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Government Gazette

REPUBLIC OF SOUTH AFRICA

Vol. 5 Cape Town 4 20 No. 3

STATE PRESIDENT'S OFFICE No. 20

It is hereby notified that the President has assented to the following Act, which is hereby published for general information:–

No. 28 of 20 : Act, 20 .

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2 No. 35491 GOVERNMENT GAZETTE, 4 JULY 2012Act No. 28 of 2011 Tax Administration Act, 2011

GENERAL EXPLANATORY NOTE:

[ ] Words in bold type in square brackets indicate omissions fromexisting enactments.Words underlined with a solid line indicate insertions inexisting enactments.

ACTTo provide for the effective and efficient collection of tax; to provide for thealignment of the administration provisions of tax Acts and the consolidation of theprovisions into one piece of legislation to the extent practically possible; todetermine the powers and duties of the South African Revenue Service andofficials; to provide for the delegation of powers by the Commissioner; to providefor the authority to act in legal proceedings; to determine the powers and duties ofthe Minister of Finance; to provide for the establishment of the office of the TaxOmbud; to determine the powers and duties of the Tax Ombud; to provide forregistration requirements; to provide for the submission of returns and the duty tokeep records; to provide for reportable arrangements; to provide for the requestfor information; to provide for the carrying out of an audit or investigation by theSouth African Revenue Service; to provide for inquiries; to provide for powers ofthe South African Revenue Service to carry out searches and seizures; to providefor the con dentiality of information; to provide for the South African RevenueService to issue advance rulings; to make provision in respect of tax assessments; toprovide for dispute resolution; to make provision for the payment of tax; to providefor the recovery of tax; to provide for the South African Revenue Service to recoverinterest on outstanding tax debts; to provide for the refund of excess payments; toprovide for the write-off and compromise of tax debts; to provide for the impositionand remittance of administrative non-compliance penalties; to provide for theimposition of understatement penalties; to provide for a voluntary disclosureprogramme; to provide for criminal offences and sanctions; to provide for thereporting of unprofessional conduct by tax practitioners; and to provide formatters connected therewith.

(English text signed by the President)(Assented to 2 July 2012)


BE IT ENACTED by the Parliament of the Republic of South Africa, as follows:—

ARRANGEMENT OF SECTIONS

Sections

CHAPTER 1

DEFINITIONS

1. De nitions

CHAPTER 2

GENERAL ADMINISTRATION PROVISIONS

Part A

In general

2. Purpose of Act3. Administration of tax Acts4. Application of Act5. Practice generally prevailing

Part B

Powers and duties of SARS and SARS officials

6. Powers and duties7. Con ict of interest8. Identity cards9. Decision or notice by SARS

Part C

Delegations

10. Delegations by the Commissioner

Part D

Authority to act in legal proceedings

11. Legal proceedings on behalf of Commissioner12. Right of appearance in proceedings

Part E

Powers and duties of Minister

13. Powers and duties of Minister14. Power of Minister to appoint Tax Ombud

Part F

Powers and duties of Tax Ombud

15. Office of Tax Ombud16. Mandate of Tax Ombud17. Limitations on authority18. Review of complaint19. Reports by Tax Ombud20. Resolution and recommendations

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21. Con dentiality

CHAPTER 3

REGISTRATION

22. Registration requirements23. Communication of changes in particulars24. Taxpayer reference number

CHAPTER 4

RETURNS AND RECORDS

Part A

General

25. Submission of return26. Third party returns27. Other returns required28. Statement concerning accounts29. Duty to keep records30. Form of records kept or retained31. Inspection of records32. Retention period in case of audit, objection or appeal33. Translation

Part B

Reportable arrangements

34. De nitions35. Reportable arrangements36. Excluded arrangements37. Disclosure obligation38. Information to be submitted39. Reportable arrangement reference number

CHAPTER 5

INFORMATION GATHERING

Part A

General rules for inspection, veri cation, audit and criminal investigation

40. Selection for inspection, veri cation or audit41. Authorisation for SARS official to conduct audit or criminal investigation42. Keeping taxpayer informed43. Referral for criminal investigation44. Conduct of criminal investigation

Part B

Inspection, request for relevant material, audit and criminal investigation

45. Inspection46. Request for relevant material47. Production of relevant material in person48. Field audit or criminal investigation49. Assistance during eld audit or criminal investigation

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Part C

Inquiries

50. Authorisation for inquiry51. Inquiry order52. Inquiry proceedings53. Notice to appear54. Powers of presiding officer55. Witness fees56. Con dentiality of proceedings57. Incriminating evidence58. Inquiry not suspended by civil or criminal proceedings

Part D

Search and seizure

59. Application for warrant60. Issuance of warrant61. Carrying out search62. Search of premises not identi ed in warrant63. Search without warrant64. Legal professional privilege65. Person’s right to examine and make copies66. Application for return of seized relevant material or costs of damages

CHAPTER 6

CONFIDENTIALITY OF INFORMATION

67. General prohibition of disclosure68. SARS con dential information and disclosure69. Secrecy of taxpayer information and general disclosure70. Disclosure to other entities71. Disclosure in criminal, public safety or environmental matters72. Self-incrimination73. Disclosure to taxpayer of own record74. Publication of names of offenders

CHAPTER 7

ADVANCE RULINGS

75. De nitions76. Purpose of advance rulings77. Scope of advance rulings78. Private rulings and class rulings79. Applications for advance rulings80. Rejection of application for advance ruling81. Fees for advance rulings82. Binding effect of advance rulings83. Applicability of advance rulings84. Rulings rendered void85. Subsequent changes in tax law86. Withdrawal or modi cation of advance rulings87. Publication of advance rulings88. Non-binding private opinions89. General rulings90. Procedures and guidelines for advance rulings

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CHAPTER 8

ASSESSMENTS

91. Original assessments92. Additional assessments93. Reduced assessments94. Jeopardy assessments95. Estimation of assessments96. Notice of assessment97. Recording of assessments98. Withdrawal of assessments99. Period of limitations for issuance of assessments100. Finality of assessment or decision

CHAPTER 9

DISPUTE RESOLUTION

Part A

General

101. De nitions102. Burden of proof103. Rules for dispute resolution

Part B

Objection and appeal

104. Objection against assessment or decision105. Forum for dispute of assessment or decision106. Decision on objection107. Appeal against assessment or decision

Part C

Tax board

108. Establishment of tax board109. Jurisdiction of tax board110. Constitution of tax board111. Appointment of chairpersons112. Clerk of tax board113. Tax board procedure114. Decision of tax board115. Referral of appeal to tax court

Part D

Tax court

116. Establishment of tax court117. Jurisdiction of tax court118. Constitution of tax court119. Nomination of president of tax court120. Appointment of panel of tax court members121. Appointment of registrar of tax court122. Con ict of interest of tax court members123. Death, retirement or incapability of judge or member124. Sitting of tax court not public125. Appearance at hearing of tax court

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126. Subpoena of witness to tax court127. Non-attendance by witness or failure to give evidence128. Contempt of tax court129. Decision by tax court130. Order for costs by tax court131. Registrar to notify parties of judgment of tax court132. Publication of judgment of tax court

Part E

Appeal against tax court decision

133. Appeal against decision of tax court134. Notice of intention to appeal tax court decision135. Leave to appeal to Supreme Court of Appeal against tax court decision136. Failure to lodge notice of intention to appeal tax court decision137. Notice by registrar of period for appeal of tax court decision138. Notice of appeal to Supreme Court of Appeal against tax court decision139. Notice of cross-appeal of tax court decision140. Record of appeal of tax court decision141. Abandonment of judgment

Part F

Settlement of dispute

142. De nitions143. Purpose of Part144. Initiation of settlement procedure145. Circumstances where settlement is inappropriate146. Circumstances where settlement is appropriate147. Procedure for settlement148. Finality of settlement agreement149. Register of settlements and reporting150. Alteration of assessment or decision on settlement

CHAPTER 10

TAX LIABILITY AND PAYMENT

Part A

Taxpayers

151. Taxpayer152. Person chargeable to tax153. Representative taxpayer154. Liability of representative taxpayer155. Personal liability of representative taxpayer156. Withholding agent157. Personal liability of withholding agent158. Responsible third party159. Personal liability of responsible third party160. Right to recovery of taxpayer161. Security by taxpayer

