Government Gazette
REPUBLIC OF SOUTH AFRICA
Vol. 565
Cape Town
4 July 2012
No. 35491
STATE PRESIDENT'S OFFICE
No. 591
4 July 2012
It is hereby notified that the President has assented to the following Act, which is
hereby published for general information:No. 28 of 2011: Tax Administration Act, 2011.
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No. 35491
GOVERNMENT GAZETTE, 4 JULY 2012
Act No. 28 of 2011
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Tax Administration Act, 2011
GENERAL EXPLANATORY NOTE:
[
]
Words in bold type in square brackets indicate omissions from
existing enactments.
Words underlined with a solid line indicate insertions in
existing enactments.
(English text signed by the President)
(Assented to 2 July 2012)
ACT
To provide for the effective and efficient collection of tax; to provide for the
alignment of the adm inistration provisions of tax Acts and the consolidation of the
provisions into one piece of legislation to the extent practically possible; to
determine the powers and duties of the South African Revenue Service and
officials; to provide for the delegation of powers by the Commissioner; to provide
for the authority to act in legal proceedings; to determine the powers and duties of
the M inister of Finance; to provide for the establishment of the office of the Tax
Ombud; to determine the powers and duties of the Tax Ombud; to provide for
registration requirements; to provide for the submission of returns and the duty to
keep records; to provide for reportable arrangements; to provide for the request
for information; to provide for the carrying out of an audit or investigation by the
South African Revenue Service; to provide for inquiries; to provide for powers of
the South African Revenue Service to carry out searches and seizures; to provide
for the confidentiality of information; to provide for the South African Revenue
Service to issue advance rulings; to make provision in respect of tax assessments; to
provide for dispute resolution; to make provision for the payment of tax; to provide
for the recovery of tax; to provide for the South African Revenue Service to recover
interest on outstanding tax debts; to provide for the refund of excess payments; to
provide for the write-off and compromise of tax debts; to provide for the imposition
and remittance of administrative non-compliance penalties; to provide for the
imposition of understatem ent penalties; to provide for a voluntary disclosure
programme; to provide for criminal offences and sanctions; to provide for the
reporting of unprofessional conduct by tax practitioners; and to provide for
m atters connected therewith.
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Act No. 28 of 2011
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Tax Administration Act, 2011
^ ^ E IT ENACTED by the Parliament of the Republic of South Africa, as follows:—
ARRANGEMENT OF SECTIONS
Sections
CHAPTER 1
5
DEFINITIONS
1.
Definitions
CHAPTER 2
GENERALADMINISTRATION PROVISIONS
Part A
10
In general
2.
3.
4.
5.
Purpose of Act
Administration of tax Acts
Application of Act
Practice generally prevailing
15
Part B
Powers and duties ofSARS and SARS officials
6.
7.
8.
9.
Powers and duties
Conflict of interest
Identity cards
Decision or notice by SARS
20
Part C
Delegations
10.
Delegations by the Commissioner
Part D
25
Authority to act in legal proceedings
11.
12.
Legal proceedings on behalf of Commissioner
Right of appearance in proceedings
Part E
Powers and duties ofM inister
13.
14.
30
Powers and duties of Minister
Power of Minister to appoint Tax Ombud
Part F
Powers and duties ofTax Ombud
15.
16.
17.
18.
19.
20.
Office of Tax Ombud
Mandate of Tax Ombud
Limitations on authority
Review of complaint
Reports by Tax Ombud
Resolution and recommendations
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Tax Administration Act, 2011
21.
Confidentiality
CHAPTER 3
REGISTRATION
22.
23.
24.
Registration requirements
Communication of changes in particulars
Taxpayer reference number
5
CHAPTER 4
RETURNS AND RECORDS
Part A
General
25.
26.
27.
28.
29.
30.
31.
32.
33.
Submission of return
Third party returns
Other returns required
Statement concerning accounts
Duty to keep records
Form of records kept or retained
Inspection of records
Retention period in case of audit, objection or appeal
Translation
P artB
10
15
20
Reportable arrangements
34.
35.
36.
37.
38.
39.
Definitions
Reportable arrangements
Excluded arrangements
Disclosure obligation
Information to be submitted
Reportable arrangement reference number
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CHAPTER 5
INFORMATION GATHERING
Part A
30
General rules for inspection, verification, audit and criminal investigation
40
41
42
43
44
Selection for inspection, verification or audit
Authorisation for SARS official to conduct audit or criminal investigation
Keeping taxpayer informed
Referral for criminal investigation
Conduct of criminal investigation
35
Part B
Inspection, request for relevant material, audit and criminal investigation
45.
46.
47.
48.
49.
Inspection
Request for relevant material
Production of relevant material in person
Field audit or criminal investigation
Assistance during field audit or criminal investigation
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Tax Administration Act, 2011
Part C
Inquiries
50.
51.
52.
53.
54.
55.
56.
57.
58.
Authorisation for inquiry
Inquiry order
Inquiry proceedings
Notice to appear
Powers of presiding officer
Witness fees
Confidentiality of proceedings
Incriminating evidence
Inquiry not suspended by civil or criminal proceedings
5
10
Part D
Search and seizure
59.
60.
61.
62.
63.
64.
65.
66.
Application for warrant
Issuance of warrant
Carrying out search
Search of premises not identified in warrant
Search without warrant
Legal professional privilege
Person’s right to examine and make copies
Application for return of seized relevant material or costs of damages
15
20
CHAPTER 6
CONFIDENTIALITY OF INFORMATION
67.
68.
69.
70.
71.
72.
73.
74.
General prohibition of disclosure
SARS confidential information and disclosure
Secrecy of taxpayer information and general disclosure
Disclosure to other entities
Disclosure in criminal, public safety or environmental matters
Self-incrimination
Disclosure to taxpayer of own record
Publication of names of offenders
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CHAPTER 7
ADVANCE RULINGS
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.
Definitions
Purpose of advance rulings
Scope of advance rulings
Private rulings and class rulings
Applications for advance rulings
Rejection of application for advance ruling
Fees for advance rulings
Binding effect of advance rulings
Applicability of advance rulings
Rulings rendered void
Subsequent changes in tax law
Withdrawal or modification of advance rulings
Publication of advance rulings
Non-binding private opinions
General rulings
Procedures and guidelines for advance rulings
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CHAPTER 8
ASSESSMENTS
91.
92.
93.
94.
95.
96.
97.
98.
99.
100
Original assessments
Additional assessments
Reduced assessments
Jeopardy assessments
Estimation of assessments
Notice of assessment
Recording of assessments
Withdrawal of assessments
Period of limitations for issuance of assessments
Finality of assessment or decision
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CHAPTER 9
DISPUTE RESOLUTION
Part A
15
General
101. Definitions
102. Burden of proof
103. Rules for dispute resolution
P artB
20
Objection and appeal
104.
105.
106.
107.
Objection against assessment or decision
Forum for dispute of assessment or decision
Decision on objection
Appeal against assessment or decision
25
Part C
Tax board
108. Establishment of tax board
109. Jurisdiction of tax board
110. Constitution of tax board
111. Appointment of chairpersons
112. Clerk of tax board
113. Tax board procedure
114. Decision of tax board
115. Referral of appeal to tax court
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Part D
Tax court
116.
117.
118.
119.
120.
121.
122.
123.
124.
125.
Establishment of tax court
Jurisdiction of tax court
Constitution of tax court
Nomination of president of tax court
Appointment of panel of tax court members
Appointment of registrar of tax court
Conflict of interest of tax court members
Death, retirement or incapability of judge or member
Sitting of tax court not public
Appearance at hearing of tax court
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126.
127.
128.
129.
130.
131.
132.
Subpoena of witness to tax court
Non-attendance by witness or failure to give evidence
Contempt of tax court
Decision by tax court
Order for costs by tax court
Registrar to notify parties of judgment of tax court
Publication of judgment of tax court
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Part E
Appeal against tax court decision
133.
134.
135.
136.
137.
138.
139.
140.
141.
Appeal against decision of tax court
Notice of intention to appeal tax court decision
Leave to appeal to Supreme Court of Appeal against tax court decision
Failure to lodge notice of intention to appeal tax court decision
Notice by registrar of period for appeal of tax court decision
Notice of appeal to Supreme Court of Appeal against tax court decision
Notice of cross-appeal of tax court decision
Record of appeal of tax court decision
Abandonment of judgment
10
15
Part F
Settlement ofdispute
142.
143.
144.
145.
146.
147.
148.
149.
150.
Definitions
Purpose of Part
Initiation of settlement procedure
Circumstances where settlement is inappropriate
Circumstances where settlement is appropriate
Procedure for settlement
Finality of settlement agreement
Register of settlements and reporting
Alteration of assessment or decision on settlement
CHAPTER 10
20
25
30
TAX LIABILITY AND PAYMENT
Part A
Taxpayers
151.
152.
153.
154.
155.
156.
157.
158.
159.
160.
161.
Taxpayer
Person chargeable to tax
Representative taxpayer
Liability of representative taxpayer
Personal liability of representative taxpayer
Withholding agent
Personal liability of withholding agent
Responsible third party
Personal liability of responsible third party
Right to recovery of taxpayer
Security by taxpayer
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Part B
Payment o f tax
162. Determination of time and manner of payment of tax
163. Preservation order
164. Payment of tax pending objection or appeal
5
Part C
Taxpayer account and allocation ofpayments
165. Taxpayer account
166. Allocation of payments
Part D
10
Deferral ofpayment
167. Instalment payment agreement
168. Criteria for instalment payment agreement
CHAPTER 11
RECOVERY OF TAX
15
Part A
General
169. Debt due to SARS
170. Evidence as to assessment
171. Period of limitation on collection of tax
20
Part B
Judgment procedure
172.
173.
174.
175.
176.
Application for civil judgment for recovery of tax
Jurisdiction of Magistrates’ Court in judgment procedure
Effect of statement filed with clerk or registrar
Amendment of statement filed with clerk or registrar
Withdrawal of statement and reinstitution of proceedings
25
Part C
Sequestration, liquidation and winding-up proceedings
177. Institution of sequestration, liquidation or winding-up proceedings
178. Jurisdiction of court in sequestration, liquidation or winding-up proceedings
30
Part D
Collection o f tax debt from third parties
179.
180.
181.
182.
183.
184.
Liability of third party appointed to satisfy tax debts
Liability of financial management for tax debts
Liability of shareholders for tax debts
Liability of transferee for tax debts
Liability of person assisting in dissipation of assets
Recovery of tax debts from responsible third parties
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Part E
Assisting foreign governments
185. Tax recovery on behalf of foreign governments
Part F
Remedies with respect to foreign assets
186.
5
Compulsory repatriation of foreign assets of taxpayer
CHAPTER 12
INTEREST
187. General interest rules
188. Period over which interest accrues
189. Rate at which interest is charged
10
CHAPTER 13
REFUNDS
190. Refunds of excess payments
191. Refunds subject to set-off and deferral
15
CHAPTER 14
W RITE OFF OR COMPROMISE OF TAX DEBTS
Part A
General provisions
192. Definitions
193. Purpose of Chapter
194. Application of Chapter
20
Part B
Temporary write off o f tax debt
195. Temporary write off of tax debt
196. Tax debt uneconomical to pursue
25
Part C
Permanent write off o f tax debt
197. Permanent write off of tax debt
198. Tax debt irrecoverable at law
199. Procedure for writing off tax debt
30
Part D
Compromise o f tax debt
200.
201.
202.
203.
204.
205.
Compromise of tax debt
Request by debtor for compromise of tax debt
Consideration of request to compromise tax debt
Circumstances where not appropriate to compromise tax debt
Procedure for compromise of tax debt
SARS not bound by compromise of tax debt
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Part E
Records and reporting
206. Register of tax debts written off or compromised
207. Reporting by Commissioner of tax debts written off or compromised
CHAPTER 15
5
ADMINISTRATIVE NON-COMPLIANCE PENALTIES
Part A
General
208. Definitions
209. Purpose of Chapter
10
Part B
Fixed amount penalties
210. Non-compliance subject to penalty
211. Fixed amount penalty table
212. Reportable arrangement penalty
15
Part C
Percentage based penalty
213. Imposition of percentage based penalty
Part D
Procedure
20
214. Procedures for imposing penalty
215. Procedure to request remittance of penalty
Part E
Remedies
216.
217.
218.
219.
220.
Remittance of penalty for failure to register
Remittance of penalty for nominal or first incidence of non-compliance
Remittance of penalty in exceptional circumstances
Penalty incorrectly assessed
Objection and appeal against decision not to remit penalty
CHAPTER 16
25
30
UNDERSTATEMENT PENALTY
Part A
Imposition ofunderstatement penalty
221. Definitions
222. Understatement penalty
223. Understatement penalty percentage table
224. Objection and appeal against decision not to remit understatement penalty
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Part B
Voluntary disclosure programme
225.
226.
227.
228.
229.
230.
231.
232.
233.
Definitions
Qualifying person for voluntary disclosure
Requirements for valid voluntary disclosure
No-name voluntary disclosure
Voluntary disclosure relief
Voluntary disclosure agreement
Withdrawal of voluntary disclosure relief
Assessment or determination to give effect to agreement
Reporting of voluntary disclosure agreements
5
10
CHAPTER 17
CRIMINAL OFFENCES
234.
235.
236.
237.
238.
Criminal offences relating to non-compliance with tax Acts
Criminal offences relating to evasion of tax
Criminal offences relating to secrecy provisions
Criminal offences relating to filing return without authority
Jurisdiction of courts in criminal matters
15
CHAPTER 18
REPORTING OF UNPROFESSIONAL CONDUCT
239.
240.
241.
242.
243.
Definitions
Registration of tax practitioners
Complaint to controlling body of tax practitioner
Disclosure of information regarding complaint and remedies of taxpayer
Complaint considered by controlling body
20
25
CHAPTER 19
GENERAL PROVISIONS
244. Deadlines
245. Power of Minister to determine date for submission of returns and payment of
tax
30
246. Public officers of companies
247. Company address for notices and documents
248. Public officer in event of liquidation or winding-up
249. Default in appointing public officer or address for notices or documents
250. Authentication of documents
35
251. Delivery of documents to persons other than companies
252. Delivery of documents to companies
253. Documents delivered deemed to have been received
254. Defect does not affect validity
255. Rules for electronic communication
40
256. Tax clearance certificate
257. Regulations by Minister
CHAPTER 20
TRANSITIONAL PROVISIONS
258. New taxpayer reference number
259. Appointment of Tax Ombud
260. Provisions relating to secrecy
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261.
262.
263.
264.
265.
266.
267.
268.
269.
270.
271.
272.
Public officer previously appointed
Appointment of chairpersons of tax board
Appointment of members of tax court
Continuation of tax board, tax court and court rules
Continuation of appointment to a post or office or delegation by Commissioner 5
Continuation of authority to audit
Conduct of inquiries and execution of search and seizure warrants
Application of Chapter 15
Continuation of authority, rights and obligations
10
Application of Act to prior or continuing action
Amendment of legislation
Short title and commencement
CHAPTER 1
DEFINITIONS
Definitions
15
1.
In this Act, unless the context indicates otherwise, a term which is assigned
meaning in another tax Act has the meaning so assigned, and the following terms have
the following meaning:
“ additional assessment’’ is an assessment referred to in section 92;
“ adm inistration of a tax A ct’’ has the meaning assigned in section 3(2);
“ administrative non-compliance penalty’’ has the meaning assigned in section
208;
‘‘assessment’’ means the determination of the amount of a tax liability or refund,
by way of self-assessment by the taxpayer or assessment by SARS;
‘‘biometric inform ation’’ means biological data used to authenticate the identity
of a natural person by means of—
(a) facial recognition;
(b) fingerprint recognition;
(c) voice recognition;
(d) iris or retina recognition; and
(e) other, less intrusive biological data, as may be prescribed by the Minister in a
regulation issued under section 257;
‘‘business day’’ means a day which is not a Saturday, Sunday or public holiday,
and for purposes of determining the days or a period allowed for complying with
the provisions of Chapter 9, excludes the days between 16 December of each year
and 15 January of the following year, both days inclusive;
‘‘Commissioner’’ means the Commissioner for the South African Revenue
Service appointed in terms of section 6 of the SARS Act or the Acting
Commissioner designated in terms of section 7 of that Act;
‘‘company’’ has the meaning assigned in section 1 of the Income Tax Act;
‘‘connected person’’ means a connected person as defined in section 1 of the
Income Tax Act;
‘‘Customs and Excise Act’’ means the Customs and Excise Act, 1964 (ActNo. 91
of 1964);
‘‘date of assessment’’ means—
(a) in the case of an assessment by SARS, the date of the issue of the notice of
assessment; or
(b) in the case of self-assessment by the taxpayer—
(i) if a return is required, the date that the return is submitted; or
(ii) if no return is required, the date of the last payment of the tax for the tax
period or, if no payment was made in respect of the tax for the tax period,
the effective date;
‘‘date of sequestration’’ means—
(a) the date of voluntary surrender of an estate, if accepted by a court; or
(b) the date of provisional sequestration of an estate, if a final order of
sequestration is granted by a court;
‘‘Diamond Export Levy Act’’ means the Diamond Export Levy Act, 2007 (Act
No. 15 of 2007);
a
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‘‘Diamond Export Levy (Administration) A ct’’ means the Diamond Export
Levy (Administration) Act, 2007 (Act No. 14 of 2007);
‘‘document’’ means anything that contains a written, sound or pictorial record, or
other record of information, whether in physical or electronic form;
“ effective date’’ is the date described in section 187(3), (4) and (5);
‘‘Estate Duty Act’’ means the Estate Duty Act, 1955 (Act No. 45 of 1955);
‘‘fair m arket value’’ means the price which could be obtained upon a sale of an
asset between a willing buyer and a willing seller dealing at arm’s length in an open
market;
‘‘income tax’’ means normal tax referred to in section 5 of the Income Tax Act;
‘‘Income Tax Act’’ means the Income Tax Act, 1962 (Act No. 58 of 1962);
‘‘inform ation’’ includes information generated, recorded, sent, received, stored or
displayed by any means;
‘‘international tax agreement’’ means an agreement entered into with the
government of another country in accordance with a tax Act;
‘‘jeopardy assessment’’ is an assessment referred to in section 94;
‘‘judge’’ means a judge of the High Court of South Africa, whether in chambers or
otherwise;
‘‘m agistrate’’ means a judicial officer as defined in section 1 of the Magistrates’
Courts Act, 1944 (Act No. 32 of 1944), whether in chambers or otherwise;
‘‘M ineral and Petroleum Resources Royalty (Administration) Act’’ means the
Mineral and Petroleum Resources Royalty (Administration) Act, 2008 (Act No. 29
of 2008);
‘‘M inister’’ means the Minister of Finance;
‘‘official publication’’ means a binding general ruling, interpretation note, practice
note or public notice issued by a senior SARS official or the Commissioner;
‘‘original assessment’’ is an assessment referred to in section 91;
‘‘practice generally prevailing’’ has the meaning assigned in section 5;
‘‘premises’’ includes a building, aircraft, vehicle, vessel or place;
‘‘prescribed rate’’ has the meaning assigned in section 189(3);
‘‘presiding officer’’ is the person referred to in section 50(1);
‘‘Promotion of Access to Inform ation A ct’’ means the Promotion of Access to
Information Act, 2000 (Act No. 2 of 2000);
‘‘public notice’’ means a notice published in the Government Gazette;
‘‘public officer’’ is an officer referred to in section 246(1), (2) and (3);
‘‘reduced assessment’’ is an assessment referred to in section 93;
‘‘relevant m aterial’’ means any information, document or thing that is forseeably
relevant for tax risk assessment, assessing tax, collecting tax, showing non­
compliance with an obligation under a tax Act or showing that a tax offence was
committed;
‘‘reportable arrangem ent’’ has the meaning assigned in section 35;
‘‘representative taxpayer’’ has the meaning assigned in section 153(1);
‘‘responsible third p a rty ’’ has the meaning assigned under section 158;
‘‘retu rn ’’ means a form, declaration, document or other manner of submitting
information to SARS that incorporates a self-assessment or is the basis on which an
assessment is to be made by SARS;
‘ SARS’’ means the South African Revenue Service established under the SARS
Act;
‘‘SARS Act’’ means the South African Revenue Service Act, 1997 (Act No. 34 of
1997);
‘‘SARS confidential inform ation’’ has the meaning assigned under section 68(1);
‘‘SARS official’’ means—
(a) the Commissioner,
(b) an employee of SARS; or
(c) a person contracted by SARS for purposes of the administration of a tax Act
and who carries out the provisions of a tax Act under the control, direction or
supervision of the Commissioner;
‘‘Securities Transfer Tax Act’’ means the Securities Transfer Tax Act, 2007 (Act
No. 25 of 2007);
‘‘Securities Transfer Tax Adm inistration A ct’’ means the Securities Transfer Tax
Administration Act, 2007 (Act No. 26 of 2007);
‘‘self-assessment’’ means a determination of the amount of tax payable under a tax
Act by a taxpayer and—
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(a) submitting a return which incorporates the determination of the tax; or
(b) if no return is required, making a payment of the tax;
‘‘senior SARS official’’ is a SARS official referred to in section 6(3);
‘‘serious tax offence’’ means a tax offence for which a person may be liable on
conviction to imprisonment for a period exceeding two years without the option of
a fine or to a fine exceeding the equivalent amount of a fine under the Adjustment
of Fines Act, 1991 (Act No. 101 of 1991);
‘‘shareholder’’ means a person who holds a beneficial interest in a share in a
company as defined in the Income Tax Act;
‘‘Skills Development Levies A ct’’ means the Skills Development Levies Act,
1999 (Act No. 9 of 1999);
‘‘tax’’, for purposes of administration under this Act, includes a tax, duty, levy,
royalty, fee, contribution, penalty, interest and any other moneys imposed under a
tax Act;
‘‘taxable event’’ means an occurrence which affects or may affect the liability of
a person to tax;
‘‘tax Act’’ means this Act or an Act, or portion of an Act, referred to in section 4 of
the SARS Act, excluding the Customs and Excise Act;
‘‘tax board ’’ means a tax board established under section 108;
‘‘tax court’’ means a court established under section 116;
‘‘tax debt’’ means an amount of tax due by a person in terms of a tax Act;
‘‘tax offence’’ means an offence in terms of a tax Act or any other offence involving
fraud on SARS or on a SARS official relating to the administration of a tax Act;
‘‘Tax O m bud’’ is the person appointed by the Minister under section 14;
‘‘tax period’’ means, in relation to—
(a) income tax, a year of assessment as defined in section 1 of the Income Tax Act;
(b) provisional tax or employees’ tax, skills development levies as determined in
section 3 of the Skills Development Levies Act, and contributions as
determined in section 6 of the Unemployment Insurance Contributions Act,
the period in respect of which the amount of tax payable must be determined
under the relevant tax Act;
(c) value-added tax, a tax period determined under section 27 of the Value-Added
Tax Act or the period or date of the taxable event in respect of which the
amount of tax payable must be determined under that Act;
(d) royalty payable on the transfer of mineral and petroleum resources, a year of
assessment as defined in section 1 of the Mineral and Petroleum Resources
Royalty (Administration) Act;
(e) the levy on diamond exports as determined under section 2 of the Diamond
Export Levy Act, the assessment period referred to in section 1 of the
Diamond Export Levy (Administration) Act;
(!) securities transfer tax, the period referred to in section 3 of the Securities
Transfer Tax Administration Act;
(g) any other tax, the period or date of the taxable event in respect of which the
amount of tax payable must be determined under a tax Act; or
(h) a jeopardy assessment, the period determined under this Act;
‘‘taxpayer’’ has the meaning assigned under section 151;
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‘‘taxpayer inform ation’’ has the meaning assigned under section 67(1)(b);
‘‘taxpayer reference num ber’’ is the number referred to in section 24;
‘‘thing’’ includes a corporeal or incorporeal thing;
‘‘this Act’’ includes the regulations and a public notice issued under this Act;
‘‘Transfer Duty Act’’ means the Transfer Duty Act, 1949 (Act No. 40 of 1949);
5
‘‘understatem ent penalty’’ means a penalty imposed by SARS in accordance
with Part A of Chapter 16;
‘‘Unemployment Insurance Contributions Act’’ means the Unemployment
Insurance Contributions Act, 2002 (Act No. 4 of 2002);
‘‘Value-Added Tax Act’’ means the Value-Added Tax Act, 1991 (Act No. 89 of 10
1991);
‘‘withholding agent’’ has the meaning assigned under section 156.
CHAPTER 2
GENERAL ADMINISTRATION PROVISIONS
Part A
15
In general
Purpose of Act
2. The purpose of this Act is to ensure the effective and efficient collection of tax by—
(a) aligning the administration of the tax Acts to the extent practically possible;
(b) prescribing the rights and obligations of taxpayers and other persons to whom 20
this Act applies;
(c) prescribing the powers and duties of persons engaged in the administration of
a tax Act; and
(d) generally giving effect to the objects and purposes of tax administration.
Administration of tax Acts
3. (1) SARS is responsible for the administration of this Act under the control or
direction of the Commissioner.
(2) Administration of a tax Act means to—
(a) obtain full information in relation to—
(i) anything that may affect the liability of a person for tax in respect of a
previous, current or future tax period;
(ii) a taxable event; or
(iii) the obligation of a person (whether personally or on behalf of another
person) to comply with a tax Act;
(b) ascertain whether a person has filed or submitted correct returns, information
or documents in compliance with the provisions of a tax Act;
(c) establish the identity of a person for purposes of determining liability for tax;
(d) determine the liability of a person for tax;
(e) collect tax and refund tax overpaid;
(!) investigate whether an offence has been committed in terms of a tax Act, and,
if so—
(i) to lay criminal charges; and
(ii) to provide the assistance that is reasonably required for the investigation
and prosecution of tax offences or related common law offences;
(g) enforce SARS’ powers and duties under a tax Act to ensure that an obligation
imposed by or under a tax Act is complied with;
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(h) perform any other administrative function necessary to carry out the
provisions of a tax Act; and
(i) give effect to the obligation of the Republic to provide assistance under an
international tax agreement.
(3) If SARS has, in accordance with an international tax agreement, received a request 5
for—
(a) information, SARS may obtain the information requested for transmission to
the competent authority of the other country as if it were relevant material
required for purposes of a tax Act and must treat the information obtained as
10
if it were taxpayer information;
(b) the conservancy or the collection of an amount alleged to be due by a person
under the tax laws of the requesting country, SARS may deal with the request
under the provisions of section 185; or
(c) the service of a document which emanates from the requesting country, SARS
may effect service of the document as if it were a notice, document or other 15
communication required under a tax Act to be issued, given, sent or served by
SARS.
Application of Act
4. (1) This Act applies to every person who is liable to comply with a provision of a
tax Act (whether personally or on behalf of another person) and binds SARS.
20
(2) If this Act is silent with regard to the administration of a tax Act and it is
specifically provided for in the relevant tax Act, the provisions of that tax Act apply.
(3) In the event of any inconsistency between this Act and another tax Act, the other
Act prevails.
Practice generally prevailing
25
5. (1) A practice generally prevailing is a practice set out in an official publication
regarding the application or interpretation of a tax Act.
(2) Despite any provision to the contrary contained in a tax Act, a practice generally
prevailing set out in an official publication, other than a binding general ruling, ceases to
be a practice generally prevailing if—
(a) the provision of the tax Act that is the subject of the official publication is
repealed or amended to an extent material to the practice, from the date the
repeal or amendment becomes effective;
(b) a court overturns or modifies an interpretation of the tax Act which is the
subject of the official publication to an extent material to the practice from the
date of judgment, unless—
(i) the decision is under appeal;
(ii) the decision is fact-specific and the general interpretation upon which the
official publication was based is unaffected; or
(iii) the reference to the interpretation upon which the official publication was
based was obiter dicta; or
(c) the official publication is withdrawn or modified by the Commissioner, from
the date of the official publication of the withdrawal or modification.
(3) A binding general ruling ceases to be a practice generally prevailing in the
circumstances described in section 85 or 86.
30
35
40
45
Part B
Powers and duties ofSARS and SARS officials
Powers and duties
6. (1) The powers and duties of SARS under this Act may be exercised for purposes
of the administration of a tax Act.
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(2) Powers and duties which are assigned to the Commissioner by this Act must be
exercised by the Commissioner personally but he or she may delegate such powers and
duties in accordance with section 10.
(3) Powers and duties required by this Act to be exercised by a senior SARS official
5
must be exercised by—
(a) the Commissioner;
(b) a SARS official who has specific written authority from the Commissioner to
do so; or
(c) a SARS official occupying a post designated by the Commissioner for this
10
purpose.
(4) The execution of a task ancillary to a power or duty under subsection (2) or (3)
may be done by—
(a) an official under the control of the Commissioner or a senior SARS official; or
(b) the incumbent of a specific post under the control of the Commissioner or a
senior SARS official.
15
(5) Powers and duties not specifically required by this Act to be exercised by the
Commissioner or by a senior SARS official, may be exercised by a SARS official
employed or contracted to exercise or perform powers or duties for purposes of the
administration of a tax Act.
(6) The Commissioner may by public notice specify that a power or duty in a tax Act 20
other than this Act must be exercised by the Commissioner personally or a senior SARS
official.
Conflict of interest
7. The Commissioner or a SARS official may not exercise a power or become
involved in a matter pertaining to the administration of a tax Act, if—
25
(a) the power or matter relates to a taxpayer in respect of which the Commissioner
or the official has or had, in the previous three years, a personal, family, social,
business, professional, employment or financial relationship presenting a
conflict of interest; or
(b) other circumstances present a conflict of interest,
30
that will reasonably be regarded as giving rise to bias.
Identity cards
8. (1) SARS must issue an identity card to each SARS official exercising powers and
duties for purposes of the administration of a tax Act.
(2) When a SARS official exercises a power or duty for purposes of the administration 35
of a tax Act in person, the official must produce the identity card upon request by a
member of the public.
(3) If the official does not produce the identity card, a member of the public is entitled
to assume that the person is not a SARS official.
Decision or notice by SARS
40
9. (1) A decision made by a SARS official and a notice to a specific person issued by
SARS, excluding a decision given effect to in an assessment or a notice of assessment—
(a) is regarded as made by a SARS official, authorised to do so or duly issued by
SARS, until proven to the contrary; and
(b) may in the discretion of a SARS official described in subparagraphs (i) to (iii) 45
or at the request of the relevant person, be withdrawn or amended by—
(i) the SARS official;
(ii) a SARS official to whom the SARS official reports; or
(iii) a senior SARS official.
(2) If all the material facts were known to the SARS official at the time the decision 50
was made, a decision or notice referred to in subsection (1) may not be withdrawn or
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amended with retrospective effect, after three years from the later of the—
(a) date of the written notice of that decision; or
(b) date of assessment or the notice of assessment giving effect to the decision (if
applicable).
Part C
5
Delegations
Delegations by the Commissioner
10. (1) A delegation by the Commissioner under section 6(2)—
(a) must be in writing;
(b) becomes effective only when signed by the person to whom the delegation is 10
made;
(c) is subject to the limitations and conditions the Commissioner may determine
in making the delegation;
(d) may either be to—
(i) a specific individual; or
15
(ii) the incumbent of a specific post; and
(e) may be amended or withdrawn by the Commissioner.
(2) A delegation does not divest the Commissioner of the responsibility for the
exercise of the delegated power or the performance of the delegated duty.
Part D
20
Authority to act in legal proceedings
Legal proceedings on behalf of Commissioner
11. (1) No SARS official other than the Commissioner or a SARS official duly
authorised by the Commissioner may institute or defend civil proceedings on behalf of
the Commissioner.
25
(2) For purposes of subsection (1), a SARS official who, on behalf of the
Commissioner, institutes litigation, or performs acts which are relied upon by the
Commissioner in litigation, is regarded as duly authorised until proven to the contrary.
(3) A senior SARS official may lay a criminal charge relating to a tax offence
described in section 235.
30
Right of appearance in proceedings
12. (1) Despite any lawto the contrary, a senior SARS official may on behalf of SARS
or the Commissioner in proceedings referred to in a tax Act, appear ex parte in a judge’s
chambers in the tax court or in a High Court.
(2) A senior SARS official may appear in the tax court or a High Court only if the 35
person—
(a) is an advocate duly admitted under—
(i) the Admission of Advocates Act, 1964 (Act No. 74 of 1964); or
(ii) a law providing for the admission of advocates in an area in the Republic
which remained in force by virtue of paragraph 2 of Schedule 6 to the 40
Constitution of the Republic of South Africa, 1996; or
(b) is an attorney duly admitted and enrolled under—
(i) the Attorneys Act, 1979 (Act No. 53 of 1979); or
(ii) a law providing for the admission of attorneys in an area in the Republic
which remained in force by virtue of paragraph 2 of Schedule 6 to the 45
Constitution of the Republic of South Africa, 1996.
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Part E
Powers and duties ofM inister
Powers and duties of Minister
13. (1) The powers conferred and the duties imposed upon the Minister by or under
5
the provisions of a tax Act may—
(a) be exercised or performed by the Minister personally; and
(b) except for the powers under sections 14 and 257, be delegated by the Minister
to the Deputy Minister or Director-General of the National Treasury.
(2) The Director-General may in turn delegate the powers and duties delegated to the
Director-General by the Minister to a person under the control, direction or supervision 10
of the Director-General.
Power of M inister to appoint Tax Ombud
14. (1) The Minister must appoint a person as Tax Ombud—
(a) for a term of three years, which term may be renewed; and
(b) under such conditions regarding remuneration and allowances as the Minister
may determine.
(2) The person appointed under subsection (1) or (3) may be removed by the Minister
for misconduct, incapacity or incompetence.
(3) During a vacancy in the office of Tax Ombud, the Minister may designate a person
in the office of the Tax Ombud to act as Tax Ombud.
(4) No person may be designated in terms of subsection (3) as acting Tax Ombud for
a period longer than 90 days at a time.
(5) A person appointed as Tax Ombud—
(a) is accountable to the Minister;
(b) must have a good background in customer service as well as tax law; and
(c) may not at any time during the preceding five years have been convicted
(whether in the Republic or elsewhere) of—
(i) theft, fraud, forgery or uttering a forged document, perjury, an offence
under the Prevention and Combating of Corrupt Activities Act, 2004
(Act No. 12 of 2004); or
(ii) any other offence involving dishonesty,
for which the person has been sentenced to a period of imprisonment
exceeding two years without the option of a fine or to a fine exceeding the
amount prescribed in the Adjustment of Fines Act, 1991 (Act No. 101 of
1991).
15
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Part F
Powers and duties o f Tax Ombud
Office of Tax Ombud
15. (1) The staff of the office of the Tax Ombud must be employed in terms of the
SARS Act and be seconded to the office of the Tax Ombud at the request of the Tax 40
Ombud in consultation with the Commissioner.
(2) When the Tax Ombud is absent or otherwise unable to perform the functions of
office, the Tax Ombud may designate another person in the office of the Tax Ombud as
acting Tax Ombud.
(3) No person may be designated in terms of subsection (2) as acting Tax Ombud for 45
a period longer than 90 days at a time.
(4) The expenditure connected with the functions of the office of the Tax Ombud is
paid out of the funds of SARS.
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M andate of Tax Ombud
16. (1) The mandate of the Tax Ombud is to review and address any complaint by a
taxpayer regarding a service matter or a procedural or administrative matter arising from
the application of the provisions of a tax Act by SARS.
(2) In discharging his or her mandate, the Tax Ombud must—
5
(a) review a complaint and, if necessary, resolve it through mediation or
conciliation;
(b) act independently in resolving a complaint;
(c) follow informal, fair and cost-effective procedures in resolving a complaint;
(d) provide information to a taxpayer about the mandate of the Tax Ombud and 10
the procedures to pursue a complaint;
(e) facilitate access by taxpayers to complaint resolution mechanisms within
SARS to address complaints; and
(!) identify and review systemic and emerging issues related to service matters or
the application of the provisions of this Act or procedural or administrative 15
provisions of a tax Act that impact negatively on taxpayers.
Limitations on authority
17. The Tax Ombud may not review—
(a) legislation or tax policy;
(b) SARS policy or practice generally prevailing, other than to the extent that it 20
relates to a service matter or a procedural or administrative matter arising
from the application of the provisions of a tax Act by SARS;
(c) a matter subject to objection and appeal under a tax Act, except for an
administrative matter relating to such objection and appeal; or
(d) a decision of, proceeding in or matter before the tax court.
25
Review of complaint
18. (1) The Tax Ombud may review any issue within the Tax Ombud’s mandate on
receipt of a request from a taxpayer.
(2) The Tax Ombud may—
(a) determine how a review is to be conducted; and
(b) determine whether a review should be terminated before completion.
(3) In exercising the discretion set out in subsection (2), the Tax Ombud must consider
such factors as—
(a) the age of the request or issue;
(b) the amount of time that has elapsed since the requester became aware of the
issue;
(c) the nature and seriousness of the issue;
(d) the question of whether the request was made in good faith; and
(e) the findings of other redress mechanisms with respect to the request.
(4) The Tax Ombud may only review a request if the requester has exhausted the
available complaints resolution mechanisms in SARS, unless there are compelling
circumstances for not doing so.
(5) To determine whether there are compelling circumstances, the Tax Ombud must
consider factors such as whether—
(a) the request raises systemic issues;
(b) exhausting the complaints resolution mechanisms will cause undue hardship
to the requester; or
(c) exhausting the complaints resolution mechanisms is unlikely to produce a
result within a period of time that the Tax Ombud considers reasonable.
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(6) The Tax Ombud must inform the requester of the results of the review or any
action taken in response to the request, but at the time and in the manner chosen by the
Tax Ombud.
Reports by Tax Ombud
5
19. (1) The Tax Ombud must—
(a) report directly to the Minister;
(b) submit an annual report to the Minister within five months of the end of
SARS’ financial year; and
(c) submit a report to the Commissioner quarterly or at such other intervals as
10
may be agreed.
(2) The reports must—
(a) contain a summary of at least ten of the most serious issues encountered by
taxpayers and identified systemic and emerging issues referred to in section
16(2) (f), including a description of the nature of the issues;
(b) contain an inventory of the issues described in subparagraph (a) for which— 15
(i) action has been taken and the result of such action;
(ii) action remains to be completed and the period during which each item
has remained on such inventory; or
(iii) no action has been taken, the period during which each item has
remained on such inventory and the reasons for the inaction; and
20
(c) contain recommendations for such administrative action as may be appropri­
ate to resolve problems encountered by taxpayers.
(3) The Minister must table the annual report of the Tax Ombud in the National
Assembly.
Resolution and recommendations
25
20. (1) The Tax Ombud must attempt to resolve all issues within the Tax Ombud’s
mandate at the level at which they can most efficiently and effectively be resolved and
must, in so doing, communicate with SARS officials identified by SARS.
(2) The Tax Ombud’s recommendations are not binding on taxpayers or SARS.
Confidentiality
30
21. (1) The provisions of Chapter 6 apply with the changes required by the context for
the purpose of this Part.
(2) SARS must allow the Tax Ombud access to information in the possession of
SARS that relates to the Tax Ombud’s powers and duties under this Act.
(3) The Tax Ombud and any person acting on the Tax Ombud’s behalf may not 35
disclose information of any kind that is obtained by or on behalf of the Tax Ombud, or
prepared from information obtained by or on behalf of the Tax Ombud, to SARS, except
to the extent required for the purpose of the performance of functions and duties under
this Part.
CHAPTER 3
40
REGISTRATION
Registration requirements
22. (1) A person—
(a) obliged to apply to; or
(b) who may voluntarily,
45
register with SARS under a tax Act must do so in terms of the requirements of this
Chapter or, if applicable, the relevant tax Act.
(2) A person referred to in subsection (1) must—
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(a) apply for registration within the period provided for in a tax Act or, if no such
period is provided for, 21 business days of so becoming obliged or within the
further period as SARS may approve in the prescribed form and manner;
(b) apply for registration for one or more taxes in the prescribed form and manner;
and
5
(c) provide SARS with the further particulars and any documents as SARS may
require for the purpose of registering the person for the tax or taxes.
(3) A person registered or applying for registration under a tax Act may be required to
submit biometric information in the prescribed form and manner if the information is
required to ensure—
10
(a) proper identification of the person; or
(b) counteracting identity theft or fraud.
(4) A person who applies for registration in terms of this Chapter and has not provided
all particulars and documents required by SARS, may be regarded not to have applied
for registration until all the particulars and documents have been provided to SARS.
15
(5) Where a taxpayer that is obliged to register with SARS under a tax Act fails to do
so, SARS may register the taxpayer for one or more tax types as is appropriate under the
circumstances.
Communication of changes in particulars
23. A person who has been registered under section 22 must communicate to SARS 20
within 21 business days any change that relates to—
(a) postal address;
(b) physical address;
(c) representative taxpayer;
(d) banking particulars used for transactions with SARS;
25
(e) electronic address used for communication with SARS; or
(!) such other details as the Commissioner may require by public notice.
Taxpayer reference num ber
24. (1) SARS may allocate a taxpayer reference number in respect of one or more
taxes to each person registered under a tax Act or this Chapter.
30
(2) SARS may register and allocate a taxpayer reference number to a person who is
not registered.
(3) A person who has been allocated a taxpayer reference number by SARS must
include the relevant reference number in all returns or other documents submitted to
SARS.
35
(4) SARS may regard a return or other document submitted by a person to be invalid
if it does not contain the reference number referred to in subsection (3) and must inform
the person accordingly if practical.
CHAPTER 4
RETURNS AND RECORDS
40
Part A
General
Submission of return
25. (1) A person required under a tax Act to submit or who voluntarily submits a return
must do so—
45
(a) in the prescribed form and manner; and
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(b) by the date specified in the tax Act or, in its absence, by the date specified by
the Commissioner in the public notice requiring the submission.
(2) A return must contain the information prescribed by a tax Act or the Commissioner
and be a full and true return.
(3) A return must be signed by the taxpayer or by the taxpayer’s duly authorised 5
representative and the person signing the return is regarded for all purposes in
connection with a tax Act to be cognisant of the statements made in the return.
(4) Non-receipt by a person of a return form does not affect the obligation to submit
a return.
(5) SARS may, prior to the issue of an original assessment by SARS, request a person 10
to submit an amended return to correct an undisputed error in a return.
(6) SARS may extend the time period for filing a return in a particular case, in
accordance with procedures and criteria in policies published by the Commissioner.
(7) The Commissioner may also extend the filing deadline generally or for specific
classes of persons by public notice.
15
(8) An extension under subsection (6) or (7) does not affect the deadline for paying the
tax.
Third party returns
26. The Commissioner may by public notice require a person who employs, pays
amounts to, receives amounts on behalf of or otherwise transacts with another person, or 20
has control over assets of another person, to submit a return with the required
information in the prescribed form and manner and by the date specified in the notice.
O ther returns required
27. SARS may require a person to submit further or more detailed returns regarding
any matter for which a return is required or prescribed by a tax Act.
25
Statement concerning accounts
28. (1) SARS may require a person who submits financial statements or accounts
prepared by another person in support of that person’s submitted return, to submit a
certificate or statement by the other person setting out the details of—
(a) the extent of the other person’s examination of the books of account and of the 30
documents from which the books of account were written up; and
(b) whether or not the entries in those books and documents disclose the true
nature of the transactions, receipts, accruals, payments or debits in so far as
may be ascertained by that examination.
(2) A person who prepares financial statements or accounts for another person must, 35
at the request of that other person, submit to that other person a copy of the certificate or
statement referred to in subsection (1).
Duty to keep records
29. (1) A person must keep the records, books of account or documents that—
(a) enable the person to observe the requirements of a tax Act;
40
(b) are specifically required under a tax Act; and
(c) enable SARS to be satisfied that the person has observed these requirements.
(2) The requirements of this Act to keep records for a tax period apply to a person
who—
(a) has submitted a return for the tax period;
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(b) is required to submit a return for the tax period and has not submitted a return
for the tax period; or
(c) is not required to submit a return but has, during the tax period, received
income, has a capital gain or capital loss, or engaged in any other activity that
is subject to tax or would be subject to tax but for the application of a threshold 5
or exemption.
(3) Records need not be retained by the person described in—
(a) subsection (2) (a), after a period of five years from the date of the submission
of the return; and
(b) subsection (2) (c), after a period of five years from the end of the relevant tax 10
period.
Form of records kept or retained
30. (1) The records, books of account, and documents referred to in section 29, must
be kept or retained—
(a) in their original form in an orderly fashion and in a safe place;
15
(b) in the form, including electronic form, as may be prescribed by the
Commissioner in a public notice; or
(c) in a form specifically authorised by a senior SARS official in terms of
subsection (2).
(2)
A senior SARS official may, subject to the conditions as the official may 20
determine, authorise the retention of information contained in records, books of account
or documents referred to in section 29 in a form acceptable to the official.
Inspection of records
31. The records, books of account and documents referred to in section 29 whether in
the form referred to in section 30(1) or in a form authorised under section 30(2), must at 25
all reasonable times during the required periods under section 29, be open for inspection
by a SARS official in the Republic for the purpose of—
(a) determining compliance with the requirements of sections 29 and 30; or
(b) an inspection, audit or investigation under Chapter 5.
Retention period in case of audit, objection or appeal
30
32. Despite section 29(3), if—
(a) records are relevant to an audit or investigation under Chapter 5 which the
person subject to the audit or investigation has been notified of or is aware of;
or
(b) a person lodges an objection or appeal against an assessment or decision under 35
section 104(2),
the person must retain the records relevant to the audit, objection or appeal until the
audit is concluded or the assessment or the decision becomes final.
Translation
33. (1) In the case of information that is not in one of the official languages of the 40
Republic, a senior SARS official may by notice require a person who must furnish the
information to SARS, to produce a translation in one of the official languages
determined by the official within a reasonable period.
(2) A translation referred to in subsection (1) must—
(a) be produced at a time and at the place specified by the notice; and
45
(b) if required by SARS, be prepared and certified by a sworn and accredited
translator or another person approved by the senior SARS official.
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Part B
Reportable arrangements
Definitions
34. In this Part and in section 212, unless the context indicates otherwise, the
following terms, if in single quotation marks, have the following meanings:
‘arrangem ent’ means any transaction, operation, scheme, agreement or under­
standing (whether enforceable or not);
‘financial benefit’ means a reduction in the cost of finance, including interest,
finance charges, costs, fees and discounts on a redemption amount;
‘financial reporting standards’ means, in the case of a company required to
submit financial statements in terms of the Companies Act, 2008 (Act No. 71 of
2008), financial reporting standards prescribed by that Act, or, in any other case, the
Generally Accepted Accounting Practice or appropriate financial reporting
standards that provide a fair presentation of the financial results and position of the
taxpayer;
‘participant’, in relation to an ‘arrangement’, means—
(a) a ‘promoter’; or
(b) a company or trust which directly or indirectly derives or assumes that it
derives a ‘tax benefit’ or ‘financial benefit’ by virtue of an ‘arrangement’;
‘pre-tax profit’, in relation to an ‘arrangement’, means the profit of a ‘participant’
resulting from that ‘arrangement’ before deducting normal tax, which profit must
be determined in accordance with ‘financial reporting standards’ after taking into
account all costs and expenditure incurred by the ‘participant’ in connection with
the ‘arrangement’ and after deducting any foreign tax paid or payable by the
‘participant’ in connection with the ‘arrangement’;
‘prom oter’, in relation to an ‘arrangement’, means a person who is principally
responsible for organising, designing, selling, financing or managing the reportable
arrangement;
‘tax benefit’ includes avoidance, postponement or reduction of a liability for tax.
Reportable arrangem ents
35. (1) An ‘arrangement’ is a reportable arrangement if it is listed in terms of
subsection (2) or if a ‘tax benefit’ is or will be derived or is assumed to be derived by any
‘participant’ by virtue of the ‘arrangement’ and the ‘arrangement’—
(a) contains provisions in terms of which the calculation of interest as defined in
section 24J of the Income Tax Act, finance costs, fees or any other charges is
wholly or partly dependent on the assumptions relating to the tax treatment of
that ‘arrangement’ (otherwise than by reason of any change in the provisions
of a tax Act);
(b) has any of the characteristics contemplated in section 80C(2) (b) of the Income
Tax Act, or substantially similar characteristics;
(c) gives rise to an amount that is or will be disclosed by any ‘participant’ in any
year of assessment or over the term of the ‘arrangement’ as—
(i) a deduction for purposes of the Income Tax Act but not as an expense for
purposes of ‘financial reporting standards’; or
(ii) revenue for purposes of ‘financial reporting standards’ but not as gross
income for purposes of the Income Tax Act;
(d) does not result in a reasonable expectation of a ‘pre-tax profit’ for any
‘participant’; or
(e) results in a reasonable expectation of a ‘pre-tax profit’ for any ‘participant’
that is less than the value of that ‘tax benefit’ to that ‘participant’ if both are
discounted to a present value at the end of the first year of assessment when
5
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that ‘tax benefit’ is or will be derived or is assumed to be derived, using
consistent assumptions and a reasonable discount rate for that ‘participant’.
(2) The Commissioner may list an ‘arrangement’ by public notice, if satisfied that the
‘arrangement’ may lead to an undue ‘tax benefit’.
(3) This section does not apply to an excluded ‘arrangement’ referred to in
section 36.
5
Excluded arrangem ents
36. (1) An ‘arrangement’ is an excluded ‘arrangement’ if it is—
(a) a loan, advance or debt in terms of which—
(i) the borrower receives or will receive an amount of cash and agrees to
repay at least the same amount of cash to the lender at a determinable
future date; or
(ii) the borrower receives or will receive a fungible asset and agrees to return
an asset of the same kind and of the same or equivalent quantity and
quality to the lender at a determinable future date;
(b) a lease;
(c) a transaction undertaken through an exchange regulated in terms of the
Securities Services Act, 2004 (Act No. 36 of 2004); or
(d) a transaction in participatory interests in a scheme regulated in terms of the
Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002).
(2) Subsection (1) applies only to an ‘arrangement’ that—
(a) is undertaken on a stand-alone basis and is not directly or indirectly connected
to any other ‘arrangement’ (whether entered into between the same or
different parties); or
(b) would have qualified as having been undertaken on a stand-alone basis as
required by paragraph (a), were it not for a connected ‘arrangement’ that is
entered into for the sole purpose of providing security and if no ‘tax benefit’
is obtained or enhanced by virtue of the security ‘arrangement’.
(3) Subsection (1) does not apply to an ‘arrangement’ that is entered into—
(a) with the main purpose or one of its main purposes of obtaining or enhancing
a ‘tax benefit’; or
(b) in a specific manner or form that enhances or will enhance a ‘tax benefit’.
(4) The Commissioner may determine an ‘arrangement’ to be an excluded
‘arrangement’ by public notice, if satisfied that the ‘arrangement’ is not likely to lead to
an undue ‘tax benefit’.
10
15
20
25
30
35
Disclosure obligation
37. (1) The ‘promoter’ must disclose the information referred to in section 38 in
respect of a reportable arrangement.
(2) If there is no ‘promoter’ in relation to the ‘arrangement’ or if the ‘promoter’ is not
a resident, all other ‘participants’ must disclose the information.
40
(3) A ‘participant’ need not disclose the information in respect of the ‘arrangement’ if
the ‘participant’ obtains a written statement from—
(a) the ‘promoter’ that the ‘promoter’ has disclosed the ‘arrangement’; or
(b) any other ‘participant’, if subsection (2) applies, that the other ‘participant’
has disclosed the ‘arrangement’.
45
(4) The ‘arrangement’ must be disclosed within 45 business days after an amount is
first received by or has accrued to a ‘participant’ or is first paid or actually incurred by
a ‘participant’ in terms of the ‘arrangement’.
(5) SARS may grant extension for disclosure for a further 45 business days, if
reasonable grounds exist for the extension.
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Inform ation to be submitted
38. The ‘promoter’ or ‘participant’ must submit, in relation to a reportable
arrangement, in the prescribed form and manner and by the date specified—
(a) a detailed description of all its steps and key features, including, in the case of
an ‘arrangement’ that is a step or part of a larger ‘arrangement’, all the steps 5
and key features of the larger ‘arrangement’;
(b) a detailed description of the assumed ‘tax benefits’ for all ‘participants’,
including, but not limited to, tax deductions and deferred income;
(c) the names, registration numbers, and registered addresses of all ‘participants’;
(d) a list of all its agreements; and
10
(e) any financial model that embodies its projected tax treatment.
Reportable arrangem ent reference num ber
39. SARS must, after receipt of the information contemplated in section 38, issue a
reportable arrangement reference number to each ‘participant’ for administrative
purposes only.
15
CHAPTER 5
INFORMATION GATHERING
Part A
General rules for inspection, verification, audit and criminal investigation
Selection for inspection, verification or audit
20
40. SARS may select a person for inspection, verification or audit on the basis of any
consideration relevant for the proper administration of a tax Act, including on a random
or a risk assessment basis.
Authorisation for SARS official to conduct audit or criminal investigation
41. (1) A senior SARS official may grant a SARS official written authorisation to 25
conduct a field audit or criminal investigation, as referred to in Part B.
(2) When a SARS official exercises a power or duty under a tax Act in person, the
official must produce the authorisation.
(3) If the official does not produce the authorisation, a member of the public is entitled
to assume that the official is not a SARS official so authorised.
30
Keeping taxpayer informed
42. (1) A SARS official involved in or responsible for an audit under this Part must,
in the form and in the manner as may be prescribed by the Commissioner by public
notice, provide the taxpayer with a report indicating the stage of completion of the audit.
(2) Upon conclusion of the audit or a criminal investigation, and where—
35
(a) the audit or investigation was inconclusive, SARS must inform the taxpayer
accordingly within 21 business days; or
(b) the audit identified potential adjustments of a material nature, SARS must
within 21 business days, or the further period that may be required based on
the complexities of the audit, provide the taxpayer with a document 40
containing the outcome of the audit, including the grounds for the proposed
assessment or decision referred to in section 104(2).
(3) Upon receipt of the document described in subsection (2) (b), the taxpayer must
within 21 business days of delivery of the document, or the further period requested by
the taxpayer that may be allowed by SARS based on the complexities of the audit, 45
respond in writing to the facts and conclusions set out in the document.
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(4) The taxpayer may waive the right to receive the document.
(5) Subsections (1) and (2) (b) do not apply if a senior SARS official has a reasonable
belief that compliance with those subsections would impede or prejudice the purpose,
progress or outcome of the audit.
(6) SARS may under the circumstances described in subsection (5) issue the
assessment or make the decision referred to in section 104(2) resulting from the audit
and the grounds of the assessment must be provided to the taxpayer within 21 business
days of the assessment or the decision referred to in section 104(2), or the further period
that may be required based on the complexities of the audit.
Referral for criminal investigation
5
10
43. (1) If at any time before or during the course of an audit it appears that a person
may have committed a serious tax offence, the investigation of the offence must be
referred to a senior SARS official responsible for criminal investigations for a decision
as to whether a criminal investigation should be pursued.
(2) Relevant material gathered during an audit after the referral, must be kept separate 15
from the criminal investigation and may not be used in criminal proceedings instituted
in respect of the offence.
(3) If an investigation is referred under subsection (1) the relevant material and files
relating to the case must be returned to the SARS official responsible for the audit if—
(a) it is decided not to pursue a criminal investigation;
20
(b) it is decided to terminate the investigation; or
(c) after referral of the case for prosecution, a decision is made not to prosecute.
Conduct of criminal investigation
44. (1) During a criminal investigation, SARS must apply the information gathering
powers in terms of this Chapter with due recognition of the taxpayer’s constitutional 25
rights as a suspect in a criminal investigation.
(2) In the event that a decision is taken to pursue the criminal investigation of a serious
tax offence, SARS may make use of relevant material obtained prior to the referral
referred to in section 43.
(3) Relevant information obtained during a criminal investigation may be used for 30
purposes of audit as well as in subsequent civil and criminal proceedings.
Part B
Inspection, request for relevant material, audit and criminal investigation
Inspection
45. (1) A SARS official may, for the purposes of the administration of a tax Act and 35
without prior notice, arrive at a premises where the SARS official has a reasonable belief
that a trade or enterprise is being carried on and conduct an inspection to determine
only—
(a) the identity of the person occupying the premises;
(b) whether the person occupying the premises is registered for tax; or
40
(c) whether the person is complying with sections 29 and 30.
(2) A SARS official may not enter a dwelling-house or domestic premises, except any
part thereof used for the purposes of trade, under this section without the consent of the
occupant.
Request for relevant m aterial
46. (1) SARS may, for the purposes of the administration of a tax Act in relation to a
taxpayer, whether identified by name or otherwise objectively identifiable, require the
taxpayer or another person to, within a reasonable period, submit relevant material
(whether orally or in writing) that SARS requires.
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(2) A senior SARS official may require relevant material in terms of subsection (1) in
respect of taxpayers in an objectively identifiable class of taxpayers.
(3) A request by SARS for relevant material from a person other than the taxpayer is
limited to the records maintained or that should reasonably be maintained by the person
5
in relation to the taxpayer.
(4) A person receiving from SARS a request for relevant material under this section
must submit the relevant material to SARS at the place and within the time specified in
the request.
(5) SARS may extend the period within which the relevant material must be
submitted on good cause shown.
10
(6) Relevant material required by SARS under this section must be referred to in the
request with reasonable specificity.
(7) A senior SARS official may direct that relevant material be provided under oath or
solemn declaration.
(8) A senior SARS official may request relevant material that a person has available 15
for purposes of revenue estimation.
Production of relevant m aterial in person
47. (1) A senior SARS official may, by notice, require a person, whether or not
chargeable to tax, to attend in person at the time and place designated in the notice for
the purpose of being interviewed by a SARS official concerning the tax affairs of the 20
person, if the interview—
(a) is intended to clarify issues of concern to SARS to render further verification
or audit unnecessary; and
(b) is not for purposes of a criminal investigation.
(2) The senior SARS official issuing the notice may require the person interviewed to 25
produce relevant material under the control of the person during the interview.
(3) Relevant material required by SARS under subsection (2) must be referred to in
the notice with reasonable specificity.
(4) A person may decline to attend an interview, if the distance between the place
designated in the notice and the usual place of business or residence of the person 30
exceeds the distance prescribed by the Commissioner by public notice.
Field audit or criminal investigation
48. (1) A SARS official named in an authorisation referred to in section 41 may
require a person, with prior notice of at least 10 business days, to make available at the
person’s premises specified in the notice relevant material that the official may require
to audit or criminally investigate in connection with the administration of a tax Act in
relation to the person or another person.
(2) The notice referred to in subsection (1) must—
(a) state the place where and the date and time that the audit or investigation is
due to start (which must be during normal business hours); and
(b) indicate the initial basis and scope of the audit or investigation.
(3) SARS is not required to give the notice if the person waives the right to receive the
notice.
