Category: Tax Administration Act No. 28 of 2011

Section 182 (TAA) – Liability of transferee for tax debts

Posted on by admin_kmos

182.    Liability of transferee for tax debts

 

(1)     A person (referred to as a transferee) who receives an asset from a taxpayer who is a connected person in relation to the transferee without consideration or for consideration below the fair market value of the asset is liable for the outstanding tax debt of the taxpayer.

 

(2)     The liability is limited to the lesser of-

 

(a)     the tax debt that existed at the time of the receipt of the asset or would have existed had the transferor complied with the transferor’s obligations under a tax Act; and

 

(b)     the fair market value of the asset at the time of the transfer, reduced by the fair market value of any consideration paid, at the time of payment.

 

(3)     Subsection (1) applies only to an asset received by the transferee within one year before SARS notifies the transferee of liability under this section.

Section 170 (TAA) – Evidence as to assessment

Posted on by admin_kmos

170.    Evidence as to assessment

The production of a document issued by SARS purporting to be a copy of or an extract from an assessment is conclusive evidence-

(a)     of the making of the assessment; and

(b) except in the case of proceedings on appeal instituted under Chapter 9 against the assessment, that all the particulars of the assessment are correct.

[Paragraph (b) substituted by section 20 of Act 22 of 2018.]

Section 183 (TAA) – Liability of person assisting in dissipation of assets

Posted on by admin_kmos

183.    Liability of person assisting in dissipation of assets

 

If a person knowingly assists in dissipating a taxpayer’s assets in order to obstruct the collection of a tax debt of the taxpayer, the person is jointly and severally liable with the taxpayer for the tax debt to the extent that the person’s assistance reduces the assets available to pay the taxpayer’s tax debt.

Section 184 (TAA) – Recovery of tax debts from other persons

Posted on by admin_kmos

184.    Recovery of tax debts from other persons

 

(1)     SARS has the same powers of recovery against the assets of a person who is personally liable under section 155, 157 or this Part as SARS has against the assets of the taxpayer and the person has the same rights and remedies as the taxpayer has against such powers of recovery.

 

(2)     SARS must provide a person referred to in subsection (1) with an opportunity to make representations-

 

(a)     before the person is held liable for the tax debt of the taxpayer in terms of section 155, 157, 179, 180, 181, 182 or 183, if this will not place the collection of tax in jeopardy; or

 

(b)     as soon as practical after the person is held liable for the tax debt of the taxpayer in terms of section 155, 157, 179, 180, 181, 182 or 183.

“Compromise” definition of section 192 of TAA

Posted on by admin_kmos

‘compromise’ means an agreement entered into between SARS and a ‘debtor’ in respect of a tax debt in terms of which-

 

(a)     the ‘debtor’ undertakes to pay an amount which is less than the full amount of the tax debt due by that ‘debtor’ in full satisfaction of the tax debt; and

 

(b)     SARS undertakes to permanently ‘write off’ the remaining portion of the tax debt on the condition that the ‘debtor’ complies with the undertaking referred to in paragraph (a) and any further conditions as may be imposed by SARS;