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Part B

Payment of tax

162. Determination of time and manner of payment of tax163. Preservation order164. Payment of tax pending objection or appeal

Part C

Taxpayer account and allocation of payments

165. Taxpayer account166. Allocation of payments

Part D

Deferral of payment

167. Instalment payment agreement168. Criteria for instalment payment agreement

CHAPTER 11

RECOVERY OF TAX

Part A

General

169. Debt due to SARS170. Evidence as to assessment171. Period of limitation on collection of tax

Part B

Judgment procedure

172. Application for civil judgment for recovery of tax173. Jurisdiction of Magistrates’ Court in judgment procedure174. Effect of statement led with clerk or registrar175. Amendment of statement led with clerk or registrar176. Withdrawal of statement and reinstitution of proceedings

Part C

Sequestration, liquidation and winding-up proceedings

177. Institution of sequestration, liquidation or winding-up proceedings178. Jurisdiction of court in sequestration, liquidation or winding-up proceedings

Part D

Collection of tax debt from third parties

179. Liability of third party appointed to satisfy tax debts180. Liability of nancial management for tax debts181. Liability of shareholders for tax debts182. Liability of transferee for tax debts183. Liability of person assisting in dissipation of assets184. Recovery of tax debts from responsible third parties

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Part E

Assisting foreign governments

185. Tax recovery on behalf of foreign governments

Part F

Remedies with respect to foreign assets

186. Compulsory repatriation of foreign assets of taxpayer

CHAPTER 12

INTEREST

187. General interest rules188. Period over which interest accrues189. Rate at which interest is charged

CHAPTER 13

REFUNDS

190. Refunds of excess payments191. Refunds subject to set-off and deferral

CHAPTER 14

WRITE OFF OR COMPROMISE OF TAX DEBTS

Part A

General provisions

192. De nitions193. Purpose of Chapter194. Application of Chapter

Part B

Temporary write off of tax debt

195. Temporary write off of tax debt196. Tax debt uneconomical to pursue

Part C

Permanent write off of tax debt

197. Permanent write off of tax debt198. Tax debt irrecoverable at law199. Procedure for writing off tax debt

Part D

Compromise of tax debt

200. Compromise of tax debt201. Request by debtor for compromise of tax debt202. Consideration of request to compromise tax debt203. Circumstances where not appropriate to compromise tax debt204. Procedure for compromise of tax debt205. SARS not bound by compromise of tax debt

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Part E

Records and reporting

206. Register of tax debts written off or compromised207. Reporting by Commissioner of tax debts written off or compromised

CHAPTER 15

ADMINISTRATIVE NON-COMPLIANCE PENALTIES

Part A

General

208. De nitions209. Purpose of Chapter

Part B

Fixed amount penalties

210. Non-compliance subject to penalty211. Fixed amount penalty table212. Reportable arrangement penalty

Part C

Percentage based penalty

213. Imposition of percentage based penalty

Part D

Procedure

214. Procedures for imposing penalty215. Procedure to request remittance of penalty

Part E

Remedies

216. Remittance of penalty for failure to register217. Remittance of penalty for nominal or rst incidence of non-compliance218. Remittance of penalty in exceptional circumstances219. Penalty incorrectly assessed220. Objection and appeal against decision not to remit penalty

CHAPTER 16

UNDERSTATEMENT PENALTY

Part A

Imposition of understatement penalty

221. De nitions222. Understatement penalty223. Understatement penalty percentage table224. Objection and appeal against decision not to remit understatement penalty

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Part B

Voluntary disclosure programme

225. De nitions226. Qualifying person for voluntary disclosure227. Requirements for valid voluntary disclosure228. No-name voluntary disclosure229. Voluntary disclosure relief230. Voluntary disclosure agreement231. Withdrawal of voluntary disclosure relief232. Assessment or determination to give effect to agreement233. Reporting of voluntary disclosure agreements

CHAPTER 17

CRIMINAL OFFENCES

234. Criminal offences relating to non-compliance with tax Acts235. Criminal offences relating to evasion of tax236. Criminal offences relating to secrecy provisions237. Criminal offences relating to ling return without authority238. Jurisdiction of courts in criminal matters

CHAPTER 18

REPORTING OF UNPROFESSIONAL CONDUCT

239. De nitions240. Registration of tax practitioners241. Complaint to controlling body of tax practitioner242. Disclosure of information regarding complaint and remedies of taxpayer243. Complaint considered by controlling body

CHAPTER 19

GENERAL PROVISIONS

244. Deadlines245. Power of Minister to determine date for submission of returns and payment of

tax246. Public officers of companies247. Company address for notices and documents248. Public officer in event of liquidation or winding-up249. Default in appointing public officer or address for notices or documents250. Authentication of documents251. Delivery of documents to persons other than companies252. Delivery of documents to companies253. Documents delivered deemed to have been received254. Defect does not affect validity255. Rules for electronic communication256. Tax clearance certi cate257. Regulations by Minister

CHAPTER 20

TRANSITIONAL PROVISIONS

258. New taxpayer reference number259. Appointment of Tax Ombud260. Provisions relating to secrecy

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261. Public officer previously appointed262. Appointment of chairpersons of tax board263. Appointment of members of tax court264. Continuation of tax board, tax court and court rules265. Continuation of appointment to a post or office or delegation by Commissioner266. Continuation of authority to audit267. Conduct of inquiries and execution of search and seizure warrants268. Application of Chapter 15269. Continuation of authority, rights and obligations270. Application of Act to prior or continuing action271. Amendment of legislation272. Short title and commencement

CHAPTER 1

DEFINITIONS

De nitions

1. In this Act, unless the context indicates otherwise, a term which is assigned ameaning in another tax Act has the meaning so assigned, and the following terms havethe following meaning:

‘‘additional assessment’’ is an assessment referred to in section 92;‘‘administration of a tax Act’’ has the meaning assigned in section 3(2);‘‘administrative non-compliance penalty’’ has the meaning assigned in section208;‘‘assessment’’ means the determination of the amount of a tax liability or refund,by way of self-assessment by the taxpayer or assessment by SARS;‘‘biometric information’’ means biological data used to authenticate the identityof a natural person by means of—(a) facial recognition;(b) ngerprint recognition;(c) voice recognition;(d) iris or retina recognition; and(e) other, less intrusive biological data, as may be prescribed by the Minister in a

regulation issued under section 257;‘‘business day’’ means a day which is not a Saturday, Sunday or public holiday,and for purposes of determining the days or a period allowed for complying withthe provisions of Chapter 9, excludes the days between 16 December of each yearand 15 January of the following year, both days inclusive;‘‘Commissioner’’ means the Commissioner for the South African RevenueService appointed in terms of section 6 of the SARS Act or the ActingCommissioner designated in terms of section 7 of that Act;‘‘company’’ has the meaning assigned in section 1 of the Income Tax Act;‘‘connected person’’ means a connected person as de ned in section 1 of theIncome Tax Act;‘‘Customs and Excise Act’’ means the Customs and Excise Act, 1964 (Act No. 91of 1964);‘‘date of assessment’’ means—(a) in the case of an assessment by SARS, the date of the issue of the notice of

assessment; or(b) in the case of self-assessment by the taxpayer—

(i) if a return is required, the date that the return is submitted; or(ii) if no return is required, the date of the last payment of the tax for the tax

period or, if no payment was made in respect of the tax for the tax period,the effective date;

‘‘date of sequestration’’ means—(a) the date of voluntary surrender of an estate, if accepted by a court; or(b) the date of provisional sequestration of an estate, if a nal order of

sequestration is granted by a court;‘‘Diamond Export Levy Act’’ means the Diamond Export Levy Act, 2007 (ActNo. 15 of 2007);

