SETTLEMENT AND COMPROMISE: HOW TO PAY LESS TAX, LEGALLY

The Tax Administration Act, 2011 (the “TAA”) contains limited exceptions to the “general rule” in South African tax legislation that SARS is obliged to assess and collect all tax debts and not to waive any tax debts. The TAA’s settlement, write off and compromise provisions carefully prescribe and circumscribe the circumstances in which SARS may deviate from or temper the operation of the general rule.