Category: Part A – Taxpayers (TAA)

Section 160 (TAA) – Right to recovery of taxpayer

Posted on by admin_kmos

160. Taxpayer’s right to recovery

[Heading of section 160 substituted by section 27 of Act 13 of 2017 effective on 18 December 2017]

(1)     A representative taxpayer, withholding agent or responsible third party who, as such, pays a tax is entitled-

(a)     to recover the amount so paid from the person on whose behalf it is paid; or

(b)     to retain out of money or assets in that person’s possession or that may come to that person in that representative capacity, an amount equal to the amount so paid.

(2)     Unless otherwise provided for in a tax Act, a taxpayer in respect of whom an amount has been paid to SARS by a withholding agent under a tax Act or by a responsible third party under section 179, is not entitled to recover from the withholding agent or responsible third party the amount so  paid but is entitled to recover the amount of an unlawful or erroneous payment from SARS.

Section 161 (TAA) – Security by taxpayer

Posted on by admin_kmos

161.    Security by taxpayer

 

(1)     A senior SARS official may require security from a taxpayer to safeguard the collection of tax by SARS, if the taxpayer-

 

(a)     is a representative taxpayer, withholding agent or responsible third party who was previously held liable in the taxpayer’s personal capacity under a tax Act;

 

(b)     has been convicted of a tax offence;

 

(c)     has frequently failed to pay amounts of tax due;

 

(d)     has frequently failed to carry out other obligations imposed under any tax Act which constitutes non-compliance referred to in Chapter 15; or

 

(e)     is under the management or control of a person who is or was a person contemplated in paragraphs (a) to (d).

 

(2)     If security is required, SARS must by written notice to the taxpayer require the taxpayer to furnish to or deposit with SARS, within such period that SARS may allow, security for the payment of any tax which has or may become payable by the taxpayer in terms of a tax Act.

 

(3)     The security must be of the nature, amount and form that the senior SARS official directs.

 

(4)     If the security is in the form of cash deposit and the taxpayer fails to make such deposit, it may-

 

(a)     be collected as if it were an outstanding tax debt of the taxpayer recoverable under this Act; or

 

(b)     be set-off against any refund due to the taxpayer.

 

(5)     A senior SARS official may, in the case of a taxpayer which is not a natural person and cannot provide the security required under subsection (1), require of any or all of the members, shareholders or trustees who control or are involved in the management of the taxpayer to enter into a contract of suretyship in respect of the taxpayer’s liability for tax which may arise from time to time.