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‘‘Diamond Export Levy (Administration) Act’’ means the Diamond ExportLevy (Administration) Act, 2007 (Act No. 14 of 2007);‘‘document’’ means anything that contains a written, sound or pictorial record, orother record of information, whether in physical or electronic form;‘‘effective date’’ is the date described in section 187(3), (4) and (5);‘‘Estate Duty Act’’ means the Estate Duty Act, 1955 (Act No. 45 of 1955);‘‘fair market value’’ means the price which could be obtained upon a sale of anasset between a willing buyer and a willing seller dealing at arm’s length in an openmarket;‘‘income tax’’ means normal tax referred to in section 5 of the Income Tax Act;‘‘Income Tax Act’’ means the Income Tax Act, 1962 (Act No. 58 of 1962);‘‘information’’ includes information generated, recorded, sent, received, stored ordisplayed by any means;‘‘international tax agreement’’ means an agreement entered into with thegovernment of another country in accordance with a tax Act;‘‘jeopardy assessment’’ is an assessment referred to in section 94;‘‘judge’’ means a judge of the High Court of South Africa, whether in chambers orotherwise;‘‘magistrate’’ means a judicial officer as de ned in section 1 of the Magistrates’Courts Act, 1944 (Act No. 32 of 1944), whether in chambers or otherwise;‘‘Mineral and Petroleum Resources Royalty (Administration) Act’’ means theMineral and Petroleum Resources Royalty (Administration) Act, 2008 (Act No. 29of 2008);‘‘Minister’’ means the Minister of Finance;‘‘official publication’’ means a binding general ruling, interpretation note, practicenote or public notice issued by a senior SARS official or the Commissioner;‘‘original assessment’’ is an assessment referred to in section 91;‘‘practice generally prevailing’’ has the meaning assigned in section 5;‘‘premises’’ includes a building, aircraft, vehicle, vessel or place;‘‘prescribed rate’’ has the meaning assigned in section 189(3);‘‘presiding officer’’ is the person referred to in section 50(1);‘‘Promotion of Access to Information Act’’ means the Promotion of Access toInformation Act, 2000 (Act No. 2 of 2000);‘‘public notice’’ means a notice published in the Government Gazette;‘‘public officer’’ is an officer referred to in section 246(1), (2) and (3);‘‘reduced assessment’’ is an assessment referred to in section 93;‘‘relevant material’’ means any information, document or thing that is forseeablyrelevant for tax risk assessment, assessing tax, collecting tax, showing non-compliance with an obligation under a tax Act or showing that a tax offence wascommitted;‘‘reportable arrangement’’ has the meaning assigned in section 35;‘‘representative taxpayer’’ has the meaning assigned in section 153(1);‘‘responsible third party’’ has the meaning assigned under section 158;‘‘return’’ means a form, declaration, document or other manner of submittinginformation to SARS that incorporates a self-assessment or is the basis on which anassessment is to be made by SARS;‘‘SARS’’ means the South African Revenue Service established under the SARSAct;‘‘SARS Act’’ means the South African Revenue Service Act, 1997 (Act No. 34 of1997);‘‘SARS con dential information’’ has the meaning assigned under section 68(1);‘‘SARS official’’ means—(a) the Commissioner,(b) an employee of SARS; or(c) a person contracted by SARS for purposes of the administration of a tax Act

and who carries out the provisions of a tax Act under the control, direction orsupervision of the Commissioner;

‘‘Securities Transfer Tax Act’’ means the Securities Transfer Tax Act, 2007 (ActNo. 25 of 2007);‘‘Securities Transfer Tax Administration Act’’ means the Securities Transfer TaxAdministration Act, 2007 (Act No. 26 of 2007);‘‘self-assessment’’ means a determination of the amount of tax payable under a taxAct by a taxpayer and—

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(a) submitting a return which incorporates the determination of the tax; or(b) if no return is required, making a payment of the tax;‘‘senior SARS official’’ is a SARS official referred to in section 6(3);‘‘serious tax offence’’ means a tax offence for which a person may be liable onconviction to imprisonment for a period exceeding two years without the option ofa ne or to a ne exceeding the equivalent amount of a ne under the Adjustmentof Fines Act, 1991 (Act No. 101 of 1991);‘‘shareholder’’ means a person who holds a bene cial interest in a share in acompany as de ned in the Income Tax Act;‘‘Skills Development Levies Act’’ means the Skills Development Levies Act,1999 (Act No. 9 of 1999);‘‘tax’’, for purposes of administration under this Act, includes a tax, duty, levy,royalty, fee, contribution, penalty, interest and any other moneys imposed under atax Act;‘‘taxable event’’ means an occurrence which affects or may affect the liability ofa person to tax;‘‘tax Act’’ means this Act or an Act, or portion of an Act, referred to in section 4 ofthe SARS Act, excluding the Customs and Excise Act;‘‘tax board’’ means a tax board established under section 108;‘‘tax court’’ means a court established under section 116;‘‘tax debt’’ means an amount of tax due by a person in terms of a tax Act;‘‘tax offence’’ means an offence in terms of a tax Act or any other offence involvingfraud on SARS or on a SARS official relating to the administration of a tax Act;‘‘Tax Ombud’’ is the person appointed by the Minister under section 14;‘‘tax period’’ means, in relation to—(a) income tax, a year of assessment as de ned in section 1 of the Income Tax Act;(b) provisional tax or employees’ tax, skills development levies as determined in

section 3 of the Skills Development Levies Act, and contributions asdetermined in section 6 of the Unemployment Insurance Contributions Act,the period in respect of which the amount of tax payable must be determinedunder the relevant tax Act;

(c) value-added tax, a tax period determined under section 27 of the Value-AddedTax Act or the period or date of the taxable event in respect of which theamount of tax payable must be determined under that Act;

(d) royalty payable on the transfer of mineral and petroleum resources, a year ofassessment as de ned in section 1 of the Mineral and Petroleum ResourcesRoyalty (Administration) Act;

(e) the levy on diamond exports as determined under section 2 of the DiamondExport Levy Act, the assessment period referred to in section 1 of theDiamond Export Levy (Administration) Act;

(f) securities transfer tax, the period referred to in section 3 of the SecuritiesTransfer Tax Administration Act;

(g) any other tax, the period or date of the taxable event in respect of which theamount of tax payable must be determined under a tax Act; or

(h) a jeopardy assessment, the period determined under this Act;‘‘taxpayer’’ has the meaning assigned under section 151;

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‘‘taxpayer information’’ has the meaning assigned under section 67(1)(b);‘‘taxpayer reference number’’ is the number referred to in section 24;‘‘thing’’ includes a corporeal or incorporeal thing;‘‘this Act’’ includes the regulations and a public notice issued under this Act;‘‘Transfer Duty Act’’ means the Transfer Duty Act, 1949 (Act No. 40 of 1949);‘‘understatement penalty’’ means a penalty imposed by SARS in accordancewith Part A of Chapter 16;‘‘Unemployment Insurance Contributions Act’’ means the UnemploymentInsurance Contributions Act, 2002 (Act No. 4 of 2002);‘‘Value-Added Tax Act’’ means the Value-Added Tax Act, 1991 (Act No. 89 of1991);‘‘withholding agent’’ has the meaning assigned under section 156.

CHAPTER 2

GENERAL ADMINISTRATION PROVISIONS

Part A

In general

Purpose of Act

2. The purpose of this Act is to ensure the effective and efficient collection of tax by—(a) aligning the administration of the tax Acts to the extent practically possible;(b) prescribing the rights and obligations of taxpayers and other persons to whom

this Act applies;(c) prescribing the powers and duties of persons engaged in the administration of

a tax Act; and(d) generally giving effect to the objects and purposes of tax administration.

Administration of tax Acts

3. (1) SARS is responsible for the administration of this Act under the control ordirection of the Commissioner.

(2) Administration of a tax Act means to—(a) obtain full information in relation to—

(i) anything that may affect the liability of a person for tax in respect of aprevious, current or future tax period;

(ii) a taxable event; or(iii) the obligation of a person (whether personally or on behalf of another

person) to comply with a tax Act;(b) ascertain whether a person has led or submitted correct returns, information

or documents in compliance with the provisions of a tax Act;(c) establish the identity of a person for purposes of determining liability for tax;(d) determine the liability of a person for tax;(e) collect tax and refund tax overpaid;(f) investigate whether an offence has been committed in terms of a tax Act, and,

if so—(i) to lay criminal charges; and

(ii) to provide the assistance that is reasonably required for the investigationand prosecution of tax offences or related common law offences;

(g) enforce SARS’ powers and duties under a tax Act to ensure that an obligationimposed by or under a tax Act is complied with;

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(h) perform any other administrative function necessary to carry out theprovisions of a tax Act; and

(i) give effect to the obligation of the Republic to provide assistance under aninternational tax agreement.

