Category: Tax Administration Act No. 28 of 2011

Section 256 (TAA) – Tax compliance status

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256.    Tax compliance status

(1)     A taxpayer may apply, in the prescribed form and manner, to SARS for third party access to the taxpayer’s tax compliance status.

(2)     SARS must provide or decline to provide third party access to the taxpayer’s tax compliance status within 21 business days from the date the application is submitted or such longer period as may reasonably be required to confirm the correctness of the taxpayer’s tax compliance status.

(3)     The taxpayer’s tax compliance status may only be indicated as compliant if the taxpayer-

(a)       is registered for tax as required in terms of a tax Act;

(b)       does not have any outstanding tax debt, excluding a tax debt-

(i)     contemplated in section 167 or 204; or

(ii)     that has been suspended under section 164; or

(iii)    that may not be recovered for the period specified in section 164(6); or

(iv)    that does not exceed the amount referred to in section 169(4) or any higher amount that the Commissioner may determine by public notice; and

(c)     does not have any outstanding return, unless an arrangement with SARS has been made for the submission of the return.

(4)     An indication of the tax compliance status of a taxpayer must include at least—

(a)     the date of the tax compliance status of the taxpayer;

(b)     the name and taxpayer reference number of the taxpayer;

(c)     the taxpayer’s tax compliance status as at the date referred to in paragraph (a); and

(d)     an indication that the taxpayer is a newly registered taxpayer until-

(i)      the taxpayer, on the date referred to in paragraph (a), has-

(aa)   reached the first date on which the taxpayer is required to submit a return or make a payment under a tax Act in respect of a tax for which the taxpayer is registered; or

(bb)   submitted the return or made the payment, prior to the date referred to in item (aa); or

(ii)     a period of one year from the date the taxpayer was registered for a tax in terms of a tax Act has lapsed,

whichever occurs first.

[Subsection (4) substituted by section 29(a) of Act 16 of 2022]

(5)     Despite the provisions of Chapter 6, SARS may indicate the taxpayer’s tax compliance status as at a current date, or a previous date as prescribed by the Minister in a regulation under section 257(2A), to—

(a)     an organ of state; or

(b)     a person to whom the taxpayer has provided third party access to the taxpayer’s tax compliance status.

(6)     A senior SARS official may revoke access to the taxpayer’s tax compliance status in terms of subsection (5), if-

(a)     the access was provided-

(i)      in error; or

(ii)     on the basis of fraud, misrepresentation or non-disclosure of material facts; or

(b)     the correctness of the taxpayer’s current tax compliance status is questioned due to suspicion of fraud, misrepresentation or non-disclosure of material facts,

and SARS has given the taxpayer prior notice and an opportunity to respond to the allegations of at least 10 business days prior to the revocation.

[Subsection (6) substituted by section 29(b) of Act 16 of 2022]

(7)     A taxpayer’s tax compliance status will be indicated as non­compliant by SARS for the period commencing on the date that the taxpayer no longer complies with a requirement under subsection (3), or such later date as the Commissioner may prescribe, and ending on the date that the taxpayer remedies the non­compliance.

[Section 256 substituted by section 89(1) of Act 21 of 2012, amended by section 85 of Act 39 of 2013, substituted by section 64(1) of Act 44 of 2014, amended by section 72 of Act 23 of 2015 and substituted by section 46 of Act 33 of 2019]

Section 242 (TAA) – Disclosure of information regarding complaint and remedies of taxpayer

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242.    Disclosure of information regarding complaint and remedies of taxpayer

 

(1)     Despite section 69, the senior SARS official lodging a complaint under section 241 may disclose the taxpayer information as in the opinion of the official is necessary to lay before the ‘controlling body’ to which the complaint is made.

 

(2)     Before a complaint is lodged or information is disclosed, SARS must deliver to the taxpayer concerned and the person against whom the complaint is to be made notification of the intended complaint and information to be disclosed.

 

(3)     The taxpayer or that person may, within 21 business days after the date of the notification, lodge with SARS an objection to the lodging of the complaint or disclosure of the information.

 

(4)     If on the expiry of that period of 21 business days no objection has been lodged or, if an objection has been lodged and SARS is not satisfied that the objection should be sustained, a senior SARS official may thereupon lodge the complaint as referred to in section 241.

