The messages from SARS are clear: tax collection must be increased.
And increasing it they are! That is one of the reasons why most small business owners are under financial pressure: SARS is too expensive, especially if you add penalties and admin levies.
It is critical that each and every business owner understands how LIquidation is used as a tool to get rid of SARS debt, so that they can continue to trade. Do not be intimidated by SARS debt – liquidation can help you to get rid of it. The sooner the better.
SARS debt is one of the most expensive debts that very few businesses can afford to pay. You can get rid of SARS and other debt through Liquidation. The sooner you get rid of the debt the better. Talk to us about how Liquidation can free your business of unpaid SARS debt and continue to trade.
One does not want to run away from paying taxes. The purpose of this article is not to promote not paying taxes. However, if your business is in arrears with taxes and there are penalites and admin fees, the debt is simply too expensive. It can be critical to Liquidate a company that owes SARS taxes because usually the company does not have the cash flow to pay SARS AND survive.
If you Liquidate you keep control of your bank account otherwise SARS may just debit it and take your money
No notice is given to you before SARS debits your bank account. You can loose all your cashflow because SARS does not show any mercy: they take all the money in the account.
If you Liquidate before that happens, your cash will sit happily in a new business account and you do not have to fear that SARS will take your cash.
How do you get rid of SARS debt if you cannot pay it?
To get rid of SARS debt you can liquidate the Business and start over. You can keep your business, your staff and your assets. We can assist you with a restructuring process where this is possible. It does not make financial sense to struggle to pay the debt, because it is not viable and not a good financial decision. Money should be lived “forward” not “backward” and if you are trying to pay debt with money you don’t really have, then you are living backward. Get rid of debt fast if you cannot pay it. A wise financial decision is to take the shortest route to the fastest solution and liquidation is that fast solution.
In the last 17 years and hundreds of liquidations later, SARS has not held any of our clients personally liable for the debt of their companies. However, with the threats made in the media about collection going to become more effective, who knows whether this may change? I don’t work for SARS, but my logic tells me that it will not change because we need our business owners. We need them busy creating employment and running businesses, not being impoverished because they are held personally liable for business debt. It remains the best option to liquidate the company as soon as possible so that you remove all doubt and worry just in case SARS does decide to start holding directors personally liable.