(3) If SARS has, in accordance with an international tax agreement, received a requestfor—

(a) information, SARS may obtain the information requested for transmission tothe competent authority of the other country as if it were relevant materialrequired for purposes of a tax Act and must treat the information obtained asif it were taxpayer information;

(b) the conservancy or the collection of an amount alleged to be due by a personunder the tax laws of the requesting country, SARS may deal with the requestunder the provisions of section 185; or

(c) the service of a document which emanates from the requesting country, SARSmay effect service of the document as if it were a notice, document or othercommunication required under a tax Act to be issued, given, sent or served bySARS.

Application of Act

4. (1) This Act applies to every person who is liable to comply with a provision of atax Act (whether personally or on behalf of another person) and binds SARS.

(2) If this Act is silent with regard to the administration of a tax Act and it isspeci cally provided for in the relevant tax Act, the provisions of that tax Act apply.

(3) In the event of any inconsistency between this Act and another tax Act, the otherAct prevails.

Practice generally prevailing

5. (1) A practice generally prevailing is a practice set out in an official publicationregarding the application or interpretation of a tax Act.

(2) Despite any provision to the contrary contained in a tax Act, a practice generallyprevailing set out in an official publication, other than a binding general ruling, ceases tobe a practice generally prevailing if—

(a) the provision of the tax Act that is the subject of the official publication isrepealed or amended to an extent material to the practice, from the date therepeal or amendment becomes effective;

(b) a court overturns or modi es an interpretation of the tax Act which is thesubject of the official publication to an extent material to the practice from thedate of judgment, unless—(i) the decision is under appeal;

(ii) the decision is fact-speci c and the general interpretation upon which theofficial publication was based is unaffected; or

(iii) the reference to the interpretation upon which the official publication wasbased was obiter dicta; or

(c) the official publication is withdrawn or modi ed by the Commissioner, fromthe date of the official publication of the withdrawal or modi cation.

(3) A binding general ruling ceases to be a practice generally prevailing in thecircumstances described in section 85 or 86.

Part B

Powers and duties of SARS and SARS officials

Powers and duties

6. (1) The powers and duties of SARS under this Act may be exercised for purposesof the administration of a tax Act.

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(2) Powers and duties which are assigned to the Commissioner by this Act must beexercised by the Commissioner personally but he or she may delegate such powers andduties in accordance with section 10.

(3) Powers and duties required by this Act to be exercised by a senior SARS officialmust be exercised by—

(a) the Commissioner;(b) a SARS official who has speci c written authority from the Commissioner to

do so; or(c) a SARS official occupying a post designated by the Commissioner for this

purpose.(4) The execution of a task ancillary to a power or duty under subsection (2) or (3)

may be done by—(a) an official under the control of the Commissioner or a senior SARS official; or(b) the incumbent of a speci c post under the control of the Commissioner or a

senior SARS official.(5) Powers and duties not speci cally required by this Act to be exercised by the

Commissioner or by a senior SARS official, may be exercised by a SARS officialemployed or contracted to exercise or perform powers or duties for purposes of theadministration of a tax Act.

(6) The Commissioner may by public notice specify that a power or duty in a tax Actother than this Act must be exercised by the Commissioner personally or a senior SARSofficial.

Con ict of interest

7. The Commissioner or a SARS official may not exercise a power or becomeinvolved in a matter pertaining to the administration of a tax Act, if—

(a) the power or matter relates to a taxpayer in respect of which the Commissioneror the official has or had, in the previous three years, a personal, family, social,business, professional, employment or nancial relationship presenting acon ict of interest; or

(b) other circumstances present a con ict of interest,that will reasonably be regarded as giving rise to bias.

Identity cards

8. (1) SARS must issue an identity card to each SARS official exercising powers andduties for purposes of the administration of a tax Act.

(2) When a SARS official exercises a power or duty for purposes of the administrationof a tax Act in person, the official must produce the identity card upon request by amember of the public.

(3) If the official does not produce the identity card, a member of the public is entitledto assume that the person is not a SARS official.

Decision or notice by SARS

9. (1) A decision made by a SARS official and a notice to a speci c person issued bySARS, excluding a decision given effect to in an assessment or a notice of assessment—

(a) is regarded as made by a SARS official, authorised to do so or duly issued bySARS, until proven to the contrary; and

(b) may in the discretion of a SARS official described in subparagraphs (i) to (iii)or at the request of the relevant person, be withdrawn or amended by—(i) the SARS official;

(ii) a SARS official to whom the SARS official reports; or(iii) a senior SARS official.

(2) If all the material facts were known to the SARS official at the time the decisionwas made, a decision or notice referred to in subsection (1) may not be withdrawn or

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amended with retrospective effect, after three years from the later of the—(a) date of the written notice of that decision; or(b) date of assessment or the notice of assessment giving effect to the decision (if

applicable).

Part C

Delegations

Delegations by the Commissioner

10. (1) A delegation by the Commissioner under section 6(2)—(a) must be in writing;(b) becomes effective only when signed by the person to whom the delegation is

made;(c) is subject to the limitations and conditions the Commissioner may determine

in making the delegation;(d) may either be to—

(i) a speci c individual; or(ii) the incumbent of a speci c post; and

(e) may be amended or withdrawn by the Commissioner.(2) A delegation does not divest the Commissioner of the responsibility for the

exercise of the delegated power or the performance of the delegated duty.

Part D

Authority to act in legal proceedings

Legal proceedings on behalf of Commissioner

11. (1) No SARS official other than the Commissioner or a SARS official dulyauthorised by the Commissioner may institute or defend civil proceedings on behalf ofthe Commissioner.

(2) For purposes of subsection (1), a SARS official who, on behalf of theCommissioner, institutes litigation, or performs acts which are relied upon by theCommissioner in litigation, is regarded as duly authorised until proven to the contrary.

(3) A senior SARS official may lay a criminal charge relating to a tax offencedescribed in section 235.

Right of appearance in proceedings

12. (1) Despite any law to the contrary, a senior SARS official may on behalf of SARSor the Commissioner in proceedings referred to in a tax Act, appear ex parte in a judge’schambers in the tax court or in a High Court.

(2) A senior SARS official may appear in the tax court or a High Court only if theperson—

(a) is an advocate duly admitted under—(i) the Admission of Advocates Act, 1964 (Act No. 74 of 1964); or

(ii) a law providing for the admission of advocates in an area in the Republicwhich remained in force by virtue of paragraph 2 of Schedule 6 to theConstitution of the Republic of South Africa, 1996; or

(b) is an attorney duly admitted and enrolled under—(i) the Attorneys Act, 1979 (Act No. 53 of 1979); or

(ii) a law providing for the admission of attorneys in an area in the Republicwhich remained in force by virtue of paragraph 2 of Schedule 6 to theConstitution of the Republic of South Africa, 1996.

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Part E



13. (1) The powers conferred and the duties imposed upon the Minister by or underthe provisions of a tax Act may—

(a) be exercised or performed by the Minister personally; and(b) except for the powers under sections 14 and 257, be delegated by the Minister

to the Deputy Minister or Director-General of the National Treasury.(2) The Director-General may in turn delegate the powers and duties delegated to the

Director-General by the Minister to a person under the control, direction or supervisionof the Director-General.

Power of Minister to appoint Tax Ombud

14. (1) The Minister must appoint a person as Tax Ombud—(a) for a term of three years, which term may be renewed; and(b) under such conditions regarding remuneration and allowances as the Minister

may determine.(2) The person appointed under subsection (1) or (3) may be removed by the Minister

for misconduct, incapacity or incompetence.(3) During a vacancy in the office of Tax Ombud, the Minister may designate a person

in the office of the Tax Ombud to act as Tax Ombud.(4) No person may be designated in terms of subsection (3) as acting Tax Ombud for

a period longer than 90 days at a time.(5) A person appointed as Tax Ombud—

(a) is accountable to the Minister;(b) must have a good background in customer service as well as tax law; and(c) may not at any time during the preceding ve years have been convicted

(whether in the Republic or elsewhere) of—(i) theft, fraud, forgery or uttering a forged document, perjury, an offence

under the Prevention and Combating of Corrupt Activities Act, 2004(Act No. 12 of 2004); or

(ii) any other offence involving dishonesty,for which the person has been sentenced to a period of imprisonmentexceeding two years without the option of a ne or to a ne exceeding theamount prescribed in the Adjustment of Fines Act, 1991 (Act No. 101 of1991).

