Category: Chapter 10 (TAA) – Tax liability and payment

Section 151 (TAA) – Taxpayer

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151.    Taxpayer

In this Act, taxpayer means-

(a)     a person who is or may be chargeable to tax or with a tax offence;

[Paragraph (a) substituted by section 59 of Act 16 of 2016 effective on 1 October 2012]

(b)     a representative taxpayer;

(c)     a withholding agent;

(d)     a responsible third party; or

(e)     a person who is the subject of a request to provide assistance under an international tax agreement.

Section 153 (TAA) – Representative taxpayer

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153.    Representative taxpayer

 

(1)     In this Act, a representative taxpayer means a person who is responsible for paying the tax liability of another person as an agent, other than as a withholding agent, and includes a person who-

 

(a)     is a representative taxpayer in terms of the Income Tax Act;

 

(b)     is a representative employer in terms of the Fourth Schedule to the Income Tax Act; or

 

(c)     is a representative vendor in terms of section 46 of the Value-Added Tax Act.

 

(2)     Every person who becomes or ceases to be a representative taxpayer (except a public officer of a company) under a tax Act, must notify SARS accordingly in such form as the Commissioner may prescribe, within 21 business days after becoming or ceasing to be a representative taxpayer, as the case may be.

 

(3)     A taxpayer is not relieved from any liability, responsibility or duty imposed under a tax Act by reason of the fact that the taxpayer’s representative-

 

(a)     failed to perform such responsibilities or duties; or

 

(b)     is liable for the tax payable by the taxpayer.

Section 154 (TAA) – Liability of representative taxpayer

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154.    Liability of representative taxpayer

 

(1)     A representative taxpayer is, as regards-

 

(a)     the income to which the representative taxpayer is entitled;

 

(b)     moneys to which the representative taxpayer is entitled or has the management or control;

 

(c)     transactions concluded by the representative taxpayer; and

 

(d)     anything else done by the representative taxpayer,

 

in such capacity-

 

(i)      subject to the duties, responsibilities and liabilities of the taxpayer represented;

 

(ii)     entitled to any abatement, deduction, exemption, right to set off a loss, and other items that could be claimed by the person represented; and

 

(iii)    liable for the amount of tax specified by a tax Act.

 

(2)     A representative taxpayer may be assessed in respect of any tax under subsection (1), but such assessment is regarded as made upon the representative taxpayer in such capacity only.

Section 155 (TAA) – Personal liability of representative taxpayer

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155.    Personal liability of representative taxpayer

 

A representative taxpayer is personally liable for tax payable in the representative taxpayer’s representative capacity, if, while it remains unpaid-

 

(a)     the representative taxpayer alienates, charges or disposes of amounts in respect of which the tax is chargeable; or

 

(b)     the representative taxpayer disposes of or parts with funds or moneys, which are in the representative taxpayer’s possession or come to the representative taxpayer after the tax is payable, if the tax could legally have been paid from or out of the funds or moneys.

Section 157 (TAA) – Personal liability of withholding agent

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157.    Personal liability of withholding agent

 

(1)     A withholding agent is personally liable for an amount of tax-

 

(a)     withheld and not paid to SARS; or

 

(b)     which should have been withheld under a tax Act but was not so withheld.

 

(2)     An amount paid or recovered from a withholding agent in terms of subsection (1) is an amount of tax which is paid on behalf of the relevant taxpayer in respect of his or her liability under the relevant tax Act.