QUESTION 1 (31 marks, 37 minutes) PART A (20 marks, 24 minutes) Sunny BnB (Pty) Lid leased a building for R4 000 000 for the 2019 financial year, which ended on 31 December 2019. SARS assessed Sunny BnB (Pty) Lid on a taxable income of approximately R25 000 000 for its 2019 year of assessment. Sibongile Kumalo, one of the company's accountants, noticed that SARS had disallowed certain expenditure, more particularly the audit fees paid in respect of the lease of the building. Sibongile intends to dispute the disallowance but is not sure whether SARS may suspend the payment of taxes if the company is going to dispute the assessment. Sibongile is also worried that SARS may approach the courts with the view of obtaining a "preservation order" against his business assets. He also enquires whether it would be possible to arrange for instalment payments for the taxes due and payable. REQUIRED: MARKS a. Describe to Sibongile which facts a senior SARS official will take into consideration for making a decision to suspend the payment of a tax 7 pending the outcome of an objection or appeal b. Inform Sibongile what criteria SARS will take into consideration before entering into an instalment agreement with a taxpayer in respect of an outstanding tax debt. c. Advise Sibongile whether he will be successful in entering into an 2 instalment agreement with SARS. Your answer must be supported by facts from the above scenario