Part F

Powers and duties of Tax Ombud

Office of Tax Ombud

15. (1) The staff of the office of the Tax Ombud must be employed in terms of theSARS Act and be seconded to the office of the Tax Ombud at the request of the TaxOmbud in consultation with the Commissioner.

(2) When the Tax Ombud is absent or otherwise unable to perform the functions ofoffice, the Tax Ombud may designate another person in the office of the Tax Ombud asacting Tax Ombud.

(3) No person may be designated in terms of subsection (2) as acting Tax Ombud fora period longer than 90 days at a time.

(4) The expenditure connected with the functions of the office of the Tax Ombud ispaid out of the funds of SARS.

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Mandate of Tax Ombud

16. (1) The mandate of the Tax Ombud is to review and address any complaint by ataxpayer regarding a service matter or a procedural or administrative matter arising fromthe application of the provisions of a tax Act by SARS.

(2) In discharging his or her mandate, the Tax Ombud must—(a) review a complaint and, if necessary, resolve it through mediation or

conciliation;(b) act independently in resolving a complaint;(c) follow informal, fair and cost-effective procedures in resolving a complaint;(d) provide information to a taxpayer about the mandate of the Tax Ombud and

the procedures to pursue a complaint;(e) facilitate access by taxpayers to complaint resolution mechanisms within

SARS to address complaints; and(f) identify and review systemic and emerging issues related to service matters or

the application of the provisions of this Act or procedural or administrativeprovisions of a tax Act that impact negatively on taxpayers.

Limitations on authority

17. The Tax Ombud may not review—(a) legislation or tax policy;(b) SARS policy or practice generally prevailing, other than to the extent that it

relates to a service matter or a procedural or administrative matter arisingfrom the application of the provisions of a tax Act by SARS;

(c) a matter subject to objection and appeal under a tax Act, except for anadministrative matter relating to such objection and appeal; or

(d) a decision of, proceeding in or matter before the tax court.

Review of complaint

18. (1) The Tax Ombud may review any issue within the Tax Ombud’s mandate onreceipt of a request from a taxpayer.

(2) The Tax Ombud may—(a) determine how a review is to be conducted; and(b) determine whether a review should be terminated before completion.

(3) In exercising the discretion set out in subsection (2), the Tax Ombud must considersuch factors as—

(a) the age of the request or issue;(b) the amount of time that has elapsed since the requester became aware of the

issue;(c) the nature and seriousness of the issue;(d) the question of whether the request was made in good faith; and(e) the ndings of other redress mechanisms with respect to the request.

(4) The Tax Ombud may only review a request if the requester has exhausted theavailable complaints resolution mechanisms in SARS, unless there are compellingcircumstances for not doing so.

(5) To determine whether there are compelling circumstances, the Tax Ombud mustconsider factors such as whether—

(a) the request raises systemic issues;(b) exhausting the complaints resolution mechanisms will cause undue hardship

to the requester; or(c) exhausting the complaints resolution mechanisms is unlikely to produce a

result within a period of time that the Tax Ombud considers reasonable.

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(6) The Tax Ombud must inform the requester of the results of the review or anyaction taken in response to the request, but at the time and in the manner chosen by theTax Ombud.

Reports by Tax Ombud

19. (1) The Tax Ombud must—(a) report directly to the Minister;(b) submit an annual report to the Minister within ve months of the end of

SARS’ nancial year; and(c) submit a report to the Commissioner quarterly or at such other intervals as

may be agreed.(2) The reports must—

(a) contain a summary of at least ten of the most serious issues encountered bytaxpayers and identi ed systemic and emerging issues referred to in section16(2)(f), including a description of the nature of the issues;

(b) contain an inventory of the issues described in subparagraph (a) for which—(i) action has been taken and the result of such action;

(ii) action remains to be completed and the period during which each itemhas remained on such inventory; or

(iii) no action has been taken, the period during which each item hasremained on such inventory and the reasons for the inaction; and

(c) contain recommendations for such administrative action as may be appropri-ate to resolve problems encountered by taxpayers.

(3) The Minister must table the annual report of the Tax Ombud in the NationalAssembly.

Resolution and recommendations

20. (1) The Tax Ombud must attempt to resolve all issues within the Tax Ombud’smandate at the level at which they can most efficiently and effectively be resolved andmust, in so doing, communicate with SARS officials identi ed by SARS.

(2) The Tax Ombud’s recommendations are not binding on taxpayers or SARS.

Con dentiality

21. (1) The provisions of Chapter 6 apply with the changes required by the context forthe purpose of this Part.

(2) SARS must allow the Tax Ombud access to information in the possession ofSARS that relates to the Tax Ombud’s powers and duties under this Act.

(3) The Tax Ombud and any person acting on the Tax Ombud’s behalf may notdisclose information of any kind that is obtained by or on behalf of the Tax Ombud, orprepared from information obtained by or on behalf of the Tax Ombud, to SARS, exceptto the extent required for the purpose of the performance of functions and duties underthis Part.

CHAPTER 3

REGISTRATION

Registration requirements

22. (1) A person—(a) obliged to apply to; or(b) who may voluntarily,

register with SARS under a tax Act must do so in terms of the requirements of thisChapter or, if applicable, the relevant tax Act.

(2) A person referred to in subsection (1) must—

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(a) apply for registration within the period provided for in a tax Act or, if no suchperiod is provided for, 21 business days of so becoming obliged or within thefurther period as SARS may approve in the prescribed form and manner;

(b) apply for registration for one or more taxes in the prescribed form and manner;and

(c) provide SARS with the further particulars and any documents as SARS mayrequire for the purpose of registering the person for the tax or taxes.

(3) A person registered or applying for registration under a tax Act may be required tosubmit biometric information in the prescribed form and manner if the information isrequired to ensure—

(a) proper identi cation of the person; or(b) counteracting identity theft or fraud.

(4) A person who applies for registration in terms of this Chapter and has not providedall particulars and documents required by SARS, may be regarded not to have appliedfor registration until all the particulars and documents have been provided to SARS.

(5) Where a taxpayer that is obliged to register with SARS under a tax Act fails to doso, SARS may register the taxpayer for one or more tax types as is appropriate under thecircumstances.

Communication of changes in particulars

23. A person who has been registered under section 22 must communicate to SARSwithin 21 business days any change that relates to—

(a) postal address;(b) physical address;(c) representative taxpayer;(d) banking particulars used for transactions with SARS;(e) electronic address used for communication with SARS; or(f) such other details as the Commissioner may require by public notice.

Taxpayer reference number

24. (1) SARS may allocate a taxpayer reference number in respect of one or moretaxes to each person registered under a tax Act or this Chapter.

(2) SARS may register and allocate a taxpayer reference number to a person who isnot registered.

(3) A person who has been allocated a taxpayer reference number by SARS mustinclude the relevant reference number in all returns or other documents submitted toSARS.

(4) SARS may regard a return or other document submitted by a person to be invalidif it does not contain the reference number referred to in subsection (3) and must informthe person accordingly if practical.

CHAPTER 4

RETURNS AND RECORDS

Part A

General

Submission of return

25. (1) A person required under a tax Act to submit or who voluntarily submits a returnmust do so—

(a) in the prescribed form and manner; and

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(b) by the date speci ed in the tax Act or, in its absence, by the date speci ed bythe Commissioner in the public notice requiring the submission.

(2) A return must contain the information prescribed by a tax Act or the Commissionerand be a full and true return.

(3) A return must be signed by the taxpayer or by the taxpayer’s duly authorisedrepresentative and the person signing the return is regarded for all purposes inconnection with a tax Act to be cognisant of the statements made in the return.

(4) Non-receipt by a person of a return form does not affect the obligation to submita return.

(5) SARS may, prior to the issue of an original assessment by SARS, request a personto submit an amended return to correct an undisputed error in a return.

(6) SARS may extend the time period for ling a return in a particular case, inaccordance with procedures and criteria in policies published by the Commissioner.

(7) The Commissioner may also extend the ling deadline generally or for speci cclasses of persons by public notice.

(8) An extension under subsection (6) or (7) does not affect the deadline for paying thetax.

