South Africa Law
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Thank so much - I feel a little better.
If SARS decides not to move on - what will happen to the directors (ie my parents)??
Even if the sale is finalised...
Honestly speaking - they cant do much to your folks. As long as VAT and PAYE are fully paid for the rest there isn't really personal liability unless they go through a massive process under the Companies Act of 2008 and prove that the Directors (or another person) acted fraudulently or recklessly. I really wouldn't be too concerned and at the end of it all if they do decide to take it further you just negotiate a deal then. SARS couldn't bugger XXXXX XXXXX over a few billion rand - I promise you they probably aren't interested in your parents and their million rand story.
You say that 'As long as VAT and PAYE are fully paid'The amount outstanding is VAT, PAYE & ITA.... so there are big problems??
Oh dear, sorry I meant we have only been able to pay that since 2011-now - so 2007-2011 is outstanding... so we are in big trouble?
Hmmm - this is a potential problem! You need to get an attorney on board to help you through the process. They will more than likely claim VAT and PAYE from the Directors. This is treated differently to non payment of income tax because with VAT and PAYE you are not the owner of the funds you deduct it from customers and employees and you are supposed to pay it over. Not paying it over is seen as a form of theft. My advice is get a good attorney on board now to help you negotiate with SARS.
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