Category: Tax Administration Act No. 28 of 2011

“Tax period” definition of TAA

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“tax period” means, in relation to-

(a)     income tax, a year of assessment as defined in section 1 of the Income Tax Act;

(b)     provisional tax or employees’ tax, skills development levies as determined in section 3 of the Skills Development Levies Act, and contributions as determined in section 6 of the Unemployment Insurance Contributions Act, the period in respect of which the amount of tax payable must be determined under the relevant tax Act;

(c)     value-added tax, a tax period determined under section 27 of the Value-Added Tax Act or the period or date of the taxable event in respect of which the amount of tax payable must be determined under that Act;

(d)     royalty payable on the transfer of mineral and petroleum resources, a year of assessment as defined in section 1 of the Mineral and Petroleum Resources Royalty (Administration) Act;

  

(e)     the levy on diamond exports as determined under section 2 of the Diamond Export Levy Act, the assessment period referred to in section 1 of the Diamond Export Levy (Administration) Act;

(f)      securities transfer tax, the period referred to in section 3 of the Securities Transfer Tax Administration Act;

(g)     any other tax, the period or date of the taxable event in respect of which the amount of tax payable must be determined under a tax Act; or

(h)     a jeopardy assessment, the period determined under this Act;

Section 2 (TAA) – Purpose of Act

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2.    Purpose of Act

 

The purpose of this Act is to ensure the effective and efficient collection of tax by-

 

(a)     aligning the administration of the tax Acts to the extent practically possible;

 

(b)     prescribing the rights and obligations of taxpayers and other persons to whom this Act applies;

 

(c)     prescribing the powers and duties of persons engaged in the administration of a tax Act; and

 

(d)     generally giving effect to the objects and purposes of tax administration.

Section 14 (TAA) – Power of Minister to appoint Tax Ombud

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14.    Power of Minister to appoint Tax Ombud

(1)     The Minister must appoint a person as Tax Ombud-

(a)     for a term of five years, which term may be renewed; and

[Paragraph (a) substituted by section 49 of Act 16 of 2016 effective on 19 January 2017]

(b)     under such conditions regarding remuneration and allowances as the Minister may determine.

(2)     The person appointed under subsection (1) or (3) may be removed by the Minister for misconduct, incapacity or incompetence.

(3)     During a vacancy in the office of Tax Ombud, the Minister may designate a person in the office of the Tax Ombud to act as Tax Ombud.

(4)     No person may be designated in terms of subsection (3) as acting Tax Ombud for a period longer than 90 days at a time.

(5)     A person appointed as Tax Ombud-

(a)     is accountable to the Minister;

(b)     must have a good background in customer service as well as tax law; and

(c)     may not at any time during the preceding five years have been convicted (whether in the Republic or elsewhere) of-

(i)      theft, fraud, forgery or uttering a forged document, perjury, an offence under the Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004); or

(ii)     any other offence involving dishonesty,

for which the person has been sentenced to a period of imprisonment exceeding two years without the option of a fine or to a fine exceeding the amount prescribed in the Adjustment of Fines Act, 1991 (Act No. 101 of 1991).

Section 3 (TAA) – Administration of tax Acts

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3.    Administration of tax Acts

(1)     SARS is responsible for the administration of this Act under the control or direction of the Commissioner.

(2)     Administration of a tax Act means to-

(a)     obtain full information in relation to-

(i)      anything that may affect the liability of a person for tax in respect of a previous, current or future tax period;

(ii)     a taxable event; or

(iii)    the obligation of a person (whether personally or on behalf of another person) to comply with a tax Act;

(b)     ascertain whether a person has filed or submitted correct returns, information or documents in compliance with the provisions of a tax Act;

(c)     establish the identity of a person for purposes of determining liability for tax;

(d)     determine the liability of a person for tax;

(e)     collect tax debts and refund tax overpaid;

(f)      investigate whether a tax offence has been committed, and, if so-

(i)      to lay criminal charges; and

(ii)     to provide the assistance that is reasonably required for the investigation and prosecution of the tax offence;

(g)     enforce SARS’ powers and duties under a tax Act to ensure that an obligation imposed by or under a tax Act is complied with;

(h)     perform any other administrative function necessary to carry out the provisions of a tax Act;

[Paragraph (h) amended by section 34 of Act 23 of 2015 effective on 8 January 2016] 

(i)      give effect to the obligation of the Republic to provide assistance under an international tax agreement; and

[Paragraph (i) amended by section 34 of Act 23 of 2015 effective on 8 January 2016] 

(j)      give effect to an international tax standard.

[Paragraph (j) added by section 34 of Act 23 of 2015 effective on 8 January 2016] 

(3)     If SARS, in accordance with-

(a)     an international tax agreement-

(i)      received a request for, is obliged to exchange or wishes to spontaneously exchange information, SARS may disclose or obtain the information for transmission to the competent authority of the other country as if it were relevant material required for purposes of a tax Act and must treat the information obtained as taxpayer information;

(ii)     received a request for the conservancy or the collection of an amount alleged to be due by a person under the tax laws of the requesting country, SARS may deal with the request under the provisions of section 185; or

(iii)    received a request for the service of a document which emanates from the requesting country, SARS may effect service of the document as if it were a notice, document or other communication required under a tax Act to be issued, given, sent or served by SARS; or

(b)     an international tax standard, obtained information of a person, SARS may retain the information as if it were relevant material required for purposes of a tax Act and must treat the information obtained as taxpayer information.

[Subsection (3) amended by sectoin 37 of Act 21 of 2012, substituted by section 38 of Act 44 of 2014 effective on 1 October 2012 and section 34 of Act 23 of 2015 effective on 8 January 2016]

Section 4 (TAA) – Application of Act

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4.    Application of Act

 

(1)     This Act applies to every person who is liable to comply with a provision of a tax Act (whether personally or on behalf of another person) and binds SARS.

 

(2)     If this Act is silent with regard to the administration of a tax Act and it is specifically provided for in the relevant tax Act, the provisions of that tax Act apply.

 

(3)     In the event of any inconsistency between this Act and another tax Act, the other Act prevails.