Third party returns

26. The Commissioner may by public notice require a person who employs, paysamounts to, receives amounts on behalf of or otherwise transacts with another person, orhas control over assets of another person, to submit a return with the requiredinformation in the prescribed form and manner and by the date speci ed in the notice.

Other returns required

27. SARS may require a person to submit further or more detailed returns regardingany matter for which a return is required or prescribed by a tax Act.

Statement concerning accounts

28. (1) SARS may require a person who submits nancial statements or accountsprepared by another person in support of that person’s submitted return, to submit acerti cate or statement by the other person setting out the details of—

(a) the extent of the other person’s examination of the books of account and of thedocuments from which the books of account were written up; and

(b) whether or not the entries in those books and documents disclose the truenature of the transactions, receipts, accruals, payments or debits in so far asmay be ascertained by that examination.

(2) A person who prepares nancial statements or accounts for another person must,at the request of that other person, submit to that other person a copy of the certi cate orstatement referred to in subsection (1).

Duty to keep records

29. (1) A person must keep the records, books of account or documents that—(a) enable the person to observe the requirements of a tax Act;(b) are speci cally required under a tax Act; and(c) enable SARS to be satis ed that the person has observed these requirements.

(2) The requirements of this Act to keep records for a tax period apply to a personwho—

(a) has submitted a return for the tax period;

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(b) is required to submit a return for the tax period and has not submitted a returnfor the tax period; or

(c) is not required to submit a return but has, during the tax period, receivedincome, has a capital gain or capital loss, or engaged in any other activity thatis subject to tax or would be subject to tax but for the application of a thresholdor exemption.

(3) Records need not be retained by the person described in—(a) subsection (2)(a), after a period of ve years from the date of the submission

of the return; and(b) subsection (2)(c), after a period of ve years from the end of the relevant tax

period.

Form of records kept or retained

30. (1) The records, books of account, and documents referred to in section 29, mustbe kept or retained—

(a) in their original form in an orderly fashion and in a safe place;(b) in the form, including electronic form, as may be prescribed by the

Commissioner in a public notice; or(c) in a form speci cally authorised by a senior SARS official in terms of

subsection (2).(2) A senior SARS official may, subject to the conditions as the official may

determine, authorise the retention of information contained in records, books of accountor documents referred to in section 29 in a form acceptable to the official.

Inspection of records

31. The records, books of account and documents referred to in section 29 whether inthe form referred to in section 30(1) or in a form authorised under section 30(2), must atall reasonable times during the required periods under section 29, be open for inspectionby a SARS official in the Republic for the purpose of—

(a) determining compliance with the requirements of sections 29 and 30; or(b) an inspection, audit or investigation under Chapter 5.

Retention period in case of audit, objection or appeal

32. Despite section 29(3), if—(a) records are relevant to an audit or investigation under Chapter 5 which the

person subject to the audit or investigation has been noti ed of or is aware of;or

(b) a person lodges an objection or appeal against an assessment or decision undersection 104(2),

the person must retain the records relevant to the audit, objection or appeal until theaudit is concluded or the assessment or the decision becomes nal.

Translation

33. (1) In the case of information that is not in one of the official languages of theRepublic, a senior SARS official may by notice require a person who must furnish theinformation to SARS, to produce a translation in one of the official languagesdetermined by the official within a reasonable period.

(2) A translation referred to in subsection (1) must—(a) be produced at a time and at the place speci ed by the notice; and(b) if required by SARS, be prepared and certi ed by a sworn and accredited

translator or another person approved by the senior SARS official.

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Part B


De nitions

34. In this Part and in section 212, unless the context indicates otherwise, thefollowing terms, if in single quotation marks, have the following meanings:

‘arrangement’ means any transaction, operation, scheme, agreement or under-standing (whether enforceable or not);‘ nancial bene t’ means a reduction in the cost of nance, including interest,

nance charges, costs, fees and discounts on a redemption amount;‘ nancial reporting standards’ means, in the case of a company required tosubmit nancial statements in terms of the Companies Act, 2008 (Act No. 71 of2008), nancial reporting standards prescribed by that Act, or, in any other case, theGenerally Accepted Accounting Practice or appropriate nancial reportingstandards that provide a fair presentation of the nancial results and position of thetaxpayer;‘participant’, in relation to an ‘arrangement’, means—(a) a ‘promoter’; or(b) a company or trust which directly or indirectly derives or assumes that it

derives a ‘tax bene t’ or ‘ nancial bene t’ by virtue of an ‘arrangement’;‘pre-tax pro t’, in relation to an ‘arrangement’, means the pro t of a ‘participant’resulting from that ‘arrangement’ before deducting normal tax, which pro t mustbe determined in accordance with ‘ nancial reporting standards’ after taking intoaccount all costs and expenditure incurred by the ‘participant’ in connection withthe ‘arrangement’ and after deducting any foreign tax paid or payable by the‘participant’ in connection with the ‘arrangement’;‘promoter’, in relation to an ‘arrangement’, means a person who is principallyresponsible for organising, designing, selling, nancing or managing the reportablearrangement;‘tax bene t’ includes avoidance, postponement or reduction of a liability for tax.


35. (1) An ‘arrangement’ is a reportable arrangement if it is listed in terms ofsubsection (2) or if a ‘tax bene t’ is or will be derived or is assumed to be derived by any‘participant’ by virtue of the ‘arrangement’ and the ‘arrangement’—

(a) contains provisions in terms of which the calculation of interest as de ned insection 24J of the Income Tax Act, nance costs, fees or any other charges iswholly or partly dependent on the assumptions relating to the tax treatment ofthat ‘arrangement’ (otherwise than by reason of any change in the provisionsof a tax Act);

(b) has any of the characteristics contemplated in section 80C(2)(b) of the IncomeTax Act, or substantially similar characteristics;

(c) gives rise to an amount that is or will be disclosed by any ‘participant’ in anyyear of assessment or over the term of the ‘arrangement’ as—(i) a deduction for purposes of the Income Tax Act but not as an expense for

purposes of ‘ nancial reporting standards’; or(ii) revenue for purposes of ‘ nancial reporting standards’ but not as gross

income for purposes of the Income Tax Act;(d) does not result in a reasonable expectation of a ‘pre-tax pro t’ for any

‘participant’; or(e) results in a reasonable expectation of a ‘pre-tax pro t’ for any ‘participant’

that is less than the value of that ‘tax bene t’ to that ‘participant’ if both arediscounted to a present value at the end of the rst year of assessment when

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that ‘tax bene t’ is or will be derived or is assumed to be derived, usingconsistent assumptions and a reasonable discount rate for that ‘participant’.

(2) The Commissioner may list an ‘arrangement’ by public notice, if satis ed that the‘arrangement’ may lead to an undue ‘tax bene t’.

(3) This section does not apply to an excluded ‘arrangement’ referred to insection 36.

Excluded arrangements

36. (1) An ‘arrangement’ is an excluded ‘arrangement’ if it is—(a) a loan, advance or debt in terms of which—

(i) the borrower receives or will receive an amount of cash and agrees torepay at least the same amount of cash to the lender at a determinablefuture date; or

(ii) the borrower receives or will receive a fungible asset and agrees to returnan asset of the same kind and of the same or equivalent quantity andquality to the lender at a determinable future date;

(b) a lease;(c) a transaction undertaken through an exchange regulated in terms of the

Securities Services Act, 2004 (Act No. 36 of 2004); or(d) a transaction in participatory interests in a scheme regulated in terms of the

Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002).(2) Subsection (1) applies only to an ‘arrangement’ that—

(a) is undertaken on a stand-alone basis and is not directly or indirectly connectedto any other ‘arrangement’ (whether entered into between the same ordifferent parties); or

(b) would have quali ed as having been undertaken on a stand-alone basis asrequired by paragraph (a), were it not for a connected ‘arrangement’ that isentered into for the sole purpose of providing security and if no ‘tax bene t’is obtained or enhanced by virtue of the security ‘arrangement’.

(3) Subsection (1) does not apply to an ‘arrangement’ that is entered into—(a) with the main purpose or one of its main purposes of obtaining or enhancing

a ‘tax bene t’; or(b) in a speci c manner or form that enhances or will enhance a ‘tax bene t’.

