Author: admin_kmos

Section 154 (TAA) – Liability of representative taxpayer

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154.    Liability of representative taxpayer

 

(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 management 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 represented;

 

(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.

 

(2)     A representative taxpayer may be assessed in respect of any tax under subsection (1), but such assessment is regarded as made upon the representative taxpayer in such capacity only.

Section 153 (TAA) – Representative taxpayer

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153.    Representative taxpayer

 

(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;

 

(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 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

 

(b)     is liable for the tax payable by the taxpayer.

Section 151 (TAA) – Taxpayer

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151.    Taxpayer

In this Act, taxpayer means-

(a)     a person who is or may be chargeable to tax or with a tax offence;

[Paragraph (a) substituted by section 59 of Act 16 of 2016 effective on 1 October 2012]

(b)     a representative taxpayer;

(c)     a withholding agent;

(d)     a responsible third party; or

(e)     a person who is the subject of a request to provide assistance under an international tax agreement.

Section 150 (TAA) – Alteration of assessment or decision on settlement

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150.    Alteration of assessment or decision on settlement

 

(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 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.

Section 149 (TAA) – Register of settlements and reporting

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149.    Register of settlements and reporting

(1)     SARS must-

(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 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(6), does not disclose the identity of the person concerned; and

[Paragraph (a) substituted by section 21 of Act 21 of 2021]

(b)     contain details, arranged by main classes of taxpayers or sections of the public, of the number of ‘settlements’, the amount of tax forgone, and the estimated savings in litigation costs.

Section 148 (TAA) – Finality of settlement agreement

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148.    Finality of settlement agreement

 

(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 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 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’.

Section 147 (TAA) – Procedure for settlement

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147.    Procedure for settlement

 

(1)     A person participating in a ‘settlement’ procedure must disclose all relevant facts during the discussion phase of the process of ‘settling’ a ‘dispute’.

 

(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-

 

(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.

 

(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.