Tax relief refers to “various programmes that help individuals and businesses lower their tax bills and settle their tax-related debt.” Working with an experienced financial attorney can help you achieve the best possible outcome and ensure that the tax relief application is handled efficiently. In this guide, we explore what tax relief applications entail and how our dedicated team at Francois Uys Inc. Attorneys can assist you.
What You Need to Know About SARS Tax Relief Applications
Tax relief applications occur when an individual or business applies for tax relief. Under South African law, businesses and individuals may get tax relief in the form of special tax deductions, credits, and exclusions. In certain cases, the tax owed may be written off entirely. There are many rules and regulations around tax relief in South Africa and the application is a complex process that requires detailed accounts of business and tax statuses, clear, up-to-date financial documentation, and proof of financial hardship. If the application is not sufficiently filled in and all relevant data is not included, temporary or permanent tax relief may not be granted by SARS.
Before filling out tax relief applications, it is crucial to determine what type of relief you are applying for. There are several options when submitting to SARS, including:
- Payment arrangements: Under Section 167 of the Tax Administration Act 28 of 2011, SARS allows taxpayers in South Africa to negotiate with them and create a payment plan whereby debt can be paid in instalments. This can alleviate financial stress as businesses and individuals won’t have to pay the full amount owed at once.
- Compromise of Debt (Section 200): If a taxpayer is unable to fully settle debt, they may approach SARS and fill out a compromise of tax debt application where they ask SARS to permanently or temporarily write off a large amount of debt. This process requires meticulous gathering of evidence and may result in relief. If SARS agrees to this application, then the remaining debt must be paid imminently.
- Tax Deductions and Rebates: SARS may also agree to certain deductions based on your unique situation. This may include donations, medical bills, and retirement annuities. To determine these deductions, it is best to work with experienced financial and legal experts who understand the intricacies of South African tax law and can work to achieve the best end-result.
Benefits of Partnering with a Seasoned Financial Attorney
There are many reasons to work with our attorneys when it comes to tax relief applications. These include:
- Experienced tax law specialists: With over 33 years’ experience, we understand the complexities of debt relief and will use this knowledge to apply for the best possible type of relief. Whether you need a Section 167 application or a Section 200 application, we will analyse your unique case and create a tailored tax relief plan that meets your needs.
- Effective negotiation on your behalf: With a long-standing record of successfully completed cases and a deep understanding of tax law, we are in a position to effectively negotiate with SARS. As skilled negotiators, we leverage our understanding of the law to secure favourable outcomes.
- Minimise the risk of tax penalties: Unfortunately, lack of tax compliance can result in hefty fees. Our financial specialists can help you avoid costly mistakes and work towards keeping penalties to a minimum.
- Ultimate peace of mind: Tax relief applications can be stressful and time-consuming. Working with our attorneys ensures that every box is ticked. We handle the heavy lifting so that you can focus on regaining financial freedom.
Financial Freedom Awaits: Reach Out to Francois Uys Inc. Attorneys
If you are ready to leave the stress of debt behind, reach out to our friendly team and we will advise you on how tax relief applications work and how we can assist you.
Disclaimer: This article is for information purposes only. It does not constitute legal advice and cannot be used to make any decisions. For advice on the topic of tax relief applications, contact Francois Uys Inc. Attorneys. The information is relevant as of the date of publishing.