(4) The Commissioner may determine an ‘arrangement’ to be an excluded‘arrangement’ by public notice, if satis ed that the ‘arrangement’ is not likely to lead toan undue ‘tax bene t’.

Disclosure obligation

37. (1) The ‘promoter’ must disclose the information referred to in section 38 inrespect of a reportable arrangement.

(2) If there is no ‘promoter’ in relation to the ‘arrangement’ or if the ‘promoter’ is nota resident, all other ‘participants’ must disclose the information.

(3) A ‘participant’ need not disclose the information in respect of the ‘arrangement’ ifthe ‘participant’ obtains a written statement from—

(a) the ‘promoter’ that the ‘promoter’ has disclosed the ‘arrangement’; or(b) any other ‘participant’, if subsection (2) applies, that the other ‘participant’

has disclosed the ‘arrangement’.(4) The ‘arrangement’ must be disclosed within 45 business days after an amount is

rst received by or has accrued to a ‘participant’ or is rst paid or actually incurred bya ‘participant’ in terms of the ‘arrangement’.

(5) SARS may grant extension for disclosure for a further 45 business days, ifreasonable grounds exist for the extension.

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Information to be submitted

38. The ‘promoter’ or ‘participant’ must submit, in relation to a reportablearrangement, in the prescribed form and manner and by the date speci ed—

(a) a detailed description of all its steps and key features, including, in the case ofan ‘arrangement’ that is a step or part of a larger ‘arrangement’, all the stepsand key features of the larger ‘arrangement’;

(b) a detailed description of the assumed ‘tax bene ts’ for all ‘participants’,including, but not limited to, tax deductions and deferred income;

(c) the names, registration numbers, and registered addresses of all ‘participants’;(d) a list of all its agreements; and(e) any nancial model that embodies its projected tax treatment.

Reportable arrangement reference number

39. SARS must, after receipt of the information contemplated in section 38, issue areportable arrangement reference number to each ‘participant’ for administrativepurposes only.

CHAPTER 5

INFORMATION GATHERING

Part A

General rules for inspection, veri cation, audit and criminal investigation

Selection for inspection, veri cation or audit

40. SARS may select a person for inspection, veri cation or audit on the basis of anyconsideration relevant for the proper administration of a tax Act, including on a randomor a risk assessment basis.

Authorisation for SARS official to conduct audit or criminal investigation

41. (1) A senior SARS official may grant a SARS official written authorisation toconduct a eld audit or criminal investigation, as referred to in Part B.

(2) When a SARS official exercises a power or duty under a tax Act in person, theofficial must produce the authorisation.

(3) If the official does not produce the authorisation, a member of the public is entitledto assume that the official is not a SARS official so authorised.

Keeping taxpayer informed

42. (1) A SARS official involved in or responsible for an audit under this Part must,in the form and in the manner as may be prescribed by the Commissioner by publicnotice, provide the taxpayer with a report indicating the stage of completion of the audit.

(2) Upon conclusion of the audit or a criminal investigation, and where—(a) the audit or investigation was inconclusive, SARS must inform the taxpayer

accordingly within 21 business days; or(b) the audit identi ed potential adjustments of a material nature, SARS must

within 21 business days, or the further period that may be required based onthe complexities of the audit, provide the taxpayer with a documentcontaining the outcome of the audit, including the grounds for the proposedassessment or decision referred to in section 104(2).

(3) Upon receipt of the document described in subsection (2)(b), the taxpayer mustwithin 21 business days of delivery of the document, or the further period requested bythe taxpayer that may be allowed by SARS based on the complexities of the audit,respond in writing to the facts and conclusions set out in the document.

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(4) The taxpayer may waive the right to receive the document.(5) Subsections (1) and (2)(b) do not apply if a senior SARS official has a reasonable

belief that compliance with those subsections would impede or prejudice the purpose,progress or outcome of the audit.

(6) SARS may under the circumstances described in subsection (5) issue theassessment or make the decision referred to in section 104(2) resulting from the auditand the grounds of the assessment must be provided to the taxpayer within 21 businessdays of the assessment or the decision referred to in section 104(2), or the further periodthat may be required based on the complexities of the audit.

Referral for criminal investigation

43. (1) If at any time before or during the course of an audit it appears that a personmay have committed a serious tax offence, the investigation of the offence must bereferred to a senior SARS official responsible for criminal investigations for a decisionas to whether a criminal investigation should be pursued.

(2) Relevant material gathered during an audit after the referral, must be kept separatefrom the criminal investigation and may not be used in criminal proceedings institutedin respect of the offence.

(3) If an investigation is referred under subsection (1) the relevant material and lesrelating to the case must be returned to the SARS official responsible for the audit if—

(a) it is decided not to pursue a criminal investigation;(b) it is decided to terminate the investigation; or(c) after referral of the case for prosecution, a decision is made not to prosecute.

Conduct of criminal investigation

44. (1) During a criminal investigation, SARS must apply the information gatheringpowers in terms of this Chapter with due recognition of the taxpayer’s constitutionalrights as a suspect in a criminal investigation.

(2) In the event that a decision is taken to pursue the criminal investigation of a serioustax offence, SARS may make use of relevant material obtained prior to the referralreferred to in section 43.

(3) Relevant information obtained during a criminal investigation may be used forpurposes of audit as well as in subsequent civil and criminal proceedings.

Part B

Inspection, request for relevant material, audit and criminal investigation

Inspection

45. (1) A SARS official may, for the purposes of the administration of a tax Act andwithout prior notice, arrive at a premises where the SARS official has a reasonable beliefthat a trade or enterprise is being carried on and conduct an inspection to determineonly—

(a) the identity of the person occupying the premises;(b) whether the person occupying the premises is registered for tax; or(c) whether the person is complying with sections 29 and 30.

(2) A SARS official may not enter a dwelling-house or domestic premises, except anypart thereof used for the purposes of trade, under this section without the consent of theoccupant.

Request for relevant material

46. (1) SARS may, for the purposes of the administration of a tax Act in relation to ataxpayer, whether identi ed by name or otherwise objectively identi able, require thetaxpayer or another person to, within a reasonable period, submit relevant material(whether orally or in writing) that SARS requires.

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(2) A senior SARS official may require relevant material in terms of subsection (1) inrespect of taxpayers in an objectively identi able class of taxpayers.

(3) A request by SARS for relevant material from a person other than the taxpayer islimited to the records maintained or that should reasonably be maintained by the personin relation to the taxpayer.

(4) A person receiving from SARS a request for relevant material under this sectionmust submit the relevant material to SARS at the place and within the time speci ed inthe request.

(5) SARS may extend the period within which the relevant material must besubmitted on good cause shown.

(6) Relevant material required by SARS under this section must be referred to in therequest with reasonable speci city.

(7) A senior SARS official may direct that relevant material be provided under oath orsolemn declaration.

(8) A senior SARS official may request relevant material that a person has availablefor purposes of revenue estimation.

Production of relevant material in person

47. (1) A senior SARS official may, by notice, require a person, whether or notchargeable to tax, to attend in person at the time and place designated in the notice forthe purpose of being interviewed by a SARS official concerning the tax affairs of theperson, if the interview—

(a) is intended to clarify issues of concern to SARS to render further veri cationor audit unnecessary; and

(b) is not for purposes of a criminal investigation.(2) The senior SARS official issuing the notice may require the person interviewed to

produce relevant material under the control of the person during the interview.(3) Relevant material required by SARS under subsection (2) must be referred to in

the notice with reasonable speci city.(4) A person may decline to attend an interview, if the distance between the place

designated in the notice and the usual place of business or residence of the personexceeds the distance prescribed by the Commissioner by public notice.

Field audit or criminal investigation

48. (1) A SARS official named in an authorisation referred to in section 41 mayrequire a person, with prior notice of at least 10 business days, to make available at theperson’s premises speci ed in the notice relevant material that the official may requireto audit or criminally investigate in connection with the administration of a tax Act inrelation to the person or another person.

(2) The notice referred to in subsection (1) must—(a) state the place where and the date and time that the audit or investigation is

due to start (which must be during normal business hours); and(b) indicate the initial basis and scope of the audit or investigation.

(3) SARS is not required to give the notice if the person waives the right to receive thenotice.

(4) If a person at least ve business days before the date listed in the notice advancesreasonable grounds for varying the notice, SARS may vary the notice accordingly,subject to conditions SARS may impose with regard to preparatory measures for theaudit or investigation.

