125. Appearance at hearing of tax court
(1) A senior SARS official referred to in section 12 may appear at the hearing of an appeal in support of the assessment or ‘decision’.
(2) ……….
[Subsection (2) deleted by section 26 of Act 13 of 2017 effective on 18 December 2017]
126. Subpoena of witness to tax court
SARS, the ‘appellant’ or the president of a tax court may subpoena any witness in the manner prescribed in the ‘rules’, whether or not that witness resides within the tax court’s area of jurisdiction.
127. Non-attendance by witness or failure to give evidence
(1) A person subpoenaed under section 126 is liable to the fine or imprisonment specified in subsection (2), if the person without just cause fails to-
(a) give evidence at the hearing of an appeal;
(b) remain in attendance throughout the proceedings unless excused by the president of the tax court; or
(c) produce a document or thing in the person’s possession or under the person’s control according to the subpoena.
(2) The president of the tax court may impose a fine or, in default of payment, imprisonment for a period not exceeding three months, on a person described in subsection (1) upon being satisfied by-
(a) oath or solemn declaration; or
(b) the return of the person by whom the subpoena was served,
that the person has been duly subpoenaed and that the person’s reasonable expenses have been paid or offered.
(3) The president of the tax court may, in addition to imposing a fine or imprisonment under subsection (2), issue a warrant for the person to be apprehended and brought to give evidence or to produce the document or thing in accordance with the subpoena.
(4) A fine imposed under subsection (2) is enforceable as if it were a penalty imposed by a High Court in similar circumstances and any laws applicable in respect of a penalty imposed by a High Court apply with the necessary changes in respect of the fine.
(5) The president of the tax court may, on good cause shown, remit the whole or any part of the fine or imprisonment imposed under subsection (2).
(6) The president of the tax court may order the costs of a postponement or adjournment resulting from the default of a witness, or a portion of the costs, to be paid out of a fine imposed under subsection (2).
128. Contempt of tax court
(1) If, during the sitting of a tax court, a person-
(a) wilfully insults a judge or member of the tax court;
(b) wilfully interrupts the tax court proceedings; or
(c) otherwise misbehaves in the place where the hearing is held,
the president of a tax court may impose upon that person a fine or, in default of payment, imprisonment for a period not exceeding three months.
(2) An order made under subsection (1) must be executed as if it were an order made by a Magistrate’s Court under similar circumstances, and the provisions of a law which apply in respect of such an order made by a Magistrate’s Court apply with the necessary changes in respect of an order made under subsection (1).
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”.
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).
131. Registrar to notify parties of judgment of tax court
The ‘registrar’ must notify the ‘appellant’ and SARS of the court’s decision within 21 business days of the date of the delivery of the written decision.
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.