Page 37 - SAIT Compendium 2016 Volume2

Write-off INCOME TAX ACT: REGULATIONS ANd NOTICES Write-off interest, penalty or other amount payable by a person in terms of any Act administered by the Commissioner where that
write-off or compromise would be to the best advantage of the State.
1. De nitions
2. Purpose
3. Application of regulations
4. Temporary write off of tax debt
5. Tax debts uneconomical to pursue
6. Permanent write off of tax debt
7. Tax debts irrecoverable at law
SCHEDULE
INDEX
PART 1 General provisions
PART 2
Temporary write off of tax debt
PART 3
Permanent write off of tax debt
Irrecoverable at law
PART 4 Procedures for write-off
8. Procedure for writing off tax debt on a temporary or permanent basis
PART 5 Compromise of tax debt
9. Compromise of tax debt
10. Request by debtor for compromise
11. Consideration of request to compromise tax debt
12. Circumstances where not appropriate to compromise tax debt
13. Procedure for compromise of tax debt
14. Commissioner not bound by compromise
PART 6 Records and reporting
15. Records of tax debts written off or compromised
16. Reporting by Commissioner of tax debts written off or compromised
PART 7
Exercise of power to write off or compromise
17. Exercise of power to write off or compromise tax debt
18. No relationship between debtor and Commissioner or delegated of cial
PART 1 General provisions
1 De nitions
For purposes of these Regulations, any word or expression to which a meaning has been assigned in any Act administered by the Commissioner must, unless the context otherwise indicates, bear the meaning so assigned, and—
‘asset’ includes—
(a) property of whatever nature, whether movable or immovable, corporeal or incorporeal; and (b) a right or interest of whatever nature to or in such property;
‘Companies Act’ means the Companies Act 61 of 1973;
‘compromise’ means an agreement entered into between the Commissioner and a debtor in terms of which—
(a) the debtor undertakes to pay an amount (whether as a single payment or in instalments) which is less than the full
amount of the tax debt due by that debtor in full satisfaction of that tax debt; and
(b) the Commissioner undertakes not to pursue the recovery of the remaining portion of that tax debt on the condition
that the debtor complies with the undertaking contemplated in paragraph (a) and any further conditions as may be
imposed by the Commissioner;
‘tax debt’ means any tax, duty, levy, charge, additional tax, interest, penalty or other amount due by a debtor in terms
of any Act administered by the Commissioner; and
‘write off’ means to reverse a tax debt either in whole or in part.
2 Purpose
(1) The basic principle in law is that it is the duty of the Commissioner to assess and collect all tax debts according to the laws administered by or assigned to the Commissioner and not to forgo any such tax debts.
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