Management
[SUBMITTED VIA SARS eFILING (DEFERRAL OF PAYMENT ARRANGEMENT) / EMAIL contactus@sars.gov.za / SARS BRANCH BY APPOINTMENT]
From (taxpayer):
[BUSINESS NAME OR FULL NAME] — [SOLE PROPRIETOR / (PTY) LTD / CC], registration number [CIPC NUMBER, IF ANY]
Income tax reference number: [NUMBER] · VAT number: [NUMBER, IF REGISTERED] · PAYE reference: [NUMBER, IF AN EMPLOYER]
Represented by [FULL NAME], [OWNER / DIRECTOR / MEMBER / TAX PRACTITIONER, PR NUMBER ___]
[ADDRESS] · [CELL NUMBER] · [EMAIL]
[CITY], [DATE]
Subject: Request for an instalment payment agreement in terms of sections 167 and 168 of the Tax Administration Act 28 of 2011 — business premises looted and damaged on [DATE]
Dear Sir / Madam
I ask SARS to enter into an instalment payment agreement for the tax debt set out below.
1. The tax debt
Tax type Tax period Amount due (R) Due date
[VAT / PAYE / INCOME TAX — AMOUNT ON THE STATEMENT OF ACCOUNT] [PERIOD] [AMOUNT] [DATE]
[TAX TYPE] [PERIOD] [AMOUNT] [DATE]
Total [TOTAL]
All returns [AND RECONCILIATIONS] due up to today have been submitted: [YES / LIST ANY STILL OUTSTANDING AND THE DATE THEY WILL BE SUBMITTED].
2. Why the business cannot pay now
On [DATE], during public violence in [AREA, CITY], the business premises at [ADDRESS] were [LOOTED / DAMAGED / SET ON FIRE]. Stock and equipment worth about R[AMOUNT] were [STOLEN / DESTROYED]. The business [HAS BEEN CLOSED SINCE [DATE] / IS TRADING AT ABOUT ___ % OF ITS USUAL TURNOVER].
Police case: [POLICE STATION], CAS number [NUMBER].
Insurance claim (including Sasria): [INSURER], claim number [NUMBER], notified on [DATE]. Expected payment: [AMOUNT AND DATE, IF KNOWN / «NOT YET KNOWN»].
3. The criteria of section 168
Temporary shortage of liquidity: the business has a deficiency of cash because of the loss of stock and turnover. This shortage is reasonably certain to be remedied when [THE INSURANCE CLAIM IS PAID / TRADING RESUMES ON ___].
Expected income: the business expects [INSURANCE PAYMENT OF ABOUT R___ / TURNOVER OF ABOUT R___ PER MONTH FROM ___] which can be used to pay the tax debt.
Collection now would be harsh: immediate collection would [FORCE THE BUSINESS TO CLOSE / PREVENT THE REPAIR OF THE PREMISES AND THE PAYMENT OF ___ EMPLOYEES], while an instalment agreement is unlikely to prejudice the collection of the tax.
Security: [I CAN OFFER ___ AS SECURITY / NO SECURITY IS OFFERED AT THIS STAGE].
4. Proposed instalments
Instalment Date Amount (R)
1 [DATE] [AMOUNT]
2 [DATE] [AMOUNT]
3 [DATE] [AMOUNT]
[ADD LINES] [DATE] [AMOUNT]
Total, plus interest as calculated by SARS [TOTAL]
I understand that interest continues to accrue on the unpaid debt and that SARS may terminate the agreement if an instalment is not paid. I undertake to submit all future returns and to pay current taxes on time while the agreement runs.
Attachments
Collection Information Statement (CIS, form GEN-DC-20-A01), completed.
Police statement and CAS number.
Proof of the insurance claim (claim number, insurer's acknowledgement).
Photographs of the damage; inventory of stolen and damaged stock.
Bank statements for the last [3 / 6] months; cash flow forecast for the next [6 / 12] months.
Yours faithfully
______________________________
[FULL NAME], [CAPACITY]
[BUSINESS NAME]
BEFORE YOU SEND — delete this part
Submit all returns first. SARS considers a payment arrangement only when outstanding returns and reconciliations have been submitted, and the arrangement must cover the whole debt.
Ask early: a request can be made on eFiling once the debt is outstanding, by calling 0800 00 7277, or by email to contactus@sars.gov.za (deferred arrangements and debt queries).
Section 167: a senior SARS official may agree to payment in one sum or in instalments within an agreed period; SARS may terminate the agreement if an instalment is missed.
Section 168: the official may agree only if one of the criteria applies: temporary shortage of assets or liquidity, expected income, poor collection prospects now, collection would be harsh, or security is provided. Explain the ones that apply to you.
SARS can refuse. Interest keeps running on unpaid tax.
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