(4) If a person at least five business days before the date listed in the notice advances
reasonable grounds for varying the notice, SARS may vary the notice accordingly,
subject to conditions SARS may impose with regard to preparatory measures for the
audit or investigation.
(5) A SARS official may not enter a dwelling-house or domestic premises, except any
part thereof used for the purposes of trade, under this section without the consent of the
occupant.
Assistance during field audit or criminal investigation
49. (1) The person on whose premises an audit or criminal investigation is carried out,
must provide such reasonable assistance as is required by SARS to conduct the audit or
investigation, including—
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(a) making available appropriate facilities, to the extent that such facilities are
available;
(b) answering questions relating to the audit or investigation; and
(c) submitting relevant material as required.
(2) No person may without just cause—
5
(a) obstruct a SARS official from carrying out the audit or investigation; or
(b) refuse to give the access or assistance as may be required under subsection (1).
(3) The person may recover from SARS after completion of the audit (or, at the
person’s request, on a monthly basis) the costs for the use of photocopying facilities in
accordance with the fees prescribed in section 92(1) (b) of the Promotion of Access to 10
Information Act.
Part C
Inquiries
Authorisation for inquiry
50. (1) A judge may, on application made ex parte by a senior SARS official grant an 15
order in terms of which a person described in section 51(3) is designated to act as
presiding officer at the inquiry referred to in this section.
(2) An application under subsection (1) must be supported by information supplied
under oath or solemn declaration, establishing the facts on which the application is
based.
20
(3) A senior SARS official may authorise a person to conduct an inquiry for the
purposes of the administration of a tax Act.
Inquiry order
51. (1) A judge may grant the order referred to in section 50(2) if satisfied that there
are reasonable grounds to believe that—
25
(a) a person has—
(i) failed to comply with an obligation imposed under a tax Act; or
(ii) committed a tax offence; and
(b) relevant material is likely to be revealed during the inquiry which may provide
proof of the failure to comply or of the commission of the offence.
30
(2) The order referred to in subsection (1) must—
(a) designate a presiding officer before whom the inquiry is to be held;
(b) identify the person referred to in subsection (1)(a);
(c) refer to the alleged non-compliance or offence to be inquired into;
(d) be reasonably specific as to the ambit of the inquiry; and
35
(e) be provided to the presiding officer.
(3) A presiding officer must be a person appointed to the panel described in
section 111.
Inquiry proceedings
52. (1) The presiding officer determines the conduct of the inquiry as the presiding 40
officer thinks fit.
(2) The presiding officer must ensure that the recording of the proceedings and
evidence at the inquiry is of a standard that would meet the standard required for the
proceedings and evidence to be used in a court of law.
(3) A person has the right to have a representative present when that person appears 45
as a witness before the presiding officer.
Notice to appear
53. (1) The presiding officer may, by notice in writing, require a person, whether or
not chargeable to tax, to—
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(a) appear before the inquiry, at the time and place designated in the notice, for
the purpose of being examined under oath or solemn declaration, and
(b) produce any relevant material in the custody of the person.
(2) If the notice requires the production of relevant material, it is sufficient if the
relevant material is referred to in the notice with reasonable specificity.
5
Powers of presiding officer
54. The presiding officer has the same powers regarding witnesses at the inquiry as are
vested in a President of the tax court under sections 127 and 128.
Witness fees
55. The presiding officer may direct that a person receive witness fees to attend an 10
inquiry in accordance with the tariffs prescribed in terms of section 51 bis of the
Magistrates’ Courts Act, 1944 (Act No. 32 of 1944).
Confidentiality of proceedings
56. (1) An inquiry under this Part is private and confidential.
(2) The presiding officer may, on request, exclude a person from the inquiry if the 15
person’s attendance is prejudicial to the inquiry.
(3) Section 69 applies with the necessary changes to persons present at the
questioning of a person, including the person being questioned.
(4) Subject to section 57(2), SARS may use evidence given by a person under oath or
solemn declaration at an inquiry in a subsequent proceeding involving the person or 20
another person.
Incrim inating evidence
57. (1) A person may not refuse to answer a question during an inquiry on the grounds
that it may incriminate the person.
(2) Incriminating evidence obtained under this section is not admissible in criminal 25
proceedings against the person giving the evidence, unless the proceedings relate to—
(a) the administering or taking of an oath or the administering or making of a
solemn declaration;
(b) the giving of false evidence or the making of a false statement; or
(c) the failure to answer questions lawfully put to the person, fully and 30
satisfactorily.
Inquiry not suspended by civil or criminal proceedings
58. Unless a court orders otherwise, an inquiry relating to a person referred to in
section 51(1) (a) must proceed despite the fact that a civil or criminal proceeding is
pending or contemplated against or involves the person, a witness or potential witness 35
in the inquiry, or another person whose affairs may be investigated in the course of the
inquiry.
Part D
Search and seizure
Application for w arran t
40
59. (1) A senior SARS official may, if necessary or relevant to administer a tax Act,
authorise an application for a warrant under which SARS may enter a premises where
relevant material is kept to search the premises and any person present on the premises
and seize relevant material.
(2) SARS must apply ex parte to a judge for the warrant, which application must be 45
supported by information supplied under oath or solemn declaration, establishing the
facts on which the application is based.
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(3)
Despite subsection (2), SARS may apply for the warrant referred to in
subsection (1) and in the manner referred to in subsection (2), to a magistrate, if the
matter relates to an audit or investigation where the estimated tax in dispute does not
exceed the amount determined in the notice issued under section 109(1) (a).
Issuance of w arrant
5
60. (1) A judge or magistrate may issue the warrant referred to in section 59(1) if
satisfied that there are reasonable grounds to believe that—
(a) a person failed to comply with an obligation imposed under a tax Act, or
committed a tax offence; and
(b) relevant material likely to be found on the premises specified in the 10
application may provide evidence of the failure to comply or commission of
the offence.
(2) A warrant issued under subsection (1) must contain the following:
(a) the alleged failure to comply or offence that is the basis for the application;
(b) the person alleged to have failed to comply or to have committed the offence; 15
(c) the premises to be searched; and
(d) the fact that relevant material as defined in section 1 is likely to be found on
the premises.
(3) The warrant must be exercised within 45 business days or such further period as
a judge or magistrate deems appropriate on good cause shown.
20
Carrying out search
61. (1) A SARS official exercising a power under a warrant referred to in section 60
must produce the warrant.
(2) Subject to section 63, a SARS official’s failure to produce a warrant entitles a
person to refuse access to the official.
(3) The SARS official may—
(a) open or cause to be opened or removed in conducting a search, anything
which the official suspects to contain relevant material;
(b) seize any relevant material;
(c) seize and retain a computer or storage device in which relevant material is
stored for as long as it is necessary to copy the material required;
(d) make extracts from or copies of relevant material, and require from a person
an explanation of relevant material; and
(e) if the premises listed in the warrant is a vessel, aircraft or vehicle, stop and
board the vessel, aircraft or vehicle, search the vessel, aircraft or vehicle or a
person found in the vessel, aircraft or vehicle, and question the person with
respect to a matter dealt with in a tax Act.
(4) The SARS official must make an inventory of the relevant material seized in the
form, manner and at the time that is reasonable under the circumstances and provide a
copy thereof to the person.
(5) The SARS official must conduct the search with strict regard for decency and
order, and may search a person if the official is of the same gender as the person being
searched.
(6) The SARS official may, at any time, request such assistance from a police officer
as the official may consider reasonably necessary and the police officer must render the
assistance.
(7) No person may obstruct a SARS official or a police officer from executing the
warrant or without reasonable excuse refuse to give such assistance as may be
reasonably required for the execution of the warrant.
(8) If the SARS official seizes relevant material, the official must ensure that the
relevant material seized is preserved and retained until it is no longer required for—
(a) the investigation into the non-compliance or the offence described under
section 60(1) (a); or
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30
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40
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(b) the conclusion of any legal proceedings under a tax Act or criminal
proceedings in which it is required to be used.
Search of premises not identified in w arrant
62. (1) If a senior SARS official has reasonable grounds to believe that—
(a) the relevant material referred to in section 60(1) (b) and included in a warrant 5
is at premises not identified in the warrant and may be removed or destroyed;
(b) a warrant cannot be obtained in time to prevent the removal or destruction of
the relevant material; and
(c) the delay in obtaining a warrant would defeat the object of the search and
seizure,
10
a SARS official may enter and search the premises and exercise the powers granted in
terms of this Part, as if the premises had been identified in the warrant.
(2) A SARS official may not enter a dwelling-house or domestic premises, except any
part thereof used for purposes of trade, under this section without the consent of the
occupant.
15
Search without w arrant
63. (1) A senior SARS official may without a warrant exercise the powers referred to
in section 61(3)—
(a) if the owner or person in control of the premises so consents in writing; or
(b) if the senior SARS official on reasonable grounds is satisfied that—
(i) there may be an imminent removal or destruction of relevant material
likely to be found on the premises;
(ii) if SARS applies for a search warrant under section 59, a search warrant
will be issued; and
(iii) the delay in obtaining a warrant would defeat the object of the search and
seizure.
(2) A SARS official must, before carrying out the search, inform the owner or person
in control of the premises—
(a) that the search is being conducted under this section; and
(b) of the alleged failure to comply with an obligation imposed under a tax Act or
tax offence that is the basis for the search.
(3) Section 61(4) to (8) applies to a search conducted under this section.
(4) A SARS official may not enter a dwelling-house or domestic premises, except any
part thereof used for purposes of trade, under this section without the consent of the
occupant.
20
25
30
35
Legal professional privilege
64. (1) If SARS foresees the need to search and seize relevant material that may be
alleged to be subject to legal professional privilege, SARS must arrange for an attorney
from the panel appointed under section 111 to be present during the execution of the
warrant.
(2) An attorney with whom SARS has made an arrangement in terms of subsection (1)
may appoint a substitute attorney to be present on the appointing attorney’s behalf
during the execution of a warrant.
(3) If, during the carrying out of a search and seizure by SARS, a person alleges the
existence of legal professional privilege in respect of relevant material and an attorney
is not present under subsection (1) or (2), SARS must seal the material, make
arrangements with an attorney from the panel appointed under section 111 to take
receipt of the material and, as soon as is reasonably possible, hand over the material to
the attorney.
(4) An attorney referred to in subsections (1), (2) and (3)—
(a) is not regarded as acting on behalf of either party; and
(b) must personally take responsibility—
(i) in the case of a warrant issued under section 60, for the removal from the
premises of relevant material in respect of which legal privilege is
alleged;
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(ii) in the case of a search and seizure carried out under section 63, for the
receipt of the sealed information; and
(iii) if a substitute attorney in terms of subsection (2), for the delivery of the
information to the appointing attorney for purposes of making the
5
determination referred to in subsection (5).
(5) The attorney referred to in subsection (1) or (3) must within 21 business days
make a determination of whether the privilege applies and may do so in the manner the
attorney deems fit, including considering representations made by the parties.
(6) If a determination of whether the privilege applies is not made under sub­
section (5) or a party is not satisfied with the determination, the attorney must retain the 10
relevant material pending final resolution of the dispute by the parties or an order of
court.
(7) The attorney from the panel appointed under section 111 and any attorney acting
on behalf of that attorney referred to in subsection (1) must be compensated in the same
manner as if acting as Chairperson of the tax board.
15
Person’s right to examine and make copies
65. (1) The person to whose affairs relevant material seized relates, may examine and
copy it.
(2) Examination and copying must be made—
(a) at the person’s cost in accordance with the fees prescribed in accordance with 20
section 92(1) (b) of the Promotion of Access to Information Act;
(b) during normal business hours; and
(c) under the supervision determined by a senior SARS official.
Application for return of seized relevant m aterial or costs of damages
66. (1) A person may request SARS to—
25
(a) return some or all of the seized material; and
(b) pay the costs of physical damage caused during the conduct of a search and
seizure.
(2) If SARS refuses the request, the person may apply to a High Court for the return
of the seized material or payment of compensation for physical damage caused during 30
the conduct of the search and seizure.
(3) The court may, on good cause shown, make the order as it deems fit.
(4) If the court sets aside the warrant issued in terms of section 60(1) or orders the
return of the seized material, the court may nevertheless authorise SARS to retain the
original or a copy of any relevant material in the interests of justice.
35
CHAPTER 6
CONFIDENTIALITY OF INFORMATION
General prohibition of disclosure
67. (1) This Chapter applies to—
(a) SARS confidential information as referred to in section 68(1); and
40
(b) taxpayer information, which means any information provided by a taxpayer or
obtained by SARS in respect of the taxpayer, including biometric information.
(2) An oath or solemn declaration undertaking to comply with the requirements of this
Chapter in the prescribed form, must be taken before a magistrate, justice of the peace
or commissioner of oaths by—
45
(a) a SARS official and the Tax Ombud, before commencing duties or exercising
any powers under a tax Act; and
(b) a person referred to in section 70 who performs any function referred to in that
section, before the disclosure described in that section may be made.
(3) In the event of the disclosure of SARS confidential information or taxpayer 50
information contrary to this Chapter, the person to whom it was so disclosed may not in
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any manner disclose, publish or make it known to any other person who is not a SARS
official.
(4) A person who receives information under section 68, 69, 70 or 71, must preserve
the secrecy of the information and may only disclose the information to another person
5
if the disclosure is necessary to perform the functions specified in those sections.
(5) The Commissioner may, for purposes of protecting the integrity and reputation of
SARS as an organisation and after giving the taxpayer at least 24 hours’ notice, disclose
taxpayer information to the extent necessary to counter or rebut false allegations or
information disclosed by the taxpayer, the taxpayer’s duly authorised representative or
other person acting under the instructions of the taxpayer and published in the media or 10
in any other manner.
SARS confidential information and disclosure
68. (1) SARS confidential information means information relevant to the administra­
tion of a tax Act that is—
(a) personal information about a current or former SARS official, whether 15
deceased or not;
(b) information subject to legal professional privilege vested in SARS;
(c) information that was supplied in confidence by a third party to SARS the
disclosure of which could reasonably be expected to prejudice the future
supply of similar information, or information from the same source;
20
(d) information related to investigations and prosecutions described in section 39
of the Promotion of Access to Information Act;
(e) information related to the operations of SARS, including an opinion, advice,
report, recommendation or an account of a consultation, discussion or
deliberation that has occurred, if—
25
(i) the information was given, obtained or prepared by or for SARS for the
purpose of assisting to formulate a policy or take a decision in the
exercise of a power or performance of a duty conferred or imposed by
law; and
(ii) the disclosure of the information could reasonably be expected to 30
frustrate the deliberative process in SARS or between SARS and other
organs of state by—
(aa) inhibiting the candid communication of an opinion, advice, report
or recommendation or conduct of a consultation, discussion or
deliberation; or
35
(bb) frustrating the success of a policy or contemplated policy by the
premature disclosure thereof;
(!) information about research being or to be carried out by or on behalf of SARS,
the disclosure of which would be likely to prejudice the outcome of the
research;
40
(g) information, the disclosure of which could reasonably be expected to
prejudice the economic interests or financial welfare of the Republic or the
ability of the government to manage the economy of the Republic effectively
in the best interests of the Republic, including a contemplated change or
decision to change a tax or a duty, levy, penalty, interest and similar moneys 45
imposed under a tax Act or the Customs and Excise Act;
(h) information supplied in confidence by or on behalf of another state or an
international organisation to SARS;
(i) a computer program, as defined in section 1(1) of the Copyright Act, 1978
(Act No. 98 of 1978), owned by SARS; and
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(j) information relating to the security of SARS buildings, property, structures or
systems.
(2) A person who is a current or former SARS official—
(a) may not disclose SARS confidential information to a person who is not a
SARS official;
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(b) may not disclose SARS confidential information to a SARS official who is not
authorised to have access to the information; and
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(c) must take the precautions that may be required by the Commissioner to
prevent a person referred to in paragraph (a) or (b) from obtaining access to
the information.
(3) A person who is a SARS official or former SARS official may disclose SARS
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confidential information if—
(a) the information is public information;
(b) authorised by the Commissioner;
(c) disclosure is authorised under any other Act which expressly provides for the
disclosure of the information despite the provisions in this Chapter;
(d) access has been granted for the disclosure of the information in terms of the 10
Promotion of Access to Information Act; or
(e) required by order of a High Court.
Secrecy of taxpayer information and general disclosure
69. (1) A person who is a current or former SARS official must preserve the secrecy
of taxpayer information and may not disclose taxpayer information to a person who is 15
not a SARS official.
(2) Subsection (1) does not prohibit the disclosure of taxpayer information by a
person who is a current or former SARS official—
(a) in the course of performance of duties under a tax Act, including—
(i) to the South African Police Service or the National Prosecuting 20
Authority, if the information relates to, and constitutes material
information for the proving of, a tax offence;
(ii) as a witness in civil or criminal proceedings under a tax Act; or
(iii) the taxpayer information necessary to enable a person to provide such
information as may be required by SARS from that person;
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(b) under any other Act which expressly provides for the disclosure of the
information despite the provisions in this Chapter;
(c) by order of a High Court; or
(d) if the information is public information.
(3) An application to the High Court for the order referred to in subsection (2) (c) 30
requires prior notice to SARS of at least 15 business days unless the court, based on
urgency, allows a shorter period.
(4) SARS may oppose the application on the basis that the disclosure may seriously
prejudice the taxpayer concerned or impair a civil or criminal tax investigation by
SARS.
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(5) The court may not grant the order unless satisfied that the following circumstances
apply :
(a) the information cannot be obtained elsewhere;
(b) the primary mechanisms for procuring evidence under an Act or rule of court
will yield or yielded no or disappointing results;
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(c) the information is central to the case; and
(d) the information does not constitute biometric information.
(6) Subsection (1) does not prohibit the disclosure of information—
(a) to the taxpayer; or
(b) with the written consent of the taxpayer, to another person.
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(7) Biometric information of a taxpayer may not be disclosed by SARS except under
the circumstances described in subsection (2)(a)(i).
(8) The Commissioner may, despite the provisions of this section, publish—
(a) the name and taxpayer reference number of a taxpayer; and
(b) a list of approved public benefit organisations for the purposes of the 50
provisions of sections 18A and 30 of the Income Tax Act.
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Disclosure to other entities
70. (1) A senior SARS official may provide to the Director-General of the National
Treasury taxpayer information or SARS confidential information in respect of—
(a) a taxpayer which is an—
(i) institution referred to in section 3(1) of the Public Finance Management 5
Act, 1999 (Act No. 1 of 1999); or
(ii) entity referred to in section 3 of the Local Government: Municipal
Finance Management Act, 2003 (Act No. 56 of 2003),
to the extent necessary for the Director-General to perform the functions and
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exercise the powers of the National Treasury under those Acts; and
(b) a class of taxpayers to the extent necessary for the purposes of tax policy
design or revenue estimation.
(2) A senior SARS official may disclose to—
(a) the Statistician-General the taxpayer information as may be required for the
purpose of carrying out the Statistician-General’s duties to publish statistics in 15
an anonymous form;
(b) the Chairperson of the Board administering the National Student Financial
Aid Scheme, the name and address of the employer of a person to whom a
loan or bursary has been granted under that scheme, for use in performing the
Chairperson’s functions under the National Student Financial Aid Scheme 20
Act, 1999 (Act No. 56 of 1999);
(c) a commission of inquiry established by the President of the Republic of South
Africa under a law of the Republic, the information to which the Commission
is authorised by law to have access; and
(d) to an employer (as defined in the Fourth Schedule to the Income Tax Act) of 25
an employee (as defined in the Fourth Schedule), but only the income tax
reference number, identity number, physical and postal address of that
employee and such other non-financial information in relation to that
employee, as that employer may require in order to comply with its
obligations in terms of a tax Act.
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(3) A senior SARS official may disclose to—
(a) the Governor of the South African Reserve Bank, or other person to whom the
Minister delegates powers, functions and duties under the Exchange Control
Regulations, 1961, issued under section 9 of the Currency and Exchanges Act,
1933 (Act No. 9 of 1933), the information as may be required to exercise a 35
power or perform a function or duty under the South African Reserve Bank
Act, 1989 (Act No. 90 of 1989), or those Regulations;
(b) the Financial Services Board, the information as may be required for the
purpose of carrying out the Board’s duties and functions under the Financial
Services Board Act, 1990 (Act No. 97 of 1990);
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(c) the Financial Intelligence Centre, the information as may be required for the
purpose of carrying out the Centre’s duties and functions under the Financial
Intelligence Centre Act, 2001 (Act No. 38 of 2001); and
(d) the National Credit Regulator, the information as may be required for the
purpose of carrying out the Regulator’s duties and functions under the 45
National Credit Act, 2005 (Act No. 34 of 2005).
(4) A senior SARS official may disclose to an organ of state or institution listed in a
regulation issued by the Minister under section 257, information to which the organ of
state or institution is otherwise lawfully entitled to and for the purposes only of verifying
the correctness of the following particulars of a taxpayer:
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(a) name and taxpayer reference number
(b) any identifying number;
(c) physical and postal address and other contact details;
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(d) employer’s name, address and contact details; and
(e) other non-financial information as the organ of state or institution may require
for purposes of verifying paragraphs (a) to (d).
(5) The information disclosed under subsection (2) or (3) may only be disclosed by
SARS or the persons or entities referred to in subsection (2) or (3) to the extent that it 5
is—
(a) necessary for the purpose of exercising a power or performing a regulatory
function or duty under the legislation referred to in subsection (2) or (3); and
(b) relevant and proportionate to what the disclosure is intended to achieve as
determined under the legislation.
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(6) SARS must allow the Auditor-General to have access to information in the
possession of SARS that relates to the performance of the Auditor-General’s duties
under section 4 of the Public Audit Act, 2004 (Act No. 25 of 2004).
(7) Despite subsections (1) to (5), a senior SARS official may not disclose information
under this section if satisfied that the disclosure would seriously impair a civil or 15
criminal tax investigation.
Disclosure in criminal, public safety or environmental matters
71. (1) If so ordered by a judge under this section, a senior SARS official must
disclose the information described in subsection (2) to—
(a) the National Commissioner of the South African Police Service, referred to in
section 6(1) of the South African Police Service Act, 1995 (Act No. 68 of
1995); or
(b) the National Director of Public Prosecutions, referred to in section 5(2) (a) of
the National Prosecuting Authority Act, 1998 (Act No. 32 of 1998).
(2) Subsection (1) applies to information which may reveal evidence—
(a) that an offence (other than a tax offence) has been or may be committed in
respect of which a court may impose a sentence of imprisonment exceeding
five years;
(b) that may be relevant to the investigation or prosecution of the offence; or
(c) of an imminent and serious public safety or environmental risk.
(3) A senior SARS official may, if of the opinion that—
(a) SARS has information referred to in subsection (2);
(b) the information will likely be critical to the prosecution of the offence or
avoidance of the risk; and
(c) the disclosure of the information would not seriously impair a civil or criminal
tax investigation,
make an ex parte application to a judge in chambers for an order authorising SARS to
disclose the information under subsection (1).
(4) The National Commissioner of the South African Police Service, the National
Director of Public Prosecutions or a person acting under their respective direction and
control, if—
(a) carrying out an investigation relating to an offence or a public safety or
environmental risk referred to in subsection (2); and
(b) of the opinion that SARS may have information that is relevant to that
investigation,
may make an ex parte application to a judge in chambers for an order requiring SARS
to disclose the information referred to in subsection (2).
(5) SARS must be given prior notice of at least 10 business days of an application
under subsection (4) unless the judge, based on urgency, allows a shorter period and
SARS may oppose the application on the basis that the disclosure would seriously
impair or prejudice a civil or criminal tax investigation or other enforcement of a tax Act
by SARS.
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Self-incrimination
72. (1) A taxpayer may not refuse to comply with his or her obligations in terms of
legislation to complete and file a return or an application on the grounds that to do so 55
might incriminate him or her, and an admission by the taxpayer contained in a return,
application, or other document submitted to SARS by a taxpayer is admissible in
criminal proceedings against the taxpayer for an offence under a tax Act, unless a
competent court directs otherwise.
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(2) An admission by the taxpayer of the commission of an offence under a tax Act
obtained from a taxpayer under Chapter 5 is not admissible in criminal proceedings
against the taxpayer, unless a competent court directs otherwise.
Disclosure to taxpayer of own record
73. (1) A taxpayer or the taxpayer’s duly authorised representative is entitled to 5
obtain—
(a) a copy, certified by SARS, of the recorded particulars of an assessment or
decision referred to in section 104(2) relating to the taxpayer;
(b) access to information submitted to SARS by the taxpayer or by a person on the
taxpayer’s behalf; and
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(c) other information relating to the tax affairs of the taxpayer.
(2) A request for information under subsection (1) (c) must be made under the
Promotion of Access to Information Act.
(3) The person requesting information under subsection (1) (b) may be required to pay
for the costs of copies in accordance with the fees prescribed in section 92(1) (b) of the 15
Promotion of Access to Information Act.
Publication of names of offenders
74. (1) The Commissioner may publish for general information the particulars
specified in subsection (2), relating to a tax offence committed by a person, if—
(a) the person was convicted of the offence; and
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(b) all appeal or review proceedings relating to the offence have been completed
or were not instituted within the period allowed.
(2) The publication referred to in subsection (1) may specify—
(a) the name and area of residence of the offender;
(b) any particulars of the offence that the Commissioner thinks fit; and
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(c) the particulars of the fine or sentence imposed.
CHAPTER 7
ADVANCE RULINGS
Definitions
75. In this Chapter, unless the context indicates otherwise, the following terms, if in
single quotation marks, have the following meanings:
‘advance ruling’ means a ‘binding general ruling’, a ‘binding private ruling’ or a
‘binding class ruling’;
‘applicant’ means a person who submits an ‘application’ for a ‘binding private
ruling’ or a ‘binding class ruling’;
‘application’ means an application for a ‘binding private ruling’ or a ‘binding class
ruling’;
‘binding class ruling’ means a written statement issued by SARS regarding the
application of a tax Act to a specific ‘class’ of persons in respect of a ‘proposed
transaction’;
‘binding effect’ means the requirement that SARS interpret or apply the applicable
tax Act in accordance with an ‘advance ruling’ under section 82;
‘binding general ruling’ means a written statement issued by a senior SARS
official under section 89 regarding the interpretation of a tax Act or the application
of a tax Act to the stated facts and circumstances;
‘binding private ruling’ means a written statement issued by SARS regarding the
application of a tax Act to one or more parties to a ‘proposed transaction’, in respect
of the ‘transaction’;
‘class’ means—
(a) shareholders, members, beneficiaries or the like in respect of a company,
association, pension fund, trust, or the like; or
(b) a group of persons, that may be unrelated and—
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(i) are similarly affected by the application of a tax Act to a ‘proposed
transaction’; and
(ii) agree to be represented by an ‘applicant’;
‘class m em ber’ and ‘class m em bers’ means a member or members of the ‘class’
to which a ‘binding class ruling’ applies;
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‘non-binding private opinion’ means informal guidance issued by SARS in
respect of the tax treatment of a particular set of facts and circumstances or
‘transaction’, but which does not have a ‘binding effect’ within the meaning of
section 88;
‘proposed transaction’ means a ‘transaction’ that an ‘applicant’ proposes to 10
undertake, but has not agreed to undertake, other than by way of an agreement that
is subject to a suspensive condition or is otherwise not binding; and
‘transaction' means any transaction, deal, business, arrangement, operation or
scheme and includes a series of transactions.
Purpose of advance rulings
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76. The purpose of the ‘advance ruling’ system is to promote clarity, consistency and
certainty regarding the interpretation and application of a tax Act by creating a
framework for the issuance of ‘advance rulings’.
Scope of advance rulings
77. SARS may make an ‘advance ruling’ on any provision of a tax Act.
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Private rulings and class rulings
78. (1) SARS may issue a ‘binding private ruling’ upon ‘application’ by a person in
accordance with section 79.
(2) SARS may issue a ‘binding class ruling’ upon ‘application’ by a person in
accordance with section 79.
(3) SARS may make a ‘binding private ruling’ or ‘binding class ruling’ subject to the
conditions and assumptions as may be prescribed in the ruling.
(4) SARS must issue the ruling to the ‘applicant’ at the address shown in the
‘application’ unless the ‘applicant’ provides other instructions, in writing, before the
ruling is issued.
(5) A ‘binding private ruling’ or ‘binding class ruling’ may be issued in the prescribed
form and manner, must be signed by a senior SARS official and must contain the
following:
(a) a statement identifying it as a ‘binding private ruling’ or as a ‘binding class
ruling’ made under this section;
(b) the name, tax reference number (if applicable), and postal address of the
‘applicant’;
(c) in the case of a ‘binding class ruling’, a list or a description of the affected
‘class members’;
(d) the relevant statutory provisions or legal issues;
(e) a description of the ‘proposed transaction’;
(!) any assumptions made or conditions imposed by SARS in connection with the
validity of the ruling;
(g) the specific ruling made; and
(h) the period for which the ruling is valid.
(6) In the case of a ‘binding class ruling’, the ‘applicant’ alone is responsible for
communicating with the affected ‘class members’ regarding the ‘application’ for the
ruling, the issuance, withdrawal or modification of the ruling, or any other information
or matter pertaining to the ruling.
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Applications for advance rulings
79. (1) An ‘application’ must be made in the prescribed form and manner.
(2) An ‘application’ for a ‘binding private ruling’ may be made by one person who is
a party to a ‘proposed transaction’, or by two or more parties to a ‘proposed transaction’
as co-applicants, and if there is more than one ‘applicant’, each ‘applicant’ must join in
designating one ‘applicant’ as the lead ‘applicant’ to represent the others.
(3) An ‘application’ for a ‘binding class ruling’ may be made by a person on behalf of
a ‘class’.
(4) An ‘application’ must contain the following minimum information:
(a) the ‘applicant’s’ name, applicable identification or taxpayer reference number,
postal address, email address, and telephone number;
(b) the name, postal address, email address and telephone number of the
‘applicant’s’ representative, if any;
(c) a complete description of the ‘proposed transaction’ in respect of which the
ruling is sought, including its financial implications;
(d) a complete description of the impact the ‘proposed transaction’ may have
upon the tax liability of the ‘applicant’ or any ‘class member’ or, if relevant,
any connected person in relation to the ‘applicant’ or any ‘class member’;
(e) a complete description of any ‘transaction’ entered into by the ‘applicant’ or
‘class member’ prior to submitting the ‘application’ or that may be undertaken
after the completion of the ‘proposed transaction’ which may have a bearing
on the tax consequences of the ‘proposed transaction’ or may be considered to
be part of a series of ‘transactions’ involving the ‘proposed transaction’;
(!) the proposed ruling being sought, including a draft of the ruling;
(g) the relevant statutory provisions or legal issues;
(h) the reasons why the ‘applicant’ believes that the proposed ruling should be
granted;
(i) a statement of the ‘applicant’s’ interpretation of the relevant statutory
provisions or legal issues, as well as an analysis of relevant authorities either
considered by the ‘applicant’ or of which the ‘applicant’ is aware, as to
whether those authorities support or are contrary to the proposed ruling being
sought;
(j) a statement, to the best of the ‘applicant’s’ knowledge, as to whether the ruling
requested is referred to in section 80;
(k) a description of the information that the ‘applicant’ believes should be deleted
from the final ruling before publication in order to protect the confidentiality
of the ‘applicant’ or ‘class members’;
(l) the ‘applicant’s’ consent to the publication of the ruling by SARS in
accordance with section 87; and
(m) in the case of an ‘application’ for a ‘binding class ruling’—
(i) a description of the ‘class members’; and
(ii) the impact the ‘proposed transaction’ may have upon the tax liability of
the ‘class members’ or, if relevant, any connected person in relation to
the ‘applicant’ or to any ‘class member’.
(5) SARS may request additional information from an ‘applicant’ at any time.
(6) An ‘application’ must be accompanied by the ‘application’ fee prescribed under
section 81.
(7) SARS must provide an ‘applicant’ with a reasonable opportunity to make
representations if, based upon the ‘application’ and any additional information received,
it appears that the content of the ruling to be made would differ materially from the
proposed ruling sought by the ‘applicant’.
(8) An ‘applicant’ may withdraw an ‘application’ for a ruling at any time.
(9) A co-applicant to a ‘binding private ruling’ referred to in subsection (2) may
withdraw from an ‘application’ at any time.
(10) A withdrawal does not affect the liability to pay fees under section 81.
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Rejection of application for advance ruling
80. (1) SARS may reject an ‘application’ for an ‘advance ruling’ if the ‘application’—
(a) requests or requires the rendering of an opinion, conclusion or determination
regarding—
(i) the market value of an asset;
(ii) the application or interpretation of the laws of a foreign country;
(iii) the pricing of goods or services supplied by or rendered to a connected
person in relation to the ‘applicant’ or a ‘class member’;
(iv) the constitutionality of a tax Act;
(v) a ‘proposed transaction’ that is hypothetical or not seriously contemplated;
(vi) a matter which can be resolved by SARS issuing a directive under the
Fourth Schedule to the Income Tax Act;
(vii) whether a person is an independent contractor, labour broker or personal
service provider; or
(viii) a matter which is submitted for academic purposes;
(b) contains—
(i) a frivolous or vexatious issue;
(ii) an alternative course of action by the ‘applicant’ or a ‘class member’ that
is not seriously contemplated; or
(iii) an issue that is the same as or substantially similar to an issue that is—
(aa) currently before SARS in connection with an audit, investigation or
other proceeding involving the ‘applicant’ or a ‘class member’ or a
connected person in relation to the ‘applicant’ or a ‘class member’;
(bb) the subject of a policy document or draft legislation that has been
published; or
(cc) subject to dispute resolution under Chapter 9;
(c) involves the application or interpretation of a general or specific anti­
avoidance provision or doctrine;
(d) involves an issue—
(i) that is of a factual nature;
(ii) the resolution of which would depend upon assumptions to be made
regarding a future event or other matters which cannot be reasonably
determined at the time of the ‘application’;
(iii) which would be more appropriately dealt with by the competent
authorities of the parties to an agreement for the avoidance of double
taxation;
(iv) in which the tax treatment of the ‘applicant’ is dependent upon the tax
treatment of another party to the ‘proposed transaction’ who has not
applied for a ruling;
(v) in respect of a ‘transaction’ that is part of another ‘transaction’ which has
a bearing on the issue, the details of which have not been disclosed; or
(vi) which is the same as or substantially similar to an issue upon which the
‘applicant’ has already received an unfavourable ruling;
(e) involves a matter the resolution of which would be unduly time-consuming or
resource intensive; or
(!) requests SARS to rule on the substance of a ‘transaction’ and disregard its
form.
(2) The Commissioner may publish by public notice a list of additional considerations
in respect of which the Commissioner may reject an ‘application’.
(3) If SARS requests additional information in respect of an ‘application’ and the
‘applicant’ fails or refuses to provide the information, SARS may reject the ‘application’
without a refund or rebate of any fees imposed under section 81.
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Fees for advance rulings
81. (1) In order to defray the cost of the ‘advance ruling’ system, the Commissioner
may by public notice prescribe fees for the issuance of a ‘binding private ruling’ or
‘binding class ruling’, including—
5
(a) an ‘application’ fee; and
(b) a cost recovery fee.
(2) Following the acceptance of an ‘application’ SARS must, if requested, provide the
‘applicant’ with an estimate of the cost recovery fee anticipated in connection with the
‘application’ and must notify the ‘applicant’ if it subsequently appears that this estimate
may be exceeded.
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(3) The fees imposed under this section constitute fees imposed by SARS within the
meaning of section 5(1) (h) of the SARS Act, and constitute funds of SARS within the
meaning of section 24 of that Act.
(4) If there is more than one ‘applicant’ for a ruling in respect of a ‘proposed
transaction’ SARS may, upon request by the ‘applicants’, impose a single prescribed fee 15
in respect of the ‘application’.
Binding effect of advance rulings
82. (1) If an ‘advance ruling’ applies to a person in accordance with section 83, then
SARS must interpret or apply the applicable tax Act to the person in accordance with the
ruling.
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(2) An ‘advance ruling’ does not have ‘binding effect’ upon SARS in respect of a
person unless it applies to the person in accordance with section 83.
(3) A ‘binding general ruling’ may be cited by SARS or a person in any proceedings,
including court proceedings.
(4) A ‘binding private ruling’ or ‘binding class ruling’ may not be cited in any 25
proceeding, including court proceedings, other than a proceeding involving an
‘applicant’ or a ‘class member’, as the case may be.
(5) A publication or other written statement issued by SARS does not have ‘binding
effect’ unless it is an ‘advance ruling’.
Applicability of advance rulings
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83. A ‘binding private ruling’ or ‘binding class ruling’ applies to a person only if—
(a) the provision or provisions of the Act at issue are the subject of the ‘advance
ruling’;
(b) the person’s set of facts or ‘transaction’ are the same as the particular set of
facts or ‘transaction’ specified in the ruling;
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(c) the person’s set of facts or ‘transaction’ falls entirely within the effective
period of the ruling;
(d) any assumptions made or conditions imposed by SARS in connection with the
validity of the ruling have been satisfied or carried out;
(e) in the case of a ‘binding private ruling’, the person is an ‘applicant’ identified 40
in the ruling; and
(!) in the case of a ‘binding class ruling’, the person is a ‘class member’ identified
in the ruling.
Rulings rendered void
84. (1) A ‘binding private ruling’ or ‘binding class ruling’ is void ab initio if—
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(a) the ‘proposed transaction’ as described in the ruling is materially different
from the ‘transaction’ actually carried out;
(b) there is fraud, misrepresentation or non-disclosure of a material fact; or
(c) an assumption made or condition imposed by SARS is not satisfied or carried
out.
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(2)
For purposes of this section, a fact described in subsection (1) is considered
material if it would have resulted in a different ruling had SARS been aware of it when
the original ruling was made.
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Subsequent changes in tax law
85. (1) Despite any provision to the contrary contained in a tax Act, an ‘advance
ruling’ ceases to be effective if—
(a) a provision of the tax Act that was the subject of the ‘advance ruling’ is
repealed or amended in a manner that materially affects the ‘advance ruling’, 5
in which case the ‘advance ruling’ will cease to be effective from the date that
the repeal or amendment is effective; or
(b) a court overturns or modifies an interpretation of the tax Act on which the
‘advance ruling’ is based, in which case the ‘advance ruling’ will cease to be
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effective from the date of judgment unless—
(i) the decision is under appeal;
(ii) the decision is fact-specific and the general interpretation upon which the
‘advance ruling’ was based is unaffected; or
(iii) the reference to the interpretation upon which the ‘advance ruling’ was
based was obiter dicta.
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(2) An ‘advance ruling’ ceases to be effective upon the occurrence of any of the
circumstances described in subsection (1), whether or not SARS publishes a notice of
withdrawal or modification.
W ithdraw al or modification of advance rulings
86. (1) SARS may withdraw or modify an ‘advance ruling’ at any time.
(2) If the ‘advance ruling’ is a ‘binding private ruling’ or ‘binding class ruling’, SARS
must first provide the ‘applicant’ with notice of the proposed withdrawal or modification
and a reasonable opportunity to object to the decision.
(3) SARS must specify the date the decision to withdraw or modify the ‘advance
ruling’ becomes effective, which date may not be earlier than the date—
(a) the decision is delivered to an ‘applicant’, unless the circumstances in
subsection (4) apply; or
(b) in the case of a ‘binding general ruling’, the decision is published.
(4) SARS may withdraw or modify a ‘binding private ruling’ or a ‘binding class
ruling’ retrospectively if the ruling was made in error and if—
(a) the ‘applicant’ or ‘class member’ has not yet commenced the ‘proposed
transaction’ or has not yet incurred significant costs in respect of the
arrangement;
(b) a person other than the ‘applicant’ or ‘class member’ will suffer significant tax
disadvantage if the ruling is not withdrawn or modified retrospectively and the
‘applicant’ will suffer comparatively less if the ruling is withdrawn or
modified retrospectively; or
(c) the effect of the ruling will materially erode the South African tax base and it
is in the public interest to withdraw or modify the ruling retrospectively.
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Publication of advance rulings
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87. (1) A person applying for a ‘binding private ruling’ or ‘binding class ruling’ must
consent to the publication of the ruling in accordance with this section.
(2) A ‘binding private ruling’ or ‘binding class ruling’ must be published by SARS for
general information in the manner and in the form that the Commissioner may prescribe,
but without revealing the identity of an ‘applicant’, ‘class member’ or other person 45
identified or referred to in the ruling.
(3) Prior to publication, SARS must provide the ‘applicant’ with a draft copy of the
edited ruling for review and comment.
(4) SARS must consider, prior to publication, any comments and proposed edits and
deletions submitted by the ‘applicant’, but is not required to accept them.
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(5) An ‘applicant’ for a ‘binding class ruling’ may consent in writing to the inclusion
of information identifying it or the ‘proposed transaction’ in order to facilitate
communication with the ‘class members’.
(6) The application or interpretation of the relevant tax Act to a ‘transaction’ does not
constitute information that may reveal the identity of an ‘applicant’, ‘class member’ or 5
other person identified or referred to in the ruling.
(7) SARS must treat the publication of the withdrawal or modification of a ‘binding
private ruling’ or ‘binding class ruling’ in the same manner and subject to the same
requirements as the publication of the original ruling.
10
(8) Subsection (2) does not—
(a) require the publication of a ruling that is materially the same as a ruling
already published; or
(b) apply to a ruling that has been withdrawn before SARS has had occasion to
publish it.
(9) If an ‘advance ruling’ has been published, notice of the withdrawal or modification 15
thereof must be published in the manner and media as the Commissioner may deem
appropriate.
Non-binding private opinions
88. (1) A ‘non-binding private opinion’ does not have ‘binding effect’ upon SARS.
(2) A ‘non-binding private opinion’ may not be cited in any proceedings including 20
court proceedings, other than proceedings involving the person to whom the opinion
was issued.
Binding general rulings
89. (1) A senior SARS official may issue a ‘binding general ruling’ that is effective for
either—
(a) a particular tax period or other definite period; or
(b) an indefinite period.
(2) A ‘binding general ruling’ must state—
(a) that it is a ‘binding general ruling’ made under this section;
(b) the provisions of a tax Act which are the subject of the ‘binding general
ruling’; and
(c) either—
(i) the tax period or other definite period for which it applies; or
(ii) in the case of a ‘binding general ruling’ for an indefinite period, that it is
for an indefinite period and the date or tax period from which it applies.
(3) A ‘binding general ruling’ may be issued as an interpretation note or in another
form and may be issued in the manner that the Commissioner prescribes.
(4) A publication or other written statement does not constitute and may not be
considered or treated as a ‘binding general ruling’ unless it contains the information
prescribed by subsection (2).
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30
35
40
Procedures and guidelines for advance rulings
90. The Commissioner may issue procedures and guidelines, in the form of ‘binding
general rulings’, for implementation and operation of the ‘advance ruling’ system.
CHAPTER 8
ASSESSMENTS
Original assessments
91. (1) If a tax Act requires a taxpayer to submit a return which does not incorporate
a determination of the amount of a tax liability, SARS must make an original assessment
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based on the return submitted by the taxpayer or other information available or obtained
in respect of the taxpayer.
(2) If a tax Act requires a taxpayer to submit a return which incorporates a
determination of the amount of a tax liability, the submission of the return is an original
5
self-assessment of the tax liability.
(3) If a tax Act requires a taxpayer to make a determination of the amount of a tax
liability and no return is required, the payment of the amount of tax due is an original
assessment.
(4) If a taxpayer does not or is not required to submit a return, SARS may make an
assessment based on an estimate under section 95 if that taxpayer fails to pay the tax 10
required under a tax Act.
(5) If a tax Act requires a taxpayer to submit a return—
(a) the making of an assessment under subsection (4) does not detract from the
obligation to submit a return; and
(b) the taxpayer in respect of whom the assessment has been issued may, within 15
the period described in section 104, request SARS to issue a reduced
assessment or additional assessment by submitting a complete and correct
return.
Additional assessments
92. If at any time SARS is satisfied that an assessment does not reflect the correct 20
application of a tax Act to the prejudice of SARS or the fiscus, SARS must make an
additional assessment to correct the prejudice.
Reduced assessments
93. (1)
(a)
(b)
(c)
SARS may make a reduced assessment if—
the taxpayer successfully disputed the assessment under Chapter 9;
25
necessary to give effect to a settlement under section 149;
necessary to give effect to a judgment pursuant to an appeal under Part E of
Chapter 9 and there is no right of further appeal; or
(d) SARS is satisfied that there is an error in the assessment as a result of an
undisputed error by—
30
(i) SARS; or
(ii) the taxpayer in a return.
(2)
SARS may reduce an assessment despite the fact that no objection has been
lodged or appeal noted.
Jeopardy assessments
35
94. (1) SARS may make a jeopardy assessment in advance of the date on which the
return is normally due, if the Commissioner is satisfied that it is required to secure the
collection of tax that would otherwise be in jeopardy.
(2) In addition to any rights under Chapter 9, a review application against an
assessment made under this section may be made to the High Court on the grounds 40
that—
(a) its amount is excessive; or
(b) circumstances that justify a jeopardy assessment do not exist.
(3) In proceedings under subsection (2), SARS bears the burden of proving that the
making of the jeopardy assessment is reasonable under the circumstances.
45
Estimation of assessments
95. (1) SARS may make an original, additional, reduced or jeopardy assessment
based in whole or in part on an estimate if the taxpayer—
(a) fails to submit a return as required; or
(b) submits a return or information that is incorrect or inadequate.
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(2) SARS must make the estimate based on information readily available to it.
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(3) If the taxpayer is unable to submit an accurate return, a senior SARS official may
agree in writing with the taxpayer as to the amount of tax chargeable and issue an
assessment accordingly, which assessment is not subject to objection or appeal.
Notice of assessment
96. (1) SARS must issue to the taxpayer assessed a notice of the assessment made by 5
SARS stating—
(a) the name of the taxpayer;
(b) the taxpayer’s taxpayer reference number, or if one has not been allocated, any
other form of identification;
(c) the date of the assessment;
10
(d) the amount of the assessment;
(e) the tax period in relation to which the assessment is made;
(!) the date for paying the amount assessed; and
(g) a summary of the procedures for lodging an objection to the assessment.
(2) In addition to the information provided in terms of subsection (1) SARS must give 15
the person assessed—
(a) in the case of an assessment described in section 95 or an assessment that is
not fully based on a return submitted by the taxpayer, a statement of the
grounds for the assessment; and
(b) in the case of a jeopardy assessment, the grounds for believing that the tax 20
would otherwise be in jeopardy.
Recording of assessments
97. (1) The particulars of an assessment and the amount of tax payable thereon must
be recorded and kept by SARS.
(2) A notice of assessment issued by SARS is regarded as made by a SARS official 25
authorised to do so or duly issued by SARS, until proven to the contrary.
(3) The record of an assessment is not open to public inspection.
(4) The record of an assessment, whether in electronic format or otherwise, may be
destroyed by SARS after five years from the date of assessment or the expiration of a
further period that may be required by the Auditor-General.
30
W ithdraw al of assessments
98. (1) SARS may, despite the fact that no objection has been lodged or appeal noted,
withdraw an assessment which—
(a) was issued to the incorrect taxpayer;
(b) was issued in respect of the incorrect tax period; or
35
(c) was issued as a result of an incorrect payment allocation.
(2) An assessment withdrawn under this section is regarded not to have been issued.
Period of limitations for issuance of assessments
99. (1) SARS may not make an assessment in terms of this Chapter—
(a) three years after the date of assessment of an original assessment by SARS; 40
(b) in the case of self-assessment for which a return is required, five years after the
date of assessment of an original assessment—
(i) by way of self-assessment by the taxpayer; or
(ii) if no return is received, by SARS;
(c) in the case of a self-assessment for which no return is required, after the 45
expiration of five years from the—
(i) date of the last payment of the tax for the tax period; or
(ii) effective date, if no payment was made in respect of the tax for the tax
period;
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(d) in the case of—
(i) an additional assessment if the—
(aa) amount which should have been assessed to tax under the preceding
assessment was, in accordance with the practice generally prevail­
ing at the date of assessment, not assessed to tax; or
(bb) full amount of tax which should have been assessed under the
preceding assessment was, in accordance with the practice, not
assessed;
(ii) a reduced assessment, if the preceding assessment was made in
accordance with the practice generally prevailing at the date of that
assessment; or
(iii) a tax for which no return is required, if the payment was made in
accordance with the practice generally prevailing at the date of that
payment; or
(e) in respect of a dispute that has been resolved under Chapter 9.
(2) Subsection (1) does not apply to the extent that—
(a) in the case of assessment by SARS, the fact that the full amount of tax
chargeable was not assessed, was due to—
(i) fraud;
(ii) misrepresentation; or
(iii) non-disclosure of material facts;
(b) in the case of self-assessment, the fact that the full amount of tax chargeable
was not assessed, was due to—
(i) fraud;
(ii) intentional or negligent misrepresentation;
(iii) intentional or negligent non-disclosure of material facts; or
(iv) the failure to submit a return or, if no return is required, the failure to
make the required payment of tax;
(c) SARS and the taxpayer so agree prior to the expiry of the limitations period;
or
(d) it is necessary to give effect to—
(i) the resolution of a dispute under Chapter 9; or
(ii) a judgment pursuant to an appeal under Part E of Chapter 9 and there is
no right of further appeal.
Finality of assessment or decision
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20
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100. (1) An assessment or a decision referred to in section 104(2) is final if, in relation
to the assessment or decision—
(a) it is an assessment described—
(i) in section 95(1) and no return described in section 91(5) (b) has been
received by SARS; or
40
(ii) in section 95(3);
(b) no objection has been made, or an objection has been withdrawn;
(c) after decision of an objection, no notice of appeal has been filed;
(d) the dispute has been settled under Part F of Chapter 9;
(e) an appeal has been determined by the tax board and there is no referral to the 45
tax court under section 115;
(!) an appeal has been determined by the tax court and there is no right of further
appeal; or
(g) an appeal has been determined by a higher court and there is no right of further
appeal.
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(2) Subsection (1) does not prevent SARS from making an additional assessment, but
in respect of an amount of tax that has been dealt with in a disputed assessment referred
to in—
(a) subsection (1)(d), (e) and ( ) SARS may only make an additional assessment
under the circumstances referred to in section 99(2) (a) and (b); and
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(b) subsection (1)g), SARS may not make an additional assessment.
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CHAPTER 9
DISPUTE RESOLUTION
Part A
General
Definitions
5
101. In this Chapter, unless the context indicates otherwise, the following terms, if in
single quotation marks, have the following meanings:
‘appellant’, except in Part E of this Chapter, means a person who has noted an
appeal against an assessment or ‘decision’ under section 107;
‘decision’ means a decision referred to in section 104(2);
10
‘registrar’ means the registrar of the tax court; and
‘rules’ mean the rules made under section 103.
Burden of proof
102. (1) A taxpayer bears the burden of proving—
(a) that an amount, transaction, event or item is exempt or otherwise not taxable; 15
(b) that an amount or item is deductible or may be set-off;
(c) the rate of tax applicable to a transaction, event, item or class of taxpayer;
(d) that an amount qualifies as a reduction of tax payable;
(e) that a valuation is correct; or
(!) whether a ‘decision’ that is subject to objection and appeal under a tax Act, is 20
incorrect.
(2) The burden of proving whether an estimate under section 95 is reasonable or the
facts on which SARS based the imposition of an understatement penalty under Chapter
16, is upon SARS.
Rules for dispute resolution
25
103. (1) The Minister may, after consultation with the Minister of Justice and
Constitutional Development, by public notice make ‘rules’ governing the procedures to
lodge an objection and appeal against an assessment or ‘decision’, and the conduct and
hearing of an appeal before a tax board or tax court.
(2) The ‘rules’ may provide for alternative dispute resolution procedures under which 30
SARS and the person aggrieved by an assessment or ‘decision’ may resolve a dispute.
Part B
Objection and appeal
Objection against assessment or decision
104. (1) A taxpayer who is aggrieved by an assessment made in respect of the 35
taxpayer may object to the assessment.
(2) The following decisions may be objected to and appealed against in the same
manner as an assessment:
(a) a decision under subsection (4) not to extend the period for lodging an
objection;
40
(b) a decision under section 107(2) not to extend the period for lodging an appeal;
and
(c) any other decision that may be objected to or appealed against under a tax Act.
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(3) A taxpayer entitled to object to an assessment or ‘decision’ must lodge an
objection in the manner, under the terms, and within the period prescribed in the ‘rules’.
(4) A senior SARS official may extend the period prescribed in the ‘rules’ within
which objections must be made if satisfied that reasonable grounds exist for the delay in
lodging the objection.
5
(5) The period for objection must not be so extended—
(a) for a period exceeding 21 business days, unless a senior SARS official is
satisfied that exceptional circumstances exist which gave rise to the delay in
lodging the objection;
(b) if more than three years have lapsed from the date of assessment or the 10
‘decision’; or
(c) if the grounds for objection are based wholly or mainly on a change in a
practice generally prevailing which applied on the date of assessment or the
‘decision’.
Forum for dispute of assessment or decision
15
105. A taxpayer may not dispute an assessment or ‘decision’ as described in
section 104 in any court or other proceedings, except in proceedings under this Chapter
or by application to the High Court for review.
Decision on objection
106. (1) SARS must consider a valid objection in the manner and within the period
prescribed under this Act and the ‘rules’.
(2) SARS may disallow the objection or allow it either in whole or in part.
(3) If the objection is allowed either in whole or in part, the assessment or ‘decision’
must be altered accordingly.
(4) SARS must, by notice, inform the taxpayer objecting or the taxpayer’s
representative of the decision referred to in subsection (2), unless the objection is stayed
under subsection (6) in which case notice of this must be given in accordance with the
‘rules’.
(5) The notice must state the basis for the decision and a summary of the procedures
for appeal.
(6) If a senior SARS official considers that the determination of the objection or an
appeal referred to in section 107, whether on a question of law only or on both a question
of fact and a question of law, is likely to be determinative of all or a substantial number
of the issues involved in one or more other objections or appeals, the official may—
(a) designate that objection or appeal as a test case; and
(b) stay the other objections or appeals by reason of the taking of a test case on a
similar objection or appeal before the tax court,
in the manner, under the terms, and within the periods prescribed in the ‘rules’.
20
25
30
35
Appeal against assessment or decision
107. (1) After delivery of the notice of the decision referred to in section 106(4), a 40
taxpayer objecting to an assessment or ‘decision’ may appeal against the assessment or
‘decision’ to the tax board or tax court in the manner, under the terms and within the
period prescribed in this Act and the ‘rules’.
(2) A senior SARS official may extend the period within which an appeal must be
lodged for—
45
(a) 21 business days, if satisfied that reasonable grounds exist for the delay; or
(b) up to 45 business days, if exceptional circumstances exist that justify an
extension beyond 21 business days.
(3) A notice of appeal that does not satisfy the requirements of subsection (1) is not
valid.
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(4) If an assessment or ‘decision’ has been altered under section 106(3), the
assessment or ‘decision’ as altered is the assessment or ‘decision’ against which the
appeal is noted.
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(5) By mutual agreement, SARS and the taxpayer making the appeal may attempt to
resolve the dispute through alternative dispute resolution under procedures specified in
the ‘rules’.
(6) Proceedings on the appeal are suspended while the alternative dispute resolution
procedure is ongoing.
5
Part C
Tax board
Establishment of tax board
108. (1) The Minister may by public notice—
(a) establish a tax board or boards for areas that the Minister thinks fit; and
10
(b) abolish an existing tax board or establish an additional tax board as
circumstances may require.
(2) Tax boards are established under subsection (1) to hear appeals referred to in
section 107 in the manner provided in this Part.
Jurisdiction of tax board
15
109. (1) An appeal against an assessment or ‘decision’ must in the first instance be
heard by a tax board, if—
(a) the tax in dispute does not exceed the amount the Minister determines by
public notice; and
(b) a senior SARS official and the ‘appellant’ so agree.
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(2) SARS must designate the places where tax boards hear appeals.
(3) The tax board must hear an appeal at the place referred to in subsection (2) which
is closest to the ‘appellant’s’ residence or place of business, unless the ‘appellant’ and
SARS agree that the appeal be heard at another place.
(4) In making a decision under subsection (1)(b), a senior SARS official must 25
consider whether the grounds of the dispute or legal principles related to the appeal
should rather be heard by the tax court.
(5) If the chairperson prior to or during the hearing, considering the grounds of the
dispute or the legal principles related to the appeal, believes that the appeal should be
heard by the tax court rather than the tax board, the chairperson may direct that the 30
appeal be set down for hearing de novo before the tax court.
Constitution of tax board
110. (1) A tax board consists of—
(a) the chairperson, who must be an advocate or attorney from the panel
appointed under section 111; and
35
(b) if the chairperson, a senior SARS official, or the taxpayer considers it
necessary—
(i) an accountant who is a member of the panel referred to in section 120;
and
(ii) a representative of the commercial community who is a member of the 40
panel referred to in section 120.
(2) Sections 122, 123, 124, 126, 127 and 128 apply, with the necessary changes, and
under procedures determined in the ‘rules’, to the tax board and the chairperson.
Appointment of chairpersons
111. (1) The Minister must, in consultation with the Judge-President of the Division 45
of the High Court with jurisdiction in the area where the tax board is to sit, by public
notice appoint advocates and attorneys to a panel from which a chairperson of the tax
board must be nominated from time to time.
(2) The persons appointed under subsection (1)—
(a) hold office for five years from the date the notice of appointment is published 50
in the public notice; and
(b) are eligible for reappointment as the Minister thinks fit.
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(3) The Minister may terminate an appointment made under this section at any time
for misconduct, incapacity or incompetence.
(4) A member of the panel must be appointed as chairperson of a tax board.
(5) A chairperson will not solely on account of his or her liability to tax be regarded
as having a personal interest or a conflict of interest in any matter upon which he or she 5
may be called upon to adjudicate.
(6) A chairperson must withdraw from the proceedings as soon as the chairperson
becomes aware of a conflict of interest which may give rise to bias which the
chairperson may experience with the case concerned or other circumstances that may
10
affect the chairperson’s ability to remain objective for the duration of the case.
(7) Either party may ask for withdrawal of the chairperson on the basis of conflict of
interest or other indications of bias, under procedures provided in the ‘rules’.
Clerk of tax board
112. (1) The Commissioner must appoint a clerk of the tax board.
15
(2) The clerk acts as convenor of the tax board.
(3) If no chairperson is available in the jurisdiction within which the tax board is to be
convened, the clerk may convene the tax board with a chairperson from another
jurisdiction.
(4) The clerk of the tax board must, within the period and in the manner provided in
the ‘rules’, submit a notice to the members of the tax board and the ‘appellant’ 20
specifying the time and place for the hearing.
