That catches many taxpayers by surprise.
South Africa's tax system generally follows the "pay now, argue later" principle. In plain English: lodging an objection does not automatically freeze the tax debt due.
But there is an important mechanism that taxpayers should know about. A taxpayer who intends to dispute, or is already disputing, a tax liability can request a suspension of payment from SARS.
The key word is request.
A suspension is not automatic, and it is not a loophole for delaying tax.
SARS considers factors such as whether the debt will still be recoverable, the taxpayer's compliance history, whether security can be provided, whether payment would cause serious financial hardship, and whether fraud is involved.
This is one of the tax mechanisms explained in the October issue of Prestige Bulletin.
