“Transfer Duty Act” means the Transfer Duty Act, 1949 (Act No. 40 of 1949);

“understatement penalty” means a penalty imposed by SARS in accordance with Part A of Chapter 16;

“understatement” means any prejudice to SARS or the fiscus as a result of-

(a)     failure to submit a return required under a tax Act or by the Commissioner;

[Paragraph (a) substituted by section 22 of Act 22 of 2018]

(b)     an omission from a return;

(c)     an incorrect statement in a return;

(d)     if no return is required, the failure to pay the correct amount of “tax”; or

(e)     an “impermissible avoidance arrangement.

[Definition of “understatement” amended by section 74 of Act 39 of 2013 and substituted by section 61 of Act 16 of 2016 effective on 19 January 2017]

“Unemployment Insurance Contributions Act” means the Unemployment Insurance Contributions Act, 2002 (Act No. 4 of2002);

“Value-Added Tax Act” means the Value-Added Tax Act, 1991 (Act No. 89 of 1991);

“withholding agent” has the meaning assigned under section 156.

‘write off’ means to reverse an outstanding tax debt either in whole or in part.

“international tax standard” means-

(a)     the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters;

(b)     the Country-by-Country Reporting Standard for Multinational Enterprises specified by the Minister; or

(c)     any other international standard for the exchange of tax-related information between countries specified by the Minister,

subject to such changes as specified by the Minister in a regulation issued under section 257;

[Definition of “international tax standard” inserted by section 33 of Act 23 of 2015 effective on 8 January 2016]

“impermissible avoidance arrangement” means an arrangement in respect of which Part IIA of Chapter III of the Income Tax Act is applied and includes, for purposes of this Chapter, any transaction, operation, scheme or agreement in respect of which section 73 of the Value-Added Tax Act or any other general anti-avoidance provision under a tax Act is applied;

[Definition of “impermissible avoidance arrangement” inserted by section 61 of Act 16 of 2016 effective on 19 January 2017]

“beneficial owner”-

(a)     of a company, has the meaning assigned to it by section 1 of the Companies Act, 2008 (Act 71 of 2008);

(b)     of a partnership, means a natural person who, directly or indirectly, ultimately owns, or exercises effective control of, the partnership, and includes—

(i)      every partner, including every member of a partnership en commandite, an anonymous partnership or any similar partnership;

(ii)     if a partner in the partnership is a legal person or a natural person acting on behalf of a partnership or in pursuance of the provisions of a trust agreement, the beneficial owner of that legal person, partnership or trust; and

(iii)     the natural person who exercises executive control over the partnership; and

(c)     of a trust, has the meaning assigned to it by section 1 of the Trust Property Control Act, 1988 (Act 57 of 1988).

[Definition of “beneficial owner” inserted by section 25 of Act 18 of 2023]