Tax board procedure
113. (1) Subject to the procedure provided for by the ‘rules’, the chairperson
determines the procedures during the hearing of an appeal as the chairperson sees fit, and
each party must have the opportunity to put the party’s case to the tax board.
(2) The tax board is not required to record its proceedings.
(3) The chairperson may, when the proceedings open, formulate the issues in the
appeal.
(4) The chairperson may adjourn the hearing of an appeal to a convenient time and
place.
(5) A senior SARS official must appear at the hearing of the appeal in support of the
assessment or ‘decision’.
(6) At the hearing of the appeal the ‘appellant’ must—
(a) appear in person in the case of a natural person; or
(b) in any other case, be represented by the representative taxpayer.
(7) If a third party prepared the ‘appellant’s’ return involved in the assessment or
‘decision’, that third party may appear on the ‘appellant’s’ behalf.
(8) The ‘appellant’ may, together with the notice of appeal, or within the further
period as the chairperson may allow, request permission to be represented at the hearing
otherwise than as referred to in subsection (6).
(9) If neither the ‘appellant’ nor anyone authorised to appear on the ‘appellant’s’
behalf appears before the tax board at the time and place set for the hearing, the tax board
may confirm the assessment or ‘decision’ in respect of which the appeal has been
lodged—
(a) at the request of the SARS representative; and
(b) on proof that the ‘appellant’ was furnished with the notice of the sitting of the
tax board.
(10) If the tax board confirms an assessment or ‘decision’ under subsection (9), the
‘appellant’ may not thereafter request that the appeal be referred to the tax court under
section 115.
(11) If the senior SARS official fails to appear before the tax board at the time and
place set for the hearing, the tax board may allow the ‘appellant’s’ appeal at the
‘appellant’s’ request.
(12) If the tax board allows the appeal under subsection (11), SARS may not
thereafter refer the appeal to the tax court under section 115.
(13) Subsections (9), (10), (11) and (12) do not apply if the chairperson is satisfied that
sound reasons exist for the non-appearance and the reasons are delivered by the
‘appellant’ or SARS to the clerk of the tax board within 10 business days after the date
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40
45
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determined for the hearing or the longer period as may be allowed in exceptional
circumstances.
Decision of tax board
114. (1) The tax board, after hearing the ‘appellant’s’ appeal against an assessment or
‘decision’, must decide the matter in accordance with this Chapter.
5
(2) The Chairperson must prepare a written statement of the tax board’s decision that
includes the tax board’s findings of the facts of the case and the reasons for its decision,
within 60 business days after conclusion of the hearing.
(3) The clerk must by notice in writing submit a copy of the tax board’s decision to
SARS and the ‘appellant’.
10
Referral of appeal to tax court
115. (1) If the ‘appellant’ or SARS is dissatisfied with the tax board’s decision or the
Chairperson fails to deliver the decision under section 114(2) within the prescribed 60
business day period, the ‘appellant’ or SARS may within 21 business days, or within the
further period as the Chairperson may on good cause shown allow, after the date of the 15
notice referred to in section 114(3) or the expiry of the period referred to in section
114(2), require, in writing, that the appeal be referred to the tax court for hearing.
(2) The tax court must hear de novo a referral of an appeal from the tax board’s
decision under subsection (1).
P artD
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Tax court
Establishment of tax court
116. (1) The President of the Republic may by proclamation in the Gazette establish
a tax court or additional tax courts for areas that the President thinks fit and may abolish
an existing tax court as circumstances may require.
25
(2) The tax court is a court of record.
Jurisdiction of tax court
117. (1) The tax court for purposes of this Chapter has jurisdiction over tax appeals
lodged under section 107.
(2) The place where an appeal is heard is determined by the ‘rules’.
30
(3) The court may hear an interlocutory application relating to an objection or appeal
and may decide on a procedural matter as provided for in the ‘rules’.
Constitution of tax court
118. (1) A tax court established under this Act consists of—
(a) a judge or an acting judge of the High Court, who is the president of the tax 35
court;
(b) an accountant selected from the panel of members appointed in terms of
section 120; and
(c) a representative of the commercial community selected from the panel of
members appointed in terms of section 120.
40
(2)
If the president of the tax court, a senior SARS official or the ‘appellant’ so
requests, the representative of the commercial community referred to in subsection
(1) (c) must—
(a) if the appeal relates to the business of mining, be a registered mining engineer;
or
45
(b) if the appeal involves the valuation of assets, be a sworn appraiser.
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(3) If an appeal to the tax court involves a matter of law only or is an application for
condonation or an interlocutory application, the president of the court alone must decide
the appeal.
(4) The president of the court alone decides whether a matter for decision involves a
matter of fact or a matter of law.
5
(5) The Judge-President of the Division of the High Court with jurisdiction in the area
where the relevant tax court is situated, may direct that the tax court consist of three
judges or acting judges of the High Court (one of whom is the president of the tax court)
and the members of the court referred to in subsections (1) (b) and (c) and (2), where
necessary, if
10
(a) the amount in dispute exceeds R50 million; or
(b) SARS and the ‘appellant’jointly apply to the Judge-President.
Nomination of president of tax court
119. (1) The Judge-President of the Division of the High Court with jurisdiction in the
area for which a tax court has been constituted must nominate and second a judge or an 15
acting judge of the division to be the president of that tax court.
(2) The Judge-President must determine whether the secondment referred to in
subsection (1) applies for a period, or for the hearing of a particular case.
(3) A judge will not solely on account of his or her liability to tax be regarded as
having a personal interest or a conflict of interest in any matter upon which he or she 20
may be called upon to adjudicate.
Appointment of panel of tax court members
120. (1) The President of the Republic by proclamation in the Gazette must appoint
the panel of members of a tax court for purposes of section 118(1) (b) and (c) for a term
of office of five years from the date of the relevant proclamation.
25
(2) A person appointed in terms of subsection (1) must be a person of good standing
who has appropriate experience.
(3) A person appointed in terms of subsection (1) is eligible for reappointment for a
further period or periods as the President of the Republic may think fit.
(4) The President of the Republic may terminate the appointment of a member under 30
this section at any time for misconduct, incapacity or incompetence.
(5) A member’s appointment lapses in the event that the tax court is abolished under
section 116(1).
(6) A member of the tax court must perform the member’s functions independently,
impartially and without fear, favour or prejudice.
35
Appointment of registrar of tax court
121. (1) The Commissioner appoints the ‘registrar’ of the tax court.
(2) A person appointed as ‘registrar’ and persons appointed in the ‘registrar’s’ office
are SARS employees.
(3) The ‘registrar’ and other persons referred to in subsection (2) must perform their 40
functions under this Act and the ‘rules’ independently, impartially and without fear,
favour or prejudice.
Conflict of interest of tax court members
122. (1) A member of the court must withdraw from the proceedings as soon as the
member becomes aware of a conflict of interest which may give rise to bias which the 45
member may experience with the case concerned or other circumstances that may affect
the member’s ability to remain objective for the duration of the case.
(2) Either party may ask for withdrawal of a member on the basis of conflict of interest
or other indications of bias, under procedures provided in the ‘rules’.
(3) A member of the court will not solely on account of his or her liability to tax be 50
regarded as having a personal interest or a conflict of interest in the case.
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Death, retirement or incapability of judge or member
123. (1) If at any stage during the hearing of an appeal, or after hearing of the appeal
but before judgment has been handed down, one of the judges dies, retires or becomes
otherwise incapable of acting in that capacity, the hearing of an appeal must be heard de
5
novo.
(2) If the tax court has been constituted under section 118(5), the hearing of the appeal
referred to in subsection (1) must proceed before the remaining judges and members, if
the remaining judges constitute the majority of judges before whom the hearing was
commenced.
(3) If at any stage during or after the hearing of an appeal but before judgment has 10
been handed down, a member of the tax court dies, retires or becomes incapable of
acting in that capacity, the hearing of the appeal must proceed before the president of the
tax court, any other judges, the remaining member, and, if the president deems it
necessary, a replacement member.
(4) The judgment of the remaining judges and members referred to in subsection (1) 15
or (3) is the judgment of the court.
Sitting of tax court not public
124. (1) The tax court sittings for purposes of hearing an appeal under section 107 are
not public.
(2) The president of the tax court may in exceptional circumstances, on request of any 20
person, allow that person or any other person to attend the sitting but may do so only
after taking into account any representations that the ‘appellant’ and a senior SARS
official, referred to in section 12 appearing in support of the assessment or ‘decision’,
wishes to make on the request.
Appearance at hearing of tax court
25
125. (1) A senior SARS official referred to in section 12 may appear at the hearing of
an appeal in support of the assessment or ‘decision’.
(2) The ‘appellant’ or the ‘appellant’s’ representative may appear at the hearing of an
appeal in support of the appeal.
Subpoena of witness to tax court
30
126. SARS, the ‘appellant’ or the president of a tax court may subpoena any witness
in the manner prescribed in the ‘rules’, whether or not that witness resides within the tax
court’s area of jurisdiction.
Non-attendance by witness or failure to give evidence
127. (1) A person subpoenaed under section 126 is liable to the fine or imprisonment
specified in subsection (2), if the person without just cause fails to—
(a) give evidence at the hearing of an appeal;
(b) remain in attendance throughout the proceedings unless excused by the
president of the tax court; or
(c) produce a document or thing in the person’s possession or under the person’s
control according to the subpoena.
(2) The president of the tax court may impose a fine or, in default of payment,
imprisonment for a period not exceeding three months, on a person described in
subsection (1) upon being satisfied by—
(a) oath or solemn declaration; or
(b) the return of the person by whom the subpoena was served,
that the person has been duly subpoenaed and that the person’s reasonable expenses
have been paid or offered.
(3) The president of the tax court may, in addition to imposing a fine or imprisonment
under subsection (2), issue a warrant for the person to be apprehended and brought to
give evidence or to produce the document or thing in accordance with the subpoena.
35
40
45
50
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(4) A fine imposed under subsection (2) is enforceable as if it were a penalty imposed
by a High Court in similar circumstances and any laws applicable in respect of a penalty
imposed by a High Court apply with the necessary changes in respect of the fine.
(5) The president of the tax court may, on good cause shown, remit the whole or any
part of the fine or imprisonment imposed under subsection (2).
(6) The president of the tax court may order the costs of a postponement or
adjournment resulting from the default of a witness, or a portion of the costs, to be paid
out of a fine imposed under subsection (2).
5
Contempt of tax court
128. (1) If, during the sitting of a tax court, a person—
10
(a) wilfully insults a judge or member of the tax court;
(b) wilfully interrupts the tax court proceedings; or
(c) otherwise misbehaves in the place where the hearing is held,
the president of a tax court may impose upon that person a fine or, in default of payment,
imprisonment for a period not exceeding three months.
15
(2) An order made under subsection (1) must be executed as if it were an order made
by a Magistrate’s Court under similar circumstances, and the provisions of a law which
apply in respect of such an order made by a Magistrate’s Court apply with the necessary
changes in respect of an order made under subsection (1).
Decision by tax court
20
129. (1) The tax court, after hearing the ‘appellant’s’ appeal lodged under section 107
against an assessment or ‘decision’, must decide the matter on the basis that the burden
of proof as described in section 102 is upon the taxpayer.
(2) In the case of an assessment or ‘decision’ under appeal, the tax court may—
(a) confirm the assessment o r ‘decision’;
25
(b) order the assessment or ‘decision’ to be altered; or
(c) refer the assessment back to SARS for further examination and assessment.
(3) In the case of an appeal against an understatement penalty imposed by SARS
under a tax Act, the tax court must decide the matter on the basis that the burden of proof
is upon SARS and may reduce, confirm or increase the understatement penalty so 30
imposed.
(4) If SARS alters an assessment as a result of a referral under sub­
section ( 2 ) 0 , the assessment is subject to objection and appeal.
O rder for costs by tax court
130. (1) The tax court may, in dealing with an appeal under this Chapter and on 35
application by an aggrieved party, grant an order for costs in favour of the party, if—
(a) the SARS grounds of assessment or ‘decision’ are held to be unreasonable;
(b) the ‘appellant’s’ grounds of appeal are held to be unreasonable;
(c) the tax board’s decision is substantially confirmed;
(d) the hearing of the appeal is postponed at the request of the other party; or
40
(e) the appeal is withdrawn or conceded by the other party after the ‘registrar’
allocates a date of hearing.
(2) The costs referred to in subsection (1) must be determined in accordance with the
fees prescribed by the rules of the High Court.
(3) A cost order in favour of SARS constitutes funds of SARS within the meaning of 45
section 24 of the SARS Act.
R egistrar to notify parties of judgm ent of tax court
131. The ‘registrar’ must notify the ‘appellant’ and SARS of the court’s decision
within 21 business days of the date of the delivery of the written decision.
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Publication of judgm ent of tax court
132. A judgment of the tax court dealing with an appeal under this Chapter must be
published for general information and, unless the sitting of the tax court was public
under the circumstances referred to in section 124(2), in a form that does not reveal the
‘appellant’s’ identity.
5
Part E
Appeal against tax court decision
Appeal against decision of tax court
133. (1) The taxpayer or SARS may in the manner provided for in this Act appeal
10
against a decision of the tax court under sections 129 and 130.
(2) An appeal against a decision of the tax court lies—
(a) to the full bench of the Provincial Division of the High Court which has
jurisdiction in the area in which the tax court sitting is held; or
(b) to the Supreme Court of Appeal, without an intermediate appeal to the
Provincial Division, if—
15
(i) the president of the tax court has granted leave under the ‘rules’; or
(ii) the appeal was heard by the tax court constituted under section 118(5).
Notice of intention to appeal tax court decision
134. (1) A party who intends to lodge an appeal against a decision of the tax court
(hereinafter in this Part referred to as the appellant) must, within 21 business days after
the date of the notice by the ‘registrar’ notifying the parties of the tax court’s decision
under section 131, or within a further period as the president of the tax court may on
good cause shown allow, lodge with the ‘registrar’ and serve upon the opposite party or
the opposite party’s attorney or agent, a notice of intention to appeal against the
decision.
(2) A notice of intention to appeal must state—
(a) in which division of the High Court the appellant wishes the appeal to be
heard;
(b) whether the whole or only part of the judgment is to be appealed against (if in
part only, which part), and the grounds of the intended appeal, indicating the
findings of fact or rulings of law to be appealed against; and
(c) whether the appellant requires a transcript of the evidence given at the tax
court’s hearing of the case in order to prepare the record on appeal (or if only
a part of the evidence is required, which part).
(3) If the appellant is the taxpayer and requires a—
(a) transcript of the evidence or a part thereof from the ‘registrar’, the appellant
must pay the fees prescribed by the Commissioner by public notice; or
(b) copy of the recording of the evidence or a part thereof from the ‘registrar’ for
purposes of private transcription, the appellant must pay the fees prescribed
by the Commissioner in the public notice.
(4) A fee paid under subsection (3) constitutes funds of SARS within the meaning of
section 24 of the SARS Act.
20
25
30
35
40
Leave to appeal to Supreme Court of Appeal against tax court decision
135. (1) If an intending appellant wishes to appeal against a decision of the tax court,
the ‘registrar’ must submit the notice of intention to appeal lodged under section 134(1) 45
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to the president of the tax court, who must make an order granting or refusing leave to
appeal having regard to the grounds of the intended appeal as indicated in the notice.
(2) If the president of the tax court cannot act in that capacity or it is inconvenient for
the president to act in that capacity for purposes of this section, the Judge-President of
the relevant Division of the High Court may nominate and second another judge or
acting judge to act as president of the tax court for that purpose.
(3) Subject to the right to petition the Chief Justice for leave to appeal to the Supreme
Court of Appeal in terms of section 21 of the Supreme Court Act, 1959 (Act No. 59 of
1959), an order made by the president of the tax court under subsection (1) is final.
Failure to lodge notice of intention to appeal tax court decision
5
10
136. (1) A person entitled to appeal against a decision of the tax court, who has not
lodged a notice of intention to appeal within the time and in the manner required by
section 134, abandons, subject to any right to note a cross appeal, the right of appeal
against the decision.
(2) A person who under section 134 lodged a notice of intention to appeal against a 15
decision of the tax court but who has subsequently withdrawn the notice, abandons the
right to note an appeal or cross-appeal against the decision.
Notice by registrar of period for appeal of tax court decision
137. (1) After the expiry of the time allowed under section 134(1) for the lodging of
a notice of intention to appeal, the ‘registrar’ must—
(a) give notice to a person who has lodged a notice of intention to appeal which
has not been withdrawn, that if the person decides to appeal, the appeal must
be noted within 21 business days after the date of the ‘registrar’s’ notice; and
(b) supply to the person referred to in paragraph (a) a certified copy of an order
that the president of the tax court made under section 135 which is the subject
of the intended appeal.
(2) The ‘registrar’ may not give notice under subsection (1) (a) until the order has been
made or the transcript has been completed if—
(a) it appears that the president of the tax court will make an order under
section 135; or
(b) an intending appellant requires a transcript of evidence given at the hearing of
the case by the tax court as envisaged in section 134(2) (c).
(3) If the opposite party is not also an intending appellant in the same case, the
‘registrar’ must provide to the opposite party copies of the notice and any order referred
to in subsection (1) (a) and (b).
20
25
30
35
Notice of appeal to Supreme Court of Appeal against tax court decision
138. (1) If a person has—
(a) appealed to the Supreme Court of Appeal from a court established under
section 118(5);
(b) been granted leave to appeal to the Supreme Court of Appeal under 40
section 135; or
(c) successfully petitioned to the Supreme Court of Appeal for leave to appeal,
the appeal which a party must note against a decision given in the relevant case must be
noted to that Court.
(2) If the notice of intention to appeal was noted to the High Court or leave to appeal 45
to the Supreme Court of Appeal has been refused under section 135, the party who
lodged the notice of intention to appeal must note an appeal to the appropriate Provincial
Division of the High Court.
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(3) The notice of appeal must be lodged within the period referred to in
section 137(1) (a) or within a longer period as may be allowed under the rules of the
court to which the appeal is noted.
(4) A notice of appeal must be in accordance with the requirements in the rules of the
relevant higher court.
5
Notice of cross-appeal of tax court decision
139. (1) A cross-appeal against a decision of the tax court in a case in which an appeal
has been lodged under section 138, must be noted by lodging a written notice of
cross-appeal with the ‘registrar’, serving it upon the opposite party or the opposite
party’s attorney and lodging it with the registrar of the court to which the cross-appeal 10
is noted.
(2) The notice of cross-appeal must be lodged within 21 business days after the date
the appeal is noted under section 138 or within a longer period as may be allowed under
the rules of the court to which the cross-appeal is noted.
(3) A notice of cross-appeal must state—
15
(a) whether the whole or only part of the judgment is appealed against, and if a
part, which part;
(b) the grounds of cross-appeal specifying the findings of fact or rulings of law
appealed against; and
(c) any further particulars that may be required under the rules of the court to 20
which the cross-appeal is noted.
Record of appeal of tax court decision
140. (1) The record lodged with a court to which an appeal against a decision of a tax
court is noted, includes all documents placed before the tax court under the ‘rules’.
(2) Documents submitted in the tax court which do not relate to the matters in dispute 25
in the appeal may be excluded from the record with the consent of the parties.
Abandonm ent of judgm ent
141. (1) Aparty may by notice in writing lodged with the ‘registrar’ and the opposite
party or the opposite party’s attorney or agent, abandon the whole or a part of a judgment
in the party’s favour.
30
(2) A notice of abandonment becomes part of the record.
Part F
Settlement o f dispute
Definitions
142. In this Part, unless the context indicates otherwise, the following terms, if in 35
single quotation marks, have the following meanings:
‘dispute’ means a disagreement on the interpretation of either the relevant facts
involved or the law applicable thereto, or of both the facts and the law, which arises
pursuant to the issue of an assessment or the making of a ‘decision’; and
‘settle’ means, after the lodging of an appeal under this Chapter, to resolve a 40
‘dispute’ by compromising a disputed liability, otherwise than by way of either
SARS or the person concerned accepting the other party’s interpretation of the facts
or the law applicable to those facts or of both the facts and the law, and ‘settlement’
must be construed accordingly.
Purpose of P a rt
45
143. (1) A basic principle in tax law is that it is the duty of SARS to assess and collect
tax according to the laws enacted by Parliament and not to forgo a tax which is properly
chargeable and payable.
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(2) Circumstances may require that the strictness and rigidity of this basic principle be
tempered, if such flexibility is to the best advantage of the State.
(3) The purpose of this Part is to prescribe the circumstances in which it is appropriate
for SARS to temper the basic principle and ‘settle’ a ‘dispute’.
Initiation of settlement procedure
5
144. (1) Either party to a ‘dispute’ may initiate a ‘settlement’ procedure by
communication with the other party.
(2) Neither SARS nor the taxpayer has the right to require the other party to engage
in a ‘settlement’ procedure.
Circumstances where settlement is inappropriate
10
145. It is inappropriate and not to the best advantage of the State to ‘settle’ a ‘dispute’
if in the opinion of SARS—
(a) no circumstances envisaged in section 146 exist and—
(i) the action by the person concerned that relates to the ‘dispute’ constitutes
intentional tax evasion or fraud;
15
(ii) the ‘settlement’ would be contrary to the law or a practice generally
prevailing and no exceptional circumstances exist to justify a departure
from the law or practice; or
(iii) the person concerned has not complied with the provisions of a tax Act
and the non-compliance is of a serious nature;
20
(b) it is in the public interest to have judicial clarification of the issue and the case
is appropriate for this purpose; or
(c) the pursuit of the matter through the courts will significantly promote taxpayer
compliance with a tax Act and the case is suitable for this purpose.
Circumstances where settlement is appropriate
146. The Commissioner may, if it is to the best advantage of the state, ‘settle’ a
‘dispute’, in whole or in part, on a basis that is fair and equitable to both the person
concerned and to SARS, having regard to—
(a) whether the ‘settlement’ would be in the interest of good management of the
tax system, overall fairness, and the best use of SARS’ resources;
(b) SARS’ cost of litigation in comparison to the possible benefits with reference
to—
(i) the prospects of success in court;
(ii) the prospects of the collection of the amounts due; and
(iii) the costs associated with collection;
(c) whether there are any—
(i) complex factual issues in contention; or
(ii) evidentiary difficulties,
which are sufficient to make the case problematic in outcome or unsuitable for
resolution through the alternative ‘dispute’ resolution procedures or the
courts;
(d) a situation in which a participant or a group of participants in a tax avoidance
arrangement has accepted SARS’ position in the ‘dispute’, in which case the
‘settlement’ may be negotiated in an appropriate manner required to unwind
existing structures and arrangements; or
(e) whether ‘settlement’ of the ‘dispute’ is a cost-effective way to promote
compliance with a tax Act by the person concerned or a group of taxpayers.
25
30
35
40
45
Procedure for settlement
147. (1) A person participating in a ‘settlement’ procedure must disclose all relevant
facts during the discussion phase of the process of ‘settling’ a ‘dispute’.
50
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(2) A ‘settlement’ is conditional upon full disclosure of material facts known to the
person concerned at the time of ‘settlement’.
(3) A dispute ‘settled’ in whole or in part must be evidenced by an agreement in
writing between the parties in the prescribed format and must include details on—
5
(a) how each particular issue is ‘settled’;
(b) relevant undertakings by the parties;
(c) treatment of the issue in future years;
(d) withdrawal of objections and appeals; and
(e) arrangements for payment.
(4) The agreement must be signed by a senior SARS official.
10
(5) SARS must, if the ‘dispute’ is not ultimately ‘settled’, explain to the person
concerned the further rights of objection and appeal.
(6) The agreement and terms of a ‘settlement’ agreement must remain confidential,
unless their disclosure is authorised by law or SARS and the person concerned agree
otherwise.
15
Finality of settlement agreement
148. (1) The settlement agreement represents the final agreed position between the
parties and is in full and final ‘settlement’ of all or the specified aspects of the ‘dispute’
in question between the parties.
(2) SARS must adhere to the terms of the agreement, unless material facts were not 20
disclosed as required by section 147(1) or there was fraud or misrepresentation of the
facts.
(3) If the person concerned fails to pay the amount due pursuant to the agreement or
otherwise fails to adhere to the agreement, a senior SARS official may—
(a) regard the agreement as void and proceed with the matter in respect of the 25
original disputed amount; or
(b) enforce collection of the ‘settlement’ amount under the collection provisions
of this Act in full and final ‘settlement’ of the ‘dispute’.
Register of settlements and reporting
149. (1) SARS must—
30
(a) maintain a register of all ‘disputes’ that are ‘settled’ under this Part; and
(b) document the process under which each ‘dispute’ is ‘settled’.
(2) The Commissioner must provide an annual summary of ‘settlements’ to the
Auditor-General and to the Minister.
(3) The summary referred to in subsection (2) must be submitted by no later than the 35
date on which the annual report for SARS is submitted to Parliament for the year and
must—
(a) be in a format which, subject to section 70(5), does not disclose the identity of
the person concerned; and
(b) contain details, arranged by main classes of taxpayers or sections of the 40
public, of the number of ‘settlements’, the amount of tax forgone, and the
estimated savings in litigation costs.
Alteration of assessment or decision on settlement
150. (1) If a ‘dispute’ between SARS and the person aggrieved by an assessment or
‘decision’ is ‘settled’ under this Part, SARS may, despite anything to the contrary 45
contained in a tax Act, alter the assessment or ‘decision’ to give effect to the ‘settlement’.
(2) An altered assessment or ‘decision’ referred to in subsection (1) is not subject to
objection and appeal.
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CHAPTER 10
TAX LIABILITY AND PAYMENT
Part A
Taxpayers
Taxpayer
5
151. In this Act, taxpayer means—
(a) a person chargeable to tax;
(b) a representative taxpayer;
(c) a withholding agent;
(d) a responsible third party; or
10
(e) a person who is the subject of a request to provide assistance under an
international tax agreement.
Person chargeable to tax
152. A person chargeable to tax is a person upon whom the liability for tax due under
a tax Act is imposed and who is personally liable for the tax.
15
Representative taxpayer
153. (1) In this Act, a representative taxpayer means a person who is responsible for
paying the tax liability of another person as an agent, other than as a withholding agent,
and includes a person who—
(a) is a representative taxpayer in terms of the Income Tax Act;
20
(b) is a representative employer in terms of the Fourth Schedule to the Income
Tax Act; or
(c) is a representative vendor in terms of section 46 of the Value-Added Tax Act.
(2) Every person who becomes or ceases to be a representative taxpayer (except a
public officer of a company) under a tax Act, must notify SARS accordingly in such 25
form as the Commissioner may prescribe, within 21 business days after becoming or
ceasing to be a representative taxpayer, as the case may be.
(3) A taxpayer is not relieved from any liability, responsibility or duty imposed under
a tax Act by reason of the fact that the taxpayer’s representative—
(a) failed to perform such responsibilities or duties; or
30
(b) is liable for the tax payable by the taxpayer.
Liability of representative taxpayer
154. (1) A representative taxpayer is, as regards—
(a) the income to which the representative taxpayer is entitled;
(b) moneys to which the representative taxpayer is entitled or has the manage- 35
ment or control;
(c) transactions concluded by the representative taxpayer; and
(d) anything else done by the representative taxpayer,
in such capacity—
(i) subject to the duties, responsibilities and liabilities of the taxpayer repre- 40
sented;
(ii) entitled to any abatement, deduction, exemption, right to set off a loss, and
other items that could be claimed by the person represented; and
(iii) liable for the amount of tax specified by a tax Act.
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(2) A representative taxpayer may be assessed in respect of any tax under sub­
section (1), but such assessment is regarded as made upon the representative taxpayer in
such capacity only.
Personal liability of representative taxpayer
155. A representative taxpayer is personally liable for tax payable in the representa- 5
tive taxpayer’s representative capacity, if, while it remains unpaid—
(a) the representative taxpayer alienates, charges or disposes of amounts in
respect of which the tax is chargeable; or
(b) the representative taxpayer disposes of or parts with funds or moneys, which
are in the representative taxpayer’s possession or come to the representative 10
taxpayer after the tax is payable, if the tax could legally have been paid from
or out of the funds or moneys.
W ithholding agent
156. In this Act, withholding agent means a person who must under a tax Act withhold
an amount of tax and pay it to SARS.
15
Personal liability of withholding agent
157. (1) A withholding agent is personally liable for an amount of tax—
(a) withheld and not paid to SARS; or
(b) which should have been withheld under a tax Act but was not so withheld.
(2) An amount paid or recovered from a withholding agent in terms of subsection (1) 20
is an amount of tax which is paid on behalf of the relevant taxpayer in respect of his or
her liability under the relevant tax Act.
Responsible third party
158. In this Act, responsible third party means a person who becomes otherwise liable
for the tax liability of another person, other than as a representative taxpayer or as a 25
withholding agent, whether in a personal or representative capacity.
Personal liability of responsible third party
159. A responsible third party is personally liable to the extent described in Part D of
Chapter 11.
Right to recovery of taxpayer
30
160. (1) A representative taxpayer, withholding agent or responsible third party who,
as such, pays a tax is entitled—
(a) to recover the amount so paid from the person on whose behalf it is paid; or
(b) to retain out of money or assets in that person’s possession or that may come
to that person in that representative capacity, an amount equal to the amount 35
so paid.
(2) Unless otherwise provided for in a tax Act, a taxpayer on whose behalf an amount
deducted or withheld has been paid to SARS by a withholding agent is not entitled to
recover from the withholding agent the amount so deducted or withheld.
Security by taxpayer
40
161. (1) A senior SARS official may require security from a taxpayer to safeguard the
collection of tax by SARS, if the taxpayer—
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(a) is a representative taxpayer, withholding agent or responsible third party who
was previously held liable in the taxpayer’s personal capacity under a tax Act;
(b) has been convicted of a tax offence;
(c) has frequently failed to pay amounts of tax due;
(d) has frequently failed to carry out other obligations imposed under any tax Act 5
which constitutes non-compliance referred to in Chapter 15; or
(e) is under the management or control of a person who is or was a person
contemplated in paragraphs (a) to (d).
(2) If security is required, SARS must by written notice to the taxpayer require the
taxpayer to furnish to or deposit with SARS, within such period that SARS may allow, 10
security for the payment of any tax which has or may become payable by the taxpayer
in terms of a tax Act.
(3) The security must be of the nature, amount and form that the senior SARS official
directs.
(4) If the security is in the form of cash deposit and the taxpayer fails to make such 15
deposit, it may—
(a) be collected as if it were a tax debt of the taxpayer recoverable under this Act;
or
(b) be set-off against any refund due to the taxpayer.
(5) A senior SARS official may, in the case of a taxpayer which is not a natural person 20
and cannot provide the security required under subsection (1), require of any or all of the
members, shareholders or trustees who control or are involved in the management of the
taxpayer to enter into a contract of suretyship in respect of the taxpayer’s liability for tax
which may arise from time to time.
Part B
25
Payment o f tax
Determination of time and m anner of payment of tax
162. (1) Tax must be paid by the day and at the place notified by SARS or as specified
in a tax Act, and must be paid as a single amount or in terms of an instalment payment
agreement under section 167.
30
(2) SARS may prescribe the method of payment of tax, including electronically.
(3) Despite sections 96(1) (f) and 167, a senior SARS official may, if there are
reasonable grounds to believe that—
(a) a taxpayer will not pay the full amount of tax;
(b) a taxpayer will dissipate the taxpayer’s assets; or
35
(c) that recovery may become difficult in the future,
require the taxpayer to—
(i) pay the full amount immediately upon receipt of the notice of assessment or a
notice described in section 167(6) or within the period as the official deems
appropriate under the circumstances; or
40
(ii) provide such security as the official deems necessary.
Preservation order
163. (1) A senior SARS official may authorise an ex parte application to the High
Court for an order for the preservation of any assets of a taxpayer or other person
prohibiting any person, subject to the conditions and exceptions as may be specified in 45
the preservation order, from dealing in any manner with the assets to which the order
relates.
(2)
(a) SARS may, in anticipation of the application and in order to prevent any
realisable assets from being disposed of or removed which may frustrate the collection
of the full amount of tax due, seize the assets pending the outcome of an application for 50
a preservation order, which application must commence within 24 hours from the time
of seizure of the assets or the further period that SARS and the taxpayer or other person
may agree on.
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(b) Until a preservation order is made in respect of the seized assets, SARS must take
reasonable steps to preserve and safeguard the assets.
(3) A preservation order may be made if required to secure the collection of tax and
in respect of—
(a) realisable assets seized by SARS under subsection (2);
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(b) the realisable assets as may be specified in the order and which are held by the
person against whom the preservation order is being made;
(c) all realisable assets held by the person, whether it is specified in the order or
not; or
(d) all assets which, if transferred to the person after the making of the 10
preservation order, would be realisable assets.
(4) The court to which an application for a preservation order is made may—
(a) make a provisional preservation order having immediate effect;
(b) simultaneously grant a rule nisi calling upon the taxpayer or other person upon
a business day mentioned in the rule to appear and to show cause why the 15
preservation order should not be made final; and
(c) upon application by the taxpayer or other person, anticipate the return day for
the purpose of discharging the provisional preservation order if 24 hours’
notice of the application has been given to SARS.
(5) A preservation order must provide for notice to be given to the taxpayer and a 20
person from whom the assets are seized.
(6) For purposes of the notice or rule required under subsection (4) (b) or (5), if the
taxpayer or other person has been absent for a period of 21 business days from his or her
usual place of residence or business within the Republic, the court may direct that it will
be sufficient service of that notice or rule if a copy thereof is affixed to or near the outer 25
door of the building where the court sits and published in the Gazette, unless the court
directs some other mode of service.
(7) The court, in granting a preservation order, may make any ancillary orders
regarding how the assets must be dealt with, including—
(a) authorising the seizure of all movable assets;
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(b) appointing a curator bonis in whom the assets of that taxpayer or another
person liable for tax vest;
(c) realising the assets in satisfaction of the tax debt;
(d) making provision as the court may think fit for the reasonable living expenses
of a person against whom the preservation order is being made and his or her 35
legal dependants, if the court is satisfied that the person has disclosed under
oath all direct or indirect interests in assets subject to the order and that the
person cannot meet the expenses concerned out of his or her unrestrained
assets; or
(e) any other order that the court considers appropriate for the proper, fair and 40
effective execution of the order.
(8) The court making a preservation order may also make such further order in respect
of the discovery of any facts including facts relating to any asset over which the taxpayer
or other person may have effective control and the location of the assets as the court may
consider necessary or expedient with a view to achieving the objects of the preservation 45
order.
(9) The court which made a preservation order may on application by a person
affected by that order vary or rescind the order or an order authorising the seizure of the
assets concerned or other ancillary order if it is satisfied that—
(a) the operation of the order concerned will cause the applicant undue hardship; 50
and
(b) the hardship that the applicant will suffer as a result of the order outweighs the
risk that the assets concerned may be destroyed, lost, damaged, concealed or
transferred.
(10) A preservation order remains in force—
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(a) pending the setting aside thereof on appeal, if any, against the preservation
order; or
(b) until the assets subject to the preservation order are no longer required for
purposes of the satisfaction of the tax debt.
(11) In order to prevent any realisable assets that were not seized under subsection (2) 60
from being disposed of or removed contrary to a preservation order under this section,
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a senior SARS official may seize the assets if the official has reasonable grounds to
believe that the assets will be so disposed of or removed.
(12) Assets seized under this section must be dealt with in accordance with the
directions of the High Court which made the relevant preservation order.
Payment of tax pending objection or appeal
164. (1) Unless a senior SARS official otherwise directs in terms of subsection (3)—
(a) the obligation to pay tax; and
(b) the right of SARS to receive and recover tax,
will not be suspended by an objection or appeal or pending the decision of a court of law
pursuant to an appeal under section 133.
(2) A taxpayer may request a senior SARS official to suspend the payment of tax or a
portion thereof due under an assessment if the taxpayer intends to dispute or disputes the
liability to pay that tax under Chapter 9.
(3) A senior SARS official may suspend payment of the disputed tax having regard
to—
(a) the compliance history of the taxpayer;
(b) the amount of tax involved;
(c) the risk of dissipation of assets by the taxpayer concerned during the period of
suspension;
(d) whether the taxpayer is able to provide adequate security for the payment of
the amount involved;
(e) whether payment of the amount involved would result in irreparable financial
hardship to the taxpayer;
(!) whether sequestration or liquidation proceedings are imminent;
(g) whether fraud is involved in the origin of the dispute; or
(h) whether the taxpayer has failed to furnish information requested under this
Act for purposes of a decision under this section.
(4) If the payment of tax which the taxpayer intended to dispute was suspended under
subsection (3) and subsequently—
(a) no objection is lodged;
(b) an objection is disallowed and no appeal is lodged; or
(c) an appeal to the tax board or court is unsuccessful and no further appeal is
noted,
the suspension is revoked with immediate effect from the date of the expiry of the
relevant prescribed time period or any extension of the relevant time period under this
Act.
(5) A senior SARS official may deny a request in terms of subsection (2) or revoke a
decision to suspend payment in terms of that subsection with immediate effect if
satisfied that—
(a) after the lodging of the objection or appeal, the objection or appeal is frivolous
or vexatious;
(b) the taxpayer is employing dilatory tactics in conducting the objection or
appeal;
(c) on further consideration of the factors referred to in subsection (3), the
suspension should not have been given; or
(d) there is a material change in any of the factors referred to in subsection (3),
upon which the decision to suspend the amount involved was based.
(6) During the period commencing on the day that—
(a) SARS receives a request for suspension under subsection (2); or
(b) a suspension is revoked under subsection (5),
and ending 10 business days after notice of SARS’ decision or revocation has been
issued to the taxpayer, no recovery proceedings may be taken unless SARS has a
reasonable belief that there is a risk of dissipation of assets by the person concerned.
(7) If an assessment or a decision referred to in section 104(2) is altered in accordance
with—
(a) an objection or appeal;
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(b) a decision of a court of law pursuant to an appeal under section 133; or
(c) a decision by SARS to concede the appeal to the tax board or the tax court or
other court of law,
a due adjustment must be made, amounts paid in excess refunded with interest at the
prescribed rate, the interest being calculated from the date that excess was received by 5
SARS to the date the refunded tax is paid, and amounts short-paid are recoverable with
interest calculated as provided in section 187(1).
(8) The provisions of section 191 apply with the necessary changes in respect of an
amount refundable and interest payable by SARS under this section.
Part C
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Taxpayer account and allocation of payments
Taxpayer account
165. (1) SARS must maintain one or more taxpayer accounts for each taxpayer.
(2) The taxpayer account must reflect the tax due in respect of each tax type included
in the account.
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(3) The taxpayer account must record details for all tax periods of—
(a) the tax owed;
(b) any penalty imposed;
(c) the interest payable on outstanding amounts due;
(d) any other amount owed;
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(e) tax payments made by or on behalf of the taxpayer; and
(!) any credit for amounts paid that the taxpayer is entitled to have set off against
the taxpayer’s tax liability.
(4) From time to time, or when requested by the taxpayer, SARS must send to the
taxpayer a statement of account, reflecting the amounts currently due and the details that 25
SARS considers appropriate.
Allocation of payments
166. (1) Despite anything to the contrary contained in a tax Act, SARS may allocate
any payment made in terms of a tax Act against the oldest amount of tax outstanding at
the time of the payment, other than amounts—
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(a) for which payment has been suspended under this Act; or
(b) that are payable in terms of an instalment payment agreement under section
167.
(2) SARS may apply the first-in-first-out principle described in subsection (1) in
respect of a specific tax type or a group of tax types in the manner that may be prescribed 35
by the Commissioner by public notice.
(3) In the event that a payment in subsection (1) is insufficient to extinguish all tax
debts of the same age, the amount of the payment may be allocated among these tax
debts in the manner prescribed by the Commissioner by public notice.
(4) The age of a tax debt for purposes of subsection (1) is determined according to the 40
duration from the date the debt became payable in terms of the applicable Act.
Part D
Deferral o f Payment
Instalment payment agreement
167. (1) A senior SARS official may enter into an agreement with a taxpayer in the 45
prescribed form under which the taxpayer is allowed to pay a tax debt in one sum or in
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instalments, within the agreed period if satisfied that—
(a) criteria or risks that may be prescribed by the Commissioner by public notice
have been duly taken into consideration; and
(b) the agreement facilitates the collection of the debt.
(2) The agreement may contain such conditions as SARS deems necessary to secure 5
collection of tax.
(3) Except as provided in subsections (4) and (5), the agreement remains in effect for
the term of the agreement.
(4) SARS may terminate an instalment payment agreement if the taxpayer fails to pay
an instalment or to otherwise comply with its terms and a payment prior to the 10
termination of the agreement must be regarded as part payment of the tax debt.
(5) A senior SARS official may modify or terminate an instalment payment agreement
if satisfied that—
(a) the collection of tax is in jeopardy;
(b) the taxpayer has furnished materially incorrect information in applying for the 15
agreement; or
(c) the financial condition of the taxpayer has materially changed.
(6) A termination or modification—
(a) referred to in subsection (4) or (5) (a) takes effect as at the date stated in the
notice of termination or modification sent to the taxpayer; and
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(b) referred to in subsection (5) (b) or (c) takes effect 21 business days after notice
of the termination or modification is sent to the taxpayer.
C riteria for instalment payment agreement
168. A senior SARS official may enter into an instalment payment agreement only
if—
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(a) the taxpayer suffers from a deficiency of assets or liquidity which is
reasonably certain to be remedied in the future;
(b) the taxpayer anticipates income or other receipts which can be used to satisfy
the tax debt;
(c) prospects of immediate collection activity are poor or uneconomical but are 30
likely to improve in the future;
(d) collection activity would be harsh in the particular case and the deferral or
instalment agreement is unlikely to prejudice tax collection; or
(e) the taxpayer provides the security as may be required by the official.
CHAPTER 11
35
RECOVERY OF TAX
Part A
General
Debt due to SARS
169. (1) An amount of tax due or payable in terms of a tax Act is a tax debt due to 40
SARS for the benefit of the National Revenue Fund.
(2) A tax debt due to SARS is recoverable by SARS under this Chapter, and is
recoverable from—
(a) in the case of a representative taxpayer who is not personally liable under
section 155, any assets belonging to the person represented which are in the 45
representative taxpayer’s possession or under his or her management or
control; or
(b) in any other case, any assets of the taxpayer.
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(3) SARS is regarded as the creditor for the purposes of an amount referred to in
subsection (1) as well as any other amount if SARS has entered into an agreement under
section 4(1) (a)(ii) of the SARS Act in terms of which SARS is the creditor for the State
or the organ of state or institution concerned.
(4) SARS need not recover an amount under this Chapter if the amount is less than
R100 or any other amount that the Commissioner may determine by public notice, but
the amount must be carried forward in the relevant taxpayer account.
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Evidence as to assessment
170. The production of a document issued by SARS purporting to be a copy of or an
extract from an assessment is conclusive evidence—
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(a) of the making of the assessment; and
(b) except in the case of proceedings on appeal against the assessment, that all the
particulars of the assessment are correct.
Period of limitation on collection of tax
171. Proceedings for recovery of a tax debt may not be initiated after the expiration 15
of 15 years from the date the assessment of tax, or a decision referred to in section 104(2)
giving rise to a tax liability, becomes final.
Part B
Judgment procedure
Application for civil judgm ent for recovery of tax
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172. (1) If a person fails to pay tax when it is payable, SARS may, after giving the
person at least 10 business days notice, file with the clerk or registrar of a competent
court a certified statement setting out the amount of tax payable and certified by SARS
as correct.
(2) SARS may file the statement irrespective of whether or not the amount of tax is 25
subject to an objection or appeal under Chapter 9, unless the obligation to pay the
amount has been suspended under section 164.
(3) SARS is not required to give the taxpayer prior notice under subsection (1) if
SARS is satisfied that giving notice would prejudice the collection of the tax.
Jurisdiction of M agistrates’ C ourt in judgm ent procedure
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173. Despite anything to the contrary in the Magistrates’ Courts Act, 1944 (Act No. 32
of 1944), the certified statement referred to in section 172 may be filed with the clerk of
the Magistrate’s Court that has jurisdiction over the taxpayer named in the statement.
Effect of statement filed with clerk or registrar
174. A certified statement filed under section 172 must be treated as a civil judgment 35
lawfully given in the relevant court in favour of SARS for a liquid debt for the amount
specified in the statement.
Amendment of statement filed with clerk or registrar
175. (1) SARS may amend the amount of the tax due specified in the statement filed
under section 172 if, in the opinion of SARS, the amount in the statement is incorrect. 40
(2) The amendment of the statement is not effective until it is initialled by the clerk or
the registrar of the court concerned.
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W ithdraw al of statement and reinstitution of proceedings
176. (1) SARS may withdraw a certified statement filed under section 172 by sending
a notice of withdrawal to the relevant clerk or registrar upon which the statement ceases
to have effect.
(2) SARS may file a new statement under section 172 setting out tax included in a
withdrawn statement.
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Part C
Sequestration, liquidation and winding-up proceedings
Institution of sequestration, liquidation or winding-up proceedings
177. (1) SARS may institute proceedings for the sequestration, liquidation or 10
winding-up of a person for a tax debt.
(2) SARS may institute the proceedings whether or not the person—
(a) is present in the Republic; or
(b) has assets in the Republic.
(3) If the tax debt is subject to an objection or appeal under Chapter 9 or a further 15
appeal against a decision by the tax court under section 129, the proceedings may only
be instituted with leave of the court before which the proceedings are brought.
Jurisdiction of court in sequestration, liquidation or winding-up proceedings
178. Despite any law to the contrary, a proceeding referred to in section 177 may be
instituted in any competent court and that court may grant an order that SARS requests, 20
whether or not the taxpayer is registered, resident or domiciled, or has a place of
effective management or a place of business, in the Republic.
Part D
Collection o f tax debt from third parties
Liability of third party appointed to satisfy tax debts
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179. (1) A senior SARS official may by notice to a person who holds or owes or will
hold or owe any money, including a pension, salary, wage or other remuneration, for or
to a taxpayer, require the person to pay the money to SARS in satisfaction of the
taxpayer’s tax debt.
(2) A person that is unable to comply with a requirement of the notice, must advise the 30
senior SARS official of the reasons for the inability to comply within the period specified
in the notice and the official may withdraw or amend the notice as is appropriate under
the circumstances.
(3) A person receiving the notice must pay the money in accordance with the notice
and, if the person parts with the money contrary to the notice, the person is personally 35
liable for the money.
(4) SARS may, on request by a person affected by the notice, amend the notice to
extend the period over which the amount must be paid to SARS, to allow the taxpayer
to pay the basic living expenses of the taxpayer and his or her dependants.
Liability of financial management for tax debts
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180. A person is personally liable for any tax debt of the taxpayer to the extent that the
person’s negligence or fraud resulted in the failure to pay the tax debt if—
(a) the person controls or is regularly involved in the management of the overall
financial affairs of a taxpayer; and
(b) a senior SARS official is satisfied that the person is or was negligent or 45
fraudulent in respect of the payment of the tax debts of the taxpayer.
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Liability of shareholders for tax debts
181. (1) This section applies where a company is wound up other than by means of an
involuntary liquidation without having satisfied its tax debt, including its liability as a
responsible third party, withholding agent, or a representative taxpayer, employer or
vendor.
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(2) The persons who are shareholders of the company within one year prior to its
winding up are jointly and severally liable to pay the unpaid tax to the extent that—
(a) they receive assets of the company in their capacity as shareholders within one
year prior to its winding-up; and
(b) the tax debt existed at the time of the receipt of the assets or would have 10
existed had the company complied with its obligations under a tax Act.
(3) The liability of the shareholders is secondary to the liability of the company.
(4) Persons who are liable for tax of a company under this section may avail
themselves of any rights against SARS as would have been available to the company.
(5) This section does not apply—
15
(a) in respect of a ‘‘listed company’’ within the meaning of the Income Tax Act;
or
(b) in respect of a shareholder of a company referred to in paragraph (a).
Liability of transferee for tax debts
182. (1) A person (referred to as a transferee) who receives an asset from a taxpayer 20
who is a connected person in relation to the transferee without consideration or for
consideration below the fair market value of the asset is liable for the tax debt of the
taxpayer.
(2) The liability is limited to the lesser of—
(a) the tax debt that existed at the time of the receipt of the asset or would have 25
existed had the transferor complied with the transferor’s obligations under a
tax Act; and
(b) the fair market value of the asset at the time of the transfer, reduced by the fair
market value of any consideration paid, at the time of payment.
(3) Subsection (1) applies only to an asset received by the transferee within one year 30
before SARS notifies the transferee of liability under this section.
Liability of person assisting in dissipation of assets
183. If a person knowingly assists in dissipating a taxpayer’s assets in order to
obstruct the collection of a tax debt of the taxpayer, the person is jointly and severally
liable with the taxpayer for the tax debt to the extent that the person’s assistance reduces 35
the assets available to pay the taxpayer’s tax debt.
Recovery of tax debts from responsible third parties
184. (1) SARS has the same powers of recovery against the assets of a person referred
to in this Part as SARS has against the assets of the taxpayer and the person has the same
rights and remedies as the taxpayer has against such powers of recovery.
40
(2)
SARS must provide a responsible third party with an opportunity to make
representations—
(a) before the responsible third party is held liable for the tax debt of the taxpayer
in terms of section 180, 181,182 or 183, if this will not place the collection of
tax in jeopardy; or
45
(b) as soon as practical after the responsible third party is held liable for the tax
debt of the taxpayer in terms of section 180, 181, 182 or 183.
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Part E
Assisting foreign governments
Tax recovery on behalf of foreign governments
185. (1) If SARS has, in accordance with an international tax agreement, received—
(a) a request for conservancy of an amount alleged to be due by a person under the
tax laws of the other country where there is a risk of dissipation or
concealment of assets by the person, a senior SARS official may apply for a
preservation order under section 163 as if the amount were a tax payable by
the person under a tax Act; or
(b) a request for the collection from a person of an amount alleged to be due by
the person under the tax laws of the other country, a senior SARS official may,
by notice, call upon the person to state, within a period specified in the notice,
whether or not the person admits liability for the amount or for a lesser
amount.
(2) A request described in subsection (1) must be in the prescribed form and must
include a formal certificate issued by the competent authority of the other country
stating—
(a) the amount of the tax due;
(b) whether the liability for the amount is disputed in terms of the laws of the
other country;
(c) if the liability for the amount is so disputed, whether such dispute has been
entered into solely to delay or frustrate collection of the amount alleged to be
due; and
(d) whether there is a risk of dissipation or concealment of assets by the person.
(3) In any proceedings, a certificate referred to in subsection (2) is—
(a) conclusive proof of the existence of the liability alleged; and
(b) prima facie proof of the other statements contained therein.
(4) If, in response to the notice issued under subsection (1)(b), the person—
(a) admits liability;
(b) fails to respond to the notice; or
(c) denies liability but a senior SARS official, based on the statements in the
certificate described in subsection (2) or, if necessary, after consultation with
the competent authority of the other country, is satisfied that—
(i) the liability for the amount is not disputed in terms of the laws of the
other country;
(ii) although the liability for the amount is disputed in terms of the laws of
the other country, such dispute has been entered into solely to delay or
frustrate collection of the amount alleged to be due; or
(iii) there is a risk of dissipation or concealment of assets by the person,
the official may, by notice, require the person to pay the amount for which the person has
admitted liability or the amount specified, on a date specified, for transmission to the
competent authority in the other country.
(5) If the person fails to comply with the notice under subsection (4), SARS may
recover the amount in the certificate for transmission to the foreign authority as if it were
a tax payable by the person under a tax Act.
(6) No steps taken in assistance in collection by any other country under an
international tax agreement for the collection of an amount alleged to be due by a person
under a tax Act, including a judgment given against a person in the other country for the
amount in pursuance of the agreement, may affect the person’s right to have the liability
for the amount determined in the Republic in accordance with the relevant law.
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Part F
Remedies with respect to foreign assets
Compulsory repatriation of foreign assets of taxpayer
186. (1) To collect a tax debt, a senior SARS official may apply for an order referred
5
to in subsection (2), if—
(a) the taxpayer concerned does not have sufficient assets located in the Republic
to satisfy the tax debt in full; and
(b) the senior SARS official believes that the taxpayer—
(i) has assets outside the Republic; or
(ii) has transferred assets outside the Republic for no consideration or for 10
consideration less than the fair market value,
which may fully or partly satisfy the tax debt.
(2) A senior SARS official may apply to the High Court for an order compelling the
taxpayer to repatriate assets located outside the Republic within a period prescribed by
the court in order to satisfy the tax debt.
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(3) In addition to issuing the order described in subsection (2), the court may—
(a) limit the taxpayer’s right to travel outside the Republic and require the
taxpayer to surrender his or her passport to SARS;
(b) withdraw a taxpayer’s authorisation to conduct business in the Republic, if
applicable;
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(c) require the taxpayer to cease trading; or
(d) issue any other order it deems fit.
(4) An order made under subsection (2) applies until the tax debt has been satisfied or
the assets have been repatriated and utilised in satisfaction of the tax debt.
CHAPTER 12
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INTEREST
General interest rules
187. (1) If a tax debt or refund payable by SARS is not paid in full by the effective
date, interest accrues on the amount of the outstanding balance of the tax debt or
refund—
(a) at the rate provided under section 189; and
(b) for the period provided under section 188.
(2) Interest payable under a tax Act is calculated on the daily balance owing and
compounded monthly, and the Commissioner may prescribe by public notice from
which date this method of determining interest will apply to a tax type.
(3) The effective date for purposes of the calculation of interest in relation to—
(a) tax other than income tax or estate duty for any tax period, is the date by which
tax for the tax period is due and payable under a tax Act;
(b) income tax for any year of assessment, is the date falling seven months after
the last day of that year in the case of a taxpayer that has a year of assessment
ending on the last day of February, and six months in any other case;
(c) estate duty for any period, is the earlier of the date of assessment or 12 months
after the date of death;
(d) a fixed amount penalty referred to in section 210, is the date for payment
specified in the notice of assessment of the penalty, and in relation to an
increment of the penalty under section 211(2), the date of the increment;
(e) a percentage based penalty referred to in section 213, is the date by which tax
for the tax period should have been paid; and
(!) an understatement penalty, is the effective date for the tax understated.
(4) The effective date in relation to an additional assessment or reduced assessment is
the effective date in relation to the tax payable under the original assessment.
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(5) The effective date in relation to a jeopardy assessment is the date for payment
specified in the jeopardy assessment.
(6) If a senior SARS official is satisfied that interest payable by a taxpayer under
subsection (1) is payable as a result of circumstances beyond the taxpayer’s control, the
official may, unless prohibited by a tax Act, direct that so much of the interest as is 5
attributable to the circumstances is not payable by the taxpayer.
(7) The circumstances referred to in subsection (6) are limited to—
(a) a natural or human-made disaster;
(b) a civil disturbance or disruption in services; or
(c) a serious illness or accident.
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Period over which interest accrues
188. (1) Unless otherwise provided in a tax Act, interest payable under section 187 is
imposed for the period from the effective date of the tax to the date the tax is paid.
(2) Interest payable in respect of the—
(a) first payment of provisional tax, is imposed from the effective date for the first 15
payment of provisional tax until the earlier of the date on which the payment
is made or the effective date for the second payment of provisional tax; and
(b) second payment of provisional tax, is imposed from the effective date for the
second payment of provisional tax until the earlier of the date on which the
payment is made or the effective date for income tax for the relevant year of 20
assessment.
(3) Unless otherwise provided under a tax Act—
(a) interest on an amount refundable under section 190 is calculated from the later
of the effective date or the date that the excess was received by SARS to the
date the refunded tax is paid; and
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(b) for this purpose, if a refund is offset against a liability of the taxpayer under
section 191, the date on which the offset is effected is considered to be the date
of payment of the refund.
Rate at which interest is charged
189. (1) The rate at which interest is payable under section 187 is the prescribed rate.
(2) In the case of interest payable with respect to refunds on assessment of provisional
tax and employees’ tax paid for the relevant year of assessment, the rate payable by
SARS is four percentage points below the prescribed rate.
(3) The prescribed rate is the interest rate that the Minister may from time to time fix
by notice in the Gazette under section 80(1) (b) of the Public Finance Management Act,
1999 (Act No. 1 of 1999).
(4) If the Minister fixes a different interest rate referred to in subsection (3) the new
rate comes into operation on the first day of the second month following the month in
which the new rate becomes effective for purposes of the Public Finance Management
Act, 1999.
(5) If interest is payable under this Chapter and the rate at which the interest is payable
has with effect from any date been altered, and the interest is payable in respect of any
tax period or portion thereof which commenced before the said date, the interest to be
determined in respect of—
(a) the tax period or portion thereof which ended immediately before the said
date; or
(b) the portion of the tax period which was completed before the said date,
must be calculated as if the rate had not been altered.
30
35
40
45
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CHAPTER 13
REFUNDS
Refunds of excess payments
190. (1) A person is entitled to a refund of—
(a) an amount properly refundable under a tax Act and if so reflected in an 5
assessment; or
(b) the amount erroneously paid in respect of an assessment in excess of the
amount payable in terms of the assessment.
(2) SARS need not authorise a refund as referred to in subsection (1) until such time
that a verification, inspection or audit of the refund in accordance with Chapter 5 has 10
been finalised.
(3) SARS must authorise the payment of a refund before the finalisation of the
verification, inspection or audit if security in a form acceptable to a senior SARS official
is provided by the taxpayer.
(4) A person is entitled to a refund under subsection (1) (b) only if the refund is 15
claimed by the person within three years, in the case of an assessment by SARS, or five
years, in the case of self-assessment, from the date of the assessment.
(5) If SARS pays to a person by way of a refund any amount which is not properly
payable to the person under a tax Act, the amount is regarded as tax that is payable by
the person to SARS from the date on which it is paid to the person.
20
(6) A decision not to authorise a refund under this section is subject to objection and
appeal.
Refunds subject to set-off and deferral
191. (1) If a taxpayer has an outstanding tax debt, an amount that is refundable under
section 190, including interest thereon under section 188(3) (a), must be treated as a 25
payment by the taxpayer that is recorded in the taxpayer’s account under section 165, to
the extent of the amount outstanding, and any remaining amount must be set off against
any outstanding debt under the Customs and Excise Act.
(2) Subsection (1) does not apply to a tax debt—
(a) that is disputed under Chapter 9 and for which suspension of payment under 30
section 164 exists; or
(b) in respect of which an instalment payment agreement under section 167 or a
compromise agreement under section 204 applies.
(3) An amount is not refundable if the amount is less than R100 or any other amount
that the Commissioner may determine by public notice, but the amount must be carried 35
forward in the taxpayer account.
