‘financial benefit’ means a reduction in the cost of finance, including interest, finance charges, costs, fees and discounts on a redemption amount;
Category: Chapter 4 – Returns and records (TAA)
“Financial reporting standards” definition of section 34 of TAA
‘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 International Financial Reporting Standards or appropriate financial reporting standards that provide a fair presentation of the financial results and position of the taxpayer;
Chapter 4 – Returns and records (TAA)
CHAPTER 4
RETURNS AND RECORDS
“Participant” definition of section 34 of TAA
“participant”, in relation to an ‘arrangement’, means-
(a) a “promoter”;
(b) a person who directly or indirectly will derive or assumes that the person will derive a “tax benefit” or “financial benefit” by virtue of an “arrangement”; or
(c) any other person who is party to an “arrangement” listed in a public notice referred to in section 35(2);
[Definition of “participant” substituted by section 40 of Act 44 of 2014 effective on 20 January 2015 and section 39 of Act 23 of 2015 effective on 8 January2016]
Part A – General (TAA)
Part A
General
“Pre-tax profit” definition of section 34 of TAA
‘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’;
Section 25 (TAA) – Submission of return
25. Submission of return
(1) A person required under a tax Act or by the Commissioner to submit or who voluntarily submits a return must do so-
(a) in the prescribed form and manner; and
(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 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 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.
(8) An extension under subsection (6) or (7) does not affect the deadline for paying the tax.
“Promoter” definition of section 34 of TAA
“promoter”, in relation to an “arrangement”, means a person who is principally responsible for organising, designing, selling, financing or managing the “arrangement”;
Section 26 (TAA) – Third party returns
26. Third party returns
(1) The Commissioner may by public notice, at the time and place and by the due date specified, require a person who employs, pays amounts to, receives amounts on behalf of or otherwise transacts with another person, or has control over assets of another person, to submit a return by the date specified in the notice.
(2) A person required under subsection (1) to submit a return must do so in the prescribed form and manner and the return must-
(a) contain the information prescribed by the Commissioner;
(b) be a full and true return; and
(c) for purposes of providing the information required in the return, comply with the due diligence requirements as may be prescribed in a tax Act, an international tax agreement, an international tax standard or by the Commissioner in a public notice consistent with the international tax agreement or the international tax standard.
[Paragraph (c) substituted by section 38 of Act 23 of 2015 effective on 8 January 2016]
(3) The Commissioner may, by public notice, require a person to apply to register as a person required to submit a return under this section, an international tax agreement or an international tax standard.
[Subsection (3) added by section 38 of Act 23 of 2015 effective on 8 January 2016]
(4) If, in order to submit a return under subsection (1) and to comply with the requirements of this section, a person requires information, a document or thing from another person, the other person must provide the information, document or thing so required within a reasonable time.
[Subsection (4) added by section 38 of Act 23 of 2015 effective on 8 January 2016]
“Reportable arrangement” definition of section 34 of TAA
“reportable arrangement” means an “arrangement” referred to in section 35(1) or 35(2) that is not an excluded “arrangement” referred to in section 36;