Part E
Appeal against tax court decision
Author: admin_kmos
Section 132 (TAA) – Publication of judgment of tax court
132. Publication of judgment of tax court
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.
Section 131 (TAA) – Registrar to notify parties of judgment of tax court
131. Registrar to notify parties of judgment of tax court
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.
Section 130 (TAA) – Order for costs by tax court
130. Order for costs by tax court
(1) The tax court may, in dealing with an appeal under this Chapter and on 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
(e) the appeal is withdrawn or conceded by the other party after the ‘registrar’ allocates a date of hearing.
(2) The costs awarded by the tax court under this section must be determined in accordance with the fees prescribed by the rules of the High Court.
(3) The tax court may make an order as to costs provided for in the “rules” in-
(a) a test case designated under section 106(5); or
(b) an interlocutory application or an application in a procedural matter referred to in section 117(3).
Section 129 (TAA) – Decision by tax court
129. Decision by tax court
(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 or an application in a procedural matter referred to in section 117(3), the tax court may-
(a) confirm the assessment or ‘decision’;
(b) order the assessment or ‘decision’ to be altered;
[Paragraph (b) amended by section 19(a) of Act 22 of 2018.]
(c) refer the assessment back to SARS for further examination and assessment; or
[Paragraph (c) amended by section 19(b) of Act 22 of 2018.]
(d) make an appropriate order in a procedural matter.
[Subsection (2) amended by section 52(a) of Act 39 of 2013 effective on 1 October, 2012. Paragraph (d) added by section 19(c) of Act 22 of 2018.]
(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.
(4) If SARS alters an assessment as a result of a referral under subsection (2)(c), the assessment is subject to objection and appeal.
(5) Unless a tax court otherwise directs, a decision by the tax court in a test case designated under section 106(6) is determinative of the issues in an objection or appeal stayed by reason of the test case under section 106(6)(b) to the extent determined under the “rules”.
Section 198 (TAA) – Tax debt irrecoverable at law
198. Tax debt irrecoverable at law
(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 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 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.
Section 197 (TAA) – Permanent write off of tax debt
197. Permanent write off of tax debt
(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.
(2) SARS must notify the ‘debtor’ in writing of the amount of tax debt ‘written off’.
Part C – Permanent write off of tax debt (TAA)
Part C
Permanent write off of tax debt
Section 196 (TAA) – Tax debt uneconomical to pursue
196. Tax debt uneconomical to pursue
(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 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’;
(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.
Section 195 (TAA) – Temporary write off of tax debt
195. Temporary write off of tax debt
(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.
[Subsection (1) substituted by section 55 of Act 44 of 2014 and by section 29 of Act 43 of 2024]
(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.
(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.