CHAPTER 14
W RITE OFF OR COMPROMISE OF TAX DEBTS
Part A
General provisions
40
Definitions
192. In this Chapter, unless the context indicates otherwise, the following terms, if in
single quotation marks, have the following meanings:
‘asset’ includes—
(a) property of whatever nature, whether movable or immovable, corporeal or 45
incorporeal; and
(b) a right or interest of whatever nature to or in the property;
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‘Companies Act’ means the Companies Act, 2008 (Act No. 71 of 2008);
‘compromise’ means an agreement entered into between SARS and a ‘debtor’ in
terms of which—
(a) the ‘debtor’ undertakes to pay an amount which is less than the full amount of
the tax debt due by that ‘debtor’ in full satisfaction of the tax debt; and
5
(b) SARS undertakes to permanently ‘write off’ the remaining portion of the tax
debt on the condition that the ‘debtor’ complies with the undertaking referred
to in paragraph (a) and any further conditions as may be imposed by SARS;
‘debtor’ means a taxpayer with an outstanding tax debt; and
‘write off’ means to reverse a tax debt either in whole or in part.
10
Purpose of Chapter
193. (1) As a general rule, it is the duty of SARS to assess and collect all tax debts
according to a tax Act and not to forgo any tax debts.
(2) SARS may, when required by circumstances, deviate from the strictness and
rigidity of the general rule referred to in subsection (1) if it would be to the best 15
advantage of the State.
(3) The purpose of this Chapter is to prescribe the circumstances under which SARS
may deviate from the general rule and take a decision to ‘write off’ a tax debt or not to
pursue its collection.
20
Application of Chapter
194. This Chapter applies only in respect of a tax debt owed by a ‘debtor’ if the
liability to pay the tax debt is not disputed by the ‘debtor’.
Part B
Temporary write off o f tax debt
25
Temporary write off of tax debt
195. (1) A senior SARS official may decide to temporarily ‘write off’ an amount of tax
debt if satisfied that the tax debt is uneconomical to pursue as described in section 196
at that time.
(2) A decision by the senior SARS official to temporarily ‘write off’ an amount of tax
debt does not absolve the ‘debtor’ from the liability for that tax debt.
30
(3) A senior SARS official may at any time withdraw the decision to temporarily
‘write off’ a tax debt if satisfied that the tax debt is no longer uneconomical to pursue as
referred to in section 196 and that the decision to temporarily ‘write off’ would
jeopardise the general tax collection effort.
35
Tax debt uneconomical to pursue
196. (1) A tax debt is uneconomical to pursue if a senior SARS official is satisfied that
the total cost of recovery of that tax debt will in all likelihood exceed the anticipated
amount to be recovered in respect of the outstanding tax debt.
(2) In determining whether the cost of recovery is likely to exceed the anticipated
amount to be recovered as referred to in subsection (1), a senior SARS official must have 40
regard to—
(a) the amount of the tax debt;
(b) the length of time that the tax debt has been outstanding;
(c) the steps taken to date to recover the tax debt and the costs involved in those
steps, including steps taken to locate or trace the ‘debtor’;
45
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(d) the likely costs of continuing action to recover the tax debt and the anticipated
return from that action, including the likely recovery of costs that may be
awarded to SARS;
(e) the financial position of the ‘debtor’, including that ‘debtor’s’ ‘assets’ and
liabilities, cash flow, and possible future income streams; and
(f) any other information available with regard to the recoverability of the tax
debt.
5
Part C
Permanent write off o f tax debt
Perm anent w rite off of tax debt
10
197. (1) A senior SARS official may authorise the permanent ‘write off’ of an amount
of tax debt—
(a) to the extent satisfied that the tax debt is irrecoverable at law as referred to in
section 198; or
(b) if the debt is ‘compromised’ in terms of Part D.
15
(2) SARS must notify the ‘debtor’ in writing of the amount of tax debt ‘written off’.
Tax debt irrecoverable at law
198. (1) A tax debt is irrecoverable at law if—
(a) it cannot be recovered by action and judgment of a court; or
(b) it is owed by a ‘debtor’ that is in liquidation or sequestration and it represents 20
the balance outstanding after notice is given by the liquidator or trustee that no
further dividend is to be paid or a final dividend has been paid to the creditors
of the estate; or
(c) it is owed by a ‘debtor’ that is subject to a business rescue plan referred to in
Part D of Chapter 6 of the ‘Companies Act’, to the extent that it is not 25
enforceable in terms of section 154 of that Act.
(2) A tax debt is not irrecoverable at law if SARS has not first explored action against
or recovery from the ‘assets’ of the persons who may be liable for the debt under Part D
of Chapter 11.
Procedure for writing off tax debt
30
199. (1) Before deciding to ‘write off’ a tax debt, a senior SARS official must—
(a) determine whether there are any other tax debts owing to SARS by the
‘debtor’;
(b) reconcile amounts owed by and to the ‘debtor’, including penalties, interest
and costs;
35
(c) obtain a breakdown of the tax debt and the periods to which the outstanding
amounts relate; and
(d) document the history of the recovery process and the reasons for deciding to
‘write off’ the tax debt.
(2) In deciding whether to support a business rescue plan referred to in Part D of 40
Chapter 6 of the ‘Companies Act’ or ‘compromise’ made to creditors under section 155
of the ‘Companies Act’ a senior SARS official must, in addition to considering the
information as referred to in section 150 or 155 of that Act, take into account the
information and aspects covered in the provisions of sections 200, 201(1), 202 and 203
with the necessary changes.
45
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Part D
Compromise o f tax debt
Compromise of tax debt
200. A senior SARS official may authorise the ‘compromise’ of a portion of a tax debt
upon request by a ‘debtor’, which complies with the requirements of section 201, if—
(a) the purpose of the ‘compromise’ is to secure the highest net return from the
recovery of the tax debt; and
(b) the ‘compromise’ is consistent with considerations of good management of
the tax system and administrative efficiency.
Request by debtor for compromise of tax debt
201. (1) A request by a ‘debtor’ for a tax debt to be ‘compromised’ must be signed by
the ‘debtor’ and be supported by a detailed statement setting out—
(a) the ‘assets’ and liabilities of the ‘debtor’ reflecting their current fair market
value;
(b) the amounts received by or accrued to, and expenditure incurred by, the
‘debtor’ during the 12 months immediately preceding the request;
(c) the ‘assets’ which have been disposed of in the preceding three years, or such
longer period as a senior SARS official deems appropriate, together with their
value, the consideration received or accrued, the identity of the person who
acquired the ‘assets’ and the relationship between the ‘debtor’ and the person
who acquired the ‘assets’, if any;
(d) the ‘debtor’s’ future interests in any ‘assets’, whether certain or contingent or
subject to the exercise of a discretionary power by another person;
(e) the ‘assets’ over which the ‘debtor’, either alone or with other persons, has a
direct or indirect power of appointment or disposal, whether as trustee or
otherwise;
(!) details of any connected person in relation to that ‘debtor’;
(g) the ‘debtor’s’ present sources and level of income and the anticipated sources
and level of income for the next three years, with an outline of the ‘debtor’s’
financial plans for the future; and
(h) the ‘debtor’s’ reasons for seeking a ‘compromise’.
(2) The request must be accompanied by the evidence supporting the ‘debtor’s’ claims
for not being able to make payment of the full amount of the tax debt.
(3) The ‘debtor’ must warrant that the information provided in the application is
accurate and complete.
(4) A senior SARS official may require that the application be supplemented by such
further information as may be required.
5
10
15
20
25
30
35
Consideration of request to compromise tax debt
202. (1) In considering a request for a ‘compromise’, a senior SARS official must
have regard to the extent that the ‘compromise’ may result in—
40
(a) savings in the costs of collection;
(b) collection at an earlier date than would otherwise be the case without the
‘compromise’;
(c) collection of a greater amount than would otherwise have been recovered; or
(d) the abandonment by the ‘debtor’ of some claim or right, which has a monetary 45
value, arising under a tax Act, including existing or future tax benefits, such as
carryovers of losses, deductions, credits and rebates.
(2) In determining the position without the ‘compromise’, a senior SARS official must
have regard to—
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(a) the value of the ‘debtor’s’ present ‘assets’;
(b) future prospects of the ‘debtor’, including arrangements which have been
implemented or are proposed which may have the effect of diverting income
or ‘assets’ that may otherwise accrue to or be acquired by the ‘debtor’ or a
connected person in relation to the ‘debtor’;
(c) past transactions of the ‘debtor’; and
(d) the position of any connected person in relation to the ‘debtor’.
5
Circumstances where not appropriate to compromise tax debt
203. A senior SARS official may not ‘compromise’ any amount of a tax debt under
10
section 200 if—
(a) the ‘debtor’ was a party to an agreement with SARS to ‘compromise’ an
amount of tax debt within the period of three years immediately before the
request for the ‘compromise’;
(b) the tax affairs of the ‘debtor’ (other than the outstanding tax debt) are not up
to date;
15
(c) another creditor has communicated its intention to initiate or has initiated
liquidation or sequestration proceedings;
(d) the ‘compromise’ will prejudice other creditors (unless the affected creditors
consent to the ‘compromise’) or if other creditors will be placed in a position
of advantage relative to SARS;
20
(e) it may adversely affect broader taxpayer compliance; or
(!) the ‘debtor’ is a company or a trust and SARS has not first explored action
against or recovery from the personal ‘assets’ of the persons who may be
liable for the debt under Part D of Chapter 11.
Procedure for compromise of tax debt
25
204. (1) To ‘compromise’ a tax debt, a senior SARS official and the ‘debtor’ must sign
an agreement setting out—
(a) the amount payable by the ‘debtor’ in full satisfaction of the debt;
(b) the undertaking by SARS not to pursue recovery of the balance of the tax debt;
and
30
(c) the conditions subject to which the tax debt is ‘compromised’ by SARS.
(2) The conditions referred to in subsection (1) (c) may include a requirement that the
‘debtor’ must—
(a) comply with subsequent obligations imposed in terms of a tax Act;
(b) pay the tax debt in the manner prescribed by SARS; or
35
(c) give up specified existing or future tax benefits, such as carryovers of losses,
deductions, credits and rebates.
SARS not bound by compromise of tax debt
205. SARS is not bound by a ‘compromise’ if—
(a) the ‘debtor’ fails to disclose a material fact to which the ‘compromise’ relates; 40
(b) the ‘debtor’ supplies materially incorrect information to which the ‘compro­
mise’ relates;
(c) the ‘debtor’ fails to comply with a provision or condition contained in the
agreement referred to in section 204; or
(d) the ‘debtor’ is liquidated or the ‘debtor’s’ estate is sequestrated before the 45
‘debtor’ has fully complied with the conditions contained in the agreement
referred to in section 204.
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Part E
Records and reporting
Register of tax debts w ritten off or compromised
206. (1) SARS must maintain a register of the tax debts ‘written off’ or
‘compromised’ in terms of this Chapter.
5
(2) The register referred to in subsection (1) must contain—
(a) the details of the ‘debtor’, including name, address and taxpayer reference
number;
(b) the amount of the tax debt ‘written off’ or ‘compromised’ and the periods to
which the tax debt relates; and
10
(c) the reason for ‘writing off’ or ‘compromising’ the tax debt.
Reporting by Commissioner of tax debts written off or compromised
207. (1) The amount of tax debts ‘written off’ or ‘compromised’ during a financial
year must be disclosed in the annual financial statements of SARS relating to
administered revenue for that year.
15
(2) The Commissioner must on an annual basis provide to the Auditor-General and to
the Minister a summary of the tax debts which were ‘written off’ or ‘compromised’ in
whole or in part during the period covered by the summary, which must—
(a) be in a format which, subject to section 70(5), does not disclose the identity of
the ‘debtor’ concerned;
20
(b) be submitted by the end of the month following the end of the fiscal year; and
(c) contain details of the number of tax debts ‘written off’ or ‘compromised’, the
amount of revenue forgone, and the estimated amount of savings in costs of
recovery, which must be reflected in respect of main classes of taxpayers or
sections of the public.
25
CHAPTER 15
ADMINISTRATIVE NON-COMPLIANCE PENALTIES
Part A
General
Definitions
30
208. In this Chapter, unless the context indicates otherwise, the following terms, if in
single quotation marks, have the following meanings:
‘administrative non-compliance penalty’ or ‘penalty’ means a ‘‘penalty’’
imposed by SARS in accordance with this Chapter, and excludes an understate­
ment penalty referred to in Chapter 16;
35
‘first incidence’ means an incidence of non-compliance by a person if no ‘penalty
assessment’ under this Chapter was issued during the preceding 36 months,
whether involving an incidence of non-compliance of the same or a different kind,
and for purposes of this definition a ‘penalty assessment’ that was fully remitted
under section 218 must be disregarded;
40
‘penalty assessment’ means an assessment in respect of—
(a) a ‘penalty’ only; or
(b) tax and a ‘penalty’ which are assessed at the same time;
‘preceding y e a r' means the year of assessment immediately prior to the year of
assessment during which a ‘penalty’ is assessed;
45
‘remittance request’ means a request for remittance of a ‘penalty’ submitted in
accordance with section 215.
.Si JJ49!
GOVLELMMkNT CiA/t'E'J i 4 JULY JO tJ
A ft .Vo. : s or i o n
160
T.nc AitmLmttraCtnn ^ rt 'fill
Purpose o f C ini pier
209. The putyuse u f tins Cliflplcr
(a)
to a u i i e —
the w id e si p o ssib le c o m p lia n c e w ith the p ro v isio n s o f a Tax A c t a n d the
e [Tec live n d q i i n i i i m t i n iff l;i\ A c h i b raid
r b I That a n 'a k i m i s t i a t t t re n o n -c o m p lia n c e p finally’ is im p o sed im p artially .
c o n siste n c y , a n d p ro p o rtio n a te ly to [he se rio u sn e ss a n d d u ra tio n b t the
i lo n -c o n tpi i un cc.
5
Fart B
Fixed firm*it nt pitnaltiri
> Jon-coLiiplinnce
subject to penalty
10
2 1 0 . i I ) f T S - A R S I t. H-;iJ’
-f1ljjI tluit umi-LHiirijiiirLEi^c b y :i p A ^ o u l e t u n e d ii) in ijgbuxlHii)
exists. excluding Tlie non-com pliance refetred lo in section 213, tV R S musl im pose
iIn' a p p ru p tia k ‘penalty in aeeordwuje VtiQi lliu Tnl>le in section 211.
C21 ’NTon-t oj'iip]tAlice is failure to com ply with an obligation ilia! is imposed by or
under a Tax A ct and is listed in a public noiice issued by the CanurutsiaMT, other than—
(a) itiv I'liiluic to jjhj tax subject m ;i pei^cutHEc bttied penidty midci Part C . or
tb>
non-compliance subject to [in understaten«a t penally under i_’hapTer 16,
L’
ixod
15
Ainoant penally ruble
ill.
1 ] i E-or lbe non-compliance referred fo in section 2 ]0 . 3ARS must impose ,i
'penally’ ill fttctimlaTice wjth lbe fidlnw ii i£ Tililc:
20
l':tblr: Anmutil o f AiiiftimsilrattVe \ [ | ] i -C'i>iii]>L:iiht Penally
I
Item
1
A v f y 'f d lo « or tnxalile incom e for ■preceding year"
A
'P e n a lly 1
A ssessed loss
R250
m
R0-R2.^0 000
R2S0
(iii>
r :? u
R500
(tv)
R50110O1-R1 ODOOflO
k l 000
(0
fvi)
R l 000 001-KS 000 000
R2 000
R5 00Q OOl-RlCf 000 000
RJ 000
(vu)
R10 000 001-R 50 000 000
RS 000
(viii)
Above KM] 000 000
Rl A 000
U01-R500 ooo
2*5
30
(2) The amount rtf 1lie j|r:iihI|v’ in CCltuiJUJ 5 '.v j11 m c f iV : M s m tlio tliy by IjlC h.h111u 3-S
amount lor eacb iBoutk, or pail iheieof, [hat [lie per w it fails to remedy tlie
non-compliance wilhin one 111011 tli alter—
(a) Hit Jibiu o f ilie delivery o f (lit ‘peiniliy assenmiiuu'. if SARS
in possession
o f the cturent address o f lbe person anti is able to deliver die assessment, bin
tin ii led lu 3? muullix allei [lie dale o f iletiv'ciy: Crr
40
(in tlie dare o f Tlie non-compliance if SAIiS is not in possession o f the current
addie*n o f the person in id h unable lit deli v a lIiu Jpeiiii!l> assessineHt'-, but
limited to 4 “ months a tier the date o f non-compliance.
( !!) I he following; persons, except Those falling under iiem (\ iti) o f ihe table or those
Hint did noi (inde dm hi a Itie yeurofHise-isiueitl. w e Lieu led <i> ialhuji a id er item fvii) o f 45
The Ltible:
ItiI
lb)
ff)
:i D t H M m y ,
li-reil (III hi tccjdRttisL^I
iitoek
exe!iiiib;!e
hi-, rtfentfi
Id
in
paragraph I o f the Eighth Schedule to the Income Tax Act:
a company ivlmse tross receipt* or accrual* for (lie ‘preceding year7 exceed
R 500 m illion.
50
a company that forms part o f a "^ronp o f companies" as defined in section I
o f ibe Income Tax Act. which group include?- a company described hi item m)
or tb); or
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(d) a person or entity, exempt from income tax under the Income Tax Act but
liable to tax under another tax Act, whose gross receipts or accruals exceed
R30 million.
(4) SARS may, except in the case of persons referred to in subsection (3) (a) to (c), if
the taxable income of the relevant person for the ‘preceding year’ is unknown or that 5
person was not a taxpayer in that year—
(a) impose a ‘penalty’ in accordance with item (ii) of column 1 of the Table; or
(b) estimate the amount of taxable income of the relevant person for the
‘preceding year’ based on available relevant material and impose a ‘penalty’
in accordance with the applicable item in column 1 of the Table.
10
(5) Where, upon determining the actual taxable income or assessed loss of the person
in respect of whom a ‘penalty’ was imposed under subsection (4), it appears that the
person falls within another item in column 1 of the Table, the ‘penalty’ must be adjusted
in accordance with the applicable item in that column with effect from the date of the
imposition of the ‘penalty’ issued under subsection (4).
15
Reportable arrangem ent penalty
212. (1) A ‘participant’ who fails to disclose the information in respect of a reportable
arrangement as required by section 37 is liable to a ‘penalty’, for each month that the
failure continues (up to 12 months), in the amount of—
(a) R50 000, in the case of a ‘participant’ other than the ‘promoter’; or
20
(b) R100 000, in the case of the ‘promoter’.
(2) The amount of ‘penalty’ determined under subsection (1) is doubled if the amount
of anticipated ‘tax benefit’ for the ‘participant’ by reason of the arrangement (within the
meaning of section 35) exceeds R5 000 000, and is tripled if the benefit exceeds
R10 000 000.
25
Part C
Percentage based penalty
Imposition of percentage based penalty
213. (1) If SARS is satisfied that an amount of tax was not paid as and when required
under a tax Act, SARS must, in addition to any other ‘penalty’ or interest for which a 30
person may be liable under this Chapter, impose a ‘penalty’ equal to the percentage of
the amount of unpaid tax as prescribed in the tax Act.
(2) In the event of a change to the amount of tax in respect of which a ‘penalty’ was
imposed under subsection (1), the ‘penalty’ must be adjusted accordingly with effect
from the date of the imposition of the ‘penalty’.
35
Part D
Procedure
Procedures for imposing penalty
214. (1) A ‘penalty’ imposed under Part B or C is imposed by way of a ‘penalty
assessment’, and if a ‘penalty assessment’ is made, SARS must give notice of the 40
assessment in the format as SARS may decide to the person, including the following:
(a) the non-compliance in respect of which the ‘penalty’ is assessed and its
duration;
(b) the amount of the ‘penalty’ imposed;
(c) the date for paying the ‘penalty’;
45
(d) the automatic increase of the ‘penalty’; and
(e) a summary of procedures for requesting remittance of the ‘penalty’.
(2) A ‘penalty’ is due upon assessment and must be paid—
(a) on or before the date for payment stated in the notice of the ‘penalty
assessment’; or
50
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(b) where the ‘penalty assessment’ is made together with an assessment of tax, on
or before the deadline for payment stated in the notice of the assessment for
tax.
(3)
SARS must give the taxpayer notice of an adjustment to the ‘penalty’ in
5
accordance with section 211(2) or 213(2).
Procedure to request remittance of penalty
215. (1) Aperson who is aggrieved by a ‘penalty assessment’notice may, on or before
the date for payment in the ‘penalty assessment’, in the prescribed form and manner,
request SARS to remit the ‘penalty’ in accordance with Part E.
(2) The ‘remittance request’ must include—
(a) a description of the circumstances which prevented the person from
complying with the relevant obligation under a tax Act in respect of which the
‘penalty’ has been imposed; and
(b) the supporting documents and information as may be required by SARS in the
prescribed form.
(3) During the period commencing on the day that SARS receives the ‘remittance
request’, and ending 21 business days after notice has been given of SARS’ decision, no
collection steps relating to the ‘penalty’ amount may be taken unless SARS has a
reasonable belief that there is—
(a) a risk of dissipation of assets by the person concerned; or
(b) fraud involved in the origin of the non-compliance or the grounds for
remittance.
(4) SARS may extend the period referred to in subsection (1) if SARS is satisfied
that—
(a) the non-compliance in issue is an incidence of non-compliance referred to in
section 216 or 217, and that reasonable grounds exist for the late receipt of the
‘remittance request’; or
(b) a circumstance referred to in section 218(2) rendered the person incapable of
submitting a timely request.
Part E
10
15
20
25
30
Remedies
Remittance of penalty for failure to register
216. If a ‘penalty’ is imposed on a person for a failure to register as and when required
under this Act, SARS may remit the ‘penalty’ in whole or in part if—
(a) the failure to register was discovered because the person approached SARS 35
voluntarily; and
(b) the person has filed all returns required under a tax Act.
Remittance of penalty for nominal or first incidence of non-compliance
217. (1) If a ‘penalty’ has been imposed in respect of—
(a) a ‘first incidence’ of the non-compliance described in section 210, 212 or 213; 40
or
(b) an incidence of non-compliance described in section 210 if the duration of the
non-compliance is less than five business days,
SARS may, in respect of a ‘penalty’ imposed under section 210 or 212, remit the
‘penalty’, or a portion thereof if appropriate, up to an amount of R2 000 if SARS is 45
satisfied that—
(i) reasonable grounds for the non-compliance exist; and
(ii) the non-compliance in issue has been remedied.
(2) In the case of a ‘penalty’ imposed under section 212, the R2 000 limit referred to
in subsection (1) is changed to R100 000.
50
(3) In the case of a penalty imposed under section 213, SARS may remit the ‘penalty’,
or a portion thereof, if SARS is satisfied that—
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(a) the ‘penalty’ has been imposed in respect of a ‘first incidence’ of the
non-compliance described in section 210, 212 or 213, or involved an amount
of less than R2 000;
(b) reasonable grounds for the non-compliance exist; and
(c) the non-compliance in issue has been remedied.
5
Remittance of penalty in exceptional circumstances
218. (1) SARS must, upon receipt of a ‘remittance request’, remit the ‘penalty’ or if
applicable a portion thereof, if SARS is satisfied that one or more of the circumstances
referred to in subsection (2) rendered the person on whom the ‘penalty’ was imposed
incapable of complying with the relevant obligation under the relevant tax Act.
(2) The circumstances referred to in subsection (1) are limited to—
(a) a natural or human-made disaster;
(b) a civil disturbance or disruption in services;
(c) a serious illness or accident;
(d) serious emotional or mental distress;
(e) any of the following acts by SARS:
(i) a capturing error;
(ii) a processing delay;
(iii) provision of incorrect information in an official publication or media
release issued by the Commissioner;
(iv) delay in providing information to any person; or
(v) failure by SARS to provide sufficient time for an adequate response to a
request for information by SARS;
(!) serious financial hardship, such as—
(i) in the case of an individual, lack of basic living requirements; or
(ii) in the case of a business, an immediate danger that the continuity of
business operations and the continued employment of its employees are
jeopardised; or
(g) any other circumstance of analogous seriousness.
Penalty incorrectly assessed
10
15
20
25
30
219. If SARS is satisfied that a ‘penalty’ was not assessed in accordance with this
Chapter, SARS may, within three years of the ‘penalty assessment’, issue an altered
assessment accordingly.
Objection and appeal against decision not to remit penalty
220. A decision by SARS not to remit a ‘penalty’ in whole or in part is subject to 35
objection and appeal under Chapter 9.
CHAPTER 16
UNDERSTATEMENT PENALTY
Part A
Imposition ofunderstatement penalty
40
Definitions
221. In this Chapter, unless the context indicates otherwise, the following terms, if in
single quotation marks, have the following meanings:
‘repeat case’ means a second or further case of any of the behaviours listed under
items (i) to (v) of the understatement penalty percentage table reflected in section 45
223 within five years of the previous case;
‘substantial understatem ent’ means a case where the prejudice to SARS or the
fiscus exceeds the greater of five per cent of the amount of ‘tax’ properly chargeable
or refundable under a tax Act for the relevant tax period, or R1 000 000;
.Ni J.'49!
GOVLELMMkNT Q A lf c T ji 4 JULY JO tJ
A ft .Vo. : s or i o n
SfiS
T.nc AitmLmttraCtnn ^ rt ' 1115
>liiv* m e a n s ijix an d e fin e d in se c tio n I . e x c lu d in g a p e n a lty a n d interest:
‘fnx position* iiietiny imELifStLmpiiuii underlying o ik o r mure u sp e c ts of a la x rcltim ,
inclu ding whether ot Jiot
f a)
.in amoum. transaction. event or hem is taxable:
ti>t
iiu uiiiuuiil ih item i.i ded u elib le or uiuy Ik Ssct-olT;
a lo w e r rate o f rax than the m axim um applicable to [hat cla ss o f taxpayer.
(cl
?
Im u M illion. tfVtnil o r im isi a p p lies; nr
fil i
an amount qualifier a1, a reduction o f tax payable: and
>mtilt, rslJtl'>nieuC mean* any pr*judicfl to SA K S or the f i t c m in r e fle c t o f a tax
period as u result o f—
(<7.i a default in rtiiderint, a return;
10
[h) an omission from a remm:
( c)
an incorrect Jtatciuem ni a m u m : or
h1i
if no rennn i\ required. the failure to p ay the c o lle c t amount o f ‘tax'
U n d e r s ta te m e n t p e n a lty
15
2 2 2 . 1 1 !■ L j the e v e ill o f an "undei J a le jn e jti' b y a tax p a y er, the ta x p a y e r m u st p a y . in
acldillm i If] llie 'InM1 p a y a b le for ihe le lc v a r ll ta s p e r io d , the im ilrr ilK ttin tllt p fltisjly
d eterm in ed u n d er su b s e c tio n (2 ).
(2) I he understatement penalty is rhe amount resulting fmm applying rise higliesr
a p p lied Le uudeislLUeineni penally pci'eeniirjje in HceurJiniec with Ilie mbL in i eel ion
22.i to the shortfall determined under subset LiOJtS | and (4).
(3) The shortfall is the sum o f —
( a) the dill'civiicc betw een dm iunouui o f ' t a x ' properly ehtujiciible for the tax
period and ilie am ount o f ‘tax' that w ou ld have been cliargeable if the
LiuulrjnilalL-iiiefn’ wen: Jitciqi Illi):
tbi
to
20
25
The difference belween tlie amount property refundable for tlie tax period and
the amount that would liave heen retiuidahle if the ‘understatement* were
accepted; and
tlie difference between tlie amomit o f an assessed toss or any other benefit to
llie la x p a y er jirop cH y ta r r ie d fi?Tuaid tVnm d ie 1;ik p e r io d to a hi ikiceedn
tax
.10
period and the amount thal w ould have been carried forward i f the
^Understatement' were accepted, multiplied by the lax lale determined under
subsec Iion (51).
c4!l I f an 'understatem ent' results in a difference under both paragraphs ( ah and t h ) o f
su h w en o n I I) the nhonfalL nm sl he reduced hy the am ount rtf any duplication betw een
tJlC piilifJiiapllV
(S'j r k'_L !: is (U e is (In: m a x im u m Ian mlG :i|hplualhit: In tin.'
35
ignoirjiiH ail
assessed loss ot any other benefit brought forward from a preceding tax period to (lie tax
period.
LiiK ieretsitem ent p e n a lty p e r c e n ta g e ta b le
40
2 2 3 . 11) Tlie undcrsIe\Lenient pci ni Ely pereeiitajie table t> us follows:
1
Itt'lll
2
Behaviour
3
St&id&rd
case
4
If obstruc­
tive, or if
it is a 're­
peal case'
5
Vphmtan
disclosure
after not ihralinn of
audit
G
Voluntary 45
disclosure
before
50
nnttftw- fid
limi uf
audit
u
Substantial underaaicm eaf
25%
50%
5%
0%
<»■>
R«i<.onab]it caie nor
(akjit in cumpltfiag
rertun
50%
75%
25%
n%
m
No ftasonabk ground's
tor ‘rnx position" E^keti
75%
100%
35%
0%
.Si JJ49!
GOVLELMMkNT Q A lf c T ji 4 JULY JOIJ
A ft .Vo. : s or i o n
T.nc AitmLmttraEtnn ^ rt ' 1115
I fl)
2
Behaviour
1
ItOJH
(H)
■'
3
Standard
case
4
If obstruc­
tive, or if
it is ;t 're­
pent rase’
5
6
Vohmiarj1 Voluntary 19
disclosure disclosure s
before
after iiotilii’jiliflii of notifica­
itutlit
tion of
audit
20
Groi', negligence
100%
12?%
S0%
5%
lLitenTn>!ial tux evasion
150%
2(10%
75%
10%
f t ) A.l Lmdei^Lbltiiieiil bfiuilly I:-: \iliid:i ijiuvinDP is Tiuifle bimJer ills'- {"luiplei nlnQ
chargeable in caseiv where
(a\ an assessment hased on an estimation under secbnn 95 is made: tB
2*i
ffrj 4iii a^icssmeiLi uj&ccd upon wiH| the la x p iy a nudcr scu iu n 95(3) is issued,
(.i) SARS mns.1 remit a "penalty" impeded for a ‘substantial understatement" i f SARS
is satisfied thal the laxpayer—
Ia i m ade lull diaclavun: o f ilm ant^iuEintmi, aa defined in
34. Chat jiavc
rise to rlie prejudice to SA RS or the fisctis by no later than (he date drat th e j 0
rL'IcvaiH rclrmi Wlh WJt; ibiul
tbi w as in possession o f an op in io n b y a registered tnx practitioner, as defined in
section 2.W, tiiat—
ii) Wes m u e d by no later ituiu lIjc [lute ilml the relevant return w as dm;
(ii) rook account or tlie specific facts and circumstances o f the arrangement: .*?
ami
{iii) confirm ed that [lie tax p ay e r's position is m ore likely than not to be
upheld if the inaner pniceeds to cm til
CJhji'i'iiim :111cL :111{ib1:11:il>:hsisL iteri:-iehhii mil lo m n it undf'nitntt'iiirnt pm : illy
-2 4 . A decision by -4Aii.fi not to remit rm under Miii'emem pcimify Li subject to
(■bjuulimi ami MjipL'ul nmiei Chapler 9.
40
Part B
V oluntary disclo su re pro g ra m m e
Definitions
.2 5 . In lJii>L Pnrl. ita lic s iIli; cdAi^xt iju4)Ca!^ till iui\i L-lt:, iliu 1'nI
mi r iltili, {f hj
single quotation m arks. Lis. the loliovviiit m eaning
•iltftmlL" means the submission o f inaccurate nr incomplete information to SARS,
Di lIl-c failure to submit iufonnutiuiiui tlic adoption o f a *tax position*, where stid i
submission, uou-submission. Ot adoption resulted in
|« ) Ilie I«x|hvcv not 11uf111lt L‘U£yK(l fiw rile LtnitLl n)lmii)l nf ItUh
tb i the eojieet am ount o f la s not bem ? paid by the iix p iy e r . or
(ri an incorrect refund he mg made hy SAKS.
‘'ft
Q u a lify in g [htxihi for voluntary itist'losnri1
220, (1) A person may apply, vvhelhei in a personal, representative, wirliholding. oi
tillbL'i uajiHuilv. foi vcilniblmy dcseluHi bn: rolik."f. ■lti1l1i-^ 11ml pel soil is i'wsrc of—
55
(a J a pending audit or investigation into the aifairs o f tlie person seeking rehef: or
(hf an audir or investigation thaT has commenced, hut lias noi yei been concluded.
12.i A senior SARS official m ay direct iIill! llpL 'issu urn v apply fur volunNiiy disclosure
relief, despite (lie provisions o f subsection (1), inhere the official i'j o f the view , bavins
regard to ilie circumstances and ambit o f ilie andil or investiaatiou, ThaT—
(50
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Tax Administration Act, 2011
(a) the ‘default’ in respect of which the person wishes to apply for voluntary
disclosure relief would not otherwise have been detected during the audit or
investigation; and
(b) the application would be in the interest of good management of the tax system
5
and the best use of SARS’ resources.
(3) A person is deemed to be aware of a pending audit or investigation, or that the
audit or investigation has commenced, if—
(a) a representative of the person;
(b) an officer, shareholder or member of the person, if the person is a company;
(c) a partner in partnership with the person;
10
(d) a trustee or beneficiary of the person, if the person is a trust; or
(e) a person acting for or on behalf of or as an agent or fiduciary of the person,
has become aware of a pending audit or investigation, or that the audit or investigation
has commenced.
Requirements for valid voluntary disclosure
15
227. The requirements for a valid voluntary disclosure are that the disclosure must—
(a) be voluntary;
(b) involve a ‘default’ which has not previously been disclosed by the applicant or
a person referred to in section 226(3);
20
(c) be full and complete in all material respects;
(d) involve the potential imposition of an understatement penalty in respect of the
‘default’;
(e) not result in a refund due by SARS; and
(f) be made in the prescribed form and manner.
name voluntary disclosure
25
228. A senior SARS official may issue a non-binding private opinion, as defined in
section 75, as to a person’s eligibility for relief under this Part, if the person provides
sufficient information to do so, which information need not include the identity of any
party to the ‘default’.
Voluntary disclosure relief
30
229. Despite the provisions of a tax Act, SARS must, pursuant to the making of a valid
voluntary disclosure by the applicant and the conclusions of the voluntary disclosure
agreement under section 230—
(a) not pursue criminal prosecution for a statutory offence under a tax Act arising
from the ‘default’ or a related common law offence;
35
(b) grant the relief in respect of any understatement penalty to the extent referred
to in column 5 or 6 of the understatement penalty percentage table in
section 223; and
(c) grant 100 per cent relief in respect of an administrative non-compliance
penalty that was or may be imposed under Chapter 15 or a penalty imposed 40
under a tax Act, excluding a penalty imposed under that Chapter or in terms of
a tax Act for the late submission of a return or a late payment of tax.
Voluntary disclosure agreement
230. The approval by a senior SARS official of a voluntary disclosure application and
relief granted under section 229, must be evidenced by a written agreement between 45
SARS and the qualifying person who is liable for the outstanding tax in the prescribed
format and must include details on—
(a) the material facts of the ‘default’ on which the voluntary disclosure relief is
based;
(b) the amount payable by the person, which amount must separately reflect the 50
understatement penalty payable;
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(c) the arrangements and dates for payment; and
(d) relevant undertakings by the parties.
W ithdraw al of voluntary disclosure relief
231. (1) In the event that, subsequent to the conclusion of a voluntary disclosure
agreement under section 230, it is established that the applicant failed to disclose a 5
matter that was material for purposes of making a valid voluntary disclosure under
section 227, a senior SARS official may—
(a) withdraw any relief granted under section 229;
(b) regard an amount paid in terms of the voluntary disclosure agreement to
constitute part payment of any further outstanding tax in respect of the 10
relevant ‘default’; and
(c) pursue criminal prosecution for a statutory offence under a tax Act or a related
common law offence.
(2) Any decision by the senior SARS official under subsection (1) is subject to
objection and appeal.
15
Assessment or determination to give effect to agreement
232. (1) If a voluntary disclosure agreement has been concluded under section 230,
SARS may, despite anything to the contrary contained in a tax Act, issue an assessment
or make a determination for purposes of giving effect to the agreement.
(2) An assessment issued or determination made to give effect to an agreement under 20
section 230 is not subject to objection and appeal.
Reporting of voluntary disclosure agreements
233. (1) The Commissioner must annually provide to the Auditor-General and to the
Minister a summary of all voluntary disclosure agreements concluded in respect of
applications received during the period.
25
(2) The summary must—
(a) subject to section 70(5), not disclose the identity of the applicant, and must be
submitted at such time as may be agreed between the Commissioner and the
Auditor-General or Minister, as the case may be; and
(b) contain details of the number of voluntary disclosure agreements and the 30
amount of tax assessed, which must be reflected in respect of main classes of
taxpayers or sections of the public.
CHAPTER 17
CRIMINAL OFFENCES
Crim inal offences relating to non-compliance with tax Acts
35
234. A person who wilfully and without just cause—
(a) fails or neglects to register or notify SARS of a change in registered
particulars as required in Chapter 3;
(b) fails or neglects to appoint a representative taxpayer or notify SARS of the
appointment or change of a representative taxpayer as required under 40
section 153 or 249;
(c) fails or neglects to register as a tax practitioner as required under section 240;
(d) fails or neglects to submit a return or document to SARS or issue a document
to a person as required under a tax Act;
(e) fails or neglects to retain records as required under this Act;
45
(!) submits a false certificate or statement under Chapter 4;
(g) issues an erroneous, incomplete or false document required under a tax Act to
be issued to another person;
(h) refuses or neglects to—
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(i) furnish, produce or make available any information, document or thing,
excluding information requested under section 46(8);
(ii) reply to or answer truly and fully any questions put to the person by a
SARS official;
5
(iii) take an oath or make a solemn declaration; or
(iv) attend and give evidence,
as and when required in terms of this Act;
(i) fails to comply with a directive or instruction issued by SARS to the person
under a tax Act;
j ) fails or neglects to disclose to SARS any material facts which should have 10
been disclosed under this Act or to notify SARS of anything which the person
is required to so notify SARS under a tax Act;
(k) obstructs or hinders a SARS official in the discharge of the official’s duties;
(l) refuses to give assistance required under section 49(1);
(m) holds himself or herself out as a SARS official engaged in carrying out the 15
provisions of this Act;
(n) fails or neglects to comply with the provisions of sections 179 to 182, if that
person was given notice by SARS to transfer the assets or pay the amounts to
SARS as referred to in those sections; or
(o) dissipates that person’s assets or assists another person to dissipate that other 20
person’s assets in order to impede the collection of any taxes, penalties or
interest,
is guilty of an offence and, upon conviction, is subject to a fine or to imprisonment for
a period not exceeding two years.
Crim inal offences relating to evasion of tax
235. (1) Aperson who with intent to evade or to assist another person to evade tax or
to obtain an undue refund under a tax Act—
(a) makes or causes or allows to be made any false statement or entry in a return
or other document, or signs a statement, return or other document so
submitted without reasonable grounds for believing the same to be true;
(b) gives a false answer, whether orally or in writing, to a request for information
made under this Act;
(c) prepares, maintains or authorises the preparation or maintenance of false
books of account or other records or falsifies or authorises the falsification of
books of account or other records;
(d) makes use of, or authorises the use of, fraud or contrivance; or
(e) makes any false statement for the purposes of obtaining any refund of or
exemption from tax,
is guilty of an offence and, upon conviction, is subject to a fine or to imprisonment for
a period not exceeding five years.
(2) Any person who makes a statement in the manner referred to in subsection (1)
must, unless the person proves that there is a reasonable possibility that he or she was
ignorant of the falsity of the statement and that the ignorance was not due to negligence
on his or her part, be regarded as guilty of the offence referred to subsection (1).
(3) A senior SARS official may lay a complaint with the South African Police Service
or the National Prosecuting Authority regarding an offence contemplated in sub­
section (1).
25
30
35
40
45
Crim inal offences relating to secrecy provisions
236. Aperson who contravenes the provisions of section 67(2) or (3), 68(2), 69(1) or
(6) or 70(5) is guilty of an offence and, upon conviction, is subject to a fine or to 50
imprisonment for a period not exceeding two years.
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Crim inal offences relating to filing return without authority
237. A person who—
(a) submits a return or other document to SARS under a forged signature;
(b) uses an electronic or digital signature of another person in an electronic
communication to SARS; or
(c) otherwise submits to SARS a communication on behalf of another person,
without the person’s consent and authority, is guilty of an offence and, upon conviction,
is subject to a fine or to imprisonment for a period not exceeding two years.
5
Jurisdiction of courts in criminal matters
238. A person charged with a tax offence may be tried in respect of that offence by a 10
court having jurisdiction within any area in which that person resides or carries on
business, in addition to jurisdiction conferred upon a court by any other law.
CHAPTER 18
REPORTING OF UNPROFESSIONAL CONDUCT
Definitions
15
239. In this Chapter, unless the context otherwise indicates, the following terms, if in
single quotation marks, have the following meanings:
‘controlling body’ means a body established, whether voluntarily or under a law,
with power to take disciplinary action against a person who, in carrying on a
profession, contravenes the applicable rules or code of conduct for the profession; 20
and
‘registered tax practitioner’ means a practitioner registered under section 240.
Registration of tax practitioners
240. (1) Every natural person who—
(a) provides advice to another person with respect to the application of a tax Act;
or
(b) completes or assists in completing a document to be submitted to SARS by
another person in terms of a tax Act,
must register with SARS as a tax practitioner, in such form as the Commissioner may
determine, within 30 days after the date on which that person for the first time provides
advice or completes or assists in completing any such document.
(2) The provisions of this section do not apply in respect of a person who—
(a) provides the advice or completes or assists in completing a document solely
for no consideration to that person or his or her employer or a connected
person in relation to that employer or that person;
(b) provides the advice solely in anticipation of or in the course of any litigation
to which the Commissioner is a party or where the Commissioner is a
complainant;
(c) provides the advice solely as an incidental or subordinate part of providing
goods or other services to another person;
(d) provides the advice or completes or assists in completing a document solely—
(i) to or in respect of the employer by whom that person is employed on a
full-time basis or to or in respect of that employer and connected persons
in relation to that employer; or
(ii) under the direct supervision of a person who is registered as a tax
practitioner in terms of subsection (1).
25
30
35
40
45
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Tax Administration Act, 2011
(3) A person may not register as a tax practitioner under subsection (1) if the person—
(a) during the preceding five years has been removed from a related profession;
and
(b) during the preceding five years has been convicted (whether in the Republic or
elsewhere) of—
5
(i) theft, fraud, forgery or uttering a forged document, perjury or an offence
under the Prevention and Combating of Corrupt Activities Act, 2004
(Act No. 12 of 2004); or
(ii) any other offence involving dishonesty,
for which the person has been sentenced to a period of imprisonment 10
exceeding two years without the option of a fine or to a fine exceeding the
amount prescribed in the Adjustment of Fines Act, 1991 (Act No. 101 of
1991).
Complaint to controlling body of tax practitioner
241. A senior SARS official may lodge a complaint with a ‘controlling body’ if a 15
‘registered tax practitioner’ or person who carries on a profession governed by the
‘controlling body’, did or omitted to do anything with respect to the affairs of a taxpayer,
including that person’s affairs, that in the opinion of the official—
(a) was intended to assist the taxpayer to avoid or unduly postpone the
performance of an obligation imposed on the taxpayer under a tax Act;
20
(b) by reason of negligence on the part of the person resulted in the avoidance or
undue postponement of the performance of an obligation imposed on the
taxpayer under a tax Act; or
(c) constitutes a contravention of a rule or code of conduct for the profession
which may result in disciplinary action being taken against the ‘registered tax 25
practitioner’ or person by the body.
Disclosure of information regarding complaint and remedies of taxpayer
242. (1) Despite section 69, the senior SARS official lodging a complaint under
section 241 may disclose the information relating to the person’s tax affairs as in the
opinion of the official is necessary to lay before the ‘controlling body’ to which the 30
complaint is made.
(2) Before a complaint is lodged or information is disclosed, SARS must deliver to the
taxpayer and the person against whom the complaint is to be made notification of the
intended complaint and information to be disclosed.
(3) The taxpayer or that person may, within 21 business days after the date of the 35
notification, lodge with SARS an objection to the lodging of the complaint or disclosure
of the information.
(4) If on the expiry of that period of 21 business days no objection has been lodged or,
if an objection has been lodged and SARS is not satisfied that the objection should be
sustained, a senior SARS official may thereupon lodge the complaint as referred to in 40
section 241.
Complaint considered by controlling body
243. (1) The complaint is to be considered by the ‘controlling body’ according to its
rules.
(2) A hearing of the matter where details of a person’s tax affairs will be disclosed, 45
may be attended only by persons whose attendance, in the opinion of the ‘controlling
body’, is necessary for the proper consideration of the complaint.
(3) The ‘controlling body’ and its members must preserve secrecy in regard to the
information as to the affairs of a person as may be conveyed to them by SARS or as may
otherwise come to their notice in the investigation of the complaint and must not 50
communicate the information to a person other than the person concerned or the person
against whom the complaint is lodged, unless the disclosure of the information is
ordered by a competent court of law.
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CHAPTER 19
GENERAL PROVISIONS
Deadlines
244. (1 )If—
(a) a day notified by SARS or specified in a tax Act for payment, submission or 5
other action; or
(b) the last day of a period within which payment, submission or other action
under a tax Act must be made,
falls on a Saturday, Sunday or public holiday, the action must be done not later than the
last business day before the Saturday, Sunday or public holiday.
10
(2) The Commissioner may prescribe the time of day by which a payment, submission
or other action must be done, and if it is done after that time on the day it is regarded as
done on the first business day following the specified day.
(3) If SARS is authorised to extend a deadline, the application for extension must be
submitted to SARS in the prescribed form before the deadline expires unless—
15
(a) reasonable grounds exist for the delay and the application is submitted within
21 days of the deadline; or
(b) the delay is due to a circumstance referred to in section 218(2) (a) to (e) or any
other circumstance of analogous seriousness and the application is submitted
within three years of the deadline.
20
Power of M inister to determine date for submission of returns and payment of tax
245. (1) Despite any other provision of a tax Act, if the date for the submission of a
return or the payment of tax is the last day of the financial year of the Government, the
Minister may by public notice prescribe any other date for submission of the return and
payment of the tax, which date must not fall on a day more than two business days prior 25
to the last day of that year.
(2) The notice contemplated in subsection (1) must be published at least 21 business
days prior to the date so prescribed by the Minister.
Public officers of companies
246. (1) Every company carrying on business or having an office in the Republic must
at all times be represented by an individual residing in the Republic.
(2) The individual representative under subsection (1) must be—
(a) a person who is a senior official of the company and is approved by SARS;
(b) appointed by the company or by an agent or attorney who has authority to
appoint such a representative for the purposes of a tax Act;
(c) called the public officer of the company; and
(d) appointed within one month after the company begins to carry on business or
acquires an office in the Republic.
(3) If a public officer is not appointed as required under this section, the public officer
is the managing director, director, secretary or other officer of the company that SARS
designates for that purpose.
(4) A company covered by this section that has not appointed a public officer is subject
to a tax Act, the same as if a tax Act did not require the public officer to be appointed.
(5) Apublic officer is responsible for all acts, matters, or things that the public officer’s
company must do under a tax Act, and in case of default, the public officer is subject to
penalties for the company’s defaults.
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(6) A public officer’s company is regarded as having done everything done by the
public officer in the officer’s representative capacity.
(7) If SARS is of the opinion that a person is no longer suitable to represent the
company as public officer SARS may withdraw its approval under subsection (2) (a).
Company address for notices and documents
5
247. (1) A company referred to in section 246(1) must, within the period referred to
in section 246(2) (d), appoint a place within the Republic approved by SARS at which
SARS may serve, deliver or send the company a notice or other document provided for
under a tax Act.
(2) Every notice, process, or proceeding which under a tax Act may be given to, 10
served upon or taken against a company referred to in section 246(1), may be given to,
served upon, or taken against its public officer, or if at any time there is no public officer,
any officer or person acting or appearing to act in the management of the business or
affairs of the company or as agent for the company.
Public officer in event of liquidation or winding-up
15
248. In the event of a company referred to in section 246(1) being placed in voluntary
or compulsory liquidation, the liquidator or liquidators duly appointed are required to
exercise in respect of the company all the functions and assume all the responsibilities
of a public officer under a tax Act during the continuance of the liquidation.
Default in appointing public officer or address for notices or documents
20
249. (1) No appointment is deemed to have been made under section 246(2) until
notice thereof specifying the name of the public officer and an address for service or
delivery of notices and documents has been given to SARS.
(2) A company must—
(a) keep the office of public officer constantly filled and must at all times maintain 25
a place for the service or delivery of notices in accordance with
section 247(1); and
(b) notify SARS of every change of public officer or the place for the service or
delivery of notices within 21 business days of the change taking effect.
Authentication of documents
30
250. (1) A form, notice, demand or other document issued or given by or on behalf of
SARS or a SARS official under a tax Act is sufficiently authenticated if the name of
SARS or the name or official designation of the SARS official is stamped or printed on
it.
(2) A return made or purporting to be made or signed by or on behalf of a person is 35
regarded as duly made and signed by the person affected unless the person proves that
the return was not made or signed by the person or on the person’s behalf.
(3) Subsection (2) applies to other documents submitted to SARS by or on behalf of
a person.
Delivery of documents to persons other than companies
251. If a tax Act requires or authorises SARS to issue, give, send, or serve a notice,
document or other communication to a person (other than a company), SARS is
regarded as having issued, given, sent or served the communication to the person if—
(a) handed to the person;
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(b) left with another person over 16 years of age apparently residing or employed
at the person’s last known residence, office or place of business;
(c) sent to the person by post to the person’s last known address, which
includes—
5
(i) a residence, office or place of business referred to in paragraph (b); or
(ii) the person’s last known post office box number or that of the person’s
employer; or
(d) sent to the person’s last known electronic address, which includes—
(i) the person’s last known email address; or
(ii) the person’s last known telefax number.
10
Delivery of documents to companies
252. If a tax Act requires or authorises SARS to issue, give, send or serve a notice,
document or other communication to a company, SARS is regarded as having issued,
given, sent or served the communication to the company if—
(a) delivered to the public officer of the company;
15
(b) left with a person older than 16 years apparently residing or employed at—
(i) the place appointed by the company under section 247; or
(ii) where no such place has been appointed by the company, the last known
office or place of business of the company;
(c) sent by post addressed to the company or its public officer at the company or 20
public officer’s last known address, which includes—
(i) an office or place referred to in paragraph (b); or
(ii) the company or public officer’s last known post office box number or that
of the public officer’s employer; or
(d) sent to the company or its public officer’s last known electronic address, 25
which includes the—
(i) last known email address; or
(ii) last known telefax number.
Documents delivered deemed to have been received
253. (1) A notice, document or other communication issued, given, sent or served in
the manner referred to in section 251 or 252, is regarded as received by the person to
whom it was delivered or left, or if posted it is regarded as having been received by the
person to whom it was addressed at the time when it would, in the ordinary course of
post, have arrived at the addressed place.
(2) Subsection (1) does not apply if—
(a) SARS is satisfied that the notice, document or other communication was not
received or was received at some other time; or
(b) a court decides that the notice, document or other communication was not
received or was received at some other time.
(3) If SARS is satisfied that—
(a) a notice, document or other communication (other than a notice of
assessment) issued, given, sent or served in a manner referred to in section 251
or 252 (excluding paragraphs (a) and (b) thereof)—
(i) has not been received by the addressee; or
(ii) has been received by that person considerably later than it should have
been received; and
(b) the person has in consequence been placed at a material disadvantage,
the notice, document or other communication must be withdrawn and be issued, given,
sent or served anew.
Defect does not affect validity
254. (1) A notice of assessment or other notice or document issued to a person under
a tax Act is not to be considered invalid or ineffective by reason of a failure to comply
with the requirements of section 251 or 252 if the person had effective knowledge of the
fact of the notice or document and of its content.
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(2) A notice of assessment or other notice or document issued under a tax Act is not
to be considered invalid or ineffective by reason of defects if it is, in substance and
effect, in conformity with this Act, and the person assessed or affected by the notice or
document is designated in it according to common understanding.
Rules for electronic communication
5
255. (1) The Commissioner may by public notice make rules prescribing—
(a) the procedures for submitting a return in electronic format, and for other
electronic communications between SARS and other persons; and
(b) requirements for an electronic or digital signature of a return or communica­
10
tion.
(2) SARS may, in the case of a return or other document submitted in electronic
format, accept an electronic or digital signature as a valid signature for purposes of a tax
Act if a signature is required.
(3) If in any proceedings under a tax Act, the question arises whether an electronic or
digital signature of a person referred to in subsection (2) was used with the authority of 15
the person, it must be assumed, in the absence of proof to the contrary, that the signature
was so used.
Tax clearance certificate
256. (1) A taxpayer may apply to SARS for a tax clearance certificate in the prescribed
form and manner.
(2) SARS must issue or decline to issue the certificate within 21 business days from
the date the application is duly filed.
(3) A senior SARS official may provide a taxpayer with a tax clearance certificate only
if satisfied that the taxpayer is registered for tax and does not have any—
(a) tax debt outstanding, excluding a tax debt contemplated in section 167 or 204
or a tax debt that has been suspended under section 164 or does not exceed the
amount referred to in section 169(4); or
(b) outstanding return unless an arrangement acceptable to SARS has been made
for the submission of the return.
(4) A tax clearance certificate must be in the prescribed form and include at least—
(a) the tax clearance certificate reference number assigned to the certificate and
reflected in the records of SARS;
(b) the name, taxpayer reference number, address and identity number or
company registration number of the taxpayer;
(c) the date of the application for a certificate;
(d) a statement that the taxpayer has no outstanding tax debts as at the date of the
certificate; and
(e) the expiry date of the certificate.
(5) Despite the provisions of Chapter 6, SARS may confirm the validity and expiry
date of the certificate upon request by a sphere of government or parastatal.
(6) SARS may withdraw a certificate with effect from the date of the issue thereof if
the certificate—
(a) was issued in error; or
(b) was obtained on the basis of fraud, misrepresentation or non-disclosure of
material facts.
20
25
30
35
40
45
Regulations by M inister
257. (1) The Minister may make regulations regarding—
(a) any ancillary or incidental administrative or procedural matter that it is
necessary to prescribe for the proper implementation or administration of this
Act; and
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(b) any matter which under this Act is required or permitted to be prescribed.
(2) The Minister may, after consultation with the Tax Ombud, make regulations
regarding—
(a) the proceedings of the Tax Ombud; and
(b) the limitations on the jurisdiction of the Tax Ombud, having regard to—
5
(i) the factual or legal complexity of any complaint dealt with by the Tax
Ombud;
(ii) the nature of the taxpayer whose complaint is dealt with by the Tax
Ombud; and
(iii) the maximum amount involved in the dispute between the taxpayer and 10
SARS.
(3) For purposes of the regulations referred to in paragraph (e) of the definition of
‘‘biometric information’’ in section 1, the Minister must publish the draft regulations in
the Gazette for public comment and submit the draft regulations to Parliament for
parliamentary scrutiny at least 30 days before the draft regulations are published.
15
CHAPTER 20
TRANSITIONAL PROVISIONS
New taxpayer reference num ber
258. If a person has been allocated a taxpayer, tax or other reference number for
purposes of a tax Act before the promulgation of this Act, the number remains in force 20
until the time that SARS allocates a taxpayer reference number to the person under
section 24 for purposes of the relevant tax type.
Appointment of Tax Ombud
259. (1) The Minister must appoint a person as Tax Ombud under section 14 within
one year of the commencement date of this Act.
25
(2) The first Tax Ombud appointed under this Act may not review a matter that arose
more than one year before the day on which the Tax Ombud is appointed, unless the
Minister requests the Tax Ombud to do so.
Provisions relating to secrecy
260. A person who took and subscribed to an oath or solemn declaration of secrecy 30
under a tax Act before the commencement date of this Act is regarded as having taken
and subscribed to the oath or solemn declaration under section 67(2).
Public officer previously appointed
261. A public officer appointed or regarded as appointed under a tax Act and holding
office immediately before the commencement date of this Act, is regarded as a public 35
officer appointed under this Act.
Appointment of chairpersons of tax board
262. An attorney or advocate appointed to the panel of persons who may serve as
chairpersons of the tax board under a tax Act, who is on that panel immediately before
the commencement date of this Act, is regarded as appointed under the provisions of 40
section 111 until the earlier of—
(a) the expiry of the attorney or advocate’s appointment under the provisions
previously in force; or
(b) termination of the attorney or advocate’s appointment under section 111(3).
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Appointment of members of tax court
263. A member of the tax court appointed under a tax Act who is a member
immediately before the commencement date of this Act is regarded as appointed under
the provisions of section 120(1) until the expiry of his or her term of office in terms of
the provisions previously in force, or until his or her appointment in terms of
section 120(4) is terminated or lapses.
5
Continuation of tax board, tax court and court rules
264. (1) A tax board or tax court that was established under a tax Act and exists
immediately before the commencement date of this Act, is regarded as established under
section 108 or 116, respectively, of this Act.
10
(2) Rules of court issued by the Minister under a tax Act that are in force immediately
before the commencement date of this Act continue in force as if they were issued under
section 103.
Continuation of appointm ent to a post or office or delegation by Commissioner
265. (1) A person appointed to a post or office or delegated by the Commissioner 15
under the SARS Act or a tax Act, which appointment or delegation is in force
immediately before the commencement date of this Act, is regarded as appointed or
delegated under this Act.
(2) Subsection (1) applies until the person is so appointed or delegated under this Act
or the appointment or delegation is withdrawn.
20
Continuation of authority to audit
266. If a SARS official was issued a letter authorising the official to audit under a tax
Act, and the letter is in force immediately before the commencement date of this Act, the
letter is regarded as issued to the official under section 41.
Conduct of inquiries and execution of search and seizure w arrants
25
267. (1) If the Commissioner authorised an inquiry under a tax Act and a judge
granted an order designating a person to act as presiding officer in the inquiry before the
commencement date of this Act, the inquiry is regarded as authorised under sections 50
and 51.
(2) If a judge issued a search and seizure warrant under a tax Act that has not been 30
executed before the commencement date of this Act, the warrant is regarded as issued
under section 60.
Application of Chapter 15
268. Chapter 15 applies to non-compliance resulting from a continuous failure by a
person to comply with an obligation that exists on the date a notice referred to in 35
section 210(2) comes into effect, in which case the date on which the non-compliance
occurred will be regarded as the date that notice came into effect.
Continuation of authority, rights and obligations
269. (1) Rules and regulations issued under the provisions of a tax Act repealed by
this Act that are in force immediately before the commencement date of this Act, remain 40
in force as if they were issued under section 103 or 257, respectively, to the extent
consistent with this Act.
