A tax assurance agreement is enacted between the revenue authorities of the country and an individual or an organization wherein the concerned party owes some tax to the revenue department and undertakes to repay the full debt within specified time period and according to a specified payment plan.
Generally taxation authorities require for the tax payer to remit the tax in full but in extreme cases wherein the party is unable to repay the tax in whole, authorities agree to accept a payment plan after fully satisfying themselves of the good intent of the tax payer and of his current financial abilities. The party may have to submit their previous tax records and documents pertaining to current financial status in order to garner permission for staggered tax assurance agreements. This agreement generally consists of clauses such as the full tax amount outstanding, the payment plan of the individual and the penalties the party may have to face in event of default.
[Also Read: Tax Agreement]
Sample for Tax Assurance Agreement
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