79.    Applications for advance rulings

 

(1)     An ‘application’ must be made in the prescribed form and manner.

 

(2)     An ‘application’ for a ‘binding private ruling’ may be made by one person who is a party to a ‘proposed transaction’, or by two or more parties to a ‘proposed transaction’ as co-applicants, and if there is more than one ‘applicant’, each ‘applicant’ must join in designating one ‘applicant’ as the lead ‘applicant’ to represent the others.

 

(3)     An ‘application’ for a ‘binding class ruling’ may be made by a person on behalf of a ‘class’.

 

(4)     An ‘application’ must contain the following minimum information:

 

(a)     the ‘applicant’s’ name, applicable identification or taxpayer reference number, postal address, email address, and telephone number;

 

(b)     the name, postal address, email address and telephone number of the ‘applicant’s’ representative, if any;

 

(c)     a complete description of the ‘proposed transaction’ in respect of which the ruling is sought, including its financial implications;

 

(d)     a complete description of the impact the ‘proposed transaction’ may have upon the tax liability of the ‘applicant’ or any ‘class member’ or, if relevant, any connected person in relation to the ‘applicant’ or any ‘class member’;

 

(e)     a complete description of any ‘transaction’ entered into by the ‘applicant’ or ‘class member’ prior to submitting the ‘application’ or that may be undertaken after the completion of the ‘proposed transaction’ which may have a bearing on the tax consequences of the ‘proposed transaction’ or may be considered to be part of a series of ‘transactions’ involving the ‘proposed transaction’;

 

(f)      the proposed ruling being sought, including a draft of the ruling;

 

(g)     the relevant statutory provisions or legal issues;

 

(h)     the reasons why the ‘applicant’ believes that the proposed ruling should be granted;

 

(i)      a statement of the ‘applicant’s’ interpretation of the relevant statutory provisions or legal issues, as well as an analysis of relevant authorities either considered by the ‘applicant’ or of which the ‘applicant’ is aware, as to whether those authorities support or are contrary to the proposed ruling being sought;

 

(j)      a statement, to the best of the ‘applicant’s’ knowledge, as to whether the ruling requested is referred to in section 80;

 

(k)     a description of the information that the ‘applicant’ believes should be deleted from the final ruling before publication in order to protect the confidentiality of the ‘applicant’ or ‘class members’;

 

(l)      the ‘applicant’s’ consent to the publication of the ruling by SARS in accordance with section 87;

 

(m)    in the case of an ‘application’ for a ‘binding class ruling’-

 

(i)      a description of the ‘class members’; and

 

(ii)     the impact the ‘proposed transaction’ may have upon the tax liability of the ‘class members’ or, if relevant, any connected person in relation to the ‘applicant’ or to any ‘class member’.

 

(n)     a statement confirming that the ‘applicant’ complied with any registration requirements under a tax Act, with regard to any tax for which the ‘applicant’ is liable, unless the ‘application’ concerns a ruling to determine if the ‘applicant’ must register under a tax Act; and

 

(o)     a statement confirming that all returns required to be rendered by that ‘applicant’ in terms of a tax Act have been rendered and any tax has been paid or arrangements acceptable to SARS have been made for the submission of any outstanding returns or for the payment of any outstanding tax debt.

 

(5)     SARS may request additional information from an ‘applicant’ at any time.

 

(6)     An ‘application’ must be accompanied by the ‘application’ fee prescribed under section 81.

 

(7)     SARS must provide an ‘applicant’ with a reasonable opportunity to make representations if, based upon the ‘application’ and any additional information received, it appears that the content of the ruling to be made would differ materially from the proposed ruling sought by the ‘applicant’.

 

(8)     An ‘applicant’ may withdraw an ‘application’ for a ruling at any time.

 

(9)     A co-applicant to a ‘binding private ruling’ referred to in subsection (2) may withdraw from an ‘application’ at any time.

 

(10)   A withdrawal does not affect the liability to pay fees under section 81.