(2) Forms prescribed under the authority of a tax Act before the commencement date
of this Act, and in use immediately before the date of commencement of this Act, are
considered to have been prescribed under the authority of this Act, to the extent 45
consistent with this Act.
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(3) Rulings and opinions issued under the provisions of a tax Act repealed by this Act
and in force immediately before the commencement date of this Act, which have not
been revoked, are regarded as having been issued under the authority of this Act to the
extent relevant to and consistent with this Act.
(4) An order of a court under the authority of a tax Act and in force immediately 5
before the commencement date of this Act, continues to have the same force and effect
as if the provisions had not been repealed or amended, subject to any further order of the
court.
(5) A right or entitlement enjoyed by, or obligation imposed on, a person under the
repealed or amended provisions of a tax Act, that had not been exercised or complied 10
with before the commencement date of this Act, is a valid right or entitlement of, or
obligation imposed on, that person in terms of any comparable provision of this Act, as
from the date that the right, entitlement or obligation first arose, subject to the provisions
of this Act.
(6) The commission of an offence before the commencement date of this Act which 15
is a statutory offence under the provisions of a tax Act repealed by this Act, may be
investigated by SARS, in the manner referred to in Chapter 5, and prosecuted as if the
statutory offence remained in force.
Application of Act to prior or continuing action
270. (1) Subject to this Chapter, this Act applies to an act, omission or proceeding20
taken, occurring or instituted before the commencement date of this Act, but without
prejudice to the action taken or proceedings conducted before the commencement date
of the comparable provisions of this Act.
(2) The following actions or proceedings taken or instituted under the provisions of a
tax Act repealed by this Act but not completed by the commencement date of the 25
comparable provisions of this Act, must be continued and concluded under the
provisions of this Act as if taken or instituted under this Act:
(a) a decision by a SARS official in terms of a statutory power to do so;
(b) a request by a person for the withdrawal or amendment of a decision or notice
by SARS, registration for tax, form of record keeping, information, taxpayer 30
record, advance ruling, refund, reduced assessment, suspension of a disputed
tax debt, deferral, write off, compromise or waiver of a tax debt and the
remittance of interest or a penalty;
(c) an inspection, verification, request for information, audit, criminal investiga­
tion, inquiry or search and seizure;
35
(d) an objection, appeal to the tax board, tax court or higher court, alternative
dispute resolution, settlement discussions or other related High Court
application;
(e) suspension of a disputed tax debt;
(!) a deferment, write off or compromise of a tax debt; or
40
(g) recovery of a tax debt, including the appointment of an agent to satisfy a tax
debt, execution of a civil judgment or sequestration, liquidation or winding-up
instituted by SARS or any other related court application.
(3) A form, notice, demand or other document issued, given or received by a person
or SARS under the provisions of a tax Act repealed by this Act, must be regarded as 45
issued, given or received in terms of any comparable provision of this Act, as from the
date that the form, notice, demand or other document was issued, given or received
under the repealed provisions.
(4) A record kept or retained by a person as required under the provisions of a tax Act
repealed by this Act, must be regarded as kept or retained as required under the 50
comparable provisions of this Act from the date that record was kept or retained under
the repealed provisions of the tax Act.
(5) If the period for an application, objection, appeal or prosecution had expired
before the commencement date of this Act, nothing in this Act may be construed as
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Tax Administration Act, 2011
enabling the application, objection, appeal or prosecution to be made under this Act by
reason only of the fact that a longer period is specified in this Act.
(6) Additional tax, penalty or interest which but for the repeal of the legislation in
Schedule 1 would have been capable of being imposed, levied, assessed or recovered by
the commencement date of this Act, and which has not been imposed, levied, assessed 5
or recovered by the commencement date of this Act, may be—
(a) imposed or levied as if the repeal had not been effected; and
(b) assessed and recovered under this Act.
(7) Interest arising before the commencement date of this Act must be—
(a) calculated in accordance with the relevant tax Act until the commencement 10
date; and
(b) regarded as interest due under this Act from the commencement date of the
comparable provisions of this Act.
(8) Interest arising on or after the commencement date of this Act but before the date
prescribed by the Commissioner under section 187(2) must be—
15
(a) calculated in accordance with the relevant tax Act until the date prescribed by
the Commissioner; and
(b) regarded as interest due under this Act.
Amendment of legislation
271. The Acts listed in Schedule 1 are amended to the extent set out in that Schedule. 20
Short title and commencement
272. (1) This Act is called the Tax Administration Act, 2011, and comes into operation
on a date to be determined by the President by proclamation in the Gazette.
(2) The President may determine different dates for different provisions of this Act to
come into operation.
25
(3) Subparagraphs (g), (h), (i) and (j) of paragraph 60 of Schedule 1 come into
operation on the date on which Part VIII of Chapter II of the Income Tax Act, 1962,
comes into operation.
(4) Paragraph 78 of Schedule 1 is deemed to have come into operation on 1 January
2011 and applies in respect of premiums incurred on or after that date.
30
(5) Paragraph 184 of Schedule 1 is deemed to have come into operation on 1 March
2010 and applies in respect of a mineral resource transferred on or after that date.
GOVbELNMkN! OAjSETTE, i JLLV J0[.’
T.io: AdubhnuErjtlKin i r I 1n11
HH
!i-M
Art JVfl. It otlnll
.SCHF.fJl LF 1
I ION 271
No, mill year
Art No. JO of i w
Short tille
Exltm of aiuendmt'iH or repeal
ItU H ftr W t j Aft, Amend mem of section 1
1949
1- Section f of die Transfer Duly Act,
1949. ii hereby amended—
tti> by ihe nbdjtntion for ihe definition
of '‘Commissioner'" of ihe followiiii;
deiiinlioiu
" ‘C o n u fsd eo ef' iiicm.*, ihr
t'oiumi sootier for The South Afri­
can Revenue Scm cc appoiiileJ ijl
lornt of u!clinp 6 uf Ui_' Si mill
Afiic au Re \ liiuc Sem ue A d . 1',^J~
hAci No. >1 of 1Vy^) or the Acting
Commissiaiier -iesiEnaled ill terms
of section 7 of jml Act;”;
tk) by (he insertion after rhe delinuion of
"spoil ve" of (Jie follow m t (itfiniliou
“ lux AiLiiiiiistmli'Hi Af 1' tneutu
rhe Tax Aftminisn'atinu Ad. 2011 ■ :
<fj by die renumbering of sedion 1 to
section 1(1): and
fih U\ (hi: ineuirtim ulia huIkiiIHIII (1) oi
the tollnii'in^ suiter Iincv
"(21 Unless [lie context indicates
otherwise, ji rtartl oi ejturewioii lu
which a meanini has !*een a^snined
in [lie Tax AdnwnstiiJNon Act bear1.
liiiit iiieiLiiiiik far ontnoseii of tlu^
Act
Amendment of section 3
2. Seciion .t of ihe Transfer Dmy At!,
1949, is hereby amended
lu} b.r ibn ddjstilulAi lor ttfccctim (1A)
of the following mbwctiCtv
"i 1A) ^Vbeie a persou \iho acquire» auv |HW|*.Tly wul emptied iu
paragraph (di. i n nr tg) of ihe
defuniioa of "'property" fails !o pay
the duly mtlun lbe pctiod conlcni]ilalk.tt ::: ^liiMXliini ( 1 i llh: ruMii
officer- (as defined in 4*1 ion 101 of
die Income TaiArt, H*62 (Act No.
58 of 1062 i.l of liutE eunqmuy iuu)
ihe person fmrn whom tlie Oiaies or
member's mteresl are acquired shall
Ik; jointly jiiut ^cvoally luble toa
such duty: Piwided (hat the public
officer or person from wlioni the
.Si JJ49I
(^VERNMEN’l CiAZtTl t 4 JULY LLU12
Act .vd. : s or 2011
T.tk AftuunitfraCtnn Art, Til 1
2(K)
Mo, fin d yrfir
S h o r t title
E x te n t o f
li ri ki'i 11] 11el'i) i
o r 1’i-jicfil
sh n ics pr ojctuber's interest wra
flciillinxl, m ay recnVntf Mty n [] till eii 1
o f d w y paid [by Jiiiii o r her} in
terms o f this su bsection [fro m —
i u ) th e p e r so n w h o so n rq n ired
tli ;il p ro p erly ; q f
( b ) In tlie c a « o f n p u b lic officer,
from rlint coiujjruty] in sn.-iinrdance with section I6D o f
ilie Tax jVdm inistrstion A c?.,L:
{ b ) Liy
ilie substitLlioii Iwi subsection
(I B ) o f the fa 1low in £ subsection:
"1 ] tJ) W here a person w ho a c ­
quires any property contem plaiud
in paragraph i f ) o f the definition o f
“UttfBwty" fails In f f f f lilt duly
w ithm rJie p e iio d contem plated in
su b section U K the tin st mid [th e
tru stees] repie-iei native taxpayei
o f tliai trust shall he jo in tly and
severally liable for such duty: Pro­
vided diiit tlie liu sl or [tru ste e]
representative taxpayer m ay re­
cover any am ount o f duty paid in
terms o f tb it su b se t lion by Lhe trust
or rtrtLhlepl representative t w pn>*!■, o i tli^ <ii5t uifiy be. [fro m —
( a ) tlit p e r so n w h o so a c q u ir ed
llifil ]>m perly; o r
l h ) in
Hit1 ta sp o f flit' Irustee,
from th at trust | in accordance
w ith lee lio u 160 o f llie Ta,\
Admiuistraiiots A ct ": and
ic'i by The deletion o f su b jection tit).
A m e n d m e n t o f se c tio n 4
Section 4 o f the Transfer D u ly A ct.
1949. is liuruby am ended—
i n , i b y the substitution far the heading o f
the fo llo w in g heading
■ P e iw lly [m id in te re st] o n lute
[KiMiirnl nf d u ly
tih i
(toVERMMtivi G Azt r r t ■*j LLV ju i;
Tax Admmutralicn Art. T013
Act ft*.
No. niifl y rn r
S h o rt iti If
IvMi-ul o f am e n th n r lit ni' rep fiil
(b) b y the iubsiiuiticn fur kub^cciiou H i
(if itld follow III" 'liif'CvUt'll
■LU i I f any duty m re Spec t o f any
transaction entered into before
L Miirch 2 0 0 '. rmubins w i|niid afler rhe cure o f the « p tm T io n o f the
period referred 14 in ve^Tion
[th e re sh a ll. su b je c t to th e p ro v i­
sion* of su b v ert in ii (3 |, in fiilclitio ii to tlie uii|>iii{L d u ty . tw p a y ­
able] (he C tn ia n i^ id o c i m u l an
accordance w iih t'h a p te r 1* o f the
I<ix A dm inistration A ci im pose n
p o ia h y . a! die rrfls: o f 10 pci M il
per annum cm lbc Amount o f ihe
impa.ii! ilulv. l:h!i i l!:i1UiI in I l.-]^ l I
o f each com pleted m onlh in (he
period from iki! d ale lo [lie dale ot
puy incut J: P ro v id ed tlia i if in an y
ra s p th e [ttrim l r e f r r m l In In
sec tio n J encted b efo re 1 J u ly
l'>32 an d th e sn id p en a lly is
diuryiMlhib' o r is in [i:ir( rhii r o ­
uble hi resp e c t o f a n y co m p leted
m o n th co n n n c u c in g before1 J Ju ly
I9R2 th e p e n a lly pa]iah h ' in t r i p r t l u f su ch c u iii|ik lr(l ukuiII i
iukI a n y c n rlic r c o m p tctffi in n n lli
flr m n n lh s slmH h r ih e am n u iil uf
p en alty « hit'll to'uulri h av p b w u
p a y a b le In te rm s o f th is i n s e r ­
tion b e fo re its a m e n d m e n t h y the
R eie u u p Ijiw n ^ m e iid iiiru l k rl.
19S2. if iiif1 u n p a id .innmnL of
su ch d u ty lu t l b een p aid o n th?
d ay a fte r th e en d o f tlie only o r
latest
of
such
rm n jileteil
m o n th s]
and
t ct b j the deletion o f su bjection 1 LA1
A m e n d m e n t o f section Hi
4. Section 10 o f the transfer D uty Act.
19-19. is h ereb y am ended
n i l by th.- substitution for iub^ttL iou (2)
o f ih e fbllm vtne subsectio n 1
" ( 2 ) Fhe pow ers conferred and
the duties im posed upon The CotttMiiTnumui by lliih. Act fin y b e f'iLT'
cised o r perform ed by (he (.’oninussiouer [p e rso n a lly ] o r b y any
f officer a c tin g u n d e r a d e le g a tio n
fro m o r] SA KS oftici.ii u n d er (he
control. |orF Jiietiicm oi supei v i ­
sion o f th e C o m m iss to n e i". and
.Si JJ49I
(^VERNMEN’l CiAZt n t 4 J ULY LLU12
Act .Yd. ’S or 1U1I
T.tk AftuunitfraCtnn Art, Til 1
204
\f>. find y rfir
S h o rt title
Exfienl o f li [i ki'i 11]11el' i)1 o r repeal
<b ) b y the insertion after *Libs>LLi: Lioi i ( 2 ) oi
[lie tiillowiim siibnectioii:
**(.3) A dm inictrative req u ire­
m e n t -ukl procedures toi purposes
u f lilt p cd n n iiiiK C '.>2 any duly,
p o w er o r obligation ojf rlie p r e c i s e
o f any i i^lir in lerm s o f this A ct are.
Lo the c\lu u l no! i cmtialed in llit>
Acr. regulated bv the Ian A dn'inistraTion A c t."
A i ii ei till! iei 11 o f .sE't'linu 11
5, Seelioti 11 o f ilie Tiiinsi'er D uly Ael.
19-19. 1! hereby am ended by Tlie substitu­
tion in subsection
for paragraph ten o f
the follow ing paragraph;
"(cO W hen: in ten us o l [SUbSfttiuD
l i t ii! s m iiu i rh ri'f] section .i(2) a
deposit ot) account o f die duty payable
by iiny person is m ade pending lhe
LleltnuiiifLllmi by Hit t'tin 11a11—hLt>iii^r o f
the fair value o f die property con­
cerned. o f an am ount equal 10 The duly
uiduLilLUed o n ilie com iduntbQ lt pnid or
payable iti respect o f tlie acquisition of
the properly o r o n lhe declared value
ibcTsof, as the c u e may be. and Lbetcis
given fn The t ’onsiuissioner ■secm'ity In
Liis o r lier satisfaction Jor lhe paym ent
o f ajiy balanee o f transfer duly [or
si a m p ihily] w hich m ay trill be pay­
able. the C om m issioner m ay in his or
her discretion issu e to [he person liable
to pay tilt [Inly ll k.'i:r 1ifitHlt LIlmI hUcI i
lltjHlsil lull Ikttll ULmllJ ill 111 d»Ll SI LL11
« c u rirv has been niven.” .
li q ie a l n f sectio n s 11 A , H R , tlC * IID
:iiiti 11E
h. Socliqfc) 11 A. U R . L1C, I I D hiieI
11L o f the Transfer Ditty A ct. 1949, are
hereby repealed.
Auieiiiluiei.il o f section IJ
7. SctiEoii (3 o f cl ll.- T m f a D m y A ti
1949. is hereby am ended—
(o.) b y rlie substitution for siibsectjon ( 1)
o f die follow mg subsection;
"'11) W henever file C o m m is­
sioner is satisfied Thai the duty
payable under this A ct ill respect o f
Tlie acquisition o f an y property or
the remmc ial ion o f any interest in
o r res hie [ion upon the Lise o r d is­
p o sa l o f any ptBpittty has noi been
106
Ni JJ49I
(^VERNMEN’l CiAZt n t 4 J ULY LLU12
Act .vd. : s or 2011
T.tx AftuunitfraCtnn Art, Til 1
Mo, find y rfir
Short liflt'
E x te n t o f a m e n d m e n t oi' 1’i-jicfil
JJELilt ill I'llll. lilt CoiIUlli:?;il'Jll'.‘T
TiUall. Ad1witb>laii(lii!| ih.'i! llie >S>
qLitsition lias aL'eady beeti regis­
tered in a desds registry, txcover Tlie
ctiflL'i'L:iil:l: huLuuiai 1III mummr rA
Tiie duly payable and the flinnniiT
paid ili accoidance w ith Chapter 11
iff the Tli,\ AdotmijtiaLioii A':!.",
anti
ibl by The deletion o f subjection (2).
R q ie n liif^ c liiL iis 13A, l3R :ni<l M l"
8, Sections 13A, 13B and li C o f (lie
Iran sfer fln iy A ct. im y , are hereby
repealed
A m en d m en t o f sectio n 14
51, Section M o f the Transfer Duty Act.
1949. i i liereby iimen Jed—
j iii biy tlie Mibntiurtion for %iibf.ecTinn (!)
o f (he follow ing subjection.
" (1) [DecJamUflJiS] A re imi l approjti'iaTe to Tlie m ann er o f rhe
acquisition o f property in any p ar­
ticu lar case ihall be subm itted
[rle rtrn n ic a lly , in rlic fo rm a n d
m anner w ill conl niiiinu: such in form ation as n a y he iiFK tribed
by llic C o n m ii^ k n u rl by the par­
ties ro the transaction w herehy rhe
property has been acquired and. it
Lliu C tuiuiii'isioijcr Hi direeli. llIh'
by rlie a§ent, nnctioneei-. broker or
oilier p erson w ho acted for or on
b eh alf o f eiiher party ro ihe Trans­
action or, iJ the property lias beeti
acquired othetivise than b y w ay o f
a transaction. by the person w ho
acquired The property.", iind
iin b j ihu (lulL.'liuiHSSalJi.'iLtlltttL ' 1' (6)
(7) nad (S),
Ami-nihnent o f s^clinn 15
10. Section 15 o f the T ransfer Dufy Act.
I1? )9, ih h tj tb y am ended—
‘fi) by The substitution for subsection ( 11
ot ihe following subsection:
“ (1) lE v tr v l Eii addition (o ilie
I'efiniretiient.i utwfi n Ta^aver conTamed in sections 29. 10. J2 and 53
o l lIlu Tax Adiniuii trillion Act.
evaiv niLctiiMieei1 nr other person
.Si JJ49I
(^VERNMEN’l CiAZtn t 4 JULY JO[2
Act .vd. :s or 2011
T.tx AftuunitfraCtnn Art, Til 1
JUB
Mo, find yrfir
S h ort liflt'
E xtent o f aiuciidm cui or I’l-jical
wlio lias effected :i sale ot pKjpdty
on btb.df (if miiiue: nliici' ]itrMni
shall, for a period o f live years from
die d.ile on winch i!ie sale vfts
uITl^ljIu l 1 _ L'jirji h nci^ird o f ihe snle
ind inline a description o f The prop­
erty Sold, [he person by whom am!
die person tu v. Ii'jiij the property
has heen sold and the price paid for
die p r o p e r t y a n d
{ b ) by the deletion o f subset lions (2) mtd
Q ).
Rt |>t ;il o f sections 17, 17A. 17B. IS. 20.
20A, 2 0 r nuil 20T>
11, Sections 17i 17A, 17B, 18, 20, '0 A r
20C tuid 20D o f the Tnutafer Dnly AeL
l ll 19, are hereby repeated
A c t ^ o . 4.' o f 1!>>5
iistnlc D uly Act,
1955
Am endm ent or scctlon 1
12, Section 1 ol' die EsLule Duly Act.
I9^.s. if, hereby amended—
|ii i by ihe substimtion for die definition of
"Commissioner'' o f tlie following
definition:
" '('urm uissioner'
means
the
Comnnssioner for the South Afri­
can Revenue Service am niiited in
Tenns o f section ft o f [he Honili
African Revenue Service Act, 199“
<Ac! No. 34 o f L997 ). or ihe Action
t ’omnnss inner de.itsmated in Terms
o f section 7 o f that Ac n":
( i / i by llic n ib-urlioji alter the definition ol
“ slocks or slim vs" ol' llic follow ing
daflmdon.
■■ lTaS A ilniinislration A d ', means
the Tax Administration Act. 2011.";
( r l by llkL." i cm mil leiiu^ [if McCtiou 1 u>
section 1(1): and
). t i l by tlie inoertion after subsec lion (11 o f
[lie fulluwitiv aubsectiflfl:
,L(£) I Jnless rhe contact indicaies
otherwise, a word cu exoiession lo
which u meaning 1ms been iissiioied
in [he lint Adminisft'anon Acr l>ear*
lliat meaning loi nuj poses o f tliis
A ct,” .
.Si iJ49l
(^VERNMEN’l CiAZtn t 4 JULY 2012
Act .vd. :s or 2 0 1 1
T.tx AftuunitfraCtnn Art, Til 1
2!U
Mo, find yrfir
Short title
E xtent or :■li ki'] 11]11el' i)I or repeal
Aniertdracnl or seclio n 6
13< Section G o f tlie b state Duty Act,
1955. is hureby amended—
(a ) by i i: SubiliUlliqn itn MihtKlion (2)
o f the follow ing subjection:
“ (2) Tlie powers conienud .uni
ijil duties iinju'i^d ii|H)ii rhu C om '
ntisAioner by rhis Acl may he exer­
cised or performed by Use Conunisnioiiei [personally] or by any
[officer ;ictiiig limit1r a delt'galiou
from or] SA RS official under lhe
ton ii'ol. fori diicclictt oi supctyisjofl nf the Commifisiojier.” : and
•hi by rhe subtrmirion for subjection t-i)
o f die follow ing subsection
“ {3} Administrative reqiliic1ELL!Jll**Etlld pHKotlll L'I fill |lUip(IHCS
o f tlie performance o f any duty,
power or obligation or rhe exercise
o fu n v ii>dit in Let ms ut’ iliis Act me.
to die exient noi repiilated in this
Act. regulated by the Tax Adminis­
tration Act.".
A m endm ent o f section 7
14. Section 7 o f the i'Xraie Duty Acl.
195?. ii hereby amended
Uii by the Hubstihitiou in subscctioti (1)
fni' the words preceding paragraph i ni
o f die follow ing words.
“ E^erv o n l l l u i or. it lie ur *he
if. called upon hy the Cnininksioner to do so, any person having
the control o f or any interest in any
property included in die estate,
- b . i l l ilL13l]i 1 (d tile Commission Of 11
rew m [in a form , prescribed by
hi tit. J disclosing tlie amount
claimed by thu person submit linp
the renini to represent the dutiable
amount o f lhe estate together wills
full pHTliculai's rcjfLitdina—
and
(b) by ttie deletinn o f siihsecrion (Z).
R epeal o f sectio n s 8 .8 A . SB. 8C. 3D nntl
BE
15. Sections S. £?A. &B. SC . SD iiml SE
o f rhe F-.staie Duty Act. 1B55, are hereby
repealed
A m endm ent o f sec lion 9
16. Section 9 o f the Estate Duty Ael.
1955, is hereby amended—
n n hy the in serf ion after subjection (I i of
the follow ing subsection
J J 4 9I
(^VERNMEN’l CiAZt n t 4 J ULY 2012
Act .vd. :s or 2 0 1 1
T .t k A ft u u n it fr a C t n n A r t , T i l 1
112
.S i
Mo, find yrfir
Short title
F xteiil o f n w iid iiin il or I’l-jical
"i I A ) If (Iil; Conn ui t id ie r . piior to
lilt
is s u e
e ]f a
n n t ia
<hJ- n s s e % \ i u e E i l
in
terms o f subsection (1)
f t j j i is di\-satisfied with any value at
u r h i c l l f f n V p r o ) M r t y I s lilinwn i l l a m
remm: or
( b ) is o f slie opinion that the amount
clniiucd Lu represent [Ilu dutiable
amount s s disclosed in any rentm.
doe^ not repiesent tLe correct duti­
able : l u l u l u i I .
[he C’oinniissiniier shall adiu^L such
value or amounl and determine ihe
dutiable iimoiuit upon which such fcsicssm cnt shall be r ii u d accordingly.".
ih) by iI;lj iLIuIhhi <i f hiibscttl e u ■(2): ainl
(c) by the insertion o f a new subsection
(5) after subsection (4):
L,f5j An assdwiuLilt contempjafed in sulip.eenon ( I J f r T j and ( b ) is
deemed to be an assessment by way
o f self-assessm ent.".
R epeal o f sections 9 .\ and
17. Secs ions 9A and y E l o f the l-STate
Duty Ac;. 19??, are hereby tepealed
A m endm ent o f Hertlon 10
J8. Section 10 o f llic Estate Duty Act,
hereby amended by tlie substitu­
tion for subsection (1 I ol the follow ing
subset liuu;
“ ( 1 > It' [ a n y d i H \ r e m a i n s iiii[>:iitl
fit Hie e v ir a t io n o f a period o f thirty
days from the date or paym ent n o ti­
fied in nceorrinnce wjih su b set d o n
(2) o f Neriipq u im \ tlifi'H- .dinll lie
p in a b le , in
nildition l u l l i e u n p a i d
duly. Interest j i t the rate o f six per
« n l p e r A i m uni n u t h e am oim l or
unpaid duly eairuhited from llie diite
o f Ih f expiration o r tlie ^ ild period to
tlie d ale o f paym ent: P rovid ed Thai,
w here! the isse^ tn em o f duty is d e­
layed beyoud a period o f twelve
monihs fia m tlie dutc o f death. id k iex l
at tlie prescribed nre for six | i e r eeul
per m i l l in I I J <iliall be payable a s from a
dale twelve m oallu alter llic date ol'
deaih on the difference (if any) berween
the duty assessed and any deposit (if
any) made on account o f the duty
payable V i t l l i m ihe h h i l I [m nni u f
rwelve months.".
J]4
.Ni i.'49!
Art .Vo. :s or ion
\f>. find y rfir
GOVLKNMtNT CiA/t'f'J i 4 JULY JOIJ
T.nc AitmLmtlraltnn ^ rt 1f]] 1
S h ort tiTle
E x te n t o f aiiifiK ln ifiii o r 1’i-jictil
S u b stitu tio n oir se c tio n 12
19. l i e Hstate U uty A ct, X S i;, is
hcivby iuncnded l»y ihe lu lisu iu tiw i lu i
section 12 oi'flie (ill Jim m y sentioii:
" D u ly p a y a b le b y exevil lo r
12. HoTwithsTaiidmii anything to
rltLr cn u ln n y 4_m.ii itnii it^d in S tilto n
[eleven] J_l_. any duty payahle under
ttu& A ct shall be payable by and recov­
erable from the fltuctiLor o f iLll cijLHte
Mibjecl io [lie dnry. t o Am ejaetiT contemplaTed in C hapters 10 and 11 o f the
Tmi Ailminiijlriiiiuii A ei I: P ro v id ed
ill.H ilte lia h ilil) u n d e r ttd s srtliq U O f
a n y p \e rtK 0 f sh a ll lie a tLiliililv in Ii Ih
u r h e r (u p a c K t jis e ip rtllq lf only am i
tor m i m ii on nt nol rx ceed ln p I h r
avatl.'tidc asscTs in th e e sta te , unless
11if liab ility is d u e to f r a u d ] ." .
R ep eal o f sec linns i2 A , 12B, 23, S.Vi/ jt,
24, 25, 25A a u d 27
20. S e a m u s 1ZA. 12R 23. 2 3(to, 21
2?. 2 ?A ,ind 3 " (he LsiaTe D u ty A ct, 19??,
are hereby repealed
A m e n d m e n t o f s r rlio u 28
21. S^^diail 2S o f 11 £ h ( a I i i ntm j Acl.
19?5. ii liereby am ended—
(a) b y Tiie siibsTiftition fo r the heading o f
lire follow ing hetiiJinH;
“ [P liN A L T llL S ] O lT IiN C E S
\ b ) b y ihe deletion o f subsection (! i: and
ft’J by Tlie deletion in snbsecTion (2) ol
parat^aphs i In and (b ibis,
R ep eal uf sectio n s 2$A a n d 30
22. S lhh it* 2SA jiiiil .tO ill' lhk.L Fslrili:
U uxyA ct. 19??. are hereby repealed.
Mo. 35491
GO\ tfLMMtiM U A Z tl'lt 4 J L'LV JO[ :
A rt Kn. 28 or I flll
lit
Tk Adiiim.ir^iiDn Art. '0 ]]
Vo. nmi vrar
Sborl ill If
A cl No. 5» u f I 1* ’
fn c o iiir
F \lc iil o f aniiiidini'U L n r rf|ic n l
Jax
A ft, A ib iiiiU iicm o f sectio n 1
1«2
Soeiiou 1 u f die Iiicoiilu T.vv A ct.
1962, is li m b j amended—
frti bv she su bsunm on for ihe definition
o f "assessm enT" o f The follou-iu£
(Lfmilkni:
“ ' i i s .' i e s s i n p i i l '
[ ilit ;m -
Ih r J
hat
die meaning aissiened tinder secTion
J o f [he Taut A ImiiU'U^non .A',?.
and m cln d esa deTetminaTion h y ihe
Commissioner__1. by wav o f a
uoticc of asKssnrnl ■in< lmlinu a
n n litr ijf
in rlwrlrrinir
ftim u served in ;i iiiiuiiitT run*
[fjnjiI.iUfl in stuiion HXii^i—
lai of nil amount upon which
an y lav It-via hlr u n d er rhi<i
Act is dm rgpabln; u r
iin of ih e amount or any vurh
ta\: orl
(c) o f an y loss ranking for ■iet-nff:
lor]
ftl J o f any assessed (fa^iDl loai
deTennined in re n m oi' pnmgiuph 9 o f Tlie Eighth S th ed -
mfit.l: or
i '; o f any aniouiiTS ro lie Taken into
acco i:lit jii the d j^ g g n m itio n ■ '
Tax pjynblc o n incom e ill futmc
[lijiiI for the purposes of Purl HI
o f C hapter HE I n c lu d e any rte*
term ination by rhe C om m is­
sion er in rrspret uf am o f (he
i r h a l r s re fe r m l lo in w c tim i it
and any decision o f the C o n n i e
siu m r w luch is in t n u s of iliis
A rt su b je c t lo objet'liim a m i a p ­
peal]: ‘:
ib) b> die dcEeUui! u f the Jeliu iliu n uJ
"h n sin ets d a y " :
(Cf by ih e substinrtion fox The defim nou
o f “ C o m m issio n er" o f die follow inu
delin niuii:
“ 'C o m m is s io n e r'
m eans
the
C om m issioner foi llie Soullj A fri­
can R evenue Service apjHumed in
Terms o f secTion G o f The South
A fiic m Re\ euue S en iee Acl. I :.>,J
i'A ci \ o . .vl o f ] W7>. or ihe A cling
C om m issionei dgsjgj tied ■!
;
o f section ~ o f dial A ct:''.
GCFVLSLNMKNI GAZETTE* ■*JL LV 30L!
Ni si n i
A rt Nr, ;* rtf 2LI) I
Vrt. m id ip n r
S t» n ill If
F .flm l of :im rii[lineill or repeal
frfj by llic dclLL[iuu o i lhe dofiiutkni oi
"iLtri: o f fls*itshmein".
rijj by the lm e n ie n after the definition of
■■normal rerlretiieitt aq e~ o i The
tolld'tuiu rWrDifiam
“ '110 n il ill [.1X~ Ljie.n;- tKiOnsc t.iy
reteirtfd n? iii k x Ikxi M L).
Nittu'rr'
'in', v' here 11 ^
iti the
io n lex t o i a person w ho is e ii^ ia c d
bv the Commissioner m iaiivni.it
out rhe wovision-. o f thu Act, a
SAKS .:;^j..: ■.! ■.■, defij e . ___■■
1 o: IIn; Tj \ AiiHiiinjii«mtni Aci..".
iji hv (lie Miljr-.l1 1111i[iii fur lilt ilefiinluiii
o f ‘"prescribed rare" o f the follow ing
definition:
“ 'lu e s c rib c d r a l e ' m ew i: liic imicruuenij-i^red m ^ e n o ri ^ :'> j ol
rhe Tax AJn.iiin^ti^ticrn A^t. “ .
( g ) by Ilie Mjbvtrtutkm o f (lit word* in liiu
rlffininoii o f ‘'fejHWrntarrve mxj.’myei "preceding pnrati;iph hu i o i Ilie
fallow tup \v o i4 ;
■ r r p m e n ia th e
tnxpayrr*
means a nntimi person who ic sitk i
Jr_ih£_^Ljii[|)1l£jHTi(l—
j /i i hy tin* qjlwtilnfiAn far pnn rtmpli ( h i
o f the defimlEon ot '‘representative
taxpayer" ufLhe folknvinu pnisiumph:
"fiiy m respect oi rhe income under
his ur her uianajienn.'nl. disjwsitinn or control, the aiient o f
any penonl, including mi
jijifin iipiJCniLrtl as sitrb un­
der clic provisions or seCthM
nsnFlj-Tonr, :nnl for Ilie pnr|Hnn or ttii> |w .i«r;ip h 1 1he
tom i -njtfiir" in c lu d e erttjr
Iti-rsim in the R<|UibHr linking
tlie rtrHpt. niMiiHEiMiifiH or
coiirnrt o f Income ou b e lie f of
an.i person pfjumm'jiiJt or
ib-nnmr.mh ;ib4-ni fnmi the
Republic or remitting or pa.i ini> income to or rcrefring
umitfV' for Mir11 prrwm}:':
.S i J J 4 9 I
tXJVtfLVlMtM C iA Ztnt 4 J U L Y JOtJ
Act .vd. :s or 2 0 1 1
T.tx AftuunitfraCtnn A rt , T i l 1
2 20
Mo, find yrfir
S h ort liflt'
E x t e n t o f n in c n d in c T ii
or
I’l - jic a l
(i) by the deletion or die words in die
(j)
(k)
ft)
{ini
ini
f ft j
deriuilKHj nl “ jcpie^enlalr. e l:i\payer" folloivniE paragraph (fi bin
preceding die proviso:
by the i[ivj[iinil;-i fil‘[ i]u dcfm iiicn n f
''retirement nitarwt” o f tba follow ing
definition.
" ' I f t u I ' L l ' menus :i return si- dielined in secnon 1 o f [he !'ax Adiniuisl ration A cl'V
by the substitution foi die definition
o f "ffly" o f llie following definition:
“ ‘ t a x ' m eaui tax oi a penalty
imposed in teimv o f lb b A c!:":
by the insertion after tlie definition of
iif die I<h!lim ing definition:
" ‘TaOt
A dmi Hi sir: m oil
Ac 1*
means The T a \ Administration AjcT.
2011:” :
by rke substitution for tke definition
o f " Taxpayer" o f tlie follow ing defi­
nition:
" 'hivpnyer' means any person
chargeable w ith any Tax lei'i able un­
der this A d [am l includes t v r iy
[itTSHm neijuiri'd by ill is A rt to
fu m iili ini' r r h in i)7’:
by the leniunberiup o f aceliou 1 to
sAClimi 1(]); mid
by the insertion sifter - ubiection ( 1} o f
Tlie follow ing subsection'
""f 2> LTn lu i’ die context indicates
otherwise, ji word o f expression io
w h i c h 3 m e A ilin '! lia s b e e n a s s ig n e d
The Tax Administration A ct b e a r s
mcHiiiuii f o r purposes o f t i ii s
A c t" ,
in
llia l
22Z
.Si iJ49!
Art .Vo. :s or ion
\ o . find yrfir
GOVLELMMkNT CiA/t'f'J i 4 JULY J0[J
T.nc AitmLmttraEtnn Jl rt 1f]] 1
Short title
E xtent of nniendiiic til or I’l-jical
Amendment or sec Iion 2
24. I lie Incom e Tax A ct, 1Wj2. is
hereby iuuended by ihe luliSUlUtiwl lu i
section 2 o f lilt; ["(illtw,iim StC tiot
“ [Art hi In LHiiniiiisltTfiJ by f!am -
mlsiicmerl Artintnistrnflon or Aft
2. (1 j The C uim nissiouei [shall bc-J
is rUsponwble for an ty in g out the
provbjoUS ofthisAct.
12 "i AdmirasUitiivti requirem ents siud
(HiKbiuKfi fbr tmuiinuih thf ihe Dtrfbrm ance o f any chitv. new er or obhearion
Of] tlie exercise of any rieht m Terms oi
thi4 A rt are. to the extent not rejjjllflted
in iliii A el, iceutiHcd bv the Xkx AdmitiislrATinn Acj. ” ,
Amendment of section 3
25. Section 3 o f die Income Tax Act.
1962. id Lurch y u n a id e d —
1i'j j by r)i± uihstimrion for subsection (I j
o f ibe folio w in i subvert ion:
1 > th e pow ers conferred and
tlie duties im posed upon tlie C om ­
m it atoner by o r lkkIlt ihe provi­
sions o f Ihis A ct m ay he exerciser!
o r p etib m ied b y ihe Commissioner
[pm oiL idly,] or by suiy ollieer [or
p m o n hii[Visit'll in £& rryhlg mil
llie siirf provisions] un d er the
control. direction or supervision ol
il ic Cun))ojs.ijmtr.'';
{b) by i1ill c[u-1l_-[c[i3bp f ju b H x ljn H ( _h juul
(3);
id
b y the ^nbititiitioii For subsection (4)
o f the follow ing subsection:
■‘(■l) Any decision o f the t ’onimis'jionei' under ihe follow ing pro­
v is io n o f lliii Act [shnll Ih'JU
subject to objection and appeal in
accordance wuh ChnpTftt 9 o f itie
Tux Administration A el, namely—
in
Art
fin
(K)VbK.NMtNT QAjtETTE, 4 JLLV J01.’
No J>491
19 a i m I
Vrt. mid icfir
S t o l l title
F vti iil o f niutn d tn en l o r repeal
( a ) [he
(fefinitious
ul
fund", “ g rau im lurid
“birnelii
LJ| ten­
sion
preservation
hind",
“ provident fund". "provident
tiieti! Annuity
fund" and
“ spouse" in u c lio ii 1;
i h [s tt tic ii tf, s n t i o a Si 4 * ftj, f t ) ,
(4 } a»wt (e )^
s e c tio n
a n d ffrA > . [ s f f t l o n 9 D J s e c t io n
IQ d VcA),
[ f r ) ]< rtfn JfT > .
[ftAjf. ( j t and lnHj. section
IPAjSJ, seclion ll j r l . i f I, f*>.
( g A i . (jflJ a u d r /j. I d t . i u ) mid
(w jj section 12B(6), --.utiica
ll C , section IIP, Euidimi 12(1.
section 12J(61. (6AJ. and (7),
section 13. section 14. sec lion
15. sectiun 2 2 (J )U and (31
jnuil )5l], sectmn Z.-i l[Z) sec­
tion 2 _^K. section 24( 2 1. section
24A(G). stdiun 24 C. Sseditm
Z4D. section Z lit 1) and (7 k
section 24J('9j. seel ion 2? A
Lscction 25D ]. tucIioii 2 t ,
tinn T 2 3 f 2 W < ? A section
.! t>. s e c t io n J M A . i c t t i o n .'L iL l.
^ccticii 31, see lion 35(2), scelinn 37A
w et inti
[JSU)~Ui>iZ>f:tj and ift; and
f4). section 44(t.?ifrf». secs ion
47ff>iu'i(i>. sL'diou ?~i 21.
non 6Zi. I Vji’Jfuil anrl h i t and
(ZVlTj utii ■■I:. f w t i m i 7 ( i \ l|
section SOB and section l^JOSJ
10312J.
t r - parasraphi fi. 7.
13, \ 3 A \ I
19 and 20 o f [he Fn si Schedule,
i d l puurajirapli 4 o f llhj Second
Schedule:
(r i paragraphs 1-1(6), IS.
2 0 ;i x a j and (2). 2QA(t ) and
(2 ). 21. 2-1 mid 2 ’ u f llit: Fum ill
Schedule!
I f i paragraphs 1Oi.3 ) and (**, 11(2)
and ( 7 ) , 11(1) mid 13 o f llic
S irrh Schedule:
i $> paragraphs 2{Jn, 5. ^4iffrJ.
7(6). (7} iuid (S), [9 and] 11
and 12A (3) o f lhe Sevenlh
Schedule; and
i h i pinajaiiphs 12(?Vcj(i)v29(2 A >.
29(7). 31(2). « S ( 1 M mid
fiftfrifrj n f Ihe r.iuhlli S ched­
u l e / ': and
GOV LELMMkNT GA/fE'J i 4 JULY JOt J
T.nc AitmLmttraEtnn ^ rt ' 1115
126
.Si i.MS!
Art .Vo. :s or ion
\f>. find yrnr
S h ort titte
Extern or LI[1kl'] 11']1LtL'111 OK* I’l-jlCfll
fr/y by lIlu sutatituiiou for subset: tiuu ((5}
Ilf ihe J'l>H[tv, ihlj MLLilimi:
"'Ifcl jVjiv
a em e v e d fcy n
decision o f tlie executive officer 1 0
tpjimVE [in I d uilhdi^iu ;-i11 H|)pmval o f a fjiflft in ia m s o f uibsecrion (5) inujjt, notwithstanding sec­
tion 2-6( 2 1 o f lbe FinLiiieial Serv ice*
Hoard Act, 1990. ind«e Inn cm1 Iter
objection with the Commissions!
[in tlif n ian ocr ta n tem p la ted in
P nrl m nf d in g ie r m o f this
A ctl in accordance with the provi­
sions o f ChuiMci 3 o f ihe Ta,\
Administration A ct," .
Kt'ju-al uf Seel inn 4
26. Section 1 o f ihe Income Tbs Act.
19G2. is hereby repealed.
Ann'iiilinent nf sri'linn JA
27. Tbc Incom e Tux A ct, 1562. ii
herein1 amended by the substitution for
se o io n 4 A o f the folio w ins section:
"E xercise o f powers nurf p eiform iu u r o f dnLies by M inister
4 A. J he powers confeiTed and the
duties imposed upon tlie \iim',Tei by or
tinder Ihe provisions o f tins A cl may be
exencised or performed Iw tho Minister
personally or. except for tlie power lo
issue nclices or regulations. delegated bv
llte Minister lo the D in^lO ^O ^iitil n f
tli- NhIhiiihI TiciLMiiy :iud ihe D inslurG o n o l may 111 turn deleeare (lie powers
and duties so delegated io him or her to
tiny oiiieer or peisun under Ini or iiet
control. direction or supervision ”
Aniciidinc-iil o f sccliou 5
2S, Sec lion 5 o f the Income T il\ Ael.
1962, is lieiehy amended hy the suhstinttiou for subsec lion (7) o f the followmg
snbseelioii;
"(7} Subject to ihe provisions o f
[sections 79 nnd 102 and liic provi­
sions iif| the Founh Schedule. where a
taspoyer has been assessed for normal
tiis in respect o f any yew o f assessment
:111;I Ilie mle nf ihe hix |?jjyjil>le by [llilll]
.12K
.Si i.MS!
Aft .Vo. :s or ion
MO, find vrfir
GOVLKNMtNT QAlfcTji 4 JULY JOtJ
T.nc AitmLnitlraEtnn rt ' 1115
S h ort title
E xttM o f n iiifn d m ftil ar n-jicfil
[he ta ^ a y cr h<is been subsequently JLxu<.l
(]r \ nritd. [ 1tisj lhe t^’ifiayer*? ^s^uttioltl
for such year shall be adjusted, any
,nuountt paid Lb exee1- t'smu refundable
tu [lmtl| tlie tSXpHVff ,iii'1 ^D auntll
'hnnpaid being recoverable from [him]
[lie taxpavei.".
A iii ei iilii tei 11 o f j&tfiQfl tiq iiftt
29. Seulitm fitjsifii o f llic Intq!uie Thm
Acr. 1962. ifi hereby Amended by the
subsiiiution for subsection (51 o f rhe
folium iu^c siitaeeliou;
"i5> Ncifrrtthstauduig, [sections 79
a n d 81(5)1 seeliou 93. 99 or 100 uf the
Ik x Adm iiiiitraded A ct. an addilioiml
or reduced assessment iti respect o f a
year o f assessment to give effect to
subice tious \ I > n il■>1 f 1A ) may be made
within six Vl'hik from lhe hLlIc ul’ ilie
original assewment in reaped o f that
year".
A m endm ent o f section B
30. Siiirliori ft [if die IihirmiiLi Tas Ac!.
1962. is hereby am ended—
ta> b y the dtibstfrution in subsection (5)
fur iHuuiuuph ( K ) u f lhe follow ing
paragraph:
Any p a w n who, it's ii
fonner le^MH* o f property referred to
ot paragraph
or as ‘he owner
tbeicuf, hii-r a ti li Ilie leiijiinttuon o f
rhe lease o f n id i property consented
ro die fonner lessee thereof using,
enjoying or dealing with such prop­
erty as tonremplatcd in the said
p:ir?iLCTipli. [ii is duel lien! In have !Ui
consented tinder die provisions of
paragraph fbBj(ii>. shaU not latei
ilian 14 Jays after [lie end o f Jim:
months after the termination o f the
[elevaiii lease advise the former
Leslie uf the lair uwrkei value o f
Mich property as determined in ac­
cordance with paragraph i i>Ajl, .tnct
shall furnish Uic L’oiinnissLoiKT
wiili ;i copy o f sni-h advice],": and
f b) by lhe r id d ion in subjection (.5) of
pai^igraph (c)-
:.fu
( ^ V E R N M E N ’l C iA Z t n t 4 J U L Y
.S i j j 4 s i
Mo, find yrfir
LLU12
T.tk AftuunitfraCtnn Art, Til 1
A c t .v d . : s o r 2011
S h o r t Title
E x t e n t o r : ■Li ki'] 11'] 11eL' 111 o f 1’i-jiC fil
A n i e r t d r a c n l o r s e c t i o n 10
31. Section 10 or she Income Tax Act,
19G2. is ]Lu i lby itniciidcd by the deletion
[ib
( lie
liu llie i
|ir » v is u
In
<1) ( c A f o i parasi'apli fe}.
A m e n d m e n t! o r s e n io n ID A
32. Section lO A o f ihe Incurne Tax A cl,
i% liEi eliy a m e n d e d —
i d ) by ihe deletion o f su sse d ion (9): pod
‘ t>i by The iubiiituticru tbi aubsection (10)
n l ' lli- 1 Ji: i [ 11.t.bl lir hi l ii ie r :! i o n :
'■(10) Subject to the pttoivfnons
Of wction |7 ^ | 99 o f l lie Tax
Admim.* LiuLion A ct. llic final calcutiiiiiuii a t iccaleuhiLiuu o f die capitid
eiemetiT as made in reLinoo ro the
year ot assessment referred to ill
sul>sceinjn t?) shall, subjcct lo i!jc
provisions o f subset!inn
be
final and conclusive and sliall ap­
ply in rcspceT o f all relevant annu­
it y ; 11ji [ ] i l i i 1h u l i r i d i b t t D i m j :I1
.il.1 In
any person under the annuity con­
tract in question in any succeedin';
years o f assessment.".
A n f o d u e n t o r s e c t i o n 11
3 J. Section 11 o f the Income i'ss Act.
19G2. is hereby Lunended by the deletion
in pitMsmph i l l o f p H t n p ii p l i Lvii o f A c
proviso.
A m c m h i e i i i o f s e c t i o n 1ID
34. Section 11D o f the [ncotneTax Act,
19G2. is hereby anrended
( a ) by llic subsl i Luliuij for subsection (141
o f the follow ing suh sec riot) ■
“ { H j N o t w it h s t a n d in g I s r c l l o i i
41 Chauler 6 o f ihu Tsx A dm inis­
tration Act. tlie Coitttjnissionir may
disclose to the Minister o f Science
and Teelmoioay i u i b m u i l i o n in re­
tailor to research and development
as aiay be i eqmred by tliar Xiiihsrei
for piuposcs o f .i ii b n i im u p a repost
In P ? i i l i mii i-uiil i l l T b ttiia Lit frtlliH tc tion (IT ).” : and
HI
49I
(^VERNMEN’l CiAZt n t 4 J ULY LLU12
Act .vd. : s or 2011
T.tk A ft u u n itfra C tn n Art, Til 1
No
JJ
Mo, find yrfir
Short title
Extern or l i [i ki'i 11]11el' i)i qi* I'cjr^cil
( b) by the Hi.kliLiun iifia b-ubb-c-u1 io:i (IS )
(if fbc IdLlimiiii: sdtrridiqii:
“ (19) FoC rlii [jurposes o f sub^ ctio u { lj, ihe C o r n e l l loner may.
u t i L u ' i 1E is 1n i u I i t i v
th e
|nr< j v i s i o n a
i >J
sections yy and it)(> nr the l^x
Administration Ac!, raise an -idditioiiul MynU^7r-[] lUill Loi ilJIV VCMl' o f
assessm ent with r e ste d ro a deduc­
tion m respect o f research and
1 whieh inis been al­
lowed. where uppmvtn lias been
withdrawn in terms o f su bsec lion
{10).".
A in m iliu eiit o f section 12ft
35. Section L2G ol'llic lucuuic Tux A cl.
1962, i.i herehy am ended—
hi) by The substitutionf o r su b n o tio n (1 !)
o f the follow ing subsection;
IJ(Jl l Fur purposed
Kiihsei;tions (9) and ( 10). rhe Conunisoionej may. notwithtttanding ihe
j.'ii>\isiuiii o f sections [79. Sl(5h
:ui<l
iS tl yy and 10 0 i>f the l ay
Administration Ac!, raise an addi­
tional HssciMiienl lot iiuy your ol
assessment where an additional in­
dustrial
investment
allowance
which hits been allowed in any
previous year must he disallowed
in Terms o f subsec lion (9) oi [101.":
and
iiri by the ilvlu&m o f m tbsed i( H] (12)
A ineiiihnrut o f svi'lion 121
36. Section 121 o f rlie Income Tax A ct.
19G2. is hereby amended
4a) by rhe uibrtitiition for [lie words
precucUii^; [jaijiuriijili {n> in dilbymitinu
(U J o f the follow iiip words'
“ (1 3 3
C om m issionei may.
piotwilliitMidmg llie prtfvisioid o f
[strlio n -1] Chapter fi o f t[ie lax
Administration A c ! ":
(bl by the subst i lul ion for subsce lion ( 1J j
o f file following subjection:
"(14) Tlie Commissioner may.
nolwillis landing llie provisions of
[serlim i 79, S l i ? i :tnd S3( 1S>1
seciious yy and 100 or the Lax
Administration Ac!, raise an addilim ia l
a .'k S L iiS E ]li^ tiI
t in
ftn y
year
ih f
assessment where an additional in­
vestment allowance which has
been allowed in any previous year
inns I be disallowed in Uaxus ol'
snhuetian ( 12) or 11..!
Jj4
.Si iJ49!
Aft -Vo. :s or ion
MO, find yrfir
G O VLKN M tNT Q A lfc T ji 4 JULY J0[ J
T.nc Aitminittralfcnn ^ rt ' 1115
S h ort title
Extent o f iiiiH 'in liiiL 'iiE or 1’i-jicfil
(c )
{<>!
by the delebun o l >ub:>ed iuu ( 15 ): Hud
1>v lhe Mibslilin !mi ibr Mib1-ec Iim i (21 )
o f rhe following subsection1
“ (21) Notwithstanding lhe pro­
o f [section -t| C'lbHplLT l)f
rhe ta \ Administration Atf. tlie
Comnii lio n e t must disclose to the
Minister uf Trade and Industry aiul
the adjndicaiion committee. incltiidiug any person w hose asstsnauce
lira bceti wblaiuett b> tli:i[ commit**
tee. such information relating to 1 lie
affairs o f any company carrying on
an nidus nitd policy pru[eci as is
aeccis&ry 1 0 enable the Minister of
Ti stile lcht [oduilry mid thi; jidjmlicanon coninntree to perforin then
functions in remis o f this section.’'
Ai lie ndi lien 1 o f sei'lion 12,J
»^7. Section 121 h' l' lilt.- Income Tfi\ Ael.
1962. is hereby amended by the deletion
o f subsection <9).
Am endm ent of section 23
»^8. Sect ini i 2 } n f 11ic Tuemtic Tax Ael.
1962. is hereby amended by die substitu­
tion for paragraph ( d \ o f the following
psiiapHph;
" i d ) any tax f, duty, levy, inlerest cir
penally] imposed under this Act L,
any adriirioiiiil i;ix lm posed un­
der siTliuu 6ft nf the Viilm*A ddtd T i u A c l , 1 » 1 (A rt N o . 89
uf l W l i and] or tu> interest or
penally [pnynbk- lit conscqucnce
nf Uih bile ji:m iif,til o f a ir lav,
duty, le vy or runlriliidiuii [i:iynblcl imposed under any olliei
Acl :uh ni ni Mered tiv llic (, 'h»i iiini seLoner [. tlie Region iii Services
C o m k ils A rt, 1S«S (A ct No. ]0S>
o f 10S5>. tlit E w a Z u h i and Nnt:d Joint Services A rt, 1990 tArl
No. 84 o f l^Wtj. the .Skills Itevelopafctrt Levies Acr, 1 W (A rt
No. 9 (if 1999S, .mil llnj ITnettiploynieut Insurance t o m r lb il­
lions A ct. 2002 [Act > o , 4 o r
20ft’ il:'.
GOV LELMMkNT OA/fE'J i 4 JULY JO[2
T.nc AitmLnitlraEtnn ^ rt ’fill
2J6
.Ni i.'49!
Art .Vo. :s or ion
\ o . find yrfir
S h ort title
E xtent o f am ending m or I’l-jical
A m endm ent o f sec Iion 131!
39. Section 2.iH o f lLie Income la x Act,
1962. is hereby amended by the deletion
o f Mihxeclion (1).
A m endm ent oT section -4.J
JO. Setlnm 2-1J nf lbe TuCOtQc Tas Acl.
1962. is hereby amended by die deletion
o f s u b I o n (1 1 ).
A m endm ent o f sec Iion IS A
-(1. Section IS A o f ihe Income Tax Act.
1962, is 1 lltll1j\ .-iiiillenIlllI by clilt dcfebon
o f subsection (J).
A m endm ent o f sw lio n 35
42. Med ion .i^ nf ihe Income Tax Act.
1962, is hereby amended—
Id,' by [he substitution in subsection
(2'tffU foi the wonts preceding tile
proviso o f ihe folio wins! words:
"Any j’ej'ion who nseitrs a liabil­
ity to pay to any otliur pei^ou v, lio is
nnt a residem any amnunr rafeueft to
in subsection (I). or who receives
payment o f any such amount on
I'L'hntr o f such oilier jfci^oti, slmll
within 1-1 day* after tlie end o f the
month during which the said liabil­
ity is muunev! or the saidpiiynicul is
received, as tlie case may be, or
witliin such fuitliei penod as rhe
Connnissionur nuiy approve, make
a payment (which shall be a firu)
paymenr made on behalf o f such
other person) to Ihe Commissioner
in inspect o f suuli other person's
liability for ta_v in terms o f snh*eclion^L). and slmll siibmn to the
Commissioner nt [lie time o f sudi
Lh\ piHyniuiir jh [drclni'arion in <uiLh
fu n ii ,is II iv CoUURuai<ii]&- limy
lirestrlhej return:''.
fbj by ill j su ti minion in sutaeelion (2) Lot
jiai'a^raph >h> o f ihe following jiara£iaph:
L'j'6l Any |Mnon mating a puylnvul
to ilie ConimssM finer m tenns nf |iaratraph tilt sli.ill. uoEwilhstandnii any
ajnveuient to the eontiiuy. be entitled
to (Eerinct or withhold [he animuii o f
such payment from the amoiuii winch
tlie I lliiit person is liable to pay to the
al’[sri,saut (illifr p rnqn[i or lo DMOftr
IX
(toVERMMtiVl OA£k r r t 4 JULY ^Ull
Nfl IIN I
Tax Admmutralicn Art. T013
Act Nt.
No. niifl vrflr
Short itile
o f iimonilniL’nl ni' repeal
ihe amouur so paid rrom such
o th e r p e rso n o r Co re la iu oul o f
a n y money llm l may In* in Ids
p o ss« » io ii or m a y f om e to him as
llic a g e n t o f su ch o lh r r p r r a m mi
mm m ill e fp u l in Ihe a m o u n t o f
such paym ent].",
f t > by ibc J-.*’
i in mbiHxliDU r2) o f
paragraphs (d) slid ( r ): and
id) by ihe deletion o f sflfcsetiioo i 3)
\iiit iiMiijfiil of
A5A
43. ^L\;Lioii 35A o f iIlc lu tm n e Tas A cl.
1M2, is hereby amended—
ta) by the substmmon for subsection (6^
o f llie lollowmg sublet Lou
"(<j) The
must, lt»gelher w iili tlie payment contem­
plated m subsection i-li. subiuii lo
tlie Commissioner <%[dcr In ration
in the frjim find rou mil ling llie
inform ation sis Ihe 1'tiiiinilssio a er m ay prescribe I fetam
iL’i by llic lu ln iltu io a for lobicuiiyii i 7 '
n f (he fotlmvine subsection1
“ ( 7 ) t lf a ] A ptirclinsifL is p-cj -.lui;i L]v Imbii: u n Jci the d im m it- m c o
coiiteniiitared in section l^-? o f the
Tax Admiuistraiiot] Au;. ftu die
auujuni liiuL m ust be w ithheld uiider MibsecTinn 1\ w ilv if the p u r­
chaser knows or should reasonably
have known that the seller is nor a
mid [fails to w ithhold nn>
am ount iK required by su b sec­
tion i l ) . ihm purchaser—
ta> is personally liable for th f
pa mii tu t of the am ount
w hirh he nr 'lie failed In
withhold; and
ibt\ must pay that dincmit lo the
C nfinniuinnn nnt laiertli.m the
date on which paymenl should
ba'hc t . \ n uaik' if [he iuui'iml
!iad in fact bern withheld '
( a by ihe subsuiution for subsection f of
th'.- following iubiKilOD,
iLf9) If a ]Tiirtlia:sLT frails !i> ]i*y am
amount contemplated in Hibsecfion
{1> to the Commissioner wilhin [he
p o o d allotted for payment iu Lemu
o f subsection (4), ilial purchaser!—
J40
.Si iJ49!
