SARS relief possible for taxpayers – with a catch

A proposed bill could give taxpayers relief by letting them apply for suspension of payment on estimated SARS assessments, but experts warn this safeguard is discretionary, revocable, and doesn’t stop interest, penalties, or SARS’ aggressive collections.

With the 2025 tax season in full swing, André Daniels, Head of Tax Controversy & Dispute Resolution at Tax Consulting SA, reminded taxpayers that when SARS issues an estimated assessment, the debt is immediately due and payable.

These assessments are usually issued because a taxpayer has not filed a return or failed to provide information on time.

Daniels cautioned that SARS has far-reaching powers and can move swiftly to attach taxpayers’ bank accounts and garnish salaries in these cases.

Worryingly, this can all happen before the taxpayer has had a chance to prove that the estimated assessment is excessive or even incorrect.

However, things may be looking up for taxpayers. The 2025 Draft Tax Administration Laws Amendment Bill (2025 Draft TALAB), published on 16 August 2025 for comment, proposes a crucial change that may bring welcome temporary relief.

The 2025 Draft TALAB attempts to offer a measure of relief by amending section 164 of the Tax Administration Act (TAA).

For the first time, the law will expressly recognise that a taxpayer who requests a reduced assessment under section 95(6) of the TAA may apply for a suspension of payment of the tax charged in terms of the estimated assessment.

This suspension will remain in place until SARS has decided whether a reduced assessment will be issued.

“On paper, this means that while SARS considers whether to issue a corrected assessment, the taxpayer may secure temporary relief from the immediate threat of enforced collection by SARS,” Daniels said.

He warned, however, that taxpayers should not be lulled into thinking this represents a safeguard. This is because a suspension of payment is not a right; it is a privilege granted at SARS’ discretion.

“Even if granted, it can be revoked at any time if SARS believes collection is at risk. In the meantime, interest and penalties continue to mount.”

If SARS decides not to issue a reduced assessment, the taxpayer will have to pay the original estimated liability.

On top of this, they must also bear the compounded financial burden that accrued during the suspension period, until a subsequent objection is filed and allowed by SARS.

SARS remains ruthless

Daniels warned that SARS’ recent enforcement patterns show an unmistakable trend: aggressive and unrelenting pursuit of outstanding debts.

“Businesses and individuals alike have experienced overnight account sweeps, surprise third-party appointments on clients or employers, and asset attachments that can cripple operations.”

“For many, this happens while they are still scrambling to file the correct return or supply supporting documentation.”

The proposed amendment does nothing to slow this machinery, Daniels said. It simply clarifies that a taxpayer may apply for suspension while caught in its gears, making the risks of non-compliance starker than ever.

“A missed filing deadline or a delay in providing requested information does not only invite an estimated assessment: it can trigger a chain of collection actions that devastates cash flow and destroys financial stability.”

“Once SARS is in pursuit, the taxpayer is left playing catch-up, relying on a request for suspension of payment as a desperate shield as a last line of defence that may or may not hold fast.”

Daniels explained that compliance is not merely a regulatory requirement; it is a practical survival strategy.

“The proposed amendment to section 164 should not be read as comfort, but as confirmation that SARS’ collection net tightens swiftly and ruthlessly.”

“Taxpayers who gamble with deadlines, even briefly, risk financial ruin at the hands of an authority whose mandate is to collect at all costs.”

The safest course is to file on time and accurately, avoiding the nightmare of facing an estimated assessment backed by SARS’ full enforcement arsenal.