LIQUIDATION GETS RID OF SARS
YOU CAN APPLY WITH SARS FOR A COMPROMISE AND PAY THE DEBT OR YOU CAN LIQUIDATE AND BE RID OF THE DEBT
Not paying VAT does not leave a director or member personally liable for the debt of a Company or Close Corporation.
SARS cannot take criminal action against a director or member for unpaid VAT
Liquidation writes the debt off
Once the Company or Close Corporation is liquidated, all debt, even the SARS debt is written off.
We have done hundreds of liquidations and no director/member was ever held personally liable by SARS.
from any director or member of any of the businesses that we have liquidated.
Customs and Excise Act
The only tax that is not written off in a liquidation is taxes owed under the Customs and Excise Act.
The manager of the premises remain personally liable for these taxes.
Most of the time the South African Revenue Services takes so long to answer your request for relief, that you could have liquidated the entity which will get rid of the problem altogether instead of waiting for it to be resolved.
In our experience, if the South African Revenue Services does get back to you on relief, it is usually unrealistic with high repayment terms which you can’t afford in any case.
By then, the interest and penalties have almost doubled your original debt….
LIQUIDATION WRITES THE SARS AND OTHER DEBTS OFF AND ALLOWS YOU TO START WITH A CLEAN SLATE
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