Aft -Vo. :s or ion
MO, find vrfir
GOVLKNMtNT QAlfcTji 4 JULY JOtJ
T.nc AitmLmttraEtnn ^ ft ' 1115
S h ort title
Extent o f :i Liki'] 11']11eL'111 OI' re p e a l
un
Is ilnhir f o r Interest at tlie
p ir.sm h erl
rate
oil
any
iiiiium il <n rL-j[; 11:r1ii iy ra k iila te d fr o m [|u- (Ja\ fo llo w in g
Tin? Inst d a te fu r jiiiy m o iil To
lFie1 i):i[e
Ihal the iiiikiliiH is
re c e iv e d
by
ilie
C o m m is ­
sioner: n m l
f l/ f ] mn.st |>ay a penally equal to ten
pel' cetit of | thill J the nmcimil, in
addition lu any utlici pcunlty a
charte lV>r which lie or ilie n » y
be liable UodtK tiiis Act."":
( d ) by ilie deletion oi' Q ib iu lio n (10);
and
fc
J ii ti.1 :-:il!jh1i 1m il>]i Sir hubscc[i[iii (13^ o f
[he follo w in g subsection:
“ (13) The [purchaser,] estate
Agent or co m cy an ix x j . a s Ilie ease
iiim\ b f, B ihi neciivhr any mimimi
paid hi term s o f subsection i7i nr
(12) from tilt seller] Vvtiu paid on
amouni iii reims o f Hihsecrinu h12)
is deemed to be a withhold hip
apcnt i"oi iiiiiiK)SLL> o f lhe T hx A d ­
ministration Act. "
^ m em iin en i or section 37H
J4. Sec Sion
O f the Income Tax Act.
is b e it b y amended —
i f j ) by the substitution in subsection i2 t j
for ihe words follow ing paragraph i b>
o f lhe follow ing words;
" lilt : C 151l i! [5i s i l 51ll_-v lim y , n o lu ilh -i 1:i: iidi i iLr rlie provisions o f section
[7 9 ] 9 9 o f ilie la x Administration
Act, mise assessments in respect oi
lIlhj L'uinpiuiy u? ii' slicL com pany
were noi a qualifying company.";
and
( b ) by ilie dcictiun o f >nbsccl.io[i (22).
1962.
kejieat o f section 40
4 5 . .Section -UN o f ih e In co m e
1 9 (52 . is h e ie b y repealed .
'['as A c t ,
.Si iJ49!
Art .Vo. :s or ion
\f>. find yrfir
GOV LELMMkNT GA/El'E'J i 4 JULY JOLJ
T.nc AitmLnitlraEtnn ^ rt ’fill
S h ort title
E xtent or am endm ent or
A m endm ent or sec Iion 47C
*16. Section 4 “f.' o f the Income Jnx AjCtj
19G2. i j hureby ameotfcd by lire subsuiuritm fin n t d i u x t i o o (2) <»r rhe following
subsection:
"(2) Tint seed on does, aot apply to
n u y iiinom ilji juurjii. u d 1jy y r D t o l i s d In
the taxpayer —
tat from w hich tfue fiili am ount o i lax
lisrs U-Tal WltliLcld by a resident in
te n m n f section -1711: o r
(b) [Ln respect o r w hich Ihe tax has]
u liitlj h av e been recovered from a
reside in fin lii.s or Ijlt personal
m p m 'in 1 w ho is personally li.ibie
for the am ount in term s of
section 4 “ G 0 ) . “ A m endm ent o f ie cllo n 47F
J7. Section I T o f rhe Income Tax Act,
1962, ii hereby amended by the subsntu[ion for subsections (1.) and (2) o f The
Jol 1l™ ii ii! si lIihccI ift m :
“ U } A taxpayer must, together with
[lie payment contemplated lu section
■17C1L), submit it) liie C'onnuissiotier Ji
reuuii [in tin1 m m tnrr mill form :mtl
Containing Ute int'ormjitici! as m ay h i
p r cstiib e d h> U h C onim issioiuir].
(2) A icsideuL who puys lu liie
Commissioner any Amount in terms o f
section J “ fc'. must together with that
puyiiiein submit lo die CcratomiOB/i a
n l t m [in tlie m anner nnrl form and
ron iah iin g the in form ation os m ay lie
prescribed l>j die C o n n in ssio u eri"
A m endm ent o l srriion 47G
48. Seetion 4 “G o f tlie Iueome Tax A cl.
19(52. i.%h e r e b y .inieiL ileil—
ini by rhe substitution in iubseciiou (1)
for Lite words follow ing paragraph : In
o f lh'_: luU n’.vim i wtirds'
“ is personally Linhle for pay men f
o f that am ount o f tax 1, wli Ech m ay
b e tcT o v em l from Ilint resident
in [b'nus i>F 111is Art as if it fa :i tn \
du e hv ilinl resident! in accor­
dance illi Pin LA o S’ Chapttt 10 of
rhe I'm A dm inistration A cr.” : and
ibl b y tlie deletion o f subsection (2J.
Hi
(^VERNMEN’l CiAZt n t 4 J ULY LLU12
N i JJ4 9 I
Act .vd. : s or 2011
Mo,
fin d
y rfir
T.tk AftuunitfraCtnn A rt ,
Short title
Til 1
E xtent o f li [i ki'i 11 ]11 el' i)I or rrpral
K fjin ii o r sceUQiis -J7H and 471
J 9 . Sections 4
and 471 o f the Incom e
1961. mv heivby i t ^ u M
Tax A cl,
A m endm ent o f w c tlo n 60
50. Section 60 n f llie Income Tax Acl,
19G2. ir, h ereby am ended
fii) by llic uituiililliait lur lubseeliuit 1. 1)
n l ' l b e 1( iT11iw in s ’ ?ii l i n e d i< nr
, 11 D onations tax shall be paid
to the C om m issioner [u lth iii three
li ion til by the* jjticI dJ llie ei kenill i
foLlowine tlie m onth dui'ins* w hich
,i donalion takes effect or such
tonne t period a? the C o m u iijsiu titi
m ay tillow 110111 Llic dale upun
w hich rhe don ai ion in quest ton
talies effect
and
(b) by Lite *tibt>tutsi 1011 fur subsection (4)
o f the follow ing subsection:
"<4.1 Ih e p aym ent o f tlie tax ill
term s o f subsection 0 ) shall be
jiDtim:i]u n i by :h rutiun [ l i t Slirh
form lii iu:iy be jjrescrilwd by Hie
C onuM festorurj "
A m ei til li tent o f srt'liou 61
51. SuHidiI fit uf [1t^ T tll-'u :Ts** A<St
l^SH. ii hereby am ended—
<ei'l b y ihe substitution for paraerj]sfi ( a )
ol’ ibe fo li t m u s paraunipti;
~'iaJ any inference in [s u h v trtio n
<1 i or 12j o f section sc ivttfyfour, p n iiigrap h (c) GTfit/ o f
$ n b w ciioii ( l i o f section
s f v m t y - j i v c or] jioiograpli
itTj ot (cl o f ihe definition o f
‘reptuaeuiabye m xpityei' hi
a c tio n foui?l I t o the incom e
o f any p eiso n o r to tlie inoss
ineom c rceeived b y o r accm ed m o r lh f^voiu' o f »uy
person alia II be deem ed lo
include a reference lo prop­
el ly d isp u ted o f by any p er­
son u n d er n donation o r to the
Vnilne o f stich properly, as The
cunicxt uiii> re q u ire ;'': titid
•>n b y ihe delerion nfpanipxaphK (hr. (c.)
(r). ( f i and (h).
GOVLELMMkNT QAlfcTti 4 JULY JOt J
T.nc AitmLmttraEtnn ^ rt ' 1115
A ft .Vo. : s or io n
MO, find yrfir
S h ort title
E x te n t o f :i li ki1] i r] 11el11) 1 o i 1 rep eal
A m endm ent o l see lion 62
52. Section (32 or she Income la x Act,
19G2. ij hereby amended by dm subsliluritm fin till hhtu linn ( 1j o f rhe liiliimiiiLsnbsection:
" (4) 11 the CommisltOjW is o f the
ijpmiiiiL 1Li:Ll llic iiiijoiiTil kIkhvii in :liiv
return as rhe fair market valu e o f any
property is !ess than the lair market
vnltoe o f d ia l property, lie or she may fix
rhe fair maiirei v.ilue o f that pioperty
and the value so lived is[, siibjert to
lhe provM & tt o f scctiou 0 \ ] dcenrud
for rhe pm po^es
ihis Han to b e lhe
fair market valu e o f Kirch p r^ n rty^ ’
Keprnl or section 63
53. Seclion G.i o f lhe Income Tax A ct.
19(52. i* hureby repeated.
A m endm ent o f sec Mon CUl.t
54. Section 61M nf rhe incom e lax Act,
19r32. is her eby amended by the deletion
<kTsub-iecnon j (9) iuid i l l ) .
A m endm ent o f seclion 64K
55. Secrron fi-IFv o f the Income lav Act.
19(3!!. is hereby amended by the deletion
o l sub jccnons (31, (5>. (tit. (7) aud
A m endm ent o f seclion t4 L
5ft. Section 641 . o f the !ncnme l ax A d .
19(32. is hereby amended by the substitu­
tion for tlie wonts preceding pmugfiiph ( a )
o f tlie follow ing wcjjjs:
TIT! N'onviihstandin® the provisions
o f Chapter 1j o f tlie la x Administra­
tion A c t it— '’.
A in e iid in eiil o f se c lio n fc4M
57. Section 6-1M or'ihe Income Tax Act,
1962. ii hereby amended by the substitu­
tion for the WOrdt preceding paraarnpli fn J
u f iEil; fbUuwtUR w o r^ :
"[If] MotwitEutsmlini! the p rovision s
o f Chapter 13 o f the Tax Adininislra­
tion A cl. if — ",
A m endm ent o f sec Mon fi-lli
5B„ Sec non 61R o f ill* Income tax .Acl.
19(32. is hereby amended by the deletion
u f subsections (3L (41 and (5 ).
’■W
(to V E R M M tiv i G A z t r r t
Nfl W f l l
No. niifl year
■*j u _ v
T ax A d m m u tr a lic n
A c t N t. W a t l n d
S b o n illle
j« i;
Art. T013
F.Hi'id o f imifiiriihL'iJi ni' i'v-]n-:it
R epeal or se ttio n 05
59, Section 65 o f the Income fax Ac!.
1962. i* beixfcy repealed.
A m endm ent o f section 66
641, Section 66 at the Income I'jiv Act
1962, is hereby amended
ii. b> tin: jitbvlilusion Lo: the heading u[
ihe fntluu Ihe lnuifiiiff
" N olire lij C 'om m r^ in itr rr(jLiiniii: retum*- for h r b d h i I of
fLsi\rs,l mirmal l;j\ u u tlerlh K Acl
jand iim n n ir or funiK hin^ re ­
turns and im erini returns]":
(bi l>j. ihe d k titu lio u fix sdtn.'cliou (1)
o f ihe luUou uju subsection.
L,( 1) liie ('’omnium oner nmsi
annually g iv e public notice ilh al
jilt | {if the p a w n s who |sr v jKrson;dh nr in n re]iri*^E,iil:illve
liable to tiiXXtton under
IhLs A cl or w lioj arc u quircd by
lilt
Ii) Smm-h tum nis for the a&^essment o f noaut]
taxL, must furnish returns] within
tlie period prescribed in tlksiL noricef, u rsn eh tourer |ii‘riw l Its the
C om m issioner m ay a How, for Ihe
p u rp oses o f assessm ents in rc<i|>i*rl of Ihe yeai> o f H^i^smi'iil
specified hi that notice]
ff j by The delciiuu o f subieetujm c JA :■.
(i> * n d (5);
frfj by the substitution for subsec Hon
f
o f the follow ing subsection'
1L(5A ) .Any person who i i uol in
tenn^ o f ihi* seel ion n:i[iiTiwl Ii)
fiim iih a return in respect o f any
year o f assessment may for The
purpose o f !ij-,ii:j [his] llial per­
son'* liability for jtavU u m i no::ili] tax dfteim ined on assess-menl
fiimi^li such 3 ien;m wiiiiiu three
years. a her ihe end o f such year of
assessm ent":
f n b> die deletion o f subsections ' 6). i 7 t.
(TA), r a j . m . (7D ), ( t o . fS). (9f.
(10) and (II):
Ni i.'49!
Art .Vo. :s or ion
No. and vrfir
GOVLELMMkNT CiA/t'f'J i 4 JULY JOtJ
T.nc AitmLmttraEtnn Jt rt 1f]] 1
Short lifts'
F vtenl o f flMCndnnW or ■’('pr-fit
(f)
by llie sllbarituiion
m bseclion
(
13)
fur 11m iAtmLL, jincciediiiE n u t ^ n p t i
(nl
in
o f die folio wing words“ (1 3 ) T h e re tu rn lo f ln f o m e ] fo r
p n m m l
p e rfO a
U X
in
assessm en t
In
liu
r e s ;|ie c i
h ih i.
o f
s lia ll
I lj
any
a
I
liy
u n y
ye a r
Full
o f
an d
irne] relum— ' \
<%i b y
th e
d e le r in n
s u b s e c t io n
tit l ] l l l e n d
( !
of
in
th e
p r o y is
3 )fftJ o f th e w o rd
0
lo
"o j "
p t t iit ^ it j] ;lt f i ? j ( i i ) ,
{ h i by
the addition to tlie proTTSO lo
snh section (lJNiiJ Of die follow ing
ptuujnaph:
“ fr-l
a
p e rso n
i u ticknlt. a r a l u m
ccases
io
be
,i
15r111 lit: h kkIu ft hi
tlie nertod commgncnm oil the til's t
Hay o f llial veav o f assessm ent and
uitdiiiij on cl tc d;i) pteecdiny llic
d.iie tliflt the pererm ceases ro he a
resident; or‘L:
(ij by i!ju tuidiiion o f the fo llo w in g p to vi<a> io su bsection (l.i)fA)r
“ Provided that where a comg acy eeast;* to be H Te>it!ei)l.
r e n tin nh.il] tie m a d e fm 1 the tie i'in d
■. 1.'i li I: ■-Qt i. ;■_ ■■' ' In: :'i. ■■; ' I', g f j f c j '
tiiuineiiii year and ending on the day
jii£££i!iiu£jh£_thMej!mMli££(>in2^m^
ceageg to be -i re&idenj'
the subs! tttiti nil tor subseclion
I l?B> o f tin: follow inn m ille d ion;
“ (1UB) I'or the purposes of
subsections [l 13},] (l.iA )[,] and
fl3C> [anti ilJ t.|. ihe word 'inLonie' must be txmstnled as iucl tid­
ing any aggregate capital gain or
a^eregale capital loss ": and
((■) bj Ihe deluiuit o f aubrcctkwui U4.)
and fi
U ) by
.Si JJ49I
(^VERNMEN’l CiAZt n t 4 JULY LLU12
Act .vd. :s or 2 0 1 1
T.tk AftuunitfraCtnn Art, Til 1
Mo, m id yrfir
Short title
E xtent o r :i li ki'i 11]11el' i)i or 1’i-jicfil
A niendractil or section 67
61. Section 67 o f she Incom e Tax Act,
1962. is hereby Amended—
m ) by i i: substitution ;j.n Mibtvcrion ( l l
o f the follow ing subjection:
" f l) Every person who at any
tiw cb w iD ii!! linbL- for Miiy nonAg]
tax or who becom es Itahle to sub­
mit any return contemplated in
□eel ion 66 linn! [. Within 6 0 days
aflfT so b e r im in g 9 E:t\|i:iyer.|
apply to the Commissioner to be
registered a* li tuxpaver in neeuidanee trith t ’hafiter -t o f the lax
Administration A ct.'1; and
<2>j by tire deletion o f r,ubsectsons f 1A)
and (1 ).
Repi-iti uf sections 67A , 69. 70, 70A . 7f)B
and 71
62. Sections G7A. <W, 70, ?UA, 70B and
71 o f the Incom e Tax AjcL 1962, arc
liOI'^lrV HC|H.LJ!l [.‘{I.
A nicndm eiU o f section 72 A
63. Seciion 72A of [he Income lin t Act,
1 9 6 2 . 1 ? hereby amended by rhe subjtitu1 l l > i i J■:n
n l b c ^ t u n ] {J} i h j
t l i L L f r t l1 ( T V ^ jr ;£ i
subjection:
J‘( l ) Every resident wlio on the last
day o f the Ibreiun tax yetu o f a COO*
trolled foteign company or immedi­
ately before a foreign company ceases
to be d controlled foreign ti>iupiniy
directly or indirectly, together with any
connected person in relation to that
resident, holds at leas! 10 per cent o f the
paitictpatiqa lights in any cuutrolk'd
foreign company (otherwise than indi­
rectly through a company winch is a
resident), must submit to the Conunisn o iio r [suoli | m return [us m ay he
prescribed by the t'u iu m i^ io u er] "
R epfiil o f sections 7 3 to SO
64. Sections 73. 73A . 73B. 73C. 74.
7-1A 7-1R. 74C. 7 ID, 75. 7VA. 7.SB, 76,
76U. 76C. 76D.. 76B, 761', 760, 7611. 761.
76J. 76K. 76L. 76M . 76N. 7GO. "6 P 76Q.
76R. 76S. 77. 73. 75. 79A, 79S and SO o f
the Income Tax Acr, 1962. are hereby
repealed
J5 4
( ^ V E R N M E N ’l C iA Z t n t 4 JU L Y
.S i J J 4 9 I
Mo, find yrfir
LLU12
T.tx AftuunitfraCtnn Art, Til 1
A c t .v d . : s o r 2011
Short title
E x te n t
o r : i Liki'] 11'] 11eL' 111 f l l' 1’i-jiC fil
A m endm ent ol' section SOU
65. Sec (ion SOB o f the in com e la x AjCtj
19G2. i j hereby am ended by lire subsll in­
run i I'lh n td iu xtioo (2 ) <if rhe Eli 121 i11lt
subsection:
"(2) Subject (o the time limits imptwjtd bv Jsir lion 7^,
And
S i i 2 Ifb )}
se c tio n s
y9.
1OQ
anti
104-; 5 1/
o f rhe Tax Admimstfgtjtyfl
Ac), die CoiiuhiaaiatiEd: musl tittikc
compelisqtiag n^ustmsQts ili.n lie or
■ilie is salfafied .lie necessaiy and approp naieiu ensure [he consistent n eminent
o f all parties in die itit|>eii]U'wthle
avnidanee amtJlgtment-”
Krprnl or sttfjftnS SOk nod tflJM to
S9.w/i/
<i6. S ectio n s SOK. SOM. SON". SCO. BOR
80Q, KDR. SOS. SOT. SI. S2. S.V fi.iA, S I.
B5. SGA, 3 7 . SH. SKA, SSB. 3 S C , S * D .
SSE. 88F. S8G , 3 S R S9, 69£>rj. SSftr,
S Q q iin t, S Q q u in , S^.Tr.i iiiiil % 9 ic p t a f ihn
Incom e lax A ct, 1962. are hereby re ­
pealed
Ainei nil! tfi.it or srt'liou *J0
li7 .
9 0 11f l l i c T n c o m o T it x A c l .
1962. i i hereby am ended by the substitu­
tion in su bsection
(!)
for tlie words
preceding lliu proviso o f the fulluwiiist
words:
“ Subject to ihe provisions o f tliis A ct
and die Tax AdtniniSttalim i A d .
Horn ml nix [EOtbcr tliftn d onations
Lux) jlikI buy interest payable In
term s o f sertlon
2 1 or S 9 q u t i r , sh a ll
bej i^ payiiblet—
{&) tn im y reprPM'rilalivi1 tH.tpaJW,
liable lo assessm ent or for Die
pn>niiciit or surb tnx or I n t n t it
under Mils Act or unrlrr nny
previous liirom e Tax A cl;
< o Iti respect or nny o ilier Income
an d in nil o ilier f nscs.l by die
r>ei,!i«n bv w hom [Ihel a n y taxable
incom e k received Or to whcuu oi
in w hose hi’, hjui ii accrues or w ho
ii lecalty esirided In die receipt
thereof” .
.Si JJ49I
(^VERNMEN’l CiAZt n t 4 J ULY LLU12
Act .vd. : s or 2011
T.tk AftuunitfraCtnn Art, Til 1
Mo, find y rfir
S h o rt
tide
E x te n t o r :■Liki'] 11']11eL'111 O l ' 1’i-jiCfil
A niendracnl or section 9 1
68. S ection y i o l she Incom e Tax A ct,
19G2. is h u rd jy Amended—
(a) 1>y [lit ileletimi o f &ubu:ttiDt^ ( 1 ) and
(2): and
by rhe subs! tuition tor iu b se ilio ji (5)
ol lli'_ follDU mu ui1isr[-lini|
Ll(^j So m uch o f a n y i n r e r e ^ T
payable l i i term s o f J.SPClion
cixhtf-nini ] C h a p t e r 1 2 o f i b s T a x
A dm inistration Act a s relates t o
s u c li
p o rtio n
o f any
la x
as
i^
in
ten tid o f subsection (4) tc c o l enible
from ihe asseTS re felted to lii dtar
iiihsecTion m ay also be recovered
from su ch assess.1’.
Rejie:il (if sections 91A lo 101
69. S e c t i o o a S M , 9 2 .9 3 . 94, 95. 96.91.
9ff. 99, 1f>0 and 101 o f The Incom e Tax
A ct. 1961, are h ereb y repealed.
A m endm ent o f kit !inn 102
7 0 . S e c tU m
I9fi2,
tai
ib>
1 0 2 o f [111 I n c o m e T a x A c l ,
i% h e r e b y a m e n d e d —
b y ilie d e le t io n o f s u b j e c t i o n
by
The
jn b iT J tn tio n
fo i
( !);
s u b s e t lio n
\ 1A j lj( iiilj fallow ing ^L.U.L^bo,,.
L,( 1A) T he (.'onuuissiotier m ay
reluse lo authorise a refund t m d e L
rsiibwcrioii \ 1 ll section 190 uf (lie
I.i x A dnun tsT i iiT s o ii Act. i f [lli:il
person]
f a ) i b i i l v e r s o n liiL!> failed ! o fur­
nish a ilU lth [for an y ycnt1 of
:i'isevsiiif,u ll a.% required [hyl
lii rejm s o f Eliis A ct, iinTil TliaT
p a w n t u s luL unhtd such ieTluti as required; or
lb) (h a s failed lo fu rn ish llie
Cftam Lsslourr lit ivrfdii^
w ith p a rtic u la rs tif th a l |h t t o n ’s b n iitin y Licruuul o r
iireonnl w ith a sim ilar b u tt,
uni''hi to en ab le tlif C oim nlssim icr It) tran sfer a rrlm ifl, if
any, lo Hint account | ihe re­
fund is claim ed b v lIllil peiauu
after a period o f three vears
after The end o f the vear o f
asaetrtucut. in i h e l 'l i .i c w here
JiK
.Si JJ49I
(^VERNMEN’l tiAjCL'E'J t 4 JULY LLU12
Act .vd. : s or iuii
T.tk AftuunitfraCtnn Art, Til 1
Mo, find yrfir
Short title
E xtent o f n w iid iiin ii or rrpral
'.ll.lt fKRtOll WHS HO! !Vt|tliied b-\'
any ttnviKion o f iIi Lh Act in
furnish .7 return o f iticonie for
that year o f assessment and did
[ml iL'inln MUtJi m lelum [lining
ilie period o f iliiee y ea is liuce
Ilie end o f [liar veai o f assessniuul.": mid
i n by the deletion o f subsections (-). i i)
and (4).
Repent D f w l j w 101-V
71. Section 102A o f lhe Income Tax
Act.
is hereby repealed.
A m endm ent o f seclion JOJ
72. Ned ion 1(M o f rite Income lax Act
19(52, ii hereby amended
in) by ihv substitution fur subjcetidb iJ>
o f the foil owing subsection:
“ (4) | Any decision o f tbe f.’ontnnssionrr under subsection (2)
sh:il 1 he xuhjerl tn uhjeuim i nml
mHje.it. ;ind w b a jev trj If in any
objection and appeal proceedings
i^ljilinE’ ftlirrrlol In n dcniiHin un­
der subsection (2 i it is proved that
the agreement or change in
shiirelioklui^ or members' intmcifts
nr rmsrees or lieneIs!ciaries o f ttie
tmsl in question w ould result in the
iivuidiiuee or lhe puslpoiiciiicul o i
liability for payment o f any rax.
duty or Levy imposed by this Act or
any. previous b iconic Tax AeJ ui <1113'
01 her law administered by tlie Com ­
missioner, or in rhe reduction o f the
.tuiouni thereof, tl sk ill be piesumed. until the contrary n proved
in the turn: (hl'jinv klicIi htn-uui] 11:111 «r
change in sliaieholding or mem­
bers' interests ot trustees or benefietaiie? o f SUttl liusl, 1Init il h o been
enteied into or effected solely or
mainly ibr tlte purpose o f utilising
the assessed loss, balance o f as­
sessed loss, capital loss nr assessed
capital loss in question ui order lo
ttvuid ur postpone such liability or
ro reduce the amount thereof.” : and
( b l by lhe deletion of subsection (G).
J60
.Si iJ49!
Aft .Vo. :s or ion
MO, find yrfir
GOVtfLMMhN'l' QAlfcTji 4 JULY JOtJ
T.nc AitmLnittraltnn ^ ft ' 1115
S h ort title
E xtent or li [i ki'] 11] 11el' i)i oi' i’i-|icfil
R epeal o f seel ions 104. 105. 105 A , 100.
1 0 7 A a n d lilt
73. Sections 104, 105. 105 A, 106.
107 A and 110 o f ihe Income Tax Acl.
1962. LU'e hereby repealed.
A m endm ent o f paragraph 13 o f Flr.si
Schedule
74.
LrT7ijhii 13 nf llie FiJ il Schedule
io the Income la x Act, 1962. ii hereby
amended by the substitution ior subparam'jiph (3) t>i [111- follou iun snbpjuu triibp 11.
“ (J) Bvwy fanner who desiret tn
claim a deduction in terms. o f subparaiuaph (1). sIluII fwidi ]ii> fcturu of
incom e] for lbe year o f assessment in
which lie or she sold livestock on ac­
count o i conditions of draught or slock
disease or bv reason ol' Ins ur Lift
particijKiiinn in a livestock reduction
schejne organized by tlie (jovennnent[,
or ultliin such period ns the Com m lssiontr m ay allow,] nulify t b Ciiimmtsioner accordingly and [furnish] obiain
and retain full particulars in regard lo the
livestock so sold,'1.
Am endm ent o f uaraxmpfa IP o f First
Schedule
75. Paragraph 19 o f lbe Firs! Schedule to
lire Income T m Act. 1962. is hereby
amended hy ihe substinttion for sub|tarasraph ( } ) o f the following subparagraph:
■‘(3) Where lbe taxpHyer’s Nssessment
fur a rcleviuil puiud Inis in [eons o f
iecnon fN!i5) iil'llns.AcI; HIMo f the lax
Administration Act, become tina! and
conclusive. [tie CQttiUussiuucr shall nut.
merely hy reason o f the fact that the
amount determined under subparagraph
1.21f(?,L as ihe taxpayer's annual average
tn\nbli: (TICKJIU Ivliili 1!m111n l1 ill rehilion
to such period is incoirect. be required to
make a iiiitbet assessment upon rhe
taxpayer fin stub peiiud in lenrn o f
ieclion [79 nf ill is Actl y 9 o f that Aci or
to authorize a refund Under lection [102
o f lliis Act] 190 o f tlmi Ael o f any tux
overpaid in lespect o f such period. un­
less il appears tti.it such annual average
taxable iueonie from limning should be
increased or induced hy aT teasr nix
hundred rand.".
GCFVLSLNMKNI OAjSETTE, ■*JLLV JO!.’
T.io: A<i»hnii[rAlKin i r I 1n1]
Art N*. 19 ol WII
Nn. niifl ir itr
Short iti If
F \ U i i l o f u n t o l I i i i l ’ in o f iv](i-Lit
A n e a d u ie iif or p a r a g r a p h 20 or t i r s i
S c h e d u le
76. Pdniur<iph 20 o l the Fiisi
In ihe t f f A q c Tar's A ct
ik lie ilu k
L9fL2 i i hereby
am ended —
r<u by the substitution lit subpAF3ar,aph
i 11 fiH [lie utji;L- [nvL'Liimu Hem ml
o f The to llm a n s w ords1
“ If [anyj a Taxpayer toihei ibait
3 COIUpjlity 1 \\llU d t W C i lULUlDL'
f ro m f a rn iin i; o p e r a tio n s j s u b m i t s
a n a p p lic a tio n to the (.'on m iltsio iU 'T } m a l e s mi e le c tio n a t r t in­
v a d e d til su b p a ra G ra p h : f i ) m d i f s<*
required proves lo ibe satisfaction
o f the Commissioner
(b } by the substitution in -ul’pfli.iw.ii’li
1 A n iluii i ( a ) i>r ibe IuIIuh iri iz ilufli
L7flj .Aov Taxpayer (other fJiati a
company! may[, al Ills o p t l n u .
uuiki- w ritU n applicallon lo the
Ptm im lssioniT l olecr for the nor­
mal tax payable by [hi!H| tlie !axyuyei Lo I t deLeimiued uudet tliis
paragraph.” ; and
(cl by the su b sta tio n i[i subparagraph
fur iLie Wtrtds pivcvdiuu
n i h S t m (i) o f The f o l lo w in g w o r d s ;
“ fA n vl J-or purposes o f such
[application shall be subinttlcd lo
the rDTunihelniKf nnrl s h a l l he
n c c o m iK in ie d byl elecTion the Sollow uia records must be obtained
auif reliiiuedl— !: ".
A iu e u d m e u l o f |i:ir:iytn[ih 1 o f F ourth
S c h e d u le
77. Paragraph 1 o f the 1-ourth Schedule
to rhe Incom e T j i A ct. 1962. is hereby
amended —
nTj h y rh e sn h sT iru ito n m The d e liiim o i! o f
" r e p r e s e n t a t i v e e m p lo y e r “ ten item
<b) o f tlie fo llo n in s ile tu .
L'(i>l tn rhe case o f any [divi­
sional c o u n c il. m u n ic ip a l c o u n c il,
v illa g e lu a n a g r in c n l b o a r d o r
like- a u ilio r iti'l municipal iry or jury
body corporate or umncorpoijrted
(other than a company or a partHCx-.liijij. anv munfiHt]. stttc h r y (if*ficer or other person responsible
foi paying remuueianoji on behalf
o f w i d i [c o in i d 1. b o a r d , n u tlic r-
ityl m u u ie ip u liiy or Luxty; ". <tnd
JM
.Si i.MS!
Art .Vo. :s or ion
\f>. find yrnr
GOV LELMMkNT G A /fE 'J i 4 JU L V J0 IJ
t .1^ Aiin'.i nuh .^r; r-n \ r I ' 1115
Short title
Extern o f li [i ki'i 1 1 ]1 1el' 1 1 1 o i1 rrpral
( b ) by the subsiimtiun in ilie dclinirion oi
'']ieprese!]lM lL\i;
e n i ^ l o y c r '1 fo r ilie
words follow ing paragraph n i l c f ihe
lollowuifi. words,
"whn [Is n resident! Tesiile!, in
the Kepiihlic. hut no thins in this
definition shat] be construed as
lelievirni any p e n on Jioui hil> li­
ability. responsibility nr duly im ­
posed upon him oi her by Tills
SdieOrrk. m id ’',
A m endm ent o f p a in graph 2 o f FourMi
Srltrduti78. Paragraph 2 o f lhe Fouith Schedule
to the Income Tax Act. ]^ m2. is hereby
HiuLiKkil by Ilie insertion m subparagraph
(.1J o f The follow ing ileni after item frj:
‘’frA I any piemiimi paid by an em ­
ployer o f the taxpayer directly
uv iq d in etly fin [Ilu lu n e f il o r
on behalf o f ihe taxpayer to lhe
extern rhnr rhe p o lic y o f insur­
ance in retp ed u f which tlie
premium is paid cover!; the tax­
payer against rhe loss o f income
as ii result o f illnesss, iuiurv,
disabrlitv or unem ploym ent
and*'.
A m endm ent uf p ragr> i[iii 5 o f Fnrtrih
Sch ed u le
7^. Paragraph 5 o f lhe ! o u n l i Schedule
to th e I n c o m e T a x A c t,
is h e r e b y
a m e n d e d b y lh e s u b s titu tio n for s u b p a r a > nnph ' I i o f tlie CollowiuLr subpiiiagiirph.
“ i l i S u h je c r lo
lh e p r o v is io n s
of
s u b p a ra g r a p h (6 ) [ a n y ] , i f a n e m p lo y e r
I w h o fails to d e d u c t o r w l d i h o i d th e
full anioiiiil o f employees* tax ns pm * i d « l in p a r c |> r a p l i 2 s h a ll In'] is
p e i's o n a lly lia b le for the p a y m e n t [to tlie
C o m iiiis s io iiiT o f Ilie finiQUiilJ o f raup lf ly e e s ' rax u n d e r C h a p te r I 0 o f (h e la x
A d m in is tr a tio n A c t. | iv liicli lie or s h e
fails lo d cd u ft nr w iililio ld and] jhe
e m p U rv e r ■ihail F, suhjtri to Ilie p r o v i ­
sions o f s t i b - |M r a g m p h i l \ , \ pay th at
u u o u n l to th e C u i u n n ^ i u n u ' n o t hrter
rh an the rlaie o n w h ic h p a y m e n t -1 soul, 5
liave been made if the em ployees’ ta x
had in Liti been deducted or withheld in
ICIlll.-i I l f pbllUUJrtpIl 2 .”
26*
.Si JJ49I
(^V E R N M E N ’l C iA Z tn t 4 JULY JO[2
Act .Yd. ’S or 1U1I
T.tx AftuunitfraCtnn Art, T il 1
\ o . find yrfir
Short title
E xtent o f iiiiH 'inliiiL 'ii! or 1’i-jicfil
A o iciK lu en l o f im ragrnpli G nf F ourth
Srherhitr
SO. Pmujuiiph 6 o f Che Foiutli Schedule
Up ihe IiK d iih T » \ A ct, 19(52. is h e re b y
amended
by the substimtiou for subparagraph
(1) <if ihe foHimmu si ibpHrHjia p h :
“ U ) If an employer fail* 1 0 pay
any amount o f em ployees' tax for
which lie or her is liable within the
period allowable for payment
thereof in terms Of paragraph 2 [he
shnlL, in nth! it ion lo nny other
penally ur chnrye for w hich he
m ay be liable tmrter this Act, pay)
SAKS must in accordance wirh
Chapicr 15 o f tfac Tiist Admiiiisiralimi Aut. im pose ,i. p t ii u lty erjmd r■■
ten per ceut[.j o f such amounr.” :
and
(in by lire deicliou o f subparagraphs (2),
(2 A j (211). (J!) ntsrf { l>.
(t il
R epeal o f
Schedule
pnragrnpli
S of
Four ill
S I. The Fourth Schedule lu the Income
i'ax .Act. 1962. jn hereby amended by rhe
repeal o f paragraph 3
A m endm ent o f
Fourth Schedule
paragraph
HR
of
S i. Paragraph ! lit o f [he Fourth Sched­
ule to tiie Income Tax Act. 1962. ii hereby
amended by lbe deletion o f subparaymph
(4 A ),
A m endm ent or paragraph
Fourth Schfdule
UC
of
83. Paragraph 11C o f the Fourth Sched­
ule to tlie Income Tax Acl. 1962. ishereb)
amended hy rhe snfcstituiiori for subpara­
graph (2) o l [he follow ing subparagraph;
“ (2) Subject lo ^uirparumitpli (6),
every private company ^hall on a
monthly basis. in respeci o f every
direcfor o f that company, pay to tlie
C(ji iii ii iHHi [ii lut ;in flmLrtinl di'tciT! imud
in accordance with subparagraph (JL|.
which shah for the purposes o f [per­
ilous 79. 89Jjiy. 89/cr.
seel ion
90 [, 102 am i 10J.A] o f tho A ct, [mid]
paragraphs t. 4. t5, 11[, 12f, J-1 and 14
and Parts 111 ;ind IV o f ibis Schedule^]
and ( ’liapters fc !2 nod 1.! o f tjia Tax
A d m m k iratin n Act, be deemed ro tie an
mncnmt o f em ployees' tax wliicJi ivas
(toVERMMtiVl OA£kr r t 4 JULY ^Ull
la
Nd )>wi
Art ><s. W itln d
No. niifl vrflr
Tax Admmutralicn Art. T013
o f Amendment ni' rt ]>i-;it
Short illlr
rn jiiitn i <u be deducted or ^lU didd by
A * cmquuBy 2 1 a4 tn flliijK i IQtD in t <1 f
paragraph 2 ol ihiv Schedule "
lii'[ie:il o f paragraph
Schedule
12 o f Fourth
8-1. The Finirtti Scl leihil c In (lie [iKinnt
Tax A ct. 1962. is hereby amended by- the
repeal o f paragraph 12.
A iiiM idiutiil of par:tiir4]i]i 14 o f Fourth
S cb cd olr
85, Pam fiaph 14 o f ihe Fourth SehedLie 1 0 iJj-i lu c o u tT a x A c t, 19G2. is hereby
Amended—
Hrtn by the substitution in subparagraph
1I } for rhe words preceding item i / ii
o f ihe follow ing wards
"fE vffivl hi addition lo llie
records required in accordance
w ith Pan: A o f Chapter 4 o f r]ie Tax
AdimuutruUdU A ct, c v u ) u n ployer shall in leupect o f each
em ployee maintain a record show*
1
inp— "]
f h ) by l]iu -.1 ] ! t - 1 ililliih:1 fill -.til;|hjii'jiurapl 1
(2) o f the follow ing subparagraph:
"(2) Every employer shall when
li Li1k.11 l'j fiuy payment o f employees'
tax suhniit ro the {'ouimi ssioner
[such declaration con mining such
inform ation a s the Conmiiv>ioiuT
(MXV presrribrl a renini ":
(cl by the substitution in subparatraph 1 .' 1
fof Uie words follow ing nem tbl o f [he
folluvnnu nurds.
“ or within such lousei tune as the
Commissioner may Approve. R a d a
lo !hu l"<'[i[■lii- - i('i:•.■[ fsurlif li TtHini
[as llie CoimiiUskmer 11 1 lis nn*.
scrfbef.":
id) by (lie deletion o f subparaui^plL {41:
and
l et by ihe substitution for subporacjaph
tti.i o f the follouin^ lubpfuninapli.
L‘(6) If an employer fails 1 0 reiv
der lo the Comnussiouer a renmi
referred [ 0 m subp^iiiurjpli (31
wnhin ihe jieriod prescribed in that
subparagraph. (he Conmussionej
may impose under Chautcr 1^ of
ilij T A diiiini>trAliun Acl on lluii
employer [shull be m in i red 10
pmv] a percema.ne liased penalty
1710
Nd
IiN I
( t o V E R M M t iv i G A z t r r t
4
ju ly ^ u ii
Tax A dm m u tralicn A rt. T0 1 3
No. niifl vrflr
Sborl itile
F u lfill o f
im ifiu lih L ’ iit
ni' repeal
leqm il io] lor each inuuth liuii the
q n p lp y a
lo w lm ul .1 ^oriiptelf
return w hich m torn! m ay not exceed
10 per cent o f the [01 al uiifOiuiT oi
tn ip lo v ^ -/ L:i\ (li'dutt^d [if wilhlu?]d
of which vhould have been deducted
or withheld In.- the employer from rhe
reimmcrittiun o f
fur tlx
period [it Li Imil!, lit Ihe rr(uru re ­
quired In term s oF| d e^ nbed tn duii
iLibyaiuiErapb [:
tlir
CoiJHnissHHiFr rn:i> t Y t n i l Lii;it
Ittualry cr portion 1hereof tf lie or
sbo Is sim tlk d Itaal tlie c l m u i 'itanne'. irarranl ilj ’
A m endm ent o f pjiriigm pli 15 ni Fourth
SrliKtulr
S6. Paragraph 15 o f (he Foiuth Stbed*
InLiiiiii: Th\ Acl 1562. is luii'by
amended —
(tt) by tliu substitution fLu ;ub[Jiinii:[:L[i|:
< 1 1 o f die f o l l o w i n g subparagraph'
‘L( 11 E veiy person who is an em ­
ployer shall tiyply lo thu C om m is­
sioner [in su ch form as Hit1 Col 11n b s lo D H in a v prescribe | in nteoidunce wittr Chitpicr 5 t>l tile T it
Administration Act tor ree hint f ion
[as an em p loyer v,ilhm U dnys
o f i t r becom ing an em ployer, or
vnrhin sui'h further p rriod as the
C om juissitiuer n a y iipprote]'
Provided that where no one oi Mich
employer s d lq jb y c c i ii bablt tor
normal lax. [lie provisions o f [In’!
paragraph shall nor apply to inch
em ployer":
l b i b> [lie ik lcliim o f l u b v m p i ^ C
■--1 by the substitution for subparagraph
(j> o f the follow ing subpara 2j,iph
LJt i ) Every pctH U who llias
jtpptird nr Li dttn n -d lo h:nr
applied for registration niKlrr
^ ubpaniam pfi t i l l b fcfeutcredfrt
jui Liitiilnvi.1 si mil villiiu Jfonrleen]
days after [rliitu^ui^ bis
ild d rtss or] ceasing 10 btf au emplover. iiL'iify [Ll* C oiim u ^ iu im ui
ivrinng o f [l'i* new address or uf|
the fa d o f [lllsl the employer L a v *
mil eensed [0 be mu e m p lo y e d us
lhe t a w mi:i\ In1;
.vnd
n i t b y the deletion o f subparagraph I 11
111u [0 1) 11:
in.
GOV tfLVlMtM C iA Ztn t 4 JULY J0[ J
No j j 4 s i
Act .vd. : s or 2011
Mo, find yrfir
T.tx AftuunitfraCtnn Art, Til 1
Short title
E xtent o f li [i ki'i 11]11el' i)I oi' I'rp ra!
Kepeni o f prmi.mnpti
Srherlntr
16 oi F ourth
87. Faiim iipli 1(5 o i lln; FotBlh S d ttd nle lo llie TiiL'tmie T a\ Act< 1962. is hereby
repealed.
Ainrnrhnent o f paragraph 17 Af F ourth
Schedule
8S. Paraai.ipli t “ o f The Fourth Sched­
ule lo tlliJ In W iH Tux Am. 19(12, i ~ hereby
am ended—
(ai by tlie viibitimtion for subparagraph
(S'h o f (lie folloVUidg subpmuaiaph;
“ (S’) The Coinniii'iiuiK'iinuy Hum
time to Mine, bavins regard to [lie
rates o f normal rax as fixed by
Parliament Or foreshadowed by [he
Minister ill in'; or h t i buJjiel sialu:menr or as varied hy ihe Nfinkier
under section 5(3) o f tins Act. to [lie
rebates applicable in terms of section
6(2) nml
inu1 sucdm (upint
[In? Act and lo any odier factor*
having a bearing upon die probable
Liability o f taxpsyets for uoniutl [sis.
prescribe lahles for optional usf by
provisional taxpayers failing within
iuiy category specified by lbe Cumniiswinuei. w by provisional laxpavers generally, for ihe purpose o f
EatiiiLfllTiig [he liability o f Mieb tax­
payers for normal lax. and ihe OommiKioner may prescribe (he manner
in wliich nich tables shall be applied
together with the period for which
tu d l M i l l - Kn11 rtiHMin In fciifL1. "'.
ib) by (he deletion o f subparagraph (6K
and
> by litL' substitution fur inbpurji^iaph HSi
o f (he follow ing snhparagrapli:
"(H) JEvery person who is a provisjonal taxpayer shall [within 3(J days
nfler llit dole upi>n Miicli lie betitraejt li prm M nunl b n jh iy er,] ,npphy to ihe Coniuiissioner for registr.iliyii iM a provisional hixpayei in
.nidiKLtiiLf wiili CjvnDFT .' o f ilit Ta^
Administration A c t " .
Ni iJ49!
Art .Vo. :s or ion
GOVLKNMtNT CiA/t'f'1 i 4 JULY JOIJ
T.nc AitmLmttraEtnn JLrt 1f]] 1
in
\ o . find yrfir
Short title
E xtent o f n iu fiid n ifu i or ivjical
Amendment ol paragraph 1ISdi Fourth
Srherlntr
S*>.
IS o l lilt: FomMi Scliedule Ktllie Tiiiftiine T;i\ Act< 1962. is hereby
amended by rhe substinmon in m tparnjiiapli l 13(tfJ for Mii words precedina
lulqtHA ( i 1 [>r iIjj- U'Hthv. iijlj wiirds;
".my taninJ person [(oilier ih:m a
director o f a private com p an y )J who
ati llie lus.1 i.![iy uf llie year o f dascssuKtit
w ill lie [over Hie1 age of] 65 years or
oldei, i f the C oniaiiisioaer is satisfied
Ml:i1 such persuu'd Liixtible ineomu for
[ha! year—
Aiu^ndment of paragraph 19 of Fourth
Schedule
90. Paragraph t9 o f the Fourth ScEiednle lo lire Income T a iA ct, 1962. is himiby
amended —
f(j i by ihe substitution in subparagraph
( 1 ) foriEcmfiT,) of the follow ing Hem;
“ t/:> Every pinvi^ii hifhI I4)qinyer
(other than a company} [or a |h t son contem plated In pan*graph
1SH -slmlt. dm ine every period
with in which |M'nvisional tax r or
may be payable by [IlhllJ flint
provtsiuniil taxpayer
provided in
tliis Pari, [nr any e\te n sio n of
sitd i period granted in term s of
paragraph 25(2},] submit io tlie
Commissioner [, in such form as
llie C om m issioner m ay p re­
st1ribe,] (should tlie (-'onutiis-iionet
so require) a return o f an estimate
o f itu Hi1:d Iklx;iIiL- InLitW w h id l
trill be derived by tlie taxpayer in
respect o f tfie year o f assessment in
inspect ol" wliieli pru\moruil LitX is
or m ay he payable by [hinij the
taxpayer.”;
flOVkfcNMEM GAZETTE, 4 JULY JOL!
Tax Ajfimmiitral»cn Art. T013
1W
iih i
Art >"-a. 2B ot ;n«l
Vrt. nml vrflr
Short itile
E n r o l of aim'll dini'ijL n r repeal
\b> by
million lii nibpm numph
( I I fur He]] i (b j n f [lie lollim mi: Hem
"i b i E very com pany w hich is -i
provisional u x p a y e i shall. dunnu
n n y g ra iu l u ilh in n liu li p u n iE io n ajtm is nr n u y he payable hy if
as provided id th is Part [or a n y
t‘\tv iisio n o f svcli p e riu d a rn u le d
in 111n o s u f p a n tg n ip h
siibmil lo th e C om m issioner 1. Ill
su ch fo rtu a s lh e C o m m issio n e r
m at presrrilH*,] KlifiiiJil die ( milm issioner so reqiiile j a i m in i o f an
citam K e o f lhe lotul i;u w t'k iiittniKw ll k l v. :1) be derrvetl by 1lie a m *
jihiiv in ] £sp*:cl o f llic )em uf
avseiiiiienr m respect o f w inch
provisional tax is or m ay be pay*
able b y [hu co m p an y .",
(ri hy the subsitfutiou in subparagraph
i 1) for item (c) Qf [lie follow ing Jleni'
" f c j The am ount o f tuiy istiiiuilt:
subm itted hy a provisional tax­
payer i other than a com pany) during
Llic period icfc n c d lo to fwungrapli
2 l( I ifft i fn r a in ts ln ix k ili of su rh
perioil "nulled in trrn i'i ul
a rn p h 25i 2iJ. o r by n com pany ( i l l
prn\ i.-iiiiiuil Ihi{V W ) durbi^ |]hl ]lc*
riod referred lo ui paragraph Z/trrj
[or any i^Kten-^ion of ■inch perio<l
lii anted hi Icm is of jMingrnph
2512)]. shall, unless t!ie C’o n iiu t'sioner. Living regard to the cuciunstances o f lhe case, agrees to accept
;ui csdm H c o f a lo v .n iuiiwdiI. not
he levs rhan tlie basic ainouni appli­
cable K> die estim ate in question, as
coutcxuplalcd III ILCIIL Iiii,".
!iii b y ihe suhsiinuion in suh|uira 2 rAph 1 I)
foe snbsubitem (bbl o i item
®f
Ih i foUowiup wjbiubiTtm
“ / hb) Jtlu- in tn b le portion of nny
lum p sinn} anv junoi^r ooutemplated
in
Iswtlon
7AI4A) itiid] pare^nipli t<h
o f ih e definition o f 1gross
incom e' in section 1: and'";
DV
GOVbELNMkN! OAjSETTE, ■*JLLV J0[.’
T.io: A<i»hnii[rAlKin i r I 1n1]
Nfl JJ44I
A ft >--0. 2B o t ;n«l
Vo. niid vrflr
.Short title
F vteiil o f OwiutnuM il di' rfpcnl
f c ) b; Ilie >ubsiiiu[iun in nibp:u:iuiii]>li
( I ) for (lie [in i\is o Ll> H en iv!) o f tlie
fo llo w in g proviso:
‘'Provided dial. ii' an estimate iuiin i nr i t l iiiiL^r lie iii.i-.Il—
fat more than
months: and
tbi in respect o f a period that en J 1*
mute than one year,
after ihe end o f ihe JalesT lireceduic
year o f assessment in relaliou to
jLIlL estimate, [lie b u n t auxJUUi
,leteiTTiiiied m terms o f subitem i 1 1
and Hii 1 shall be increased by an
Hiuouul equal lu eiuh! pci CCUJt pel
annum o f thal amount. tiom ihe
eml (if su d l y&HT tn llie cm I ut llie
year o f assessment tn respect of
winch die estimate is made ":
if) by tlie subsdM iou iti ^uliparituiapli
i for subitem (ii) o f item (r) o f ihe
follow ing subitem:
&.1 item
“ n i l U K s p c d o f w Liielk n iio ite e ui
nssessmem relevant to I lie eslin ia le l a s b e e n is s u e d
by llie
C o n m i i i u o n e r u u l l e w lliun
d iy s hefni'e the rlnte
oil w in e In th e e itiu u ite
su b ­
m itte d to the Coiunihsioner-
Prauilti! dim w h dttbu fiptnmissiotser has ui respect o f
any estimate r e q u ire d to be
made bv a proviyioual i h . v
payer 1- sued to th e ta x p a y e r ji
return for the payment o f
provisional tax upon *iliich
tli-.- Coeieilu"Ioiii:[ bus uidic^terl rhe taxp.iyer> taxable
in c o m e for the latest preced­
in g year o f U c s m ia iL ju
respect o f which a notice o f
assessment was is s u e d p rio r
to the im u c o f such le tiu u ,
s u c h [ t a x a b l e in r o iiie ] w »
o f assessment shah at ihe
o p tio n o f ihe laxpayer be
deem ed
to
be
[thr
b a s ic
am mi ii I a p p lied ilf lu 'tich
estimate] thai l.^ie',.!- r if i
just veai o f a ^ e ^ m c m .
150VbELNMkM'!' GAZETTE* ■*JLLV J01
T.io: AdubhnuErjilKin i r I 1i'i11
*'W)__ Nio J>491
Art Pffl. 2Sot ;n«l
No. niifl vrflr
S t » n iti If
F \t i ii l o f niu tiid ttrO l nr repfal
(g) by [III; iiib'Cmiioii Iut ^ubp:u Humph
i'2) al'liie fnltn» iiiE ^u Iijkietiui
■■■!2 > If any pro v ision.il taxpayer
fadv to submit any estimate .v,
r^ijmTvid kv \iibp^rniiia|i!) (I ) ill.
C'flftimti^ioner may estimate the
la u b le incom e which is required
lo U.L estimated [, and such fitiliu Ip 'IkiII l>c tim.il .nul rimrlustvej ": and
til- try lli^: lubalilulipu Coe >ub]ja(;iui~4j’!t
(3) o f the follow ing uihpara?raph
The Commissioner may
tall ujxwj an; provisional m spayu
1[>j llMi fy shy KliitmK iiinite I■v 111■11
nr rjL-1 in li^ins nf Kubjiuibu»4i]ih ( 1 1
or to furnish particulars o f Ins or
her incom e and expenditure or Any
oilier puinculais ili<n limy be re­
quired. and. if the t'onu in i'i toner is
dissatisiied wtih the said estimate,
lie or slit: innv ifiCrctuc llie lkilluujI
thereof to hicIi amount as lie or ^lie
con-iiders teasouable [t ail<! I!IP
csl in in le ns Increased shall b f
IiilliI :i ml ctTOrlmlVf]
A jucudiurui or piirngrnpu j o o r t o u r t u
Sch ed u le
H I Purijmipli 20 ol' die Fourth Sched­
ule to tlie Income Tax Act. 1962. it herebv
amended
(at by the substitution ioi [lie heading ol
the Itilliiuiim licfuliiii;
A D D IT IO N A L T A \ j P F \ a l t y i n t h e e v e n t OF TAX
A BLE IN C O M E BEING I V
D E R E ST IM A T E D .
fbi by the ituh&tinmon m sitbparaarnph
( I ) for items t a t and tbi o f the
foticw n ii items:
l<a) more thin HI million and
such estunale is less lhau SO
p a coin o l lii: aiuounl o l Hi:
actual lavable incom e ihe
Commissioner may. i f he or
she is not satisfied ilia! !lr;
MTiLmml nf mil:1i CiUiii.iIl' wthl
seriously calculated with due
regard to ibe b c io n having a
beaim^ iJlltl-uii or Wav nul
deliheiarely or itenlieently
understated, subject lo ihe
provisions o f subparatraph
( i), im pose, in addition lo (he
normal rax ehavaeahle in
Go v l k «
No. nm l vrflr
m £N1
u A / t m . ■*jl lv j o i :
T.tc A<i»hnii[rAlKin i r I 1i'i11
Aft >--0 . 2B «r m u
Short itile
F v liiil o f n m n iilin i'iil n r ropt-al
rcipcct o i die taxpayer* l*X■il'lc iiiniiiEue Ifir mllIl y e n ul
a is e « m e n t. a [tin itu iiju n t l>>
w a r o f addlllonal t^x| t^ii-
al l\ [up] 'Jl|'.'ui1 lo Hi l jjct ccut
o f the difference between the
amount of normal tan as caHcillaicj ill TfjpCCl o f T-Hsill
estimate and the amount o f
nomi.i! lax calculated. Al the
A t a applicable in r a y e d o|
■-iii! h year o f asM sunetil. in
respect o f a taxable income
ctpial lo £0 j m ca ll oJ vuch
actual taxable income. And
(b) in EuiVotha uiku. lo x rlum L|i-'
per cent o f lhe amount o f inch
actual taxable income and is
also
llutn the
;ii IKmu i
applicable to lhe eitmlate in
question, as. contemplated in
p;tni>aHti;h W DfiJJ. Ilie tax­
payer shall. nihjeci 1 0 Ilie pro­
visions o f subparaeraphs (2)
and l3j. be liable lo p*y Ui lhe
Commissioner. in addition fo
the iiorQuil i‘H l. Itiii^cflL'lc m
rcipcct a t hi^ or her taxable
uiufmiu fin -null y<H
T iLS-
ie s s m e n t. ji ( p u a n io n ill b y
way o f additional tax] yena l ^ ci|Uiii Lo 20 jvji c-eni u l [lie
d iffe re n c e b e tw e e n ihe .m io n n r
o f tirm n a l r.ix a s ca Icu l.v ed in
re s p e c t o f s u c h e s tim a te an d
llic l o s e r
o f (lie
f o lio u u ni
am cu m ts. n a m e ly —
ii) lh e ;finouii! o i ik h iu iiI i; n
c a lc u la te d , ai ih e ra te s a p ­
p lic a b le in r e s p e c t o f s u c h
y e a r o l d M c su n cn it. in ic -
^x.tl of ii ljLVj'hlc niuiniiL'
equal to 530 per cent of
such actual taxable in­
come. and
tU
Nfl Wfll
(toVERMMtiVl O A £ k r r t 4 JULY JU12
Tax Admmutralicn Art. T013
A n S o W*t !□ 11
No. niifl vrflr
Short ill If
F \U 'iil o f iim fiidihi’nl ni' rt ]>i-;it
(ii) [he .trnuimt ul' rum nil l b
calculated in reaped o f a
taxable income equ.il id
k!u:li I n c EuiQUdl, ill iSic
raici applicable in reij*cl
o f aicb year o f nssessuiinit.";
fcf by the substitution for stibpuagraph
i 2 i o f lbe i'filo v ::, nibpftiajaapli;
"i2J Where lbe CtopimissiODei !■■
iiilislied lliul the imwmil v l auy
( d i n p t t r e fm cil lii in vu1 iji.u ,i£iv:ph ( \ ) < b i w as seriously calcu­
lated with due regard To ihe factors
liHviusi h li.'.irHitr iheicuTi :uut U n
not deliberiitely ai D t ^ n i l l ) miderstaied. nr if ihe Chm nituianer in
partly 10 -jaltsfied. [lie Commi'.'io:n;i may in his 01 Iilt ducKticHi
reimr llie [iidililifimil t;i\) penalty
or a pflrt [hereof ". and
‘ <ii b} Hit [klcLiuin-'i ■'iibp:i:.^inij|i <4).
A mem intent o f pnragm iih
l o mi l L S d iid B lf
20 A
of
Y2. Paragraph'OAofThe Fourth Sched­
u le lo [lie Iueumc Tim Act, 1962. is lieitrby
hi lie illicit—
fflj by The suhstrtotioa for die heading of
the follow ing beading.
“ [A D D IT IO N A L T A \J P E N ­
ALTY IN T H E E V E N T OF
F A IL U R E TO SL13MT1 AN ES­
T IM A T E OF T A X A B L E IST O M F TJM FO I SIA
i ht hy ihe uibtriTutiou for subparagraph
1 1) o f the follow ing subparagraph
“ i i f Subject [o [he pHiviunhil ul
^it^araoraphs (,2i and (.>). where
any provisional taxpayer is liable
for [he pj}iiieiil o f nomml Iju ui
respect o f any amoiinT o f taxable
incom e derived by that provisional
taxpayer dtu m i any ycai ot a i i t i v
mcitl b i i A llie eJb n atc o f hi - or hu
Taxable iiicome for Tliat year re­
quired Eo be submitted by' hirn or
hei tuiiier p<u<tum]jli 19(1 J diniiiu
rhe period contemplared m para­
graph 21(1 )^J. 32(1) or :_Vbi. a .
die case nmy be. u u su o l >uLauitlud
by him or her on or before The last
day o f ilia! year [or. If Til? period
,’S*
ftaVkfeNMENl QAjtETTE, ■*JLLV J01.’
