Electrical Engineer Story

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How working with Tax Debt Compliance helped a business owner to get out of 5 years of no income and not being able to do business and settle all debt with SARS on Terms that Made Sense for Both Parties

I am a business owner in the electrical engineering space. We handle electrical installations, repairs, maintenance and auditing.

My biggest concern before I worked with Tax Debt Compliance was that my compliance with SARS and bookkeeping was in tatters. I didn’t have a tax clearance certificate to trade and I could not do business.

I took my eye off the ball. I didn’t check the person who did my books. I didn’t check that my payments to SARS was up to date. When I found out about my problem with SARS I was R300 K in arrears on payments.

I felt my business was done, I could not resuscitate it. I didn’t trade for 4 years. I went to people who said they can help me and they just wasted my time and I lost hope. My wife saw something on the Internet about Tax Debt Compliance, but by that time I lost all hope because I’ve been taken for a ride a couple of times by people who said they could help me but did not.

One of the people who said they could help me got me a tax clearance certificate even though I didn’t pay SARS. It was not an active tax clearance and did not help and made matters worse. It wasted my time. I don’t know if what they did and how they did it was legal.

My wife spoke to me again to give Tax Debt Compliance a chance.

When I met with Gerhard he explained how they work to negotiate with SARS and he gave me options and assured me that my problem can be sorted out with SARS in a legal way. I trusted him just on gut. And the things he said, no one ever told me about that – go for compromise – even the accountant never used the words compromise. Gerhard said I must have an accountant to do my books, he didn’t want that business and I knew he was not after my money, but really wanted to help. He said I can use my own accountant that I choose but he can recommend accountants as wel. I wanted to have a good accountant and I chose GNR that Gerhard recommended as auditors.

By that time I was R2.3 mil debt with if you added the penalties. The new auditors redid the books legally and got the outstanding amount to SARS down to R900 K.

TDC took over all communication with SARS. Gerhard handled and presented the case to SARS. I was able to get temporary arrangement for tax clearance to stay in business after paying SARS R5 K per month for 3 months. So I had a tax clearance certificate, I could work again and Tax Debt Compliance gave me very reasonable terms that I could pay him. I did not even feel the payments to Tax Debt Compliance.

Tax Debt Compliance worked with SARS on a request for compromise. The SARS committee meeting was delaying the process as they did not meet between the end of 2019 when they closed and only opened in Jan 2020. We offered SARS a R100 K for total payment, they accepted and I signed the agreement.

So then I was out of it over the moon.

I learned valuable lessons:

  • SARS is not out there to destroy businesses they want you to come forward and work with you to be compliant.
  • Speak to SARS about your problem, you don’t have to hide.
  • You can employ people to do your books but keep your eye on the ball and know what’s happening.

If you have book keeping service and you are in business, and you don’t have a business qualification or accounting background, you need the right people to educate you.

I lost 5 years of my life because of non compliance to SARS and not being able to do business. I lost my cars and my income – I lost everything. When I started to work with Tax Debt Compliance everything changed.

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