Category: Chapter 9 – Dispute resolution (TAA)

Section 129 (TAA) – Decision by tax court

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129.    Decision by tax court

(1)     The tax court, after hearing the ‘appellant’s’ appeal lodged under section 107 against an assessment or ‘decision’, must decide the matter on the basis that the burden of proof as described in section 102 is upon the taxpayer.

(2)     In the case of an assessment or “decision” under appeal or an application in a procedural matter referred to in section 117(3), the tax court may-

(a)     confirm the assessment or ‘decision’;

(b) order the assessment or ‘decision’ to be altered;

[Paragraph (b) amended by section 19(a) of Act 22 of 2018.]

(c) refer the assessment back to SARS for further examination and assessment; or

[Paragraph (c) amended by section 19(b) of Act 22 of 2018.]

(d) make an appropriate order in a procedural matter.

[Subsection (2) amended by section 52(a) of Act 39 of 2013 effective on 1 October, 2012. Paragraph (d) added by section 19(c) of Act 22 of 2018.]

(3)     In the case of an appeal against an understatement penalty imposed by SARS under a tax Act, the tax court must decide the matter on the basis that the burden of proof is upon SARS and may reduce, confirm or increase the understatement penalty.

(4)     If SARS alters an assessment as a result of a referral under subsection (2)(c), the assessment is subject to objection and appeal.

(5)     Unless a tax court otherwise directs, a decision by the tax court in a test case designated under section 106(6) is determinative of the issues in an objection or appeal stayed by reason of the test case under section 106(6)(b) to the extent determined under the “rules”.

Section 130 (TAA) – Order for costs by tax court

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130.    Order for costs by tax court

 

(1)     The tax court may, in dealing with an appeal under this Chapter and on application by an aggrieved party, grant an order for costs in favour of the party, if-

 

(a)     the SARS grounds of assessment or ‘decision’ are held to be unreasonable;

 

(b)     the ‘appellant’s’ grounds of appeal are held to be unreasonable;

 

(c)     the tax board’s decision is substantially confirmed;

 

(d)     the hearing of the appeal is postponed at the request of the other party; or

 

(e)     the appeal is withdrawn or conceded by the other party after the ‘registrar’ allocates a date of hearing.

 

(2)     The costs awarded by the tax court under this section must be determined in accordance with the fees prescribed by the rules of the High Court.

 

(3)     The tax court may make an order as to costs provided for in the “rules” in-

 

(a)     a test case designated under section 106(5); or

 

(b)     an interlocutory application or an application in a procedural matter referred to in section 117(3).

Section 143 (TAA) – Purpose of Part

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143.    Purpose of Part

 

(1)     A basic principle in tax law is that it is the duty of SARS to assess and collect tax according to the laws enacted by Parliament and not to forgo a tax which is properly chargeable and payable.

 

(2)     Circumstances may require that the strictness and rigidity of this basic principle be tempered, if such flexibility is to the best advantage of the State.

 

(3)     The purpose of this Part is to prescribe the circumstances in which it is appropriate for SARS to temper the basic principle and ‘settle’ a ‘dispute’.

Section 132 (TAA) – Publication of judgment of tax court

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132.    Publication of judgment of tax court

 

A judgment of the tax court dealing with an appeal under this Chapter must be published for general information and, unless the sitting of the tax court was public under the circumstances referred to in section 124(2), in a form that does not reveal the ‘appellant’s’ identity.