T.io: AtiibhnuErAlKin i r I 1n1]
Nfl ! ''h |
A rt ,V«. 28 or Zdl l
Vo. nnd vriir
Short iljlc
F vtciil o f am cndim 'iil o r repeal
lor Uie p a y a m t of provisional
ir t s (tiie b y h i m
o r tir r in rfw p rrt
o f su c h p e rio d
li n ^ u n d e r p a n -
f in ]ill 2 5 (2 ) b e e n e x te n d e d
iln lf In fe r th n n
lo a
llic c u d n f s u c h
} n r . o n o r I r t - l e r v s n r b iL h ii-.] t h e
ta x p a y e r
s h a iL
[u iu k u e r
T .i 'i a b ie
u n le s s
th e
in c o m e
C om *
tliu
hn> c n iin ia ic d
v jid
u n d er p a ra g ra p h
1 * 2 ) o f h a s in c r e a s e d due a m o u n t
iliu iiw f iiu d c : p y iw a iiijjh 1 9 ( 3 ) , K
re q u ire d to p a y to
ih e
s io n e r , in a d d i tio n
l »
fo tiu im -
lo t h e u o m i a l
c h in a r a b l e n i r c s p c d
o l H k&
t a x a b l e i n c o m c . jf tii < in io u ] it b y
w a y n f n d d h i n m d i n \ l a ; k . h j i ] |y
e q u a l to 2 0 p e r c e n l o f th e a m o u n t
b y w h ic h th e n o r m a l la s p a y a b le
b y liim
o r h e r in rc s p d C t o f s i t d i
l a x a b le i n c o m e e x c e e d s ; rh e s u m
o l a n y a m o u n ts o l p r o v is io n a l la x
[.'■ml b y
jn th
h im
T A x a h le
ui
Ik i
hi r& q x a d o l
in c o m e
w ith in
any
p e r i o d a l l o w e d lio r [ l i e p a y m e n l o l
iu d i
p n tv u fc tttl
P a rr [tit n ii lii n
such
[ K r io il
lu x
undo
tt d v
L in y n t r t i s d m i o f
u n d fr
|ji i r n -
g rirp li 2 5 12 11 a n d an y a m o u n ts o l
e m p l o y e e s ' ta x d e d u c t e d u r w illilie ld f r o m h is o r lie r r e m u n e r a ti o n
b y h is o r h e r e m p lo y e r d u n n t s u c h
y e a r." ;
i,-i by The suhsiimrion for ftih|iaraaraph
( ’ ) o f ihe tfillowina unbpansraph
L‘(2l The Commi lio n e t may. it
he ur ibc is s a u c e d dial (lie provi­
sional raxpayer'n failuw to submit
such an estimate huueously was nol
due iv an intent lo c v a c k or jv -tpone ihe payment o f provisional
tax or normal lax. resins the svliole
or any part o f the In (trillion a I tax]
jv iu iIk
i! i] ] K i- i:d
ie ih L t
saaph (I)." : and
l i f t by ihe deletion o f subparagraph 13 i
:sn
Nfl ! ''h |
Aft >--0. 2B or inn
No. niifl vrflr
ftaV kfeN M E N l QAjtETTE, ■*JL LV J01.’
T.io: AdubhnnErjtlKin i r I 1n1]
S h o rt ill If
F \U iil o f iinii iiilini'iiL of i'vjn-:it
A n e o d u ie ia o r p n m ^ rn p li
F m in li S ch ed u le
23A
of
9& Parainuph 23At>fUn: Fourth S d ia lIn the Tmcdiiic T;i \ A t t 1961. i i licreliy
am ended —
t a i b y die sufetitutieri tor Vstbparaai^ph
i 1) o f flu: fnlluu in s iiib p u hut *tjtI i
'"(1) A ny provisional taxpayer
m ay for tlie p u rp o w o f avoiding ot
rcdui'ing Iii: o r La: liability for <ui>
interest w hich m ay becom e pay­
able b y him or h e r iii re a p e d o t aiiv
y ear o f a is e ^ m a il muk'i [s fflio il
S'Ji-frdjjjl C h ap ter 12 o f tlie ]kx
AdministratiOB A ct. elevl lo make
an additional pay m eat o f pro v i­
sional lax ui it s p c d o f tu c h year.*;
tn d
Jin by The deletion o f subpara c n p h (Z'i
il[c
A inriirhiL rnl o f jm rn g rn p li 25 uf F m irth
S ih e d u le
04. Pjhjilti ■i[■11 2S n f ihu Fourth Rdmilule to the Incom e lax Act. 1962, is hereby
am ended
( a ) by l!ill fubsliluttbu iur iiiibpaiiigniph
(1} o f die follow ing ^nbparaei'aph'
“ (1) I f a tier lhe end o t any
peiitul vniiliiiL w hieh proM siui m t
fax i* payable in te n rn o f tins
Schedule ihe C M u u isiio n e i has
u n d o die pru\i-jiuu> ul nubiJHrecraph ( j ) o f paragraph 19 in­
creased rhe am ount o f any estim ale
o f taxable incom e subm itted by
any provisional taxpayer dm ma
hiicli p ^ n n l. toiy ;i;lih;um.Ll
iiion.il tax payable a* a result o f the
C o m n fisiH ie i ha vide m ad# such
increase >tial), notwiiJi»[KJi:lmii ihe
[iro\:s!ons o i paracrapli^ 21 j. 22]
and 23, be pay ab le m itim such
p eiio d as lhe C u u uim siunei may
determ ine
and
■t>> by die deletion o f subparagraph r ' .
Aiii?iH iiiiriil o f p;irLiur:if)l! 27 o f F o u rth
S c h e d u le
95. Paragraph 2 " o f th e 1 otirtli Sched­
u le to tlie Incom e Tax Acl. 1 9 6 '. is hereby
imiendetl—
i f i i hy the siih.slinition fnr ^ ilijia i.ic n |th
U ) o f die follow ing subparagraph
M{1) I f any p im s io iis l tflxpnyci
fails to pay any anicnuit o f provivi ill Ui! 1m\ Jill
Iiith lit in -In: iliable w ithin tlie p en nd a Mowed for
(^VERNMEN’l CiAZt n t 4 JULY2U12
T.tkAftuunitfraCtnn Art, Til 1
290
.Si JJ49I
Act .vd. :s or 2011
Mo, find yrfir
Short title
Extent of amend i urn 1 or I’l-jical
payment thereof in terms of ptraUT.ipli 21 or 23, nr [i;i]"iLi:i)rli !5(t j,
for uitliiii auch extended period
35 the Commissioner inny allow
in term a of pnrngrnfih 2.^1 2). he
or slit1 iiulvI, in ;l<Il]i[iuu In any
other penalty or charge incurred
by him oi' her under iliK Acl. pay
[» llie CiiunnisshirifT] the Cony
missioner misst. tinder Chapter I?
oi lire Tux Administration Acfc ta t
lirne a penalty equal to ten per cent
of (lie amounl not paid.": and
•hi by the deletion of iubjjiuu jii'upli (2),
Inserlimi of piirnurnjih 2&A of Finirlh
Schedule
9(i. The Fourth Schedule tl> the Income
fax Act, L9G2. is hereby amended by (lie
insertion of the following paragraph after
p;ii;iLr[H[i1t 2fi
■'2SA. Payments by way of ernpJdyeei" lax and provisional lax mult for
lire puriwjses of liais Aci anil subiucl lo
rhe provisions of paraerajili 2 S. he
regarded as having been made in respcct ut’ the EMXiJavtf liability. for lux
whether or not the liahilirv lias lieen
ascertained Of determined at the date oi
any payment.".
Amendment of paragraph JO of Fourth
Schedule
SI7. Paragraph 30 of ihe Fourth Sched­
ule to the income tax Act. 1962, i$ hereby
amended—
(/t) hy rhe inlnt tuition in ‘.ubsectinii t i ,i
lor the words pieced ism subparagraph
(nj of the folio wina words;
"Am pmvnn u 1 shiLliiIEvi hij lI
without just canse— "l
\b> by the deleliou iu subparagraph ( I (of
tlunis ii:). ftl). (ft) and f i J;
frj by the substitution for item fjf in sub­
paragraph 11">of ihe following item:
‘"(j) (fails a t ncglects to apply lo
tilt* CnmiFii^siinLiT for rejyytratlou as an empfoyw as
required by subparagmph
11>ofl beiinj a registered em­
ployer under paragraph 15(H.
up
N i JJ49I
(^V E R N M E N ’l OAZfcTl t 4 JULY 2012
Act .vd. : s or 2011
T.tx AftuunitfraCtnn Art, T il 1
2!*2
M o, find y r f i r
Short title
E x t e n t o f li[i ki'i 11] 11el'111 oi' 1’i-jical
[o r h a v in g so a p p lie d J M L .
<n
In ciolify d ie Q m ) -
liiL^^icnieL1 o f l im y i-lu m g e o f
his address or llie i'nct or hl&J
lu av in g CchjunJ In lie
jlci l_-: il-
p l a y e r as r e q u ir e d b y [s iilt; u i r : i ^ i n p l i i? ) o l' I hit) p n r n -
Ri’iipii) p sapttiph 15(3); o i ' \
and
n i / b y t b e d e le ti o n o f ite m ( J;J I n s tib p a t* ^
>n sipli (1).
R epeal o f pnrfigrapiLS 31 and 32 of
Four ill Sch ed u le
P a r a g r a p h s i 1 a n d 3 2 o f t h e F o u r th
S c h e d u le to (lie I n c o m e T a x A c t, 1 9 6 2 . a re
h e r e b y re p e a le d .
A m endm ent o f pnrfigrnpli 11 o f S }\tli
Sciicd u lr
^ 9 . P a r a g r a p h 11 o f th e S ix th S c h e d u le
to Llie I n c o m e T u x A c t. 1 9 (j2 . is k if iib y
am ended—
\
j by ih e d e le tio n o f subparagraph ( 4 );
>bt b y th e u i b s i i iu ti o n to r i u b p r a a t r a p l i
i(>! n f llie f[>tlnui]hsi
11( 6 } W h e r e
i l111fm■h LTiijhf]:
th e
e s iim a te
de­
s c r ib e d in s u b p a r a g r a p h 4 <a J is less,
tliiin SO p e r Cuul u f d ie
ta x a b le
t u r u o v e r f o r ih e y e a r o f a s se .is m e n i
l a r i d l l l o n a l ta x ] a p e n a l tv e q u g ] to
2 0 p e l c a l l u f llie d i fl'ereitee b e -
h v e e n tlie tax p a y a b le o n Ktl p e r
c e n t o f th e t a x a b le tu r n o v e r fo r th e
y e a r o f a s s e s s m e n t la id
d ie
la it
p a y a b le o u tlial esliintue inu-il be
e h a r e e d ." : a n d
to
b j tb e s u b s t it u t io n f o r s u b p o r a g m p b
( 6 ) o f th e f o llo w in g m b p a ra g ra p h .
" (£ > W lu n n 1h e C in [ ii ii ish itil ier
lias is s u e d a il a 5s e g m e n t in le ^ p e c t
o f th e p a v m e n l r e q u ire d n i te r m s oi
subtm rm iiapL i J 4 h n p c u a J lv ttm st
tsoi l*e im p o s e d in te r m s o f siib p a F a e r a p li (G }.".
Rrpra! o f p:irnur:iph ! 2 u f Si v lii S r lie d *
td t
1 0 0 , P a r a g r a p h 11
nf ih e S ix th S c h e d ­
u le t o th e I n c o m e Tax A c t, 1 9 6 2 , js h e i e b y
r e p e a le d .
(^VERNMEN’l CiAZtTl t 4 JULYLLU12
T.tk AftuunitfraCtnn Art, Til 1
Ni JJ49I
Act .vd. :s or 2011
Mo, find yrfir
Short liflr
Extent of niuciidiiif til or rcptiil
A iiifli Intent of parnRrnph 14 ol' Sixth
Srherlntr
101. PanijnaijLi 14 ui' lhe Sixth Sciicdnle l<i lhe Tiiftiine T;i\ Act< 1962. is hereby
amended by rhe substitution tor Tli-e words
pieced ma subparagraph ( n / of lhe follow;nu WOnlx:
" [ A 1N orwith.staiidnii! rhe twovis ip u s
o f Pail A ot Chapter 4 of the Tax
Administration Act, ;» registered micro
hiwiness must onLv retain n record
Of ” Repeal of paragraph 15 of Sivlli Hrill'dule
102, Pffl&grtipb 15 of die Sixth Setitdllie in the Income Tax Act, 1962, i< hereby
repealed
Amendment nf p;ira<j;r:ipLj 12-V of
Seventh Schedule
103.
graph 1ZA of tlie Sevetitli
Schedule1to The Income Tax Acl, 1962. is
heicbv amended by Lbc delcliuit uf sub­
paragraph (4).
Aniriuliiirnt ol pa in graph 17 oi
Seventh Schedule
J(J4 . Puinjaupli I? o t ihe Scvaub
Schedule tp ihe Income Tax Acr. I9f>2. is
hereby ametided
(a/ by lhe deletion of llic proviso iti
svUinni^niptl l l 1- :i[ii L
litj by the deletion of subp$nt£rapb (5).
Amendment or pariisirnph lfi of
Seventh Schedule
JOJ, Pin n^rftp! i 18 of ilie Seventh
Sciliciidlt In ill'-’ thCmnt Ikjt Act, I94S2. is
hereby amended by ilie substitution for
subparagraph U ) o f Hie following subjjamjinipli:
“ ( 1) i very employe f skill on the
relum referred lo in paragraph 14 of lhe
Fourth Schedule dtfclan: itiul nil luxubte
benefits enjoyed hy employees of ^uch
employer dtiriii£ the period in lespect
Of wfiich siieSi lelum \v as funiisHd. Bj*
declared oil ilie fam ilW eral employ­
ees ’ tax certificates delivered to such
employees or on |the] airy other return
[to lie fiirnislird in trnn.s nf section
691 as may be required by the Commis­
sioner.".
J96
A rt
.No i.'49!
.Vo. : s or i o n
N o . f i n d yrfir
GOVLELMMkNT CiA/t'E'J i 4 JULY JOEJ
T.nc AitmLmttraEtnn rt 1f]] 1
E x t e n t o f m n t u d i n f i l l o r rrpral
S h o rt title
K f jin il
o l'
p n rn g rn p li
19
of
S e v e n th S c h e d u le
Hf(>. Paragraph 19 ur ihe Seven ill
Schedule to llie Inttmie TftX Act. |9f>2, js
hereby re|>ealed.
A c t N o . 89 o f l 991
V a lw -A d d e d
T ax
A m e n d m e n t o f A c t 8 9 o f 1991
A il, i m
107. Tl le Va! 1IE-Added Tax A t 1,1 99 ELin
hereby amended by the substitution for the
Eerm 'officer', where
lu the context of
:j [k.'raiin taLio iw uiiuiiiJLi! bj llie t'tsicmiissjoner nt carrying out the provisions of
that A c t, o f th e te M ‘S A K S official'.
A m e n d m e n t o f s e rlio n 1
lO if. Section 1 o f the Value-Added Tax
A d . J991. is hereby amended—
( a) hy rite delerion o f the definition of
"business dayf\
(b) by llit: uitalitutioii for llie iL'fiiiitioitof
■'Commissioner" o f the following
definition:
“ ’t oimnissioiiCL'
meann
ihe
C:oiiuiusf,ion£r tor the South Afri­
can Kevenne Service appointed in
Ecmis o f see Eion 6 o f [he Soulh
AfllUIJSL I"-’. lJ1ILLJ S^qVViU Afi(. ! 90 ■'
(Act N o. >1 o f 1997). or the Acting
Commissioner deif pasted in tenns
o f stciio ii 7 o f that A c t" :
(e) by ihe siihsiiriiioti for rlie definition of
"ptescribed late"' o f ihe following
definitions
' 'DlYSriibfd rate’ m e a n s [lie r a le
contemplated in section 1S9(
of
tlie Tax Administration Act:v ;
id) by llie insertion iil'ler tin: definition ttf
Lt.is" o f the folio w ine definition:
" "Tax A dinink En i 1io n A t I ' means
the
Tax Administration Act.
2 0 11
(e) by the delelioti o f the definition of
“ lax pefiod": and
1W
A rt
Ni i.'49!
No. : s or i o n
\ o . find yrfir
GOVLKNMtNT CiA/t'f'J i 4 JULY JO[2
T.nc AitmLmttraEtnn ^ rt 1f]] 1
S h o rt title
E xtent or am end mcni a r rr|ira l
(fi by [Eii: substitution ibr ihe dc Quit ion
o f “VAT i e i'!.*i Ir:i1inti nUffiber" ol’ llie
following definition“ ‘VAT refli.^lriUioii n u m b e r'. in
T^lnlirHi Id any vuiilor, itil^hiin lilt:
nuinher allocated to Thar vendor by
llie Commissioner Ifor llif p u r­
pose;; of itiis ArlT lli lenm of seetioti
7A o f tlie l ax Adiraiiittratifiii \ c t : :':
tgf by the lennmberiiie; oi' :eetion 1 to
aeeliou 1( J >: mul
{hi by the inceiTion after subsection ( 1) of
tlse following sublet tion:
,lf2) Unless tlie context itidiealcs
olherwke. a IhthtI ni e\jne*M(iii In
111i-L‘Li ;htAnulinfl 11h huun
LnilmI
in the lax AdniinistraTion Act bears;
that meanin? for iJtirposes o f diis
A ct*’.
Substitution of scd k w -J
1U9. The Value-Added l o t Act. 1991. is
lieteby amended by ihe subsiilution foi
faction \ of rhe following section:
"[A ct lo be udimnhttTL'd by Conuiusslonerl A dm inistration of Act
■lill) TheCoiuiuis-sioneL (sllilJI be] U
responsible for carrying om tlie prcrujstons a f this Act.
12) Atlciiiiib\(ialcYe TmnitEiitqih w d
procedures foi1 |}nn»ses of rhe peitbrmance of any duty, power Or obligation
or llic UMjici>d ol' iffiV nvhl l: i tunns of
lI lls Acl an:, to llie cxtoit not regulated in
this Act. re ciliated hv The l ax Adminis­
tration Ai'l.'*.
A m endm ent of section 5
110. Set lion 5 of the Value-Added Tax
Aet. 1991. is heruby am oickd—
f n i by the qibsritiltion for snb«ciinn (1) of
the following subset tion:
“(1 ) 1he itower* conferred and
the duties imposed upon the C'ommwiiuuer by ot in teinis of the
|n\jv Ls.iiiTis, ol'lhi'i Acl or any f l tja u t
inent tliereof may be exercised or
peiiomied by tlie Commissioner
[personally ]. ot liy miy [ofTirci' rnynyetl in currying out llir >:iid
provisions u n d er the control, d i­
rection o r SDpcrriiioa of tltr Cominissiiiinrr] SAWS oftici.tl ": and
(b) by the deletion of subseefian (2).
(^VERNMEN’l CiAZt r l t 4 J ULYLLU12
T.tk AftuunitfraCtnn Art, Til 1
jttK)
Ni JJ49I
Act .vd. :s or 2011
Mo, find yrfir
Short title
E x ltn l o f li ti ki'] 11]111 l' i)I o r repeal
Repeal o f section ti
U L S ctu w i 6 o f ihe Vshu^Added Tux
Acl. 1*5^t . i* hereby repealed.
A m endm ent o f section 13
112, Seciiuu i 3 o i liie Value-Added Tyx
AcU !99(. is hereby amended by (be
substitution in subsection (?) for pai'naraph rVrJ o f [lie follow ing paragraph;
"(fi) for the colleciuw (in such manner
as tlie Conuutssjoner may deter­
mine) by ii SARS uflkml. oi liief—
til any olHcer (x-rfonnlng life or
her duties tinder i lie ton n o i.
(hrtrlim i or >ii|>eryisio!i of
Qip C ouunisxiiiuec; o r
4UiJ Maiifl^io.a Director of tlie
South
PijkI O & c
Limited oil belialf o f tlie Com­
missioner. of the tax payable in
Icrnu o f th:> Act in icspcct o f
ihe imjvmanon o f any eoods
into tlie Re|jublic: and"
Am endm ent o f seclion 14
113. Section 14 uf lhe Value-Added Ttx
Act, 55)91, if. hereby amended hy rlie
substitution in stibsftctipn f I ^ tor paragraph
(a) u f lIjc following ittujiuraph.
‘■faj bullish rlw Commissioner with a
IdtdartittOU (In such form as the
Conunissioncr mny i in scrib e)
nmtirimiiu such mftiruuilioit us
niiii be required] return. and".
A m endm ent o f section 15
114. Section 15 o f the Value-Added Tax
Act. 1991. is hereby .intended by lhe
rabstimijon for mihsecjjon (R) o f the fol­
lowing subsection:
"!'S} If. in relation lo any particulate
n^qtiiiul Uf lie I'nmi-lied mil.L-i yiiij^Crtieti (1)1,1—
(n) the aniotmr refetied to m subseclion
(6)tb) exceeds [lie amuunt lefetied
to in subsection
or
(bi the amount refijired to in sifbsection
(TlfiiJ exceeds tlie iumjunt icl'erred
to in subsection (7^'c J,
tlie amount o i tlie excels shall be refundMble lo ihe VtbdOr by the GcnrnrtiiniulKj in
respect o f ihe changeover |ieciod as pro­
vided oi 1"■section 44il.)l Chapfei 1i o f the
Tax Administration Act. read with section
i<K5j.".
Nfl !i.h|
GOVbELNMkN! OA j SETTE, 4 JL LV J01.’
A ft >--0. 2B or ;n«l
J£3
T.io: A<i»hniiErAlKin i r I 1n11
N o . n iifl v r f lr
S h o r t i t i If
F \U iil o f am en d i n i'ii I ni' i'v-]n-:it
A m e n d m e n t o f s rrtlo n I t
115. S e c tio n 16 O f t h e V a lu e - A d d e d l a x
A m . 1 9 9 1 . n h e ie b y a iiic u d c d —
( a ) b y llie M ibs ri Eiiliun fnr [lie
H>
s u b s e e u o n ( 2 ) o f the f o llo w in g p r o -
J' P r ideit llti! nlh.it; a ’,<* iimnL't
m ifebu time or eredil no re in
relation ro that supply hi-, been
provided in accordance w i t h : 1u Act or a bill ol" en d y or other
documeai has been d e l n 'H f d in
a c c o r d a n c e w ill: llie t
;uui
L x c is e Act. as The case nisy be ih e
C'onunJisiouei tu a v deleruune lini
no deduction f o r iii]>m t a x u i rela­
tion lo lhnt supply oi importation
nl lm11 lie iiihlIl.' imlei!. llml M1, in voice or debir note or credil note or
that bill o f e n tr y o r O ilier document
is r c i Hiued in hccoi dance ^uli (lie
[ii'ovtsiniis o f section
and
P a ri A o f C b a p ie i 4 oi t h e T a \
A d m i u u i t n lion A tL . ” : u u d
ifn by tlie s n b s r m iiio ii fyt subsection is ;
o f ihe ib l lo w m s s u b s e c tio n
" ( ? ) If- in r e ltiiio n lu nny la x
p e r io d o f a n y v e n d o r, die a e e i e e a t e
o f tlie amounts th a t m a y b e d e ­
d u c t e d u n d e r s u b s e c t i o c i r j f ro m
the sih r n cfim ’d Id in tlml siibseetio n . ib e a m o u n t i i f m y ) r e f u n d a b le
to th e v e n d o r u n d e r s e c tio n 15 ( 0 ),
[(lie lu n o t u it 1 if A nt) brought
f o r w a r d from the lm p m o d irrc -
lilt1 ftr>4 - m e n t io n e d l,iv
period as provided In paragraph
i ii i o f ih f proviso lo section -Mi 1 1
anil the am ouiil u f a m i c r e d i t e d
under section 4-1 i-f* to tlie ven­
d or's account during Tin- Erst*
t 'r d m f
n ii'ii Lionet! tu x
o th e r
am ouul
lie r i n d ) a n d a n y
r e f u n d a b le
under
C h a p le t 13 o f th e T a s A d m u iiM ra tim i Act. cXfieccLi lb e haiii suttt< llie
M iiotm t o f th e e x c e s s s h a ll, s u b je c t
to ih e p r o v is io n s o f d i i s A ct. b e
r c fu u d u b lc lu die v e n d o r b y d ie
Commissioner as p r o v id e d in [-sfirlio n J-ti 1 r1 Chapter 13 o f d ie T a x
A diuL iii^Lruiiou A n , " ,
Nfl !1-M
GOVbELNMkN! OA j SETTE, ■*JL LV J01.’
A ft >"-a. 2B or ;n«l
T.io: AdubhnuErjtlKin i r I 1n1]
iU i
No. niifl yrnr
Short itile
F \ti'n I o f iinieii dnii'in nr repeal
A m enriuiciil o f section IT
lift. Sec tion 1“ n f the Value-Added la s
A cl. 1991. n Leieb} jiueudcd—
f a J t y flic MihMitiilHHi liv llic h im U
preceding ihe proviso to subsection
(1 ) o | tb# follov uid WOnfc:
“When.' E{kxis nr m ti iccs air
acquired or imported by a vendor
partly for consumption, Use or sup­
ply iliereiiiafieT referred Id <t;> tlie
inieiiiled n w i m ihe ci>nrw o f lu st­
ing taxable supplies and partly fw
another intended osc. die caIciiL lo
which any las which hat become
payable in reaped o f the Mipply lo
ihe vendor or die importation by rhe
vendor, as ihe U s e may be. ol -us Ii
UOLids or BtrvnLVTd nr i» ■h'spi'rl of
inch goods under vecliou 71 LlJ or any
amount delejmined iu oecoidance
wiiJi p.uaauipli lb) or (C) o f the
definition o f ‘input tax’ iti ‘iecn™ 1
is input tuit. shall be an amount
which bctais to llic Tull iuuouul of
such ism oraniinuit, as the ca^e may
be. the same ratio (as determined by
die Coiuim ^icuer in Hceordmitc
with a inline as cnmemplared in
Chapter 7 o f tlie iax Adniini-.nation
Aet or section 141A or| 41B) »s ihe
IIItLJ]llLl 1 LISLL MIL'El KIHHls (IT iff*
vice* in the course o f m.ifcms laxable
supplies bears to the loral intended
use o f such soods or services", .uid
| b i by ihe snbstftuliou for puntarapli iiii 1 iu
uilKecnrm (I ) a f rhe follosviuc p a n ­
graph:
“ (iu i ii here h method for detcnuuiin 2 the rauo referred to in thu
subsection has been approved
by ihe Counm^iuner. ibiU
method may only be chansed
n iih elfetl from a future t n
period, or from sucholher <Aftic
sli lk' Cimuni tSioiiit may
consider equitable and «nch
other date musl fall
/06
A ft
.Ni J.'49!
.Vo. : s or i o n
MO, find yrfir
GOVLKNMtNT Q A lfcT ji 4 JULY JOtJ
T.nc A itm L m ttraE tn n Jl r t
Short title
' 1115
Extent o f li [i ki'i 11] 11el' i)I o r repeal
r<uu in .lie Cast o f a vendor
\iiio is n taxpayer as
defined in section i of
the Income Tax Act,
u'iliii:i thi' y^Hr o f h1.sessrnenl as defined in
tli.il Act: ch­
i'£»£>) iu llic caste i>i;i icu J o i
who iy hot a taxpayer a;,
defined in seftiop 1 oi
lhe iucom c Tux Act.
wit!) in die [Mi'iod of
tw elve mouths endina
on llic iasl dyv o f Febrtiiiru, in i f such vendor
dntws 11| ■ tDflUVl finan­
cial statements 111 re ­
spect oi' a year ending
other tliEin on lhe Lilt
day o f 1 ohruary. within
that vear.
dnrinji which llic application
for
rhe
aforementioned
method w as made b v the
vuudor.”.
Amendment o f section 23
117. Nectiou 2 3 nf the Value-Added Tax
A ct, 1991. ii hereby amended
Ui) by Llic submit ill iou for subsection (2)
o f (he following subsection"
lL(2 ) Every pei'son who ii uoi ,i
resided! o f llic Republic, and w ho in
te w
o f subsection ( 1 ? lm a c tio n
ShA, litw m c i M l f I4 .bc
[tlniLt nut latfcr tiiaii 21 d a j s after
heroming so liable apply to the
Commissioner for reglilrntidi) hi
^ucli fonn Us rlie Cmm Mission i t
may diner 1 am) provide the (.'omniitsioiici with Such fui tlier pnfllrn h irs anti an y duciiiiiinitiitiiiii
as the Commissioner may requine
in such ft 1mi for Hie purpose or
ro isterln i> that b c n im : Pnivltled
that w here—
JO*
tjO VbELNMkM'!' GAZETTE* ■*JLLV J01.’
T.io: A<i»hnii[rAlKin i r I 1i'i1]
Nfl !1-M
Art N*. 19 ot WII
Vo. nmi v m r
Sborl iljlc
F v t i iil o f n m i ll d in e lit o r nr-pi-nl
iki n person who applies Tor reg­
istratio n iunifi tiii-s sabw cf ion lisi- not provided ;ili |i;irtk u la rs m il doe uni eiitatlon
ii- rv-cjuimi hy t h r otainiv.
-iinihr. Him ihT-nn *li:ill ludeem ed not to liave applied
for reg istratio n until he Ims
pro i itied :ill stie| i psirtlrulam
an d docum entation to tlie
Com m issioner:
O il l iif1 1 p e r- 'u i is not :i re v h le iil
of the Republic, sorli person]
m ttLiitfrjaii'.'c v.illi Ch;n?Lct $
o f t h e T a x A J m iju s trH tio n A c t,
kIihII
be ilLvmtit mil lo l u w
appiied for re a n tra tio n . in a d ­
dition lo ^e«:lio[] 22t-li o l the
fjr-. Adnm uj^Hdffli A>'
m ini
jlif | snch pei'snn I m - ­
appointed a repie-
Kealadvc \ ciulot iu
contem plated in sec­
tion |JSlIlj Jt5 in the
Republic :nn.l lilfn k h e d die {"otuink>ioner w ith rhe jj;ilticiilaia ol such rc*
UKtictitALivb in.Ini
[ibb)][b± opened a banking aceoim t with any bunk,
m utual hank or othet
sim ilar
institution,
registered 111 term s o f
the B anks A ct J990
(A ct No. 94 « f
19W ). for the p u r­
p oses o f hi', ot liet
culcipriiic e a rn e d o l
in the R epublic and
furnished th e O ju jn iiu io n c f w ith the
jiiirti Lidnu^ o f -nth
banktua account
m
Art Pffl.
^
si-m
GOVbELNMkN! OA j SETTE, ■*JL LV J01.’
mu
T.io: A<i»hnii[rAlKin i r I 1n1]
Vo. niid vrflr
Short iljlc
F.flffll of nmniiliiii'iil nr rf|icnl
\b> by din substitution fur iliu m w I-
foil (mine
<rh ul Milh
seetion (j) of the folio wins words
"may apply to the Conimi^iouei
/ i *t
m jjjd s tra lim i
fin
M id i
fiH IH
ft'
th e C o n im iv 'fo u i'r m:ty d irec t
a n d p ro v id e ih e t ’oniinJ'.'.foner
u i t h su c h f u r th e r p n r tk u ln r s
mil} a n y ilo rm iieu L ilio ii a s the
fo n iiiL ta fo n e r d w v r a i n i n ' in
su cii r& iin fo r ih r p u rp o s e o l
rt'm 'im n L ' tiu it p e f s m ] - " : and
i a by the substitution in subsection ( 4 h
Uh puruur<fph:> U“ and \b) ol ibe
"hit studied far rejasbfliail in hkcordance with Chapter J of
the Tax Admklistmrinn Afil cn
s u l^ u c iio u
(2')
01
f i ]
M ild
lli^
( 'nninu^ioner in mlisfied
that that person b eligible io
bo rujcisujrud in tenra uf lliis
Act, tliat person ihall l>e a
vendor for the purposes of
this A d with eflsct from nudi
date
the roitm iissinner
n i.iv d c i c m im c . g t
(b) not applied foi' ic^iftrdtioa in
te r m a
uf
fs u b s e c t i o n
i ’ t|
Chjgjer j of the ■« \ ■Ii■.i■:■Ktraltoi) A cl and the Commii-yiomii is ■jaiisiiod ik n t]mi
person it liahle to be reaivteied in terms o f tins A cl. that
person shah he a vendor for
Ihe purposes o f iliis A d u n li
e ifeti from the date on which
that person Sis! becam e liable
lo b t r-cjeE-jfuicd in lm n> ot
this A c t: Provided tliat the
Commissioner may. Iiavmg
regard lo ihe c u ttu B * u a c «
« r
llic
iL 'Ic n iiiT iL '
llia l
perion to be a vendor t r o tn
snch l3!er dale as the Comm issioua m ^ « H iy d n equilable” .
.MJ
A ft
Ni JJ49!
.Vo. : s or i o n
MO, find yrfir
GOVLELMMkNT QAlfcTji 4 JULY J0[ J
T.nc AitmLmttraEtnn ^ rt ' 1115
S h ort title
E xtent o f n w iid iiin ii or rrpral
Aniertdracnl or section IS
J1S, Section 2 ? o f the Value-Added Tax
A cl. 1351.
Iitreby amended—
la) by llic m:!>^i i-.iiium lor rlic
preceding paragraph (tit o f Tlie fo l­
low ing words;
■fS n h jift ro this A ril in sicltliiioLi
ro amr reniui'e merit imrler ilie lax
Admimstratio 0 , Act, everv ™ idor
*lialJ witMii 21 Jays [and in iu r h
fu n n :is Ilie CominfcsitoWr may
pre-icrJbe] noTitS- tiie Cominissiouci in wriliiiii of-—
jb) by the siihsriUitinn for paragraph frij
o f the following paragraph:
"7(TJ Liny change in ihe [jiinue,
address.] constitution or naIlijl' n f |]ll.l jn im :i|i;d mlk-Tprise or enterprise i o f that
vendor:":
(c) by llic deletion uf pmu^THijli if),
i'll hy ihe addiiion after paragraph (g) o f
the following paragraph.
L,r'^l any ■Jianjies in llic maioiily
ownership o f anv (k h u pm v ” :
and
(cl by llic delelion u f liic pruvisu,
Substftuflon o f secrlon I t
ISO. ! lie Value-Added I h A a . 1W1
i-. hereby amended by ilie s u b s titu tio n lor
icU iuu 26 o f llic f'ollo%v Lnu scd iou
Li;il>ililit“i iiul affected hy person
reining (o l>e vendor
2h. T 1:ll obligalitFtlB h in l 1intii lilie s
tinder tins Acr or the Jax Adniiinslraiion Act o f any person in respect o f
anythin;? dune, or uniitled Lo be dune,
hy that pet son wbfl* rliat pei'son is a
vendor shall no! he affiecred by ilie tact
lIlhi dim pertiuu censes lu be a vctidur,
of hy rhe faci rJiat. being registered as a
vendor, [he Commissioner cantels tliar
pCragiru i'c^i*li<i1iun as m vendor.” .
.M 4
.S i J J 4 9 I
( ^ V E R N M E N ’l tiA jC L 'L 'J t
A c t .v d . : s o r 2 0 1 1
Mo, find yrfir
4 J U L Y LLU12
T.tx A ftu u n itfra C tn n A r t , T i l 1
Short title
Extent o f :■li ki'i 11]11e l'i)i oi' 1’i-jicfil
Amendment of sec lion 27
120. Section 21 o f [lie Value-Added
Tax A ll. 1991, is hereby <iiLicutlcd Ujr ihe
s u h ^ litlltif H ]
I'm
n ilf s e c lM in
H fij
o f
lb e
f o llo w in g s u b s e c tio n :
“(6) The tax periods applicable 1111l1_-t lilts : A c l t n m i y v e n d o r s ilh E l l i e l l i e
tax periods applicable to the ( ’aiecjory
within which the vendor f a l l s a s ccrntciiipliiLed ill lJli? scclioii: Provided
that—
(i} llie first such period sliali comi lienee o a llie comm cuce 11ie 111 date
o r , w h e r e a n y percent Iwcomes a
v e n d o r on a l a r e r d a i e . such later
date;
( il)
any
la x p e r i o d e n d in g o ji th e la s t
iS: i',
c f :i i u o i u I j , b s
re s p e d
of
th e
n p p l [ e n t i l e ill
re le v a n t
C a te g o ry ,
m a y . in s te a d o f e n d in g o n s u e t la s t
d a y , e n d u u a f ix e d d u v a p p r o v e d
b y The C n r n m is lr tn e r, w h ic h
day
10
d a y s b e fo re or
a fte r a u d i Iasi d a y ;
P r o i [ J e d th a t
■>hall f a l l w i l h i u
[lie f u t u r e th k
by
th e
p e rio d
so a p p ro v e d
C o m m is s io n * ? !
m u st
be
l u e d b y l l i e V f l i d u i f u r li u i l i n i m u n
12
p e r i o d n t"
fro m
th e
m o iu h s c o u iin e u c iu e
ta x p e rio d th e c h a n g e
is
m ade.
i.iii 1 l b e filiHl ( J a y O f a n y l u . \ ;:
ih e
v e n d o r ’s
ihe
ftU
h n 1 dT
vendor subsequent to
fiis l
first lax p e r i o d s h a l l
day follow in a __
The
be
t h e I ti b t d n y u i ' l l i c V e n d o r ^
p re c e d in g ia x p e rio d : o r
flu
The
f ix e d
by
th e
day
a:
a p p ro v e d
C u iu n ii^ io n e r
in
l e n n s o f p a r a G r a p h (,ti
Amendment of see lion _S
121. Section 28 of the Value-Added
Tux Aet.
U hereby amended—
ifi) by the ilelenoii i n subsection ( ! ) of
paragraph <'i) o f ihe proviso:
( b)
substitution
by
ih e
for
p a ra g ra p h
The fo llo w in g
ill s u b s e e t i u u
(1 )
o f T h e proviso o f
paragraph;
liii)
J]6
A rt
Ni JJ49!
.Vo. : s or i o n
\ o . find yrfir
GOV LKNMtNT CiA/t'f'J i 4 JULY JOtJ
T.nc AitmLnitlraEtnn rt ' 1115
S h ort title
E xtent o f
“ ( iii)
li
[i ki'] 11]11e l' 111 oi' repeal
a
V e n d o r
r e p i i i t c i 'e d
r 'L t t ^ n l s s j s n n
tu r n s
[ n n d
tr a u ic a lly
m
e a n s
h i r n M
to
m
s u b s e c tio n
n f
o :'
iI ie ii
by
lim it
d e f in e d
w ith in
ccnitauplitkd Jn
■ 1) f u n d
n i u k t 1] i f
e n d in g
d a y
ltk h
is
r e ­
e ie c -
til A h
p a v u te n l
v e n d o r o t o t e s
n e s s
e n ts )
]
ih e
b iy ii
o r d r r >,
lln ; J in n n m l u f
p e r io d
W
d r b it
a d e
iIjc tm iv d
th e
p a y m
tin 1 r v t i i m
h a v e
u 'i l l i
m
[ ( o t h ^ r
o f ss
i
to
h ill
tu x
011
tlie
[ W
m
th e
p a y m
e n t
w ith in
llie
la s t
o n th
b u s i­
d u rin g :
e n ty - fif th
d a y
lulls:
(t j b y 1]iL1 delelEiiu ill snlhseclinn (1] o f
paragraphs (£v hand (v) o f the proviso:
and
it)> ty ;lh ed ^ clk m o f nulncctiuiis ^ ) . (4),
(*>), (6), ( 7 ) , (K)OTd(9).
A m endm ent o f scciion 29
122. Section 29 o f the Value-Added
Tax Act, 1991, i* hereby iiuieuiled by llic
subsrirution trvparapraph
for the w oids
preceding subparagraph li) o f ihe idlloviinpi words:
“ furnish the Conirnifisioner with a re­
turn liiti such form os Ihe C om m is­
sion er ii my prescribe)] leiiuetinjE— ".
R epeal o f section 30
123, Section 1(1 o f the Value-Added
Tax Act, 1991, js hereby tepeaied.
A m euihnrut nf sri'tion 31
12J. Section 31 o f tlie Value-Added
Tux Aet. 1991. ii hereby im tndiid—
m i by the uihsiuution for subsection (!)
o f ibe follow ina snbiseclion:
" (1) J^VIifiTjllie Couuiiissiouer m ay make an a s s e s s m e n t o f t l i e
amount o f rax payable by
Itaj imy person fnll? lo furnish
any jvtnrii iis required by
serlion 28. 29 or AO or fiiiU to
furnish any declnrnilon as
rcfpiirrd by section 14: or
(It) (he V'umiuissinner is mil s:ilLslied w ith any return or
d ecla red o u w hich any p er­
son is m ju ired lo furnish
u n der ;i section referred to
hi par n graph (»t~ or
m
Art
fin
No J344I
!* *t 10U
Vo. nud ipnr
GOVbELNMkN! OAjSETTE, 4 JL LV J01.’
Sheri title
F vtciil o f am endm ent nr repeal
(rj tiie C on u n isd on cr ha^ rcason ro hetievf that any per­
son Ini', berm ne liable for 1 1 1 ?
jinyniHi! o f an y am ount o f
Tl[\ but hits not paid such
am ount: or]
nil any person. not b ein t a
vmdcv. dial >uppiicv x w d t Ot
service* and re]nre « iit ‘. rhai
Mx H charted dm Thai supply,
w
{ft any
vendor rhal Mipplie^
eood s or services and snth
Supply tt UUt <1 [iUJlb! v >Hp]']>
or iisih supply ■
„■> a taxable
SL]|)]llv III {U^lL'd Hit ivlnth In*
is c hartieable at a rate o f zero
per cent. Md 111 eitlier cils#
tlitit vendor r c p u stn li i|j;n ina
is charged on such supply at a
rate in excess o f zeio per cent.
(ft iiuy p a w n w ho huldi IiliuscIJ'
out as a person entitled to a
refund or who producer, tinHtfhfiSj autheoji^, m uiilivsi
use (if any tax invoice or
dofiinicnl or debit note And
lias obtained any nnduc TAX
l^ncfil «r luNiini Urnlur the
provisions o f an expon incen­
tive schem e referred lo ill
ptua^xuph i i f1oFlhc definition
o f ■‘exported" in Hction I. to
which such person is not en­
titled);,
iht- Commissioner may. notHMthxL:iudniu LIht pm vi'iiuns of
section J 2 i5 > o f Ihls A ct and
section S3 1 1 3 1 and 83A (12} of
the lim nin' T:i\ A n , liutke :ni
niae*ssraeut uf Ilie am oim l uf t;i*
I>fiyntslc by the person liable for
the paym ent o f such nimnm t nf
lax. and Ihe ainom it o f lax 'O
assessed shall be paid hy d w
person concerned la tin C om inisMiunerl.” :
(b) by the deletion in subsection i ' i erf
pntiiaMylj fa),
f d hy tlie deletion o f snbsectjrm (.ii:
.Si jj 4 si
(^VERNMEN’l tiAjCL’E'Jt 4 JULY LLU12
Act .vd. :s or 2 0 1 1
j: o
T.tk AftuunitfraCtnn Art, Til 1
Mo, find yrfir
Short title
Exfienl o f iiiiH'inliiiL'iiE or 1’i-jicfil
ftfy by ilji nibstiluliun Lor llie words lijar
precede jiibi iiijo fii i inf ill MulKKliw
h4) o f rhe foilowin^ worths:
“ Tire C om m issions! LslinlL give
■lie pri'son CdnrrmAd n ntfttM )
mitiiT o f Hiicji assessment,. *l:il ini’
ihe am ount ti|>on w hich ( m is
p a y n b k , die am ount o f mx pay­
able, Llif am ount o f an ) :niililional tax payable In d r ills ol'
section 00 mid tlit tax ijoriod ■IT
any} in relation lu w hich ihe
assessm ent is mart el must ftivc a
Qoticc o f asscsiiuepL and— ", and
{(') bv tlie ileleJldn uf suli.sciilimis I.'^i .uhl
(5 A).
K q ieal o f a c tio n s 31A and 3 I B
125. Sections SI A oitet -i[B o f the
Va llie-Added Tax Act, 1391, arc hereby
tvpcalitd*
A m endm ent o f sec lion 32
12b. Section .12 o f the Value-Added
Ttix Act. 1951, ii hereby Dmciuicd—
in! by llie !iutittiM<ui Jin Ilie huntini! o f
the foUowmg heading:
‘ O b jection s 1 0 certain decisions
for assessm en ts!” :
i,fn by the substitution for subsection I )
o f the follow ing subset non:
“ ( l) [ A n j person who is tUssalfsfierl wUd — TThe follow me deci■iioiii o f tlie Commissi oner aie
subject lu obieclion Jiud iippcul:
(tt) any {leciiiun given in writing
b y rhe Commissioner—
(i) ut term; o f section 23(7)
nolifyina tliat person o f tlie
t 'mi 1]■1LSSItTl iLT's rcfllKHl ill
register thai person in
terms o ftliis Acl: Ltsrj
i ii) in la m s o f section 24(6) or
( TJ notifying tliar jietsfm of
the Commissioner's deci­
sion lo cjincel tmy rvjustnitio n o f thai person in terms
o f tliis Act or o f [he Commj&ioiftx'i lel'usal to Can­
cel such legistrarinn: or
322
No iJ49!
GOVLKNMtNT QAlfcTti 4 JULY JOtJ
T.nc AitmLnitLraEtnn rt ' 1115
A ft .Vo. : s or i o n
MO, find yrfir
Short title
Extent of niucildidpiii or I’l-jical
[rilij hi terms oi seet Ion -f4( 8 1
of rlie rninmksioner's
refusal lo make a retuml: orj
>!in,) ilJihliis! la EppTOV'c h
method for detanttnung
the intio contemplated in
scctinu 17(1); br
f|v) in lerms of Section J3(5|
and ifth notify Inga mem her. shareholder
or
(rustle nf :i lemlur lli.il
lie is required to provide
surety in respect of the
vendor’s liability for tax
ftVM time lo linn': or
[vij refusing lo remit, in
whole or In part, any
in term or penalty in
terms of section 39(7}: t>r
<b> any assessment made upon
him under rhe provisions of
sec lit hi 31, fit) or fll; or]
i d any (direction or supplemen­
tary dim tion] tfcdiion made
by the Commissioner .uiii
■jfiTed till thsl pervon in (cow
of icctiou ?0A{3) Of 14H,
mny lod^e an olijei'rion thereto with
llie Cuuuiiissiouer]
and
n’J tv the deletion o f subsections (2).
OA). Q \ (4) and (S),
Kepenl of seflions 33 to 37
127. ?iix:liti!!s 33, -3.1A. .1-1,
.ldiinil.1T
of ihe Value-Added Lax Act. L9yi. are
hereby repealed.
Ai lie nd i lien [ of serlion 39
128. SclIuiil M (if [111; VaIuw-Added Tan
Acl, I!W1. ii hereby amended—
fiiy by the substitution for the heading of
(he ibtluveiiiH heading:
"Phi Lilly [:iili1jNlerest) for fill!lire
lo pay tax when due” :
__ Nfl Si-M
A rt t a . i t
(jOV bELNMtNT GAZETTE* ■*JLLV J01.’
T.io: AdubhnuErjtlKin i r I 1i'i1]
mu
Vo. nnd vrnr
S h o rt itile
F.flffll of ilium ill nfur ni' irpcnl
\b> by [he 'UbiiiiuiH’ii fur Mibivcliuji Mi
of the ttrllitu ui:j 'liSi-cvUi'ii
“ 111 (fo il I f any perion who i-.
liable for [lie payment o f fas and it
r t ff lllic d
In
llU lL t ?
i l i t 11 p H Y l I I L l H
fill
tiie m a n n e r p r a r r i b r d i n i in .i>
cofdancc \silh lhe provisions oi
njctkm 1 4 .2 6 (1 } or 2&. fkil> to v s;
any amount o f such ta* within the
period for tlie paymenl o f such tax
^ptrdfiod id the -nid (pi’o ^ sio n Ik1
viiall] provisions. tin Cnm m nsioner musl. in [a d d itio n 10 Sllfll
<JIII(AILII Of t a i , pBT]
15 o f the T a* A ih im i'
i^lnlimi A n . imjn>nL[—
iii ]a penalty equal lo 10 per ceiu
o f [be said amount oi [ax[: n n d
(li* trbcne p a y m e n t of lh e sa id
:iinntiill uf l:ix is nciih1 on nr
a fte r th e first d a y of ihe
m o n th fo lio w in s it if m o u th
(Inn no; which Ilit1 fit1rim I :illow ed fo r p a y m e n t o f ttip lax
ended, in te re st o n ilie sntd
:i i ii on ill (if (a s, cliEciiILilt'd -il
Ibc p m d i b n ) rute (b ill suhje e r to rhe p ro v isio n s o f seclion -iFAs for e n rh mat)til n r
p a rt o f n inoii111 in Ihe p e rio d
reck o n ed from ih e snld lir^t
day.
(b) \V3ieri* any annum I of la s
has In relation to any t a \ period
o f any vendor heen refunded lo
l he vendor in If m s o f the |n o ' ision s o f str lio n J~l: 1 t, n :nl " llli
section lf t J k or has lit relation to
H ut period b etn set o il Lipaimt
iui[]:ij(! la s in term* nf lhe prowsion* o f section
anil such
am ount w as hi whole or In part
not properly refundable to the
send or under section 1(x5|, so
m uch o f such am ouiil as Mas noi
property so refundable sh all for
the purjHJses o f p:ir:iurji|i1i ffljiit
be deem ed to an am ount o f la x
JJA
(toVERMMtivi GAztrrt 4 jo ly ^uii
Tax Admmutralicn Art. T013
NVi Wfll
No. niifl vrflr
Short itile
F.Hi'id of :i mi'ii lIiin'ijl ni' repeal
rrguired to be paid by the vendor
vrirhin the ‘aid jjeriint and for [be
purposes LiJ piiriistniph iffriin, :m
amount of t.tx required to be paid
hy the vendor clurins. tin1 pi'iiml
ill uhlch [lie re hi ml tra* rnndej.
l e . by the deletion of ^uhsevliou (T).
{di bj die sdbsiitutiou for lubvitliou ■'i '
n i ihe follim'inc Hihiectimv
,-(4) W h e ie a n y importer o f
iecoiIs vJuch oii: required <o I'-;
emeted under tlie Omoins and
txcise .\ct. fails to pay any nmOnii!
of IlIl1. payable in rcspeef ol ihi:
importation of ihe poods oji ilic
itflEe ihi] \iliicb llie uinn!' arc miTered u n d e r The said Act for home
consumption in the Republic or ihe
dam on winch cu-sium* duly is
payable in renns (it' The said Act in
re sp ec t of ihe import! [ion or. il
such duly is not payable, ihu tintv
on wliicli iTwould be to payable if
il had been p a y a b le , whichever
dale ia later. ihu Cduimiasiuiia
mi ist ill accordance villi C h a tite r
15 of die los AdmiilubalioD iVt,
impose on tliat importer | shall. lit
odd it ion to such am mini of la \
pay—
irtlj ,i penalty e((tial lo 10 per cent
o f thu said .tiuoiuii of luxl:
and
tb i whrre piumrul of tlie said
ii!not)nr nf lax is marie on or
after the lint dny of tlie
ii nii nil fnlltmiriu! tin1 m on III
durtno wlileli the period al­
lowed for payment or tlie ?n\
ended, inlervM on llie sniil
amount of Ijh, cakukited at
the prescribed rate rbnt sub­
ject lo (he providoiK of w riou 45.4 1 for each nioiilli or
pan of a mouth In Ihe period
reckoned from the ■'aid ftrsi
day].":
No JJ49I
(^VERNMEN’l CiAZt r l t 4 JULY LLU12
Act .vd. :s or 2 0 1 1
T.ix AftuunitfraCtnn Art, Til 1
J2S
Mo, find yrfir
Short title
E xtent o f am endm eni oi' I'cpciil
(e) by flic ijubijiiiuiiun lor subsection (3)
[if 1lie tnl hnvi rm substt!ion:
“ (5) Where any [jei'sou who is
liable for lii; payment o f tax tnit^ to
[lay iniy slitililiijI o f aucb Ins on lli-dale nn which in ten n i o f (he
Customs and Excise A cl. Liability
arises Joi Ihe payment o f ilk: excise
duty nr envii'oiunetstal lev y refeired
io in sec i ion H' i ' Ma) , the C om m ir,iio n tf must. in uccurdioljiLt: wiili
Chapter ] 5 o f the Uiit Admitiisnafion A ci, im pose on ttmt person
(sllflU, ill field IllOii to SILCll i 1 III 0 LIlit
nf la x , pay—
fa)] h ]'L‘:i:ilr\ lm|ilh! Io LO jier ceiil
o f die said amount o f isx{;
Ellld
(b> f f h r n paym ent o f the said
am ount <hi lax is mnde fin nr
a lter tlie ttrst d ay o f the
m oiith follow ing tlie moiith
during w lild t the period a l­
low ed for p a n lie lit o f Ihe la.v
ended, interest on lliat
am ount nf Lax, m in d m e d ai
llie [jrc5i riljn l r:tte Hbut snL>Ject to the provisions o f
serlinn 1 5 A) for raeli iiinnlh
or part of a m onlli in Ihe
period reckoned from the
said first dnyf.": imd
ff) by the deierinn o f subsections (6)
(6A>, (7) juid (8>.
R epeal o f seetion 40
129. Section 40 of the Value-Added
Tux Aet. 1 9 9 J, is burubj repealed.
R epeal o f section 41A
130. Section 41A o f the VaJue-Added
Tax A cl. 19? 1. ii hereby repealed
A m endm ent o f sec lion 41B
131. fvettHlll H R o f 11LLLW uu-A dllud
l ax A ct, ty ‘>l. is hereby amended by the
subshftition for subiection (1) o f the
follow ing yubscclitni:
“fi t llie Commissioner may issu ea
VAT clas!> rating or a VAT ruling and in
applying llic pvuviiiuiiH [leln lin g to
GOV LELMMkNT OA/fE'J i 4 JULY JOIJ
T.nc AitmLmttraCtnn Jt rt ' 1115
.-UO Ni JJ49!
Art No. :s or ion
\ f> . f i n d
y r f ir
S h o r t
t it le
E x t e n t
o f
a m e n d m e t il
or
iv jic a l
JJ 1 o f t h e I n e o i i t e
Ta\ Ai l,] iii n w r tu 1 o f die Tas
Administration Aei, a VAt class nilhic
0 1 a VAT mluie itmsi be deah with as ii
il WCrt Ji Eii■nlitiu clistt mllibu ur n
hi lifting private ruling, respeettiraly:
Provided [liat
(i) the pxoviiiqm ui’ [ s u b s e c t i o n s
(iJj'Jfi,
ami (5> of sreUon
76L mid a c t i o n 76]' o r til? I n ­
c o m e T f i x A f t | sccliou 7 9 U V ' i i i i i l
!'jtJ and (6t nf ttie Las .Admitiif.uarioii Act shall noi applv [a anv VAi
thiii ruling pi VAT ruling;
i i; !■ jiii application for a VAT dnss tulini
n r
h VAT niliiiL’ in len[i<i {if llits
section shall not be acceded by die
Commissioner if the application
Kia) iii for tin advance t a x nilinu
that qualifies for acceptance in
tenivi of I w c l l o n J1AJ Chap­
ter 7 oI'iIlcTmx Aduimistiatiuu
Act: and
rbb) falls within a category of ralitiii? pieseribed by llic Minister
by leerlation for which spplitiuions for ruling in renn-i of
this section m u y noi be acciqiled.’1.
P o r t
J A
o l C h a p t e r
K f i> c f t l o f s e e t J o r i*
4 2
m id
4 3
132. Sections 42 and 4j of tlie ValueAdded Tax Acr. 1951, aie hereby repealed.
A n K U d n e i i l d fs n t l D i i - L 4
133. Seel ion 44 of llic Viihic-Added Tn,\
Act, 1991 is hewhy amended—
• tn by ilie deletion of Mibsections (1 1 a n d
Q).
iin by i l i e s L i l h - i l i l i i l m n . i n - - ii t i vjkjt i m i ( , 1 ' f f i ' r
tlie wordi preceding paragraph im of
tlie followitif; avoids:
“ T ilt ;
Conuuissioiiei dtall tiol
make a refimri tinder | V i i h s t T l i o u
(2)| Cliapfei 1J ol the Tax Adimiiisirulion Acl unless—
ii’j hy ihe deletion in subsection f . - r ) of
paragraphs fn) and I b):
id) by llic deletion of subset:l i o n s (4), (?)
and (rij;
J)J
.Ni i.MS!
Aft .Vo. 2S or 1011
No. a n d v ra r
GOVERNMEKT GAlfcTl i 4 JULY JO[J
Short lifts'
Fvtejil o f MiitBdmM ll or rrpral
(cl by llie substitution for subsection {!)
ut’ 1lie fnlLinvirm .11 ilistc Iinn:
“ (7) Where the v en d o rh is failed
to tum ish a le tm u fttf aa y tax period
as TeEjuiied hy this Aet. Lli-l; fT'rmitni.wioTier n a y withhold payment
o f any amount refundable To ihe
v ender under [^nbscciion (1) o r
an y a iin mill o f i n t e n d [i:n ;ihh- to
the vmdor hi terms of section 45J
-ccliou J90 ut'iin; Tiix AdntniiMmrinn Aci luirtJ the vendin' ha.f firrnished such return a? so required.":
(fiI hy the deletion iif subjection (S). and
‘ ii J b y [hi; addition t f l g r tub«iCtidil (9 ) flf
llie fi ill nw i!ll; subsCChOD
L~(IU} Hie amount detemimed
under section 191(3} o l the Tax
Administration A d iiiim btf :ieconnied for a* provided in necdon
1615 1, but any rehmdalile amount
iiiTesiJeelive o f ihe
guru it mil
thei'eof) is r-eti mdn hJii in till I to a
vendor m respect o f ii-s fijiaJ tax
period t>n tliu ciHiccllinion o f its
______ I'eci-Sti'arion as a vendor."__________
siiDsiiimigii or section 4?
1M . Tlie VaLu^Added Tax Act. 1991, is
hereby amended hy llie substitution lor
section 45 o f ihe following section:
'‘Interest on delayed refunds
4 5 .
{J J
W llC ie
llie
C iH lL H H iiliiw H il
does noi witliin the period o f 21 busi­
ness days after the date on wliich the
Y l 'H l I l i ] '*
IV U U IL
ill
1 L > V L ‘C |
o f
il
I [ IX
period is received hy a ivAKS office
refcnd any amount refundable under the
Tax Aiiniinrsirtiliuit A cl. tuleie1-! will be
paid mi such am ount in accordance wilh
Chapter 12 of'thai Act.
12) Despite llie p tw i stons ol' C luster
12 o f the Tas Admintsl ration Acl. if a
person fails to
No Ji49l
(^VERNMEN’l tiAjCL'E'J t 4 JULY LLU12
Act .vd. :s or 2 0 1 1
JJ4
T.tk AftuunitfraCtnn Art, Til 1
Mo, find yrfir
Short title
E xtent o f am endm ent oi' rrpral
(a} without
liinleiial.
cam e submit relevant
by SAR?i for
liui'poses o fre rific a n o iL in sp e c tio n
or audit o f ,i refund m accordance
willi t" 1i / l e H5 ol' ibe Tax AlLiiiiltsTrarirtn Act: «r
'bi furnish SARS in writing i'. lHi Mftie u k n o f llie seemim requited in
terms o f -e c u o n 1
tn en ab le
SARS 1 0 tiansfei ,i refund to that
account,
tin interest a c c ru e s on ihe amnuut
refundable for tlie period from the date
that—fi) ifl rtsfrecl o f m i1ftM iH (irA i)h llie
HsleVSnJ iiLMlcnril Was required lii
be submitted; or
(ii) in respect of subpas'a^iiapli lb). the
refund is iiutliurisc:!.
mini rhe dare thaT tlie person submits
die re k ^ ’aqt materia! or bank account
piirLiuidniis.
