256.    Tax compliance status

(1)     A taxpayer may apply, in the prescribed form and manner, to SARS for third party access to the taxpayer’s tax compliance status.

(2)     SARS must provide or decline to provide third party access to the taxpayer’s tax compliance status within 21 business days from the date the application is submitted or such longer period as may reasonably be required to confirm the correctness of the taxpayer’s tax compliance status.

(3)     The taxpayer’s tax compliance status may only be indicated as compliant if the taxpayer-

(a)       is registered for tax as required in terms of a tax Act;

(b)       does not have any outstanding tax debt, excluding a tax debt-

(i)     contemplated in section 167 or 204; or

(ii)     that has been suspended under section 164; or

(iii)    that may not be recovered for the period specified in section 164(6); or

(iv)    that does not exceed the amount referred to in section 169(4) or any higher amount that the Commissioner may determine by public notice; and

(c)     does not have any outstanding return, unless an arrangement with SARS has been made for the submission of the return.

(4)     An indication of the tax compliance status of a taxpayer must include at least—

(a)     the date of the tax compliance status of the taxpayer;

(b)     the name and taxpayer reference number of the taxpayer;

(c)     the taxpayer’s tax compliance status as at the date referred to in paragraph (a); and

(d)     an indication that the taxpayer is a newly registered taxpayer until-

(i)      the taxpayer, on the date referred to in paragraph (a), has-

(aa)   reached the first date on which the taxpayer is required to submit a return or make a payment under a tax Act in respect of a tax for which the taxpayer is registered; or

(bb)   submitted the return or made the payment, prior to the date referred to in item (aa); or

(ii)     a period of one year from the date the taxpayer was registered for a tax in terms of a tax Act has lapsed,

whichever occurs first.

[Subsection (4) substituted by section 29(a) of Act 16 of 2022]

(5)     Despite the provisions of Chapter 6, SARS may indicate the taxpayer’s tax compliance status as at a current date, or a previous date as prescribed by the Minister in a regulation under section 257(2A), to—

(a)     an organ of state; or

(b)     a person to whom the taxpayer has provided third party access to the taxpayer’s tax compliance status.

(6)     A senior SARS official may revoke access to the taxpayer’s tax compliance status in terms of subsection (5), if-

(a)     the access was provided-

(i)      in error; or

(ii)     on the basis of fraud, misrepresentation or non-disclosure of material facts; or

(b)     the correctness of the taxpayer’s current tax compliance status is questioned due to suspicion of fraud, misrepresentation or non-disclosure of material facts,

and SARS has given the taxpayer prior notice and an opportunity to respond to the allegations of at least 10 business days prior to the revocation.

[Subsection (6) substituted by section 29(b) of Act 16 of 2022]

(7)     A taxpayer’s tax compliance status will be indicated as non­compliant by SARS for the period commencing on the date that the taxpayer no longer complies with a requirement under subsection (3), or such later date as the Commissioner may prescribe, and ending on the date that the taxpayer remedies the non­compliance.

[Section 256 substituted by section 89(1) of Act 21 of 2012, amended by section 85 of Act 39 of 2013, substituted by section 64(1) of Act 44 of 2014, amended by section 72 of Act 23 of 2015 and substituted by section 46 of Act 33 of 2019]