Author: admin_kmos

Section 29 (TAA) – Duty to keep records

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29.  Duty to keep records

 

(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;

 

(b)     are specifically required under a tax Act or by the Commissioner by public notice; and

 

(c)     enable SARS to be satisfied that the person has observed these requirements.

 

(2)     The requirements of this Act to keep records, books of account or documents for a tax period apply to a person who-

 

(a)     has submitted a return for the tax period;

 

(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 or exemption.

 

(3)     Records, books of account or documents 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 period.

Section 28 (TAA) – Statement concerning accounts

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28.  Statement concerning accounts

 

(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 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, at the request of that other person, submit to that other person a copy of the certificate or statement referred to in subsection (1).

Section 27 (TAA) – Other returns required

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27.    Other returns required

 

(1)     A senior SARS official may require a person to submit further or more detailed returns regarding any matter for which a return under section 25 or 26 is required or prescribed by a tax Act.

 

(2)     A person required under subsection (1) to submit a return must do so in the prescribed form and manner and the return must contain the information prescribed by the official and must be a full and true return.

Section 26 (TAA) – Third party returns

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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]

Section 25 (TAA) – Submission of return

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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.

Section 24 (TAA) – Taxpayer reference number

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24.    Taxpayer reference number

 

(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.

 

(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.

 

(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.

Section 107 (TAA) – Appeal against assessment or decision

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107.    Appeal against assessment or decision

 

(1)     After delivery of the notice of the decision referred to in section 106(4), a 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-

 

(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.

 

(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.

 

(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.

 

(7)     SARS may concede an appeal in whole or in part before-

 

(a)      the matter is heard by the tax board or the tax court; or

  

(b)     an appeal against a judgment of the tax court or higher court is heard.

Section 106 (TAA) – Decision on objection

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106.    Decision on objection

 

(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’.