Section 257 (TAA) – Regulations by Minister

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257.    Regulations by Minister

(1)     The Minister may make regulations regarding-

(a)     any ancillary or incidental administrative or procedural matter that it is necessary to prescribe for the proper implementation or administration of this Act; and

(b)     any matter which under this Act is required or permitted to be prescribed.

(2)     The Minister may, after consultation with the Tax Ombud, make regulations regarding-

(a)     the proceedings of the Tax Ombud; and

(b)     the limitations on the mandate of the Tax Ombud, having regard to-

(i)      the factual or legal complexity of any complaint dealt with by the Tax Ombud;

(ii)     the nature of the taxpayer whose complaint is dealt with by the Tax Ombud; and

(iii)    the maximum amount involved in the dispute between the taxpayer and SARS.

(2A)  For purposes of a confirmation of tax compliance status of a taxpayer under section 256, the Minister may make regulations regarding-

(a)     the circumstances when a confirmation or an update of or a change in the tax compliance status of a taxpayer may be required from a person or SARS;

(b)     the period of validity of a confirmation of tax compliance status of a taxpayer; or

(c)     any procedure to further regulate the issue or withdrawal of a confirmation of tax compliance status of a taxpayer.

[Subsection (2A) inserted by section 90 of Act 21 of 2012 effective on 1 October 2012, substituted by section 73 of Act 23 of 2015 effective on 8 January 2016]

(3)     For purposes of the regulations referred to in paragraph (e) of the definition of “biometric information” in section 1, the Minister must publish the draft regulations in the Gazette for public comment and submit the draft regulations to Parliament for parliamentary scrutiny at least 30 days before the draft regulations are published.

Section 272 (TAA) – Short title and commencement

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272.    Short title and commencement

(1)     This Act is called the Tax Administration Act, 2011, and comes into operation on a date to be determined by the President by proclamation in the Gazette.

(2)     The President may determine different dates for different provisions of this Act to come into operation and for the purposes of Chapter 12 and the provisions relating to interest in Schedule 1, the Minister may determine by public notice the date on which they come into operation in respect of a tax type.

[Subsection (2) substituted by section 30 of Act 13 of 2017 effective on 18 December 2017]

(3)     Subparagraphs (g), (h), (i) and (j) of paragraph 60 of Schedule 1 come into operation on the date on which Part VIII of Chapter II of the Income Tax Act, 1962, comes into operation.

(4)     Paragraph 78 of Schedule 1 is deemed to have come into operation on 1 January 2011 and applies in respect of premiums incurred on or after that date.

(5)     Paragraph 184 of Schedule 1 is deemed to have come into operation on 1 March 2010 and applies in respect of a mineral resource transferred on or after that date.

Section 232 (TAA) – Assessment or determination to give effect to agreement

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232.    Assessment or determination to give effect to agreement

 

(1)     If a voluntary disclosure agreement has been concluded under section 230, SARS may, despite anything to the contrary contained in a tax Act, issue an assessment or make a determination for purposes of giving effect to the agreement.

 

(2)     An assessment issued or determination made to give effect to an agreement under section 230 is not subject to objection and appeal.

Section 243 (TAA) – Complaint considered by controlling body

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243.    Complaint considered by controlling body

 

(1)     The complaint is to be considered by the ‘controlling body’ according to its rules.

 

(2)     A hearing of the matter where details of a person’s tax affairs will be disclosed, may be attended only by persons whose attendance, in the opinion of the ‘controlling body’, is necessary for the proper consideration of the complaint.

 

(3)     The ‘controlling body’ and its members must preserve secrecy in regard to the information as to the affairs of a person as may be conveyed to them by SARS or as may otherwise come to their notice in the investigation of the complaint and must not communicate the information to a person other than the person concerned or the person against whom the complaint is lodged, unless the disclosure of the information is ordered by a competent court of law.

Section 233 (TAA) – Reporting of voluntary disclosure agreements

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233.    Reporting of voluntary disclosure agreements

(1)     The Commissioner must annually provide to the Auditor-General and to the Minister a summary of all voluntary disclosure agreements concluded in respect of applications received during the period.

(2)     The summary must-

(a)     subject to section 70(6), not disclose the identity of the applicant, and must be submitted at such time as may be agreed between the Commissioner and the Auditor-General or Minister, as the case may be; and

[Paragraph (a) substituted by section 22 of Act 21 of 2021]

(b)     contain details of the number of voluntary disclosure agreements and the amount of tax assessed, which must be reflected in respect of main classes of taxpayers or sections of the public.