Category: Chapter 9 – Dispute resolution (TAA)

Section 102 (TAA) – Burden of proof

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102.    Burden of proof

(1)     A taxpayer bears the burden of proving-

(a)     that an amount, transaction, event or item is exempt or otherwise not taxable;

(b)     that an amount or item is deductible or may be set off;

[Para. (b) substituted by section 23 of Act 13 of 2017 effective on 18 December 2017]

(c)     the rate of tax applicable to a transaction, event, item or class of taxpayer;

(d)     that an amount qualifies as a reduction of tax payable;

(e)     that a valuation is correct; or

(f)      whether a ‘decision’ that is subject to objection and appeal under a tax Act, is incorrect.

(2)     The burden of proving whether an estimate under section 95 is reasonable or the facts on which SARS based the imposition of an understatement penalty under Chapter 16, is upon SARS.

Section 103 (TAA) – Rules for dispute resolution

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103.    Rules for dispute resolution

 

(1)     The Minister may, after consultation with the Minister of Justice and Constitutional Development, by public notice make ‘rules’ governing the procedures to lodge an objection and appeal against an assessment or ‘decision’, and the conduct and hearing of an appeal before a tax board or tax court.

 

(2)     The ‘rules’ may provide for alternative dispute resolution procedures under which SARS and the person aggrieved by an assessment or ‘decision’ may resolve a dispute.

 

(3)     The Commissioner may prescribe the form of a document required to be completed and delivered under the “rules”.

Section 104 (TAA) – Objection against assessment or decision

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104.    Objection against assessment or decision

(1)     A taxpayer who is aggrieved by an assessment made in respect of the taxpayer may object to the assessment.

(2)     The following decisions may be objected to and appealed against in the same manner as an assessment:

(a)     a decision under subsection (4) not to extend the period for lodging an objection;

(b)     a decision under section 107(2) not to extend the period for lodging an appeal; and

(c)     any other decision that may be objected to or appealed against under a tax Act.

(3)     A taxpayer entitled to object to an assessment or ‘decision’ must lodge an objection in the manner, under the terms, and within the period prescribed in the ‘rules’.

(4)     A senior SARS official may extend the period prescribed in the ‘rules’ within which objections must be made if satisfied that reasonable grounds exist for the delay in lodging the objection.

(5)     The period for objection must not be so extended-

(a)     for a period exceeding 30 business days, unless a senior SARS official is satisfied that exceptional circumstances exist which gave rise to the delay in lodging the objection;

[Paragraph (a) substituted by section 57 of Act 16 of 2016 effective on 19 January 2017]

(b)     if more than three years have lapsed from the date of assessment or the ‘decision’; or

(c)     if the grounds for objection are based wholly or mainly on a change in a practice generally prevailing which applied on the date of assessment or the ‘decision’.