Category: Tax Administration Act No. 28 of 2011

Section 15 (TAA) – Office of Tax Ombud

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15.    Office of Tax Ombud

(1)     The Tax Ombud must appoint the staff of the office of the Tax Ombud who must be employed in terms of the SARS Act.

[Subsection (1) substituted by section 50 of Act 16 of 2016 effective on 19 January 2017]

(2)     When the Tax Ombud is absent or otherwise unable to perform the functions of office, the Tax Ombud may designate another person in the office of the Tax Ombud as acting Tax Ombud.

(3)     No person may be designated in terms of subsection (2) as acting Tax Ombud for a period longer than 90 days at a time.

(4)     The expenditure connected with the functions of the office of the Tax Ombud is paid in accordance with a budget approved by the Minister for the office.

[Subsection (4) substituted by section 50 of Act 16 of 2016 effective on 19 January 2017]

Section 5 (TAA) – Practice generally prevailing

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5.  Practice generally prevailing

 

(1)     A practice generally prevailing is a practice set out in an official publication regarding the application or interpretation of a tax Act.

 

(2)     Despite any provision to the contrary contained in a tax Act, a practice generally prevailing set out in an official publication, other than a binding general ruling, ceases to be a practice generally prevailing if-

 

(a)     the provision of the tax Act that is the subject of the official publication is repealed or amended to an extent material to the practice, from the date the repeal or amendment becomes effective;

 

(b)     a court overturns or modifies an interpretation of the tax Act which is the subject of the official publication to an extent material to the practice from the date of judgment, unless-

 

(i)      the decision is under appeal;

 

(ii)     the decision is fact-specific and the general interpretation upon which the official publication was based is unaffected; or

 

(iii)    the reference to the interpretation upon which the official publication was based was obiter dicta; or

 

(c)     the official publication is withdrawn or modified by the Commissioner, from the date of the official publication of the withdrawal or modification.

 

(3)     A binding general ruling ceases to be a practice generally prevailing in the circumstances described in section 85 or 86.

Section 16 (TAA) – Mandate of Tax Ombud

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16.    Mandate of Tax Ombud

(1)     The mandate of the Tax Ombud is to-

(a)     review and address any complaint by a taxpayer regarding a service matter or a procedural or administrative matter arising from the application of the provisions of a tax Act by SARS; and

(b)     review, at the request of the Minister or at the initiative of the Tax Ombud with the approval of the Minister, any systemic and emerging issue related to a service matter or the application of the provisions of this Act or procedural or administrative provisions of a tax Act.

[Subsection (1) substituted by section 51 of Act 16 of 2016 effective on 19 January 2017]

(2)     In discharging his or her mandate, the Tax Ombud must-

(a)     review a complaint and, if necessary, resolve it through mediation or conciliation;

(b)     act independently in resolving a complaint;

(c)     follow informal, fair and cost-effective procedures in resolving a complaint;

(d)     provide information to a taxpayer about the mandate of the Tax Ombud and the procedures to pursue a complaint;

(e)     facilitate access by taxpayers to complaint resolution mechanisms within SARS to address complaints; and

(f)      identify and review systemic and emerging issues related to service matters or the application of the provisions of this Act or procedural or administrative provisions of a tax Act that impact negatively on taxpayers.

Section 17 (TAA) – Limitations on authority

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17.    Limitations on authority

 

The Tax Ombud may not review-

 

(a)     legislation or tax policy;

 

(b)     SARS policy or practice generally prevailing, other than to the extent that it relates to a service matter or a procedural or administrative matter arising from the application of the provisions of a tax Act by SARS;

 

(c)     a matter subject to objection and appeal under a tax Act, except for an administrative matter relating to such objection and appeal; or

 

(d)     a decision of, proceeding in or matter before the tax court.