‘settle’ means to resolve a ‘dispute’ by compromising a disputed liability, otherwise than by way of either SARS or the person concerned accepting the other party’s interpretation of the facts or the law applicable to those facts or of both the facts and the law, and ‘settlement’ must be construed accordingly.
Category: Tax Administration Act No. 28 of 2011
Section 156 (TAA) – Withholding agent
156. Withholding agent
In this Act, withholding agent means a person who must under a tax Act withhold an amount of tax and pay it to SARS.
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 143 (TAA) – Purpose of Part
143. Purpose of Part
(1) A basic principle in tax law is that it is the duty of SARS to assess and collect tax according to the laws enacted by Parliament and not to forgo a tax which is properly chargeable and payable.
(2) Circumstances may require that the strictness and rigidity of this basic principle be tempered, if such flexibility is to the best advantage of the State.
(3) The purpose of this Part is to prescribe the circumstances in which it is appropriate for SARS to temper the basic principle and ‘settle’ a ‘dispute’.
Section 157 (TAA) – Personal liability of withholding agent
157. Personal liability of withholding agent
(1) A withholding agent is personally liable for an amount of tax-
(a) withheld and not paid to SARS; or
(b) which should have been withheld under a tax Act but was not so withheld.
(2) An amount paid or recovered from a withholding agent in terms of subsection (1) is an amount of tax which is paid on behalf of the relevant taxpayer in respect of his or her liability under the relevant tax Act.
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 144 (TAA) – Initiation of settlement procedure
144. Initiation of settlement procedure
(1) Either party to a ‘dispute’ may initiate a ‘settlement’ procedure by communication with the other party.
(2) Neither SARS nor the taxpayer has the right to require the other party to engage in a ‘settlement’ procedure.
Section 158 (TAA) – Responsible third party
158. Responsible third party
In this Act, responsible third party means a person who becomes otherwise liable for the tax liability of another person, other than as a representative taxpayer or as a withholding agent, whether in a personal or representative capacity.
Part E – Appeal against tax court decision (TAA)
Part E
Appeal against tax court decision
Section 145 (TAA) – Circumstances where settlement is inappropriate
145. Circumstances where settlement is inappropriate
It is inappropriate and not to the best advantage of the State to ‘settle’ a ‘dispute’ if in the opinion of SARS-
(a) no circumstances envisaged in section 146 exist and-
(i) the action by the person concerned that relates to the ‘dispute’ constitutes intentional tax evasion or fraud;
(ii) the ‘settlement’ would be contrary to the law or a practice generally prevailing and no exceptional circumstances exist to justify a departure from the law or practice; or
(iii) the person concerned has not complied with the provisions of a tax Act and the non-compliance is of a serious nature;
(b) it is in the public interest to have judicial clarification of the issue and the case is appropriate for this purpose; or
(c) the pursuit of the matter through the courts will significantly promote taxpayer compliance with a tax Act and the case is suitable for this purpose.