How to apply to SARS for a suspension of payment
10 November 2014
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: I can't find
any guides or forms regarding the suspension of payment. Does one submit a
letter to the local branch?
A: Section 164(2)
of the Tax Administration Act provides that a "taxpayer may request a senior
SARS official to suspend the payment of tax or a portion thereof due under an
assessment if the taxpayer intends to dispute or disputes the liability to pay
that tax”, but it provides no further detail.
Paragraph 10.6.1 of the SARS short guide to the Act states
The suspension of payment of disputed tax is not an
automatic right and a taxpayer must apply for the suspension in the form and
manner prescribed by SARS.
In view of the fact that the due date for the payment of tax
under an assessment is normally before the due date for lodging an objection
and to cater for pre-objection requests for reasons, a suspension request may
be made before an objection is lodged.
There is no prescribed form at the moment and you are right
that the request is made in writing to the branch. One can also make use of the practitioner
email facility (pcc@).
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.