140. Record of appeal of tax court decision
(1) The record lodged with a court to which an appeal against a decision of a tax court is noted, includes all documents placed before the tax court under the ‘rules’.
(2) Documents submitted in the tax court which do not relate to the matters in dispute in the appeal may be excluded from the record with the consent of the parties.
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.
141. Abandonment of judgment
(1) A party may, by notice in writing, lodged with the ‘registrar’ and the opposite party or the opposite party’s legal practitioner or agent, abandon the whole or a part of a judgment in the party’s favour.
[Subsection (1) substituted by section 38 of Act 33 of 2019]
(2) A notice of abandonment becomes part of the record.
152. Person chargeable to tax
A person chargeable to tax is a person upon whom the liability for tax due under a tax Act is imposed and who is personally liable for the tax.
Part F
Settlement of dispute
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.
167. Instalment payment agreement
(1) A senior SARS official may enter into an agreement with a taxpayer in the prescribed form under which the taxpayer is allowed to pay a tax debt in one sum or in instalments, within the agreed period if satisfied that-
(a) criteria or risks that may be prescribed by the Commissioner by public notice have been duly taken into consideration; and
(b) the agreement facilitates the collection of the debt.
(2) The agreement may contain such conditions as SARS deems necessary to secure collection of tax.
(3) Except as provided in subsections (4) and (5), the agreement remains in effect for the term of the agreement.
(4) SARS may terminate an instalment payment agreement if the taxpayer fails to pay an instalment or to otherwise comply with its terms and a payment prior to the termination of the agreement must be regarded as part payment of the tax debt.
(5) A senior SARS official may modify or terminate an instalment payment agreement if satisfied that-
(a) the collection of tax is in jeopardy;
(b) the taxpayer has furnished materially incorrect information in applying for the agreement; or
(c) the financial condition of the taxpayer has materially changed.
(6) A termination or modification-
(a) referred to in subsection (4) or (5)(a) takes effect as at the date stated in the notice of termination or modification sent to the taxpayer; and
(b) referred to in subsection (5)(b) or (c) takes effect 21 business days after notice of the termination or modification is sent to the taxpayer.
Part D
Collection of tax debt from third parties
190. Refunds of excess payments
(1) SARS must pay a refund if a person is entitled to a refund, including interest thereon under section 188(3)(a), of-
[Words preceding paragraph (a) substituted by section 60 of Act 23 of 2015 effective on 1 October 2012]
(a) an amount properly refundable under a tax Act and if so reflected in an assessment; or
(b) the amount erroneously paid in respect of an assessment in excess of the amount payable in terms of the assessment.
(2) SARS need not authorise a refund as referred to in subsection (1) until such time that a verification, inspection, audit or criminal investigation of the refund in accordance with Chapter 5 has been finalised.
[Subsection (2) substituted by section 34(a) of Act 24 of 2020]
(3) SARS must authorise the payment of a refund before the finalisation of the verification, inspection, audit or criminal investigation if security in a form acceptable to a senior SARS official is provided by the taxpayer.
[Subsection (3) substituted by section 34(b) of Act 24 of 2020]
(4) An amount under subsection (1)(b) is regarded as a payment to the National Revenue Fund unless a refund is made in the case of—
(a) an assessment by SARS, within three years from the later of the date of the assessment or the erroneous payment;
[Paragraph (a) amended by section 21(a) of Act 22 of 2018]
(b) self-assessment, within five years from the later of the date the return had to be submitted or, if no return is required, payment had to be made in terms of the relevant tax Act or the erroneous payment was made; or
[Paragraph (b) amended by section 21(b) of Act 22 of 2018]
(c) an erroneous payment claimed by a taxpayer within the period referred to in paragraph (a) or (b), but not paid by SARS within the period.
[Paragraph (c) added by section 21(c) of Act 22 of 2018]
[Subsection (4) substituted by section 53 of Act 44 of 2014 and by section 60(1)(b) of Act 23 of 2015]
(5) If SARS pays to a person by way of a refund any amount which is not properly payable to the person under a tax Act, the amount, including interest thereon under section 187(1), is regarded as an outstanding tax debt from the date on which it is paid to the person.
[Subsection (5) substituted by section 71 of Act 39 of 2013 effective on 1 October 2012 and by section 60 of Act 23 of 2015 effective on 1 October 2012]
(5A) If a person who carries on the ‘business of a bank’ as defined in the Banks Act, 1990 (Act No. 94 of 1990), holds an account on behalf of a client into which an amount referred to in subsection (5) is deposited, reasonably suspects that the payment of the amount is related to a tax offence, the person must immediately report the suspicion to SARS in the prescribed form and manner and not proceed with the carrying out of any transaction in respect of the amount for a period not exceeding two business days unless-
(a) SARS or a High Court directs otherwise; or
(b) SARS issues a notice under section 179.
[Subsection (5A) inserted by section 60 of Act 23 of 2015 and substituted by section 28 of Act 13 of 2017 effective on 18 December 2017]
(6) A decision not to authorise a refund under subsection (1)(b) is subject to objection and appeal.
[Subsection (6) substituted by section 60 of Act 23 of 2015 effective on 8 January 2016]
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.