When may SARS initiate proceedings for the recovery of a tax debt?
Before the Tax Administration Act, 28 of 2011 (the TAA) came into effect on 1 October 2012, section 11(a)(iii) of the Prescription Act,68 of 1969 provided that tax debts prescribe after 30 years. The period of limitation for the collection of tax debts is now set out in section 171 of the TAA, which provides that SARS may not initiate proceedings for the recovery of a tax debt after the expiration of 15 years from:
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