Category: Chapter 19 – General provisions (TAA)

Section 252 (TAA) – Delivery of documents to companies

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252.    Delivery of documents to companies

If a tax Act requires or authorises SARS to issue, give, send or serve a notice, document or other communication to a company, SARS is regarded as having issued, given, sent or served the communication to the company if-

(a)     handed to the public officer of the company;

(b)     left with a person older than 16 years apparently residing or employed at-

(i)      the place appointed by the company under section 247; or

(ii)     where no such place has been appointed by the company, the last known office or place of business of the company;

(c)     sent by post addressed to the company or its public officer at the company or public officer’s last known address, which includes-

(i)     an office or place referred to in paragraph (b);or

(ii)     the company or public officer’s last known post office box number or that of the public officer’s employer; or

(d)     sent to the company or its public officer’s last known electronic address, which includes the-

(i)      last known email address;

(ii)     last known telefax number; or

(iii)    electronic address as defined in the rules issued under section 255(1).

[Paragraph (d) substituted by section 71 of Act 23 of 2015 effective on 25 August 2014]

Section 253 (TAA) – Documents delivered deemed to have been received

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253.    Documents delivered deemed to have been received

 

(1)     A notice, document or other communication issued, given, sent or served in the manner referred to in section 251 or 252, is regarded as received by the person to whom it was delivered or left, or if posted it is regarded as having been received by the person to whom it was addressed at the time when it would, in the ordinary course of post, have arrived at the addressed place.

 

(2)     Subsection (1) does not apply if-

 

(a)     SARS is satisfied that the notice, document or other communication was not received or was received at some other time; or

 

(b)     a court decides that the notice, document or other communication was not received or was received at some other time.

 

(3)     If SARS is satisfied that-

 

(a)     a notice, document or other communication (other than a notice of assessment) issued, given, sent or served in a manner referred to in section 251 or 252 (excluding paragraphs (a) and (b) thereof)-

 

(i)      has not been received by the addressee; or

 

(ii)     has been received by that person considerably later than it should have been received; and

 

(b)     the person has in consequence been placed at a material disadvantage,

 

the notice, document or other communication must be withdrawn and be issued, given, sent or served anew.

Section 254 (TAA) – Defect does not affect delivery

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254.    Defect does not affect validity

 

(1)     A notice of assessment or other notice or document issued to a person under a tax Act is not to be considered invalid or ineffective by reason of a failure to comply with the requirements of section 251 or 252 if the person had effective knowledge of the fact of the notice or document and of its content.

 

(2)     A notice of assessment or other notice or document issued under a tax Act is not to be considered invalid or ineffective by reason of defects if it is, in substance and effect, in conformity with this Act, and the person assessed or affected by the notice or document is designated in it according to common understanding.

Section 255 (TAA) – Rules for electronic communication

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255.    Rules for electronic communication

 

(1)     The Commissioner may by public notice make rules prescribing-

 

(a)     the procedures for submitting a return in electronic format, electronic record retention and  other electronic communications between SARS and other persons;

 

(b)     requirements for an electronic or digital signature of a return or communication; and

 

(c)     the procedures for electronic record retention by SARS.

 

(2)     SARS may, in the case of a return or other document submitted in electronic format, accept an electronic or digital signature of a person as a valid signature for purposes of a tax Act if a signature is required.

 

(3)     If in any proceedings under a tax Act, the question arises whether an electronic or digital signature of a person referred to in subsection (2) was used with the authority of the person, it must be assumed, in the absence of proof to the contrary, that the signature was so used.

Section 256 (TAA) – Tax compliance status

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256.    Tax compliance status

(1)     A taxpayer may apply, in the prescribed form and manner, to SARS for third party access to the taxpayer’s tax compliance status.

(2)     SARS must provide or decline to provide third party access to the taxpayer’s tax compliance status within 21 business days from the date the application is submitted or such longer period as may reasonably be required to confirm the correctness of the taxpayer’s tax compliance status.

(3)     The taxpayer’s tax compliance status may only be indicated as compliant if the taxpayer-

(a)       is registered for tax as required in terms of a tax Act;

(b)       does not have any outstanding tax debt, excluding a tax debt-

(i)     contemplated in section 167 or 204; or

(ii)     that has been suspended under section 164; or

(iii)    that may not be recovered for the period specified in section 164(6); or

(iv)    that does not exceed the amount referred to in section 169(4) or any higher amount that the Commissioner may determine by public notice; and

(c)     does not have any outstanding return, unless an arrangement with SARS has been made for the submission of the return.

(4)     An indication of the tax compliance status of a taxpayer must include at least—

(a)     the date of the tax compliance status of the taxpayer;

(b)     the name and taxpayer reference number of the taxpayer;

(c)     the taxpayer’s tax compliance status as at the date referred to in paragraph (a); and

(d)     an indication that the taxpayer is a newly registered taxpayer until-

(i)      the taxpayer, on the date referred to in paragraph (a), has-

(aa)   reached the first date on which the taxpayer is required to submit a return or make a payment under a tax Act in respect of a tax for which the taxpayer is registered; or

(bb)   submitted the return or made the payment, prior to the date referred to in item (aa); or

(ii)     a period of one year from the date the taxpayer was registered for a tax in terms of a tax Act has lapsed,

whichever occurs first.

[Subsection (4) substituted by section 29(a) of Act 16 of 2022]

(5)     Despite the provisions of Chapter 6, SARS may indicate the taxpayer’s tax compliance status as at a current date, or a previous date as prescribed by the Minister in a regulation under section 257(2A), to—

(a)     an organ of state; or

(b)     a person to whom the taxpayer has provided third party access to the taxpayer’s tax compliance status.

(6)     A senior SARS official may revoke access to the taxpayer’s tax compliance status in terms of subsection (5), if-

(a)     the access was provided-

(i)      in error; or

(ii)     on the basis of fraud, misrepresentation or non-disclosure of material facts; or

(b)     the correctness of the taxpayer’s current tax compliance status is questioned due to suspicion of fraud, misrepresentation or non-disclosure of material facts,

and SARS has given the taxpayer prior notice and an opportunity to respond to the allegations of at least 10 business days prior to the revocation.

[Subsection (6) substituted by section 29(b) of Act 16 of 2022]

(7)     A taxpayer’s tax compliance status will be indicated as non­compliant by SARS for the period commencing on the date that the taxpayer no longer complies with a requirement under subsection (3), or such later date as the Commissioner may prescribe, and ending on the date that the taxpayer remedies the non­compliance.

[Section 256 substituted by section 89(1) of Act 21 of 2012, amended by section 85 of Act 39 of 2013, substituted by section 64(1) of Act 44 of 2014, amended by section 72 of Act 23 of 2015 and substituted by section 46 of Act 33 of 2019]