Does SARS debt prescribe ?

Crabby

Honorary Master
Joined
Jun 30, 2005
Messages
10,781
#1
My wife hasn't worked in the past 14 years except for 2011 when she went back to work for a year.

SARS is now saying she owes them tax money from the period and won't supply a clearance certificate.

As it's the first time we are hearing about it, I'm loathe to pay it.

Was just wondering if it could be prescribed or does that not apply to SARS ?
 

RazedInBlack

RazedInBlack
Joined
Sep 4, 2008
Messages
35,163
#7
I'm not sure but read this:

The shady debt collectors will how ever try to tell you:

That TV Licence debt cannot prescribe because it is a statutory requirement, and/or that it is not a debt because one pays for it in advance and it does not fall under the NCA. (National credit act)

Now both of these arguments is flaunted and must be treated with the disdain it deserves. No where in the prescription act, or in the broadcasting act does it state that TV Licence fees does not prescribe. The fact is, that once a fee or payment becomes due, prescription starts to run. The other fact is, that the NCA define this debt, where you pay in advance but did not pay now you are in arrears, as “coincidental debt” and that brings it right into the cross hairs of the NCA. Prescription is thus applicable and will start to run from the first day after it was due to be paid. In other words, a pre-paid thing becomes a debt if not paid on due date. Then the argument of statutory requirement left the bus completely because many other debts are statutory requirements, such as school fees etc, they all prescribe, if there was no summons issued or no judgement taken against the debtor, and that is it.

Now take this article and go rub it under the noses of those shady debt collectors from the SABC, after all, it is the right thing to do!
https://www.legaltalk.co.za/does-tv-licence-debt-prescribe/
 

marco

Expert Member
Joined
Aug 3, 2006
Messages
2,702
#9
I have posted this before. Some years ago when I was ignorant on tax matters and thought if I sold stocks and did not withdraw the cash but re purchased shares then it would not be tax events.

When I found out that Income Tax was due, I had to redo 2008/9/10/11/12 tax years. During this time I was invested big time in CML and it was shooting the lights out. I sold on every every bad rumour and re bought it again after. It took me weeks of calculations and piles of paperwork.

I handed all to a SARS employee and she was shocked. I owed plenty thousands. She asked a more senior lady behind her and without lifting her head she said one word - "prescribed".

She then stamped all except the last two with a big red "invalid". That saved me thousands. Perhaps they were just not interested to go through all the calculations as I really churned my portfolio account.
 

deweyzeph

Executive Member
Joined
Apr 17, 2009
Messages
6,521
#10
My wife hasn't worked in the past 14 years except for 2011 when she went back to work for a year.

SARS is now saying she owes them tax money from the period and won't supply a clearance certificate.

As it's the first time we are hearing about it, I'm loathe to pay it.

Was just wondering if it could be prescribed or does that not apply to SARS ?
How exactly did SARS come to this conclusion? Did you wife submit a tax return for this year and not pay it? Before SARS can claim you owe them money there must be some sort of assessment that is raised based on information either you or an employer submits to them. You need to find out exactly on what basis this claim is made.
 

Crabby

Honorary Master
Joined
Jun 30, 2005
Messages
10,781
#11
How exactly did SARS come to this conclusion? Did you wife submit a tax return for this year and not pay it? Before SARS can claim you owe them money there must be some sort of assessment that is raised based on information either you or an employer submits to them. You need to find out exactly on what basis this claim is made.
I assume the employer submitted something. My wife hasn't done tax returns since 2006.
 

Sinbad

Honorary Master
Joined
Jun 5, 2006
Messages
62,792
#12
I have posted this before. Some years ago when I was ignorant on tax matters and thought if I sold stocks and did not withdraw the cash but re purchased shares then it would not be tax events.

When I found out that Income Tax was due, I had to redo 2008/9/10/11/12 tax years. During this time I was invested big time in CML and it was shooting the lights out. I sold on every every bad rumour and re bought it again after. It took me weeks of calculations and piles of paperwork.

I handed all to a SARS employee and she was shocked. I owed plenty thousands. She asked a more senior lady behind her and without lifting her head she said one word - "prescribed".

She then stamped all except the last two with a big red "invalid". That saved me thousands. Perhaps they were just not interested to go through all the calculations as I really churned my portfolio account.
I don't think that's prescription of debt. I think SARS can only change/investigate stuff for the last 7 years though? If you had a validly assessed debt from 2000, they'd still be after it.
 

deweyzeph

Executive Member
Joined
Apr 17, 2009
Messages
6,521
#13
I don't think that's prescription of debt. I think SARS can only change/investigate stuff for the last 7 years though? If you had a validly assessed debt from 2000, they'd still be after it.
Individual tax payers are obliged to keep documents for the last 5 years before the current year of assessment to back up any information provided in a tax return. However this just means that if they request any documentation from before this period like bank statements, IRP5s, etc you can legally put your hands in the air and say you don't have anything. I don't think it would stop them investigating though if they had reason to suspect there is a problem, although obviously the lack of documentation might make it difficult if not impossible for them to reach a conclusion.
 
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