Repeal of sectfon 45A
135, Section 15A n f tlie Value-Added
Tax A d , 1991, ii hereby repealed.
Ain el Litii Lei it 1 hi .serLU® Jh
136* Section 46 o f the Value-Added
Tax Aci 1991 , S' herehv amende:!—
f (Tj by the substitution for die words
preeeditiii punjpaph ( a > o f the fo l­
lowing words:
J‘Tlie natural person w ho (is Jl
resident orj resides in the Republic
responsible J'.>j ihe duties nuposcd
by th is A ct—
by the subsFLtntion for para graph in)
o f the follow ing paragraph;
“ l a 1 Oti Fin v Duniptny si mil be ihe
public officer thereof [c o n ­
templated hi section lt>l of
the Income Tin Act] or, iu
ihe c a se o f a n y c o m p a n y
w hich vi placed hi liquida­
tion. llie liquidator thereof.",
and
fr-J by the deletion ol the pioviso.
R e p e a l n f s e c tio n s 4 7 . 4S a m i 49
137. Sec/Saia 41, 4S and 49 o f ihe
V alue-A dded lax Act. 1991. are lienehy
re p e a le d
GOVbELNMkN ! OAjSETTE, i JLLV J0[.’
T.io: AliibhniiErAlKin i r I 1n11
Art N*. I t otlnll
No. niifl vrflr
Short iti If
F \U 'iil o f
ni' i'v-]n-:it
A n e o itu ie iit o f ifftk m 5U
1JS. Seclion 50 of the Value-AdJed
T:l\ A cl 1991. is lieieb> am iiK kd by ilie
*i definition Lin
1fii o f llic
foUowme subsection
"(6) Notwithstanding tlie f>i*:idiJLs
|h[<T\isHHi- of lliis tedim . Kin' [dirpr-
tiuu] dec toon or determination or the
Comnus-sioaer made under vet lion 1?
or 2" in r o p c c t o f the Vendor i-cfL.n«l
tniii *aibiertiDH i : i ofthi^ section shall,
tioi the purposes of ibis Act. apply
to eaeli *.yaia!i; ttniopiivc
branch or division of the vendor win; Ii
i*! separately remslered under <hi>. sec­
tion Provided that where a [dirrcluuil
decision oi dclctminiilion it nmdc by
1 1L ." <
7-191J 19 L li S - .1 1 J 9 LUT L m i l c i M i l
C 1 i 1.1] 1 ( ! )
l
o f ^eciion 2^ winch npplLe v in (tsp ecl
o f any such separate euteipiise. branch
oi' divudati. [his subsection iliull uni be
construed
a?,
preventing 1 lie < 'ointliis-
siotier tioni making £ separate | (UrPCliuiil
oi detcrniinmiiin uuda
subsection (-1 Jot die said section in the
cuuunstances contemplated hi that
subseeliun in respect 01' any other
separate enteri>rise. branch or division
ot the said vendor "
A u ifiiiln itiil o f sect Soil 50 A
139. Section 50A u f die Value-Added
Tax Act. 1991, is hereby amended—
Ml by die substitution for subsection (1 )
o f the following subsection'
iL( l ) NotwidisEandmp: [he ptovi-,hju^,
ticm 2 1. i f tl ii.' i T t p i [ii n i
-
sioner makes a [di r a tio n ] deci­
sion under ibis section, tbe persons
nauictJ in the [dircf lion 1 dcuuuni
shall he deemed to he a stude
person carrying on die activities o!
an enterprise described in tin:
fdirKTtiuu] decision and that per­
son shali be liable to be reyisteied
in lopoB o f section 23 with cQvcl
ifrom the date o f tlie fdim~li<iti}
decision or, i f the Ubrt'vtionj deci­
sion so provider, frtun iucb date as
Timy K; spc^ifieil t] win
GOVbELNMkN! OAjSETTE, 4 JLLV J01.’
T.io: AdjibhnuErjtlKin i r I 1n11
A ft >--0. 2B or M il
Vo. niul vrflr
Sborl iljlc
F.flffll of miki ii ill ii Ln■:Lof rrpcnl
\b> b y
tltc iiiboCluiiwL sii su b sL tlk n i ' 2 i
fitr llie ’.mulLi |irecetb n ir |n u nin vi| ill
oi ihe
ml
f o llo w in g w ord s-
"Tlie ConmiLwottei ■-liall not
(dirwtifpnl il^ciiiun muki
ihis secrion naming .my p f lv n
unless be or she is satisfied ":
l a b> tlie subirliiuliuii in tutnoclioii (2)
fot pmagrapt) {h t a t the follow)n;
paragraph:
iil.lL.-j ji
" i b ' dial tin: a c liv itia m lbe collide
o f which he or she nukes or
made those taxable supplies
ibrai only part o f colaiD aCtJVtu l i i d i d m u ld p t i^ i d ly
lie
■nuai lied a s lln )s t o f |!lu hii 1lji -
prise described m lbe [dlrprtionj decision, the orliei activilies o f dial cntaprise be in a
carried on ar that lime nr previ­
ously by one or more oilier
pctsoos; iiml .
(iii by the ^lihMimiion for subsection (J)
o f the follow ing subseclion'
“ (3 }
A
[r iiiT d io n J
d j j o m iii
tiu d e under this section shall he
w n 'td oil e:itli cif tlie p t n f f lt
named ill i[.'\
fe.i by i t a HilbgtitillTcni in tuliKBCtiaii
l-I.i
for (be word i preceding paragraph i r-rj
o f the follow ing wonts:
~Wln3c, after n [direction! deci;
sion has been given under this
sec lion specifying a description ot
the enterprise. it appears to tlie
Cuninuisioner lb a pervuu ^ho
was nor named in rh.ir [dirtrtmn]
dec rsiou rs making taxable supplie:.
in [he cuuric or luilhcTiutcc ol
aciiviries which should properly be
legarded as part of the activities of
that cnlcrprisc. die Conmu-'iouci
May iiuLl: :iml im t im him nr lui
a supplementary [rlirwtioii] deci­
sion refemng lo ihe earlier Idlrtfrioill dccisiou juid die dnutplion
of the enterprise specified 111 it and
adding dial person's name to those
of Hie persons named in die curlier
[ilinrlioitl decision with effect
from
uti
Nfl !i-N|
ftaV kfeN M E N l QAjtETTE, ■*JL LV J01
M t fin 19 a i m I
Vo. m id ip n r
S t o l l title
F Mi'ii I o f :inii iidini'ijL n r re p rn l
\Ji b} the substitution iui subjections (5)
,1 1
n i |6 " j. r e * p c c t i * s i v. i i f I h r f o l h m m j
H ib s e c iiM u :
*■<?> If.
[d ire c tio n ]
im m e d ia te ly
J m iin ii
s u p p l e r s e u ia ry
w odj
is
m ade
■m
b e lu ie
a
c liu lm v
it
[rh rrrlio n j
u n d e r ib is
d re ts e t N o il
t i n y jx tv - M ] t w i n e d i n t l i e [ d i m i i o n ]
d e c is io n ts r e g is ie n H t in r e s p e c t o f
th e
lie i
i.isnble s u p p l i e s
in .id e
n i c o n t e m p l a te d in
by l i n n oj
^ i i b - 'e e t i e 'u
( 2 ) o r { 4 ). h e o r d ie s h a il c e a v e to b e
lia b le t o b e s o r e g i s t e r e d w i t h e f f « l
li o i U —
(at the date with effcti b o m which
the Mimle puThcub M K tin iid be­
cam e liable to be re tittered: or
(bi die dat e o f the [d Inec Hon J deci­
sion.
tvlii die ve: ilaTe ts ihe laier
(6) 111 relation to ail eiilejprise
specified in a [direction] dgcuiuii
(indpdigg a suppltrnentary [direc­
tion J decision) under tfii'i section,
the persons wiiticd in »licIj Irtlrcrtinn] decision. who together are
deemed to be the liable |)tiw n , tire
in subsection* 17 1mid i &: r e tir e d to
s t!i t h e
m e m b e rs .” '
i j l by the tubitituKaii in subsection O
for rhe words preceding paragraph
<tti o f die fu lle r insi wstdfc
“ For ihe purposes o f tbit ^ct.
vi here a [ilirvrliouj decision is
n u d e under this section ". and
l!il by the substitution fui paiainajjli In)
o f subsetiton ( 7 ) o f the follow ms
para&raph:
“ l a) the person carry mji cu llie
enterprise specified in tlie
[ direction) decision shall be
i-jitiU ib k in such n.mie a*
th e
iiih iiIm :-
lim y
jo in tly
nominate upon com pliance
with the provision! of section
Ni JJ49I
(^VERNMEN’l OAZt r l t 4 JULY LLU12
Act .vd. :s or 2011
T.tk AftuunitfraCtnn Art, Til 1
Mo, find yrfir
Short tfrlc
E xtent o f :i liki'i 11]11el'i)I oi' rrpral
A m endm ent ol' section 5?
J-10. Section 55 o f [lie Value-Added
Tax A cl, 1991. is hereby amended—
( a ) by llic Mih%niiilioii lor the
preceding paragraph ( t i t o f tlie fo l­
low ing words;
J,[F vrry vrm lnr shall kcrp
vinil Itonks nf accou n t hrhicli
hook*, o f acto u tn . u liene gen^r
tiled hy m enus o f ft com puter,
shall lie retained in 1tiE* form <if n
com i)iiler print-out) or otlier
record s ns tuny en ab le iiim to
oltserve (lit1 reqtilfemt»jiLi ihf lliis
Act and en ab le the Cofltmhs
llOuer to satisfy Iii 11heir lliiil lhe
vendor 1ms observed s u d i rcffllilfHICIlIS, aild] In uddilimi lo
(he record Mequired under Part A of
Chapter -1 o f the Tax AdniiLiistra[ion A ct, every vendor filial 11 must,
in particular, keep tlie fallow ins
records and documents!— J:". and
( b ) by the deletion o f subsections (2), (J)
and (--11.
R epeal o f station s 57 lo 57D
14 1 . Sections ?7, 57A , 5 1 % 57C and
57D o f [lie Value-Added Tax A rt, 1991.
are hereby repealed.
A m endm ent o f see lion 5S
142. Section 5S o f the Valtifc^Aifcfed
Tax A ct, 1991. ii hereby amended—
(rTj by tfie snbsiimuon for the w oids
preceding paragraph in) r>f rhe fo l­
low ing words:
".Any yen>on who w illullv and
witliout just cause— Mi
t b i by tiie deletion o f paragraphs
(t>)
and (Ch
if! liy fbe hiilifitilutmn Ini p;njigisL|hli tfl)
o f tlie follow ing paragraph"f i t } fails lo com ply with tlie pro­
visions o f acciton 14. [or
sect inn 1 2K(1) or ( 2 1 nr [sec­
tion J 3 9 [or section 3DJ; or“ .
344
A rt
GOV LELMMkNT OA/fE'J i 4 JULY JOtJ
T.nc AitmLmttraEtnn Jt rt ' 1115
Ni JJ49!
.Vo. : s or i o n
\f>. find yrfir
S h ort title
Exfienl or :■n ki'i 11]11el' i)I oi' 1’i-jicfil
f cl) by the dvkuott o i paiii_:jntph> [fj to \ i}\
I'r J |i\ iIil' Miltstiimion in
hii |'yj Ini
subparagraphs (in arid (iii) o f tlie
follow ing subpaiapiaplis.
“ (ij) [fcucnvhigly nnd wftfuitit lnwtlll e\llLSH (lln- 'lllll'HIt'll of
p roof or wliicli simll be upon
him )] ii id u d o in ur adds Lo die
p dcc or amount charged ro die
recipient in relation to such
supply any lux, wliete in fret no
rax is payable in terms o f this
Act; or
<iii> [know ingly mid whJioul la w ­
ful excuse (th e t w id iii of
p ro o f o f svhtdh si mil he upon
liim ij includes uj or adds: to die
price or ammtffl charged to die
recipient in fetation lu such
supply any tax in excess o f The
tax properly leviable under this
Aut in fcppnul o f [1ill valiu: ol'
such supply; or":
iji by the substitution for paragraph :ki
o f the follow mu puraurriyh:
“ fk) rknnw iii^y nitil wit hum
limTiil (.\i u3c (<lir b m d d t
or proof o f w]ikIt sholl lie
upon llillli] l:iik hi u[imply
with die provisions o f pat'aiia|.ih (i) o f tlie proviso to
section 201 If oi piinipitpli
(A) o f ihe proviso to section
21(1): or ': and
^fiJ by the deletion o f paragraphs (I), <u >{a), (p) uitd tq}>
R epeal or sections
aik I 60
143. Sections 59 and 6f> o f rhe ValueAdded Tax Act. ! 9 9 t r are lieteby re­
pealed.
A m endm ent o f section 61
l-l-l, Section fil o f the Value-A tided
Tax Act. 1991, is hereby amended
(a} by lliu substitution fur subsection i 1 i
o f the foil tw in s suhseclion:
.<■»
A rt
Ni JJ49!
.Vo. : s or i o n
\f > . f i n d y r f i r
GOVLKNMtNT CiA/t'f'J i 4 JULY JOtJ
T.nc AitmLmttraEtnn JLrt 1f]] 1
S h o r t title
E x t e n t o f n iu c iiilm iT ii or I’l-jical
W l i o c i n rvspL'ei o l a n y
suciflly tttfik by )i vatdor, ihe tm tiar
h sy in consequence o f any fraudu­
lent action or any unirepre^utation
liv llie i ijci| hl‘[]I Lil’ lluj n |i ] j h
itiCqr-
reclly applied a late nf /e m |>ei' cem
o l treated such supply a-i beins: ex-jmpi hum tax, the Canttttn&iona
may, notwithstanding anylhmc: fo
the cOQiraty contained in this Ant.
i m t tui aiswdHiimt upau rite iceipieut for the Aiuutiul o f tax payable,
in aether with anv interest and pen­
alty [ot1 i n t d T S t lltrit Lins become
[K ivatile in t e i m s o f s e c ftn n 3 0 | ilu !
1ih£l btuecmu fi^v.thli; in tfltaw n f
d’tiapter 12, 15 or 16 o f rhe lax
Adtgiflisnation Act, &s she case may
b e . in icypcei ol bnuli iinxmuif. mid.
1IL HUMUSf Mil'll JLSWI-iSl Ill'll!, tlie
C o n r o i f e s i o n e r m a y e s t im a t e tlie
n m o n i u o n w h ic h llic t a x is p n y : ih le ] ."": a n d
lb)
by the deletion o f subsection (.21.
iit'[hL':il
of s e i’l in u s
6 2 , (v.^, 7 0 m ill 71
145, SeL'liun1! 62. 63, 70 hiwJ 71 o f liie
Valne-Arlded l ax Act, 1991. ai£ hereby
repealed.
A iiil 'I h I lui' iii o f s e t'liu u 7 2
1-16, Tlie Valuu-rAddeti Tax A c t. 1991. is
hereby amended by ihe ■iiihsrinirion tor
section 72 o l the fallowing section
" A i r a y g c m n i t t iiiitl [ rlliv c tlo iis ] rtecld u n s Lo o v e m n u r d iffu 'u trie s, mini un­
lies o r i u t t n i g m j l j e s
72. If in any case the Couinussioner ii
iisli>Jioti dial in cuusCqUCUcC ol' the
maimer in winch any vendor nr class of
Vendors c o n d u c ts his. her or their b u s i­
n e s s , tiiide o r ucinipjiiiuiL diflim illics.
i4K
A rt
Ni JJ49!
No. : s or i o n
\f>. find yrfir
GOVLKNMtNT CiA/t'E'J i 4 JULY JOtJ
T.nc AitmLmttraCtnn Jt rt 1f] ] 1
S h ort title
E xtent o f am endm ent or rrpral
bnoiuHlics or incoa^rwlicj 3lh\ c HJiseil
m' may aiifte (ttn ratl) Ln llic W tllk ^ F fl
o f any o f the provisions o f this Act, the
Commissioner may make an arrauaetnrnl ui f^ive ft direction] dL-uEsmii ni
to—
fflj rhe manner in w liicli such piovisions shall be applied. ot
ibl rhe calculation nr payment o f tax or
rhe application o f any rare o f zero
pci c a ll or any coemption livm lax
provided in this Act,
Li tlie case o f such vendor or class of
w ndors or Liny p e iw n transacting 'Ailii
sueli vendor or class o f vendors as
npptjii-K lo Overcome -.inj1l lli: lli lj111[i l- .
anomalies or incongruiries: Provided
that such [(IfrfCtiOLl decision or arriinaemenl sk ill not have the ufleci ol'
substantially reducing or increasing flie
ultimate liability ior tax levied under
tliii Acl.".
Act No. 3-1 o f 1997
Son Hi Aft-lcau R ev­ A m endm ent o f Ejection 1
enue Service A cl.
1997
147. Scchoii 1 o f lhe Soniii AJjiuuu
Revenue Seivice Act, jyy?. is hereby
amended by tlie substitution for lhe detiuilion o i “rcveirnc” ol' llic following
definition:
11 “revenue" means income derived
from taxes, duties, levies, tecs^,
cbarges, additional lav] unci :my otbtr
cl[[>itL.-y.-i nnj)n>ed in Il-cihs Lit' Icuislntion, including penalties and im ere« in
coimectiors with such moneys:".
Act No. 9 o f 1939
Skills D evelopm ent Aiueiti1inei.it o f section 1
L evies A ct. 1999
14S. Section 1 o f the Skills Development
£*tries A c t 1999. is hereby amended
(a) by lliu aubstilnUlnt for die Jefiniiiou of
"Cflrniriissioner” o f rlie fnl lowing
detuiition.
“ ‘Coiim iiwioner* means the
( ’on in m y oner for rhe Smith African
Revenue Seivice appointed in
/.ii)
A rt
.Si JJ49!
.Vo. : s or i o n
\ o . fin d y r fir
GOV LKNMtNT OA/fE'J i 4 JULY JOLJ
T.nc AitmLmttraEtnn ^ rt ' 1115
S h ort title
E x t e n t o f aiuondihfrii or i r p c n ]
L a m s o l' section 6 o l' Llie S u m ii
Afnt;m Revenue Sen. ice Acl. J9V7
(Act No. .54 oi' 1997 J. or the A cting
Commissioner de^iftiiaied in terms
til'ncelum 7 o f llwl AlL.” .
{ h i hy ihe in.ieninn after rhe definition of
"Skills Development A ct" o i ihe
follow ing definition.
■Tax
A d m i n i s t r y lio n
A cl*
means tlie Tax Administration Act.
2011:” :
frj hy file reiiumberin& o f section 1 lo
s e c tio n 1(1 !i: a n d
•/I) by llie insertionaiier subsection ( Li oi
llie fol low i n n Mib^ec Iim i .
" ( 2 ) tJjileim ILie iM jiile\l U uli ll:h11-.-,
otherwise. a word or expression ro
ivlncli ft meatdnjt lias been assigned
in llie Tax Adirriutsiruiioji A el,
beats ihat meaning for purpose* o f
this Act."
A n i i i r d m r n t o f srrlim i 2
J 4 9 , S et Lien 2 oi’ tb£ Skills Develop*
oient L.evies Act, 1999. is hereby
amended
(a) by lbe yuiisltiillticHl fui' subjection i.2>
o f the foil owing suhsecrion:
“ (2) Tise Commissionei must
minimi ster Lhe i* o \ isions oi' llie
Act in so far as il relates io the
collection o f [lie l e w payable to tlie
Commissioner in terms o f [ins Act.
In u c C in iljiiit l; u illi [h e B m v jg jflflt
n f ihe Fuji A.jfcielr!l :-[]■:-i 11lt-tk A el.’":
and
i b i by Ilie uisen ion alter subsecti on ( 2 ) oi
the Loltowiiiw subseeLioir
“ (2A ) Administrative te^im'ements and procedures for purposes
o f llie performance o f any duty.
power or obligation or rhe exercise
o f any riaJit in leim s ol'this Act are
Lo the cxlcul not rcmrlaicd in ihi>
Acr. reaulated b y the Tax Adminis­
tration A ct.” .
A m e i u l u r e r i t Ht* s s tU w n
]>U, See Lion 6 o f the Skills D evelop­
ment L evies A cr, L999. is heieby
amended
<a/ by tlie substitution for subsection £1)
o f llie l u l h m u i j siili.HeelioTi:
■'( U Subject to iectiou 7. eveiy
employer mnsi. nor laier than seven
da vs. or Mich longer period as lbe
CoHuuissionei' dcLcxmmes. after
» 2
N i
A c t .v d . : s
Mo,
fin d
( ^ V E R N M E N ’l
JJ4 9 I
o r 2011
yrfir
C iA Z t n
t
4 J U L V 2U 12
T .t k A f t u u n i t f r a C t n n A r t , T i l 1
Short title
E x ltlll
o f am endm ent oi' repeal
[lie cikI oJ each moiiih in reaped ol
w h ic h
\k>
llie
ItY y
is
p iy jililc ,
p ::iv
llie
!evy to die f-’omuiissioiieL' Jiii Ihe
m a n w r mid] within ihe period
dulunil i n c i l i n llii'i Atil. " mul
by rhe uibstitntinn for jnibn^tion f2j
o f the fbllowiflf, sub^eciioir
“ (2) A n employer if nisi [. noi
laler lliau .seven diiys, Or nurh
longer period a* the ConuuLssiou cr d e te rm in e s alter (lie cud
o f m i ll niMiillt in ntqjtsrt o f wliirli
ihe levy Js payable, pay tlie levy
to the C onm rissloufr and] i o iethcr with [suclil payment o f llic
le v y
in
[e n n s
o f siibstu! i o n
flJ
i n b u i l t 3 J^tnlemenl —
( a ) I n surh T o n u as the Comrulssioiicr m ay require; mid
( b j refleeiing the ninm m t o f llie
levy due b y that em ployer
mid raulaiuiiift such other
in tors n:tt Lon as ihe tiiiiin iis sloner may require] return.,L
R epeal (if section 7A
151. Scciiuu 7A o f [lie Skills D e\d u p niem Etv ie s Act, 1999, k hereby reg a led .
A m end m cul o f sccTioii 11
JJ2. Section 11 o f die SkDb DeveJop[jlulii Levies AeL. 1 9 9 9 . \-i hereby
amended—
( a l by cJie substitution for subsection ( 1 1
o f die follow ing subjection
LJ( I ) If i m employer iiuls Lo pay a
lev y or any portion rheieof nil ihe
Iasi day for payment thereof, as
conlemplntcd l i ] section 6(2) or
7(1), H i L c r c K l is jmvnhle o i l iIkouManding amount [:n the rale
contem plated paragraph (b) of
llif dcfmirioit o f 'prescribed rate’
hi section 1 nf the InrniiicTaK Act,
caleulmet) from the day follow ing
[hat Iasi d ay for payment to the
d;iy Hint payment Is recei\ed by
ihe Com m issioner, SETA or a p ­
proved body. as the case m ay lie j
in accordance with the provisions
o f Chapter J 2 o f die lax Adminis­
tration A c t . " ; and
(bi by die i LLlm: i ul' Hiibiiixtidu ('111.
Ji4
A rt
No JJ49!
.Vo. : s or i o n
\ o . find yrfir
GOV LKNMLNT GA/fE'J i 4 JULY 2012
T.nc AitmLmttraEtnn
S h ort title
rt ' 1115
E xtent o f am endm ent or irprn]
A m endm ent ol' section 12
15J. S ett]dii 12 o f the Skills D evelop ­
ment L evies A ct, 1939. is heieby
aiiLEiided—
fd i
by die substitution for subsection ( i )
o f The follow ing subsection:
" ( 1i Subject m sulmcctinn (2), if
any levy remains unpaid after ihe
last day ior payment thereof a?,
coiltatt^llcil in section € 12> or
T 1 1>. the Closmni dinner must un­
der Chapter 15 o f tlie Tax AdminisLmlion A cl. im pose a pen nil y o f
1(1 pi:' Lem o f Thai unpaid amount
[iv j>ayiibit1 in addition lo the
ill If rest rai i tern pEa led in set lion
(l>j
11].'%
hy tlm iiib'itiliilimi fur Mil >Si.vturn [2)
o f lhe follm viog subsection:
“ (2J Tlie Commissioner or the
exec til it e officer o f ilie SETA oi
apjtrnved body, as rhe case may he.
may I* lim in g due regard to rlie
d r c tu u s ta a tti o f ilie- c a s t j renJi
rhe penalty or any portion Thereof
imposed by subsection t 11 in accor­
dance with tbe p iw rsions ol'Clmpter 15 nf ihe Tax Adininihiratinn
Act."'; and
( c) by the deletion o f subjections (3). (4)
hi id (5).
Repeal of section 13
154. Section 13 o f die S k d k D evelop­
ment L evies A ct, 1W9. is hereby re­
pealed.
A m endm ent o f section 15
155, Section 15 n f rhe Skills D evelop­
ment Levies A ct, 1999, is hereby
amended by the addition alter subsection
1, 2 ) nf lt]c Polh™ in" uitb-^cmiii.
“(3) A n inspector has tiie same
powers aiibided ro a senior SARS
bffieiiil. a SARS official or SARS under
Chapter 5 o f the Van Administration
A c t" .
Repeal nf sections 16, 17, 20, 20A mill
21
15ft, Section*, lfi, 17, 20, J O A w d Z l o f
tlie Skills Development Levies Act, 1999,
are hereby repealed.
.Ni J.'491
Aft .Vo. :s or ion
\ o . find yrfir
Acl No. -1 ol 2W2
GOVLELMMkNT QAlfcTji 4 JULY JOt J
T.nc AitmLmttraEtnn JLrt ' 1115
Extent of mutndihtiil or irpciil
Short liflr
L!hfuiploymein In- Amendment or section 1
iLii'fLurr Contribu­
tions A ct, 2(^)2
157. ^cdliiii 1 [>r ilie UncjupJoytnr a it
tnsarance Contributions A ct. 2002, is
hereby amended
U n hy llu i^nlvhLitiLliciEi h>E ilij dufniilmii
o f "t
si oner" o f Tlie follow ing
definition:
" 'C om m ission er1
means
ihe
Commissioner for The Siinrh Afri­
can Revenue Sen'ice appointed in
tum u oi' sruclioii 6 o f tltu Suulh
African Revenue Service A cl, ] 997
(A cl No.
o f 1W Ti. or the Acting
Commissioner designated in terms
o f seetion 7 o f [hat Act;";
(It) by iIib tuAtiffifxi aftot tk‘ ^Soitkin of
“ rranweraticM)" o f the felk w ittg
definition
■J 'Ta\
Administration
Act*
means ihe Taft Administration Act,
2011;";
(c) Uv llie ten umbei in-.; o f Section 1 lu
section ! ( 1 ) : and
the insertion o f tlie follow ing
subscciion atlet mbauciiDD t l j j j
■lfift U nless the context indicates
otherwise, a word or expression ro
w hich ii meaning h js been assigned
in 111lz Th\Adimmslrntimi A d liufii n
tliar meanhin for purposes o f this
A c[.“ .
Arurodnrnl or srcrlon .1
Seel ion i o f the Unemployment
O iiiilr ib u tim iH
Act, 2002. i:n
hereby amended —
'iu by tlie ^ubstilution for subsection f 1)
o f (he follow ing subscetion;
“(1 > This Act must be adminis­
tered by tfie Commissioner. m aceui'dunce with tlie provisions o f lhe
lay Administration A ct.” :
158,
IiW m O ia i
3S«
Ni JJ49I
(^VERNMEN’l GAitfcTt t 4 JULY JOt J
Act .vd. :s or 2 0 1 1
T.tk AftuunitfraCtnn Art, Til 1
Mo, find yrfir
Short title
Exfienl o f am endm ent oi' rrpral
( b ) by llic insertion after subsuution ( 1 >ol
[lie tiillin1, inn siibnectioii:
L,( 1A) Admiriisrtritty? require­
m e n t and piocedure:, I'oi purposes
o f iti.- |kJTfihniisHicc o f HJiy duly,
power or ohlieai ion or rhe exercise
o f any i i^lit in terms o f this Act are.
Lo the uM4.Hl not icuniiilud iu lliis
Acr. repnlaTed !>v tlie l as Adminis­
tration Ac!."i and
W> by the subslitLLiiuu lor subseulion (2)
o f the follow ing <;uh!-ectioii:
''t'2 t fTlie] In addition to section
9 o f lIlu Tax A dm inistuition Auk
and in accordance with scciiati 10
[if ibnl Act, [Ue i'ci]m iiik.htoiil t Timy
deiecare any power or assign any
duty which relate* so the collection
of-—
ffi) contributions payable to die
Unemployment
Insurance
Conuni'-'jiouur in terms o f scution 4J: and
0 } any information to be submit­
ted Ly employers in tenn* ol
This Act io The Unemployment
hm irauct (.‘o m m iiii onei. ’'
A m endm ent o f .u n io n S
li'lif. Suction S o f Lliu Unemployment
Insurance Contributions Act. 2002, is
hereby amended
fai by [lie substitution for subset [ion [2)
u f Uiu Ji>tl;m m<; Hiibscclioi]:
“ (2) An employer m l , UmSIJici
with the payment [con (fin phi it'd J
referred [o in subsection (f t, sub­
mit u [statem ent in such form as
llie Ciminii^siiiiifT m aj rt'ijiiirt'
Itndj return reflecting the amount
o f the piiymcul hljJ such oilier
particulars as the Minister may
prescribe [by regulation].": and
fl ’i by the deletion o f subauction (3),
5MJ
(toVERMMtivi G A ztrrt
NVi M fll
No. niifl vrflr
4
ju ly ^ u ii
Tax Admmutralicn Art. T013
Aft hi. Wat In II
Sborl illlr
F \U 'iil o f .jilil'Iidnii' in ni' rept-al
A m endm ent o f scctlon 9A
160. Section 9 A o f the l. uemplojTueiK
fru n n n ec C ontribution A cL 2002. in
IjtTdby j] [tended by die tidi^nn limit for
subjection (I ) o f The folio wuie subsec­
tion:
"(1)
jiihv employer ulm irequired to pay the amotuii nf ail
employees" coctribuTioni ajid the em ­
p loy'd L* coutribuliouri in revpccl u f
every em ployee in lhe emplnynienl o f
th.it employer to ]1lte C om m issioner 111
im u s o f ?rcliou 3 or to] the V ih.h i plriymeiit Insurance ('nmnussioner in
teim s o f section 9
m i has failed to submit a statement as
required hi itjm s o f [section WtJi
or] wirtitnj 9(1);
l b) hat furnished a remm as required
in terms o f [section Ei2Al orf
se r fim F9f2A)l 9|2 e bnl iIk Comtnjf.ftk>ner is noi satisfied with the
return;
( t l bus failed Lo deduct w nithliold
employee*’ coil mbm ions; or
id) Ills failed to pay over any cojilribu110 1L> J'JilUL'ICd Ol it Ilh]LLLitl.
and such employer lias nor heen ab­
solved from bis or her liabitines m
Icm ii o f the provisions o f tins A ft. the
rcoiim iiissioner or (lie] liruaupkiymeni Insurance (.'onm iniiw ieif, Us Hie
fiise m ay be.J may moke a reasonable
cslimutc o f U;c Hiuuiml o f miy contribuIion-3 due in le n iu o l ?eelion 4 mid issue
m ihe employer a notice o f assessmenl
for die unpaid amount ".
ViiLrJiilnif nt o f serlitin tl>
l( tl. Section 10 o f tiie UnciiiployiucTii
Insurance f ’onm hinions Act, 100J. is
hereby amended
(a) H til-.1 ^ubstituliou for lubvecliun ■1)
o f ihe fnllowtne subsection"(1) jVn employer lo wIhmu ihis
A cl applies must iipyb' iui rtaisttmuonroilie Commissioner its accord­
ance with (.’liapiei
o f (he lax
Administration Act. or llic ViieniplayttfttU
hiHiinmci:
C M W llioner. [w hichever is upp li^ ib lr
to surlt h nplover In term s ol'
362
.S i 3 J4 9 I
( ^ V E R N M E N ’l O A i t n t
A c t .Y d . ’ S o r 1U 1I
\o .
f in d y r fir
4 JU L Y 2 0 [ J
T.tx A ftu u n itfra C tn n A r t , T i l 1
S h o r t title
E x te n t o f n m c n d in e m
s e c tio n
8
o r 9 .J
o r re p e a l
in ? )itc h m n n t i n ;n u !
w i t t o l s ii L 'h [ i c i i i n ! n% D U ty h e j n c -
iiertbed b y th e
[C u iiim iw jo iie r
U n e m p lo y m e n t
In su ra n c e
n i h i ! n i i L ‘r [ , r i s [ i r r l i v f l y ] . '
<hi
by
ihe
d e le tio n
of
ur}
C om :i c itl
(2).
s u b s e c tio n
R e p e n t n f s e c tio n 12
162, S e c tio n 12 o t the U n e m p lo y m e n t
OmilnlmniHiK A c t . 2 f J 0 2 , i*
T u m r j m L 'i :
h e re b y re p e a le d .
A i n e u r h n e n t o f s O r t i o f l 13
163. S e c tio n I J o l [lie U n e m p lo y m e n t
Jii 'i Lhhhlc C oT ilriliuiuins Acl 2U02, U
h e re b y a m e n d e d —
b y die ffuhrtiration for su h s e c tio o
fhi
( I
j
o f the fo llo w in g su b sec tio n
“ 1,1 1 li1n a y c o u liib iiiio n rc m u iiu
u n p a id a fte r tlie last d a y fo r [H y­
m en! th e r e o f as c o n te m p la te d in
sv clio n S ( i ) o i 3(1 J, t l i e C o m i n i i utoner m u st, u n d e r C h a p te r 15 o f
r!ie la x A d m im srratio n A ct. im p o se
a p e n a lty o f 10 p e r c cu t o f llie
n u p rb iii j m n m n i
d ilio n
lo
Ih e
| is p a y a b l e
in lrn e s t
in
nd-
c u iile iii-
lilrtte d
111 E f c t l o i ! 1 2 ,j b u t tlie
C o m m iss io n e r o r lhe U n e m p lo y ­
m e n t In su ra n ce ('o iu m is s to n e r. as
the c a se m a y b e . m a y [. h a v in g d u e
r r R im l to llie c irc m iisE tin c e s o f
l h e r : i s e , l re m it tlie p e n a lty o r any
po il ion th e re o f in a c c o rd a n c e w ith
the prov isions o f tLlin p te r 1? o f l h e
(hi
Tfl.t A d m in istra tio n A c t." , iinti
b y the d e le tio n o f subf,ecS ofls ( 2 ) .
an d (4).
f.V j
R e p e n t n f gKtiQO 1-1
164, S e c tiu n 14 o f Ihe U n e m p lo y m e n t
In s u ra n c e C o n trib u tio n s A ct 200 2 , is
h e ie b y rep ealed .
.■<64
CiAZtn t 4 JULY J O t J
T.txA ftu u n itfra C tn n Art, Til 1
.S i J J 4 9 I
tJ O V tfL V lM tM
Act .vd. :s or 2 0 1 1
Mo, find yrfir
Extent o f niuciidniciii or I'rpra!
Aniendractil or section 1?
165. Section 15 o f die L:demploymttit
S h ort title
IijsLii'nuuc Cunuibinituis Act. 2002. is
limebv oilierntcil Ftv die .liklilior] jifltr
subsection (J) of rhe tblio’ivins; subsec­
tion;
L'( _i Ail iusrieekir Ii;ls llic nine pOW*
si's afforded t o n senior SARS official, a
SARS oriici^l or SA RS under Chapter
5 o f l!lll Tax A diuiiiiitritjoii A cl."
Kepe.ii of section 17
ItilS. Section 17 o f die I neniiiloymeut
Insurance COnMbuiious Act. '0 0 2 , is
hereby icjjejded.
Art \ t t . U of 2007
nium ojid
Ev[inrl Amendment of section 1
Levy (Administra­
tion) Acl, 2007
J67. Section I o f rite Diamond Ex|wrr
Levy |[Adm iuistiadon} A el. 2007. is
hereby amended—
‘. ai by tlie substitution ioi ihe definiiion
ol' " C om m issiuuci " o f Ihe lullim ing
definition:
" ‘C om m issioner' iiaeaiis. ihe
Commissioner for the South AtriIll
RllVJ1]11U SiUS"V I U4^ B p 0 h l l t l l 4 113
terms o f section f> o f dte Sioulh
African Revenue Service Act. 199T
1A el No. 3 4 o f 1997). or [he A dim s
r a m m i^ im w designated in terms
o f section T o f that .Act:":
(b) by llie iiusertiofl -iliet tlrc definition ol'
“ registered person** o f ilie follow ing
definition:
,J ‘T ax
Administration
Act'
meant llie Tux Adi lulus! rutrail Ael.
20]!,";
ic) by die renumbering o f secrion 1 to
scctiou I £1): mid
1r j b y
d ie iim n lia li
aflpr
m ib ^ C tiilt)
( 1 1o f
tlie follow ing subsection:
“ ( 2 1Unless tlie contest indicates
otherwise. ji word oi exuression to
which a rue/wine lias been fissioned
l i i the Tax AduiinisTLarion .Act beats
that lucjiuinji for purpose's of lliis
A c t.1'.
i6t,
A rt
GOV LELMMkNT GA/fE'J i 4 J ULY 201J
.Ni J.'49!
.Vo. : s or i o n
\f> . f in d
y rfir
I .1* A ^ n '.i n u h .^r; r-n \ r I ' 1115
S h o r t title
E x t e n t o r : ■ li k i 'i 11] 1 1e l' 111 o r
A m e n d m e n t o l' s e c Iio n
I 'c p c i i l
7
168. Section 7 o f rhe Diamond bxpoit
Levy (Adi»iiH*traLiuu) Act, 2007, ih
hereby amended —
fd i by tlie ^ubsrimtion in subsecriou ( i)
for tlie words preceding paragraph i a)
o f d m
I'nUi m iiL j2 words
lirEve|*v] In addition ro the
records required under rhe Tax
A ftm im ttln ilin n i
re re d
a c c e s s a r y
lo
n & tts
rliis
A c l,
o f
A c l.
mwt
p e rs o n
C V tF V
o b s e rv e
ih e r e q u lr e -
aurl
A c t
Li i d i i i l i i i i i ]
lU L lil-
[r ir o n ls
re ta in
liie
lh e
L e w
fo llo w
ru e
records—
and
ib) by ihe deletion o f subjections (2) and
(3).
R e p e a t
u f w c lio u s
1 0
l* i
15
169, Seciions 10. 11, 12, 13. W and 13
o f ihe Diamond hxpoit Levy (Adm inis­
tration) Act, 2007. fue hereby repealed.
A iir tw J m e m
o f s e t lio n
16
1 7 f t Section 16 o f ihe Diam ond r . \ | H i ! T
Lery (Admmistra$bii) A ct, 20017. is
hereby amended —
! t i } by i I i l J b t l L k t i l y t i o i i f i n ( ) )
o f (he follow ing snbseciion:
” (15 Ti)e Commissioner will be
respotisiUe Tor MiliuiijL^i-uriliu: tlni
Act ,ind rhe L e v y Act. i n accord­
ance with llie provisions o f lhe Tax
AdminisliJilion A cl, together Wilh
tin: iiii-aiiiLtniee uf the Rejiultityi ii!>
described in subseeiion (2 ).” ;
j j by the insertion niter subsection $ 1 } of
lire follow ing subseeliuu:
“ (IA') Administrative requirenienTi and piocedures for purposes
c f the performance o f any duty.
pD W W
(cl
h y
n r
L ilh lii’j i l i n u
nv d ie
c x V tiH U
o f any richt in terms o f this Act a r e .
to the exfenl not regulated iu tliis
Act. teaululed bv llje Tax A dm inis­
tration Act.": and
the deletion o f stibsectiou ( 3 :
R e p e n t
n f s e c tio n
1 7 1 , S e c tio n
1 7
17
o f llie D ia m o n d
Levy
(Administration)
h e re b y
re p e a le d .
Acr,
E ,\p u r l
2007,
is
.Ni J.'49!
Aft .Vo. :s or ion
G O VLKN M tNT Q A lfc T ji 4 JULY JOtJ
T.nc A itm L m ttraE tn n JL r t
' 1115
E xtent o f niutndintrii or I’l-jical
\ o . find ypflr
S h ort tfric
A ft No. 20 o f 2007
iitfu r! ties Lrntisffr A nifiidiuenil or seclio n i
Tiix A dm inistration
\ t l, 20157
172. Setli[)]i L o f ilie S tcm ilies Tian\fer Tax Ayduiitsisirarion Acr. I007, is
hereby amended
m i by iIll wbgijiiiliari fm w ibtudioii ( ) )
o f ihe follow ing suhsecrtoii'
"'U >Tlie Commissioner rmist admidjbtd iliib Acl und lhe Securities
f'r^Ti^fer Jar; Acr,
id ,-iccord.une with the |Tr£>vi$kjp^ o i die T.i\_
Adi niiih nation AcL, 2011.*';
tin hy rlie insertion after ‘tuhsectujfi (1 j of
lhe fdUbwiiig subsection:
“ H A ) Administrative require­
ments and procedure tor purpose
t>f llic flUtfi HT!U!] LiJU LlJ HUY iillly.
power or o b liv io n or rlie exercise
oi'tinv lieiit in terms o f tliis .Act are.
to die extent m t rcsiuktted in diis
Acr, reRpJrted hv tlie
Adminis­
tration Act. 2011.*1:
>c) by die substitution fur subsection (2) o f
ilie fol townie subsecnoii:
"(2) L’nless lhe context indicates,
otherwise. n WtntE or expression lo
which a nieanine lias been assigned
m the lax Administration A ct. 2011,
nnd any Ward or expression to which
j! iLiciubiiii' Ills Iw k ftsjiipucd hi liic
SecLuinei tran sfer lax .Act, IU0T,
bears tlie m eaning so assigned (.ior
tlie purposes o f this Act."; and
i d ) by lhe de tel ion o f subseetion (3).
Am endm ent o f section 3
173. Section J o f tlie &eCDrilit$ LrsuiiferTax Administration A c t 2007. is hereby
untended by the deletion o f subjection f_4j
rliereof.
Ni JJ49I
tJOVLELMMLN1 CiAZtn t 4 JULY JOt J
Act .vd. :s or 2011
JJO
T.tk AftuunitfraCtnn Art, Til 1
Mo, find yrfir
S hort liflr
E xtent o f :i l i ki'i 11]11el ' i)I or rr|iral
Aniendraotil or section 4
174. See ti oil 4 o f llie Securities TransJa Tax AdnmiislrtittoTi Act, 2007. is
OPJtiby muenildii—
fd i by die su taiiration for subsection 11)
o f ihe following subsection:
“ (1) Till! t ~ ! o i ] i l l l ! 4 * k > T I L Lr I l l l l - I
refund rhe Amount o f any overpay­
ment o i tax or o f any interes! or
penalty properly chargeable in re­
spect nf the transfer o f any security.
[If application for llie refund is
tun dr within two years aflcr tlie
d n t e »f t h M t i n r n K i Y i i i e n l l in ac­
cordance ivith sections 190 and 191
o f rhe la s Administration Act,
1011. '. and
t u t liy l I l u d^letum oJ snioeclitnvi (2) flnd
R epeal o f sections £ , (1 an d 7
175. Sections 5. (j and 7 o f the Socni jtius TvHiiHt'jv T ijk
iTl 11111E-■11f>1H.JII Aul.
20UV, are hereby tepealed
Am ri trlu im l o f s t d k n 8
176. The Securities Transfer Tax AdminL r j l l 94 M 1 A * 2 l . H0f^. i K L!_!lL j1>V M LI LU1
L11 V
tlie substitution for section S o f the
follow ing section:
1
“ 3, Interest on overdue payments
and prt tally on default n cD V trn b k
from j^rso n to whom security is
transferred. — \. 1 h In [ 1 i l l ease o f a l i s t e d
security, si member or participiiut ilh v
recover the amount o f fHit*! interest
[referred to in section 5, penalty on
defnitll referred to in section 6 or (lie j
or penalty fin ihe r a w o f ten sion
referred to in section 7] payable by
that member or participant [In tenns or
this Act] hehLl[ tto Tax AdminiHLmtiwi
Ac! from the person—
!itj to whom .i listed sefiuriry i^ trausiiT ijd. or
i h) who cancels nr redeems a listed
security,
to the exteul ilittl iliv Meliuu os iuaeiioti
o f titat person resulted in tire interest or
penalty.
ill
Ni JJ49I
Act .vd. :s or 2011
Mo, find yrfir
GOVtfLVlMtM OAZfcTl t 4 JULY2012
T.tkAftuunitfraCtnnArt, Til 1
Short tide
Fstfin of nmtndnittil oi' repeal
(2) In the cant ol'an unlisted security,
ihecottirtuiy !mdi iv.iici! ili.ii Kecuay
may recover lbe nmowt of {11***] iin^rest Irefrrred to in section 5. penalty
nn flcTfiulf vrfrrrrri lo in serlfon 6 Of
Lhe} or pamity [in dir ease of ei a.sinn
referred to hi section 7J payable by
that company [hi terms of Ihis Acl]
under die tax Administration Acr from
tlie person to whom that security was
traoikiircd, Id die extent lluii lhe net tun
oi1inaction of thaT perjwmresulted in the
interest or penalty."
Repeal ot sections 10. 11, 12, 14, 15,
Irf. 17, IS nnd 1$
177. S-eetiuns 9. 10. 11, 12. 14. 15. 16,
IT. is and 19 or’ the Securities Ttwutfer
lax Administration Ail. 1007. lie heieby
repealed.
Subsli lotion of sctUwi 2»
178, The Securities Transfer Tax Admini sEration Act. 2001, is hereby
amended by llie substitution for section 20
i)l' llie foliowin" sislipti;
"Offences [and penal lies]
20. iAnvl In addition to the offences
contained m seciiou^ 235 and 236 of
the fax Administration Act. 20 LI anv
person who L—
(a) fails or neglects to furnish. file or
snhiuil ain declaration or dociiineni ns nut) when required by or
under tills Art;
(b) ivl diout Just cau« shown. refuses
or neglects lo fnmish any itifnrmation, document or thing re­
ferred to In section 12:
f r( fails In disclose nny mnterinl JVnI
in die deehu'idiou referred lu ill
section 2 or 3:
(di obstructs or liiiidel's nny person
in die performance nf his or her
functions under or in terms or
this Act:
(t) submits dr furnishes a false rerlllicfiw or statement: or
m
A ft
Ni JJ49!
.Vo. : s or i o n
MO, find yrfir
GOVtfLMMhN'l' QAlfcTji 4 JULY JOt J
T.nc AitmLmtlraCtnn rt ' 1115
S h ort title
Extern o f
Ll ['1kl'] 11']11[ L' 111 O l ' I 'c p c i l l
<jy\ iieqiiires jiii unlisted seenrity and
I’m Is l[i ill 1til r]i lhe conUiAiy o f ihe
n'ansfer witlnn the period referred
to hi section 2. is guilty o f an
4.:>JTljib u m i l l 1in!i!i: m i u m L v i n 'I m n I n
ji fine or to impvisoimienl for n
period noi exceeding [12 m o u th y
IWO^eLlTS.".
R ep eal o f section 21
179. Section 21 o f tlie Securities Trans­
fer Tax Administration A cl, 2 0 0 is
hereby ie|jealLLd.
Act No. 36 o f 2007
Revenue L aw s S er­ R epeal o f sections 3 ? and 36
ein?
A]]KH(l]lKHl
A cl. 2007
180. Sections 33 .md 36 o f Tlie Revenue
Laws Sefund Amendment A cl, 2007. w e
hereby re|iealed.
A rt No. 4 o f :<X)S
Taxation L aw s Si-c- R epeal uf sections 16 tint! 18
i ii Lil
A inendm eul
A cl, 20M8
1ft] . Sections. 1ft and IS o f rhe I'axannn
Laws Second Amendment A ct, 2008. me
hereby repealed.
A m endm ent o f section 23
182, Section 2.^ o f rhe taxation J .aws
Second .Vmendmeut Act. 2008, ii hereby
amended by die deletion u f subsection
A r t No. 29 of2EWS
01M iner a] nntl Petro- A m eiulm ent ol seclion 1
111i i i ii
R etail rt'es
Krjyjh](\ (A tlm k l$Lr ttio n ) A ct, 2008
183, Section t o f the \Tinerai anil
Petroleum Resources Royalty (Adminis­
tration) Act. 2008. is hereby am ended —
(a) by ilk- Hiili^liIiiliim fiv'dv) dcfmili[>n
o f 11Commissioner" o f the iolloivmc:
definition:
" 1Cornu Jssio n tT '
means
the
Commissioner for the Somh Afri­
can Rev enue Sen-ice appointed in
terms. o f lection 6 uf the Suulli
A frican Revenue Seivi ce Act, 19 97
(Act No. -M o f 199" j, or tiie Acting
Commissioner dL'simmled in lenus
o f secrion 7 o f ihat Act:":
Ni JJ49I
tJOVLELMMLN1 CiAZtn t 4 JULY JOEJ
Act .vd. :s or 2 0 1 1
T.tk AftuunitfraCtnn Art, Til 1
ilb
Mo, find yrfir
Short liftr
Exfienl or :iiin']iilii(L'ii! or I'rpra!
( b ) by die deletion o f ihe delinmon ol
'‘mmbiinlinn ptivnlc opinion"
i c i by die ™b-,ntiitiou for rhe definition
o f a “ notice o f a^se^sment" o f ibe
1rhiIlk\ i ibii (lu h ni! inn.
1 ‘notice o f n ssessin ritf tneanv a
tiortce oi assessment [m entioned
in sccliou fl[ us dvseirbeJ in icclion
yft o f die Tax Adniiimrraiion A c t ” :
and
t d) by the inseiiiuu ;iiia lIlu dcfmiliou o f
“ Knvalty Acr" o f tlie follow ins defi­
nition:
" 'll3\ AdillllliitlTltktL A c l’ iflCmiii
the Teix AdministrationAct 2 0 1 ! :L\
H!lft
(e) by die msemon after subsection f.2) of
the following subsection:
“ (,?) U nless (lie iiontexi indicates
mhem'iM a word or EKpiiehMOii to
winch a meaning lias been assumed
in llie Tax AtlininiilniiiuiiAcl. bums
rhat meaning tor |itulpoxes o f dtis
A ct"
A nifiidm rnl o f xei'lHm -1
1S4, Scciiou 4 o f tlie Mtnentl iinJ Petiolemn Resources Royalty (A*.1miiiisn:ihon)
Act. 'DOS, is hereby amended by tlie
MibshHtiion in ijubseelion 11} lor piuiijiiuph
( h f o f the foi low in e |iaitioraph:
"1 b i o f which one or more members
[of thnt unincorporated body] hold a
j ii (m Hies iii u ei ltI11. luluiiliitti ptm titi llXjilomlion liulii. 11lii 1111Lf rhfhl. ulinttU
pemut or production lialit granted p v n u ant to the Mineral and Petroleum Resomees DcvdopmCut Act lur ii lease or
MibleaM mentioned in section 11 n fflh e
Mineral mid Petroleum Resources lleYvEotuiLfiiL] lliiU Act in icspeel o f such n
right): and".
iJS
A rt
GOV LELMMkNT OA/fE'J i 4 JULY JOIJ
T.nc AitmLmttraEtnn ^ rt ' 1115
.Ni J.'49!
.Vo. : s or i o n
\f>. find yrfir
S h ort title
E xtent o f n u ifiK lih fiii o r I’l-jical
A m endm ent or sec Iion 5
185. Section 5 o f The .Mineral aiui PetroIcimi
Royalty (A d m iiiisin iin ])
A cl.
i* 1ucreby nuin^Hd—
(a) by die substitution for subsection 11)
o f lhe follow m i subsection:
"( 1} A rcutii 1ll[ i;[l n ^ n i [iiiwT
submit ,in estiuLire o f ihe royalty
payable hi respect o f a year of
assvssiaaU within six months iiI'llt
rlit first Hay o f that year and must
make a payment (iotflther with
| si tell | h return lot lliai paymenl[a£
llie rn iin n issifin er in »y p r e ­
scribe]} equal to one-hail o f llie
amount o f ihe royalty so esti­
mated.". and
\tj> by iIil nih'itiliilimi fur siibs^vtHiii (2)
o f llie follow in g Subsection1
“ (2} A re^isteted person must
submit mi cs&tiatc o f llie royally
p syab ls in i^specT o f a year of
a « e ssm « il by the Iasi day o f that
year niul submit ii payment (lucerher with ]> iifh ] a rctam for tIut
payineni [as lh e C om m issioner
muy iiiTSCfllKj) Lviual lo Hit
am onw o f the I’o yalty kl> esriinarsd
N i JJ49I
(^V E R N M E N ’l CiAZt n t 4 J ULY LLU12
Act .vd. : s or 2011
T.tk AftuunitfraCtnn Art, T il 1
JKO
Mo, find yrfir
Short title
E x t e n t o f iiiiH'inliiiL'ii! oi' I'cpciil
less the iiitiotini paid as mentioned
in -SiLbvKtKJtl ( i ) . ”
Repeat or section 7
I8tj, Section T ot the M i n e r a l and
Petroleum Resources Royalty (Admimsh ^ L io n j Acl. 20 0R , is h e r c ljv re jie d lc d .
A m end]] Lent o f scctlon H
187, Section a o t die Mineral and
Petroleum Resources Royalty (Atlininistintimi) Act, 200R. i--. Iie re tiv a m e n d e d —
t i t i by the substitution in iobs.eetion (1 )
for tlie words preceding para£i;iph ( a )
n f die r n llw in f TAOids
" f A l b i a d d itio n t o rlie records,
r e q u ir e d u n d e r th e la* A d m u itE tn je
rioji A c l.
a
l e t t e r e d p e rso n m ust
retain [sucli lY eoide ns Are n eces­
sary In silisfy Hit1 require­
m ents o f this Act and rlio Royalty
Act. including— It h e fo&j win*
re c o r d s :
and
( I n by d ie d e le tio n o f s u b s e c tio n (2 ).
A m endm ent nf ^rrlinn V
ISM. Section 9 uf the Mineral <uitl
Petrol etim Resources Royalty i.A d in in k Eiiitiojil A t r . ZOf.'ilj. i i tw r c b y n [lie n d e d b y
the deletion o f subsections (,l). I - J . ( J )
HTld <5}.
R epeal o f sccttons 10. i l . 12, J? nnd 16
189. Sections to. 11. 12. 1.-! and 16 of
the Mineral and Petroleum Resources
R o y a lty ( Administration) Au(. ZOOS, hic
Ijl-icIsv rc[H:]il ll[I .
A m endm ent o f section 17
190. Section 1" o f the Mineral and
Petroleum Resources Roycilty fAdminisli:ilu m ) A n t 2O0f>, i-. liu n J jy ju u u n d e d —
by the substitution ior subsection 1. 1 1
o t" 1tie Iii 11iiv\ m i: B tlb w C lin ti:
11(I ) T h e f.’o n m i i ^ i o n e r is r e s p o n ­
sib le lo r a d m in is te r in g tliis A f t a n d
lh e R n v a llv A c l. it! a e c o td fin C c w illi
tlie tiro v is io n s o f tlie f a * A d m im sirritio n Acl.*': and
.Si JJ49I
tXJVtfLVlMtM CiAZt r l t 4 JULY LLU12
Act .vd. :s or 2 0 1 1
*K1
T.tk AftuunitfraCtnn Art, Til 1
Mo, find yrfir
Short tfrlc
Exfienl or aiucndnieiil or i rpciil
t b ) by lIlu dulx-imiiusu for subsection (2^
n flh e J'olhm itUf Kubceclipn:
"'(2} Administrative require­
m e n t and procedures toi purposes
u f iti.- im inniiiiK C i>f HJiy duty,
power or ohiieai ion or rhe exerci^e
o f Sjjy liRbl in lertns o f this Act are.
Lu tin: e\iuni lj>h i emulated in ihis
Acr. repniated bv the Ian Adminis­
tration Act."
Re^eiil nf section IK
191. Section IS uf (Iku Mineral :uul
Petroleum Kasources Royalty (Adtmmu:tration) A ct, 200&, ii hereby repealed.
A iucndiucnt o f sectio n 18A
192. Section ISA o f [lie Mineral .md
Petroleum Resources Royally (Adminis­
tration) Aci, 20DS is iieieliy amended—
fa) by the substitution for subsection i l )
o f Ilk; rallowiiijE subsection:
“ I'Ji FTln*l For pui’poses nf tiii?.
Act. the Commissi onei m ay onlv
issue a non-binding private opinion
| ro n person rrsni'iiine ihr nut
Irriilmeiil o f :i particular sel of
facts and r im u u stn iites or a uartia iln r transit? tioul m Lean* ol'
Chapter 7 oftfaf Jnx Adntnu stranon
Act.": and
( b i by i1illdeletion o f subscxwftls (2) ami
A ft Not 61 o f 2008
t+).
Revenue L aw s S a - Rc-pcal o f sections
<hiiil
A ineiidinrni
\ i l 2008
1.? and 14
195. S erio u s 3. 13 and 14 o f tlie
R evalue I jiwk Second Amendment Act,
2006. are hereby repealed
A llli'udlllflll Uf HtTlioil Ifl
194. Scetiun 16 uf lbe Re^enne Laws
Second Amendment Act. 2O0K, is hereby
amended by the deletion in snbsection (1)
o f piuujnaph (b).
Repeal o f section 10
J95. .Secs mu 21) o f ihe lie venue Lawn
Second Amendment Act. 200S. iv lieieby
repealed.
3W
No JJ49I
Act .vd. :s or 2011
\ o . find yrfir
Aft No. l«oi2U0!>
(^VERNMEN’l tiAjCL'E'J t 4 JULY JOEJ
T.tkA ftu u n itfra C tn n Art, Til 1
Extent of fiiiiflidinnii or rrprfil
Short liftr
Tnxntioh Lotts Sec­ Kf iif ni of sections 12.13,14.33,34 anrt
ond
Auiewhnetil 38
At l, 20fW
196. Set Ilimis 12, 13, 11, 33, .11 miill 3S
o f tbs I a c tio n Laws Second Amendment
Act. 200?. aj e hereby repealed.