(5) A SARS official may not enter a dwelling-house or domestic premises, except anypart thereof used for the purposes of trade, under this section without the consent of theoccupant.

Assistance during eld audit or criminal investigation

49. (1) The person on whose premises an audit or criminal investigation is carried out,must provide such reasonable assistance as is required by SARS to conduct the audit orinvestigation, including—

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(a) making available appropriate facilities, to the extent that such facilities areavailable;

(b) answering questions relating to the audit or investigation; and(c) submitting relevant material as required.

(2) No person may without just cause—(a) obstruct a SARS official from carrying out the audit or investigation; or(b) refuse to give the access or assistance as may be required under subsection (1).

(3) The person may recover from SARS after completion of the audit (or, at theperson’s request, on a monthly basis) the costs for the use of photocopying facilities inaccordance with the fees prescribed in section 92(1)(b) of the Promotion of Access toInformation Act.

Part C

Inquiries

Authorisation for inquiry

50. (1) A judge may, on application made ex parte by a senior SARS official grant anorder in terms of which a person described in section 51(3) is designated to act aspresiding officer at the inquiry referred to in this section.

(2) An application under subsection (1) must be supported by information suppliedunder oath or solemn declaration, establishing the facts on which the application isbased.

(3) A senior SARS official may authorise a person to conduct an inquiry for thepurposes of the administration of a tax Act.

Inquiry order

51. (1) A judge may grant the order referred to in section 50(2) if satis ed that thereare reasonable grounds to believe that—

(a) a person has—(i) failed to comply with an obligation imposed under a tax Act; or

(ii) committed a tax offence; and(b) relevant material is likely to be revealed during the inquiry which may provide

proof of the failure to comply or of the commission of the offence.(2) The order referred to in subsection (1) must—

(a) designate a presiding officer before whom the inquiry is to be held;(b) identify the person referred to in subsection (1)(a);(c) refer to the alleged non-compliance or offence to be inquired into;(d) be reasonably speci c as to the ambit of the inquiry; and(e) be provided to the presiding officer.

(3) A presiding officer must be a person appointed to the panel described insection 111.

Inquiry proceedings

52. (1) The presiding officer determines the conduct of the inquiry as the presidingofficer thinks t.

(2) The presiding officer must ensure that the recording of the proceedings andevidence at the inquiry is of a standard that would meet the standard required for theproceedings and evidence to be used in a court of law.

(3) A person has the right to have a representative present when that person appearsas a witness before the presiding officer.

Notice to appear

53. (1) The presiding officer may, by notice in writing, require a person, whether ornot chargeable to tax, to—

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(a) appear before the inquiry, at the time and place designated in the notice, forthe purpose of being examined under oath or solemn declaration, and

(b) produce any relevant material in the custody of the person.(2) If the notice requires the production of relevant material, it is sufficient if the

relevant material is referred to in the notice with reasonable speci city.

Powers of presiding officer

54. The presiding officer has the same powers regarding witnesses at the inquiry as arevested in a President of the tax court under sections 127 and 128.

Witness fees

55. The presiding officer may direct that a person receive witness fees to attend aninquiry in accordance with the tariffs prescribed in terms of section 51bis of theMagistrates’ Courts Act, 1944 (Act No. 32 of 1944).

Con dentiality of proceedings

56. (1) An inquiry under this Part is private and con dential.(2) The presiding officer may, on request, exclude a person from the inquiry if the

person’s attendance is prejudicial to the inquiry.(3) Section 69 applies with the necessary changes to persons present at the

questioning of a person, including the person being questioned.(4) Subject to section 57(2), SARS may use evidence given by a person under oath or

solemn declaration at an inquiry in a subsequent proceeding involving the person oranother person.

Incriminating evidence

57. (1) A person may not refuse to answer a question during an inquiry on the groundsthat it may incriminate the person.

(2) Incriminating evidence obtained under this section is not admissible in criminalproceedings against the person giving the evidence, unless the proceedings relate to—

(a) the administering or taking of an oath or the administering or making of asolemn declaration;

(b) the giving of false evidence or the making of a false statement; or(c) the failure to answer questions lawfully put to the person, fully and

satisfactorily.

Inquiry not suspended by civil or criminal proceedings

58. Unless a court orders otherwise, an inquiry relating to a person referred to insection 51(1)(a) must proceed despite the fact that a civil or criminal proceeding ispending or contemplated against or involves the person, a witness or potential witnessin the inquiry, or another person whose affairs may be investigated in the course of theinquiry.

Part D

Search and seizure

Application for warrant

59. (1) A senior SARS official may, if necessary or relevant to administer a tax Act,authorise an application for a warrant under which SARS may enter a premises whererelevant material is kept to search the premises and any person present on the premisesand seize relevant material.

(2) SARS must apply ex parte to a judge for the warrant, which application must besupported by information supplied under oath or solemn declaration, establishing thefacts on which the application is based.

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(3) Despite subsection (2), SARS may apply for the warrant referred to insubsection (1) and in the manner referred to in subsection (2), to a magistrate, if thematter relates to an audit or investigation where the estimated tax in dispute does notexceed the amount determined in the notice issued under section 109(1)(a).

Issuance of warrant

60. (1) A judge or magistrate may issue the warrant referred to in section 59(1) ifsatis ed that there are reasonable grounds to believe that—

(a) a person failed to comply with an obligation imposed under a tax Act, orcommitted a tax offence; and

(b) relevant material likely to be found on the premises speci ed in theapplication may provide evidence of the failure to comply or commission ofthe offence.

(2) A warrant issued under subsection (1) must contain the following:(a) the alleged failure to comply or offence that is the basis for the application;(b) the person alleged to have failed to comply or to have committed the offence;(c) the premises to be searched; and(d) the fact that relevant material as de ned in section 1 is likely to be found on

the premises.(3) The warrant must be exercised within 45 business days or such further period as

a judge or magistrate deems appropriate on good cause shown.

Carrying out search

61. (1) A SARS official exercising a power under a warrant referred to in section 60must produce the warrant.

(2) Subject to section 63, a SARS official’s failure to produce a warrant entitles aperson to refuse access to the official.

(3) The SARS official may—(a) open or cause to be opened or removed in conducting a search, anything

which the official suspects to contain relevant material;(b) seize any relevant material;(c) seize and retain a computer or storage device in which relevant material is

stored for as long as it is necessary to copy the material required;(d) make extracts from or copies of relevant material, and require from a person

an explanation of relevant material; and(e) if the premises listed in the warrant is a vessel, aircraft or vehicle, stop and

board the vessel, aircraft or vehicle, search the vessel, aircraft or vehicle or aperson found in the vessel, aircraft or vehicle, and question the person withrespect to a matter dealt with in a tax Act.

(4) The SARS official must make an inventory of the relevant material seized in theform, manner and at the time that is reasonable under the circumstances and provide acopy thereof to the person.

(5) The SARS official must conduct the search with strict regard for decency andorder, and may search a person if the official is of the same gender as the person beingsearched.

(6) The SARS official may, at any time, request such assistance from a police officeras the official may consider reasonably necessary and the police officer must render theassistance.

(7) No person may obstruct a SARS official or a police officer from executing thewarrant or without reasonable excuse refuse to give such assistance as may bereasonably required for the execution of the warrant.

(8) If the SARS official seizes relevant material, the official must ensure that therelevant material seized is preserved and retained until it is no longer required for—

(a) the investigation into the non-compliance or the offence described undersection 60(1)(a); or

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(b) the conclusion of any legal proceedings under a tax Act or criminalproceedings in which it is required to be used.

Search of premises not identi ed in warrant

62. (1) If a senior SARS official has reasonable grounds to believe that—(a) the relevant material referred to in section 60(1)(b) and included in a warrant

is at premises not identi ed in the warrant and may be removed or destroyed;(b) a warrant cannot be obtained in time to prevent the removal or destruction of

the relevant material; and(c) the delay in obtaining a warrant would defeat the object of the search and

seizure,a SARS official may enter and search the premises and exercise the powers granted interms of this Part, as if the premises had been identi ed in the warrant.

(2) A SARS official may not enter a dwelling-house or domestic premises, except anypart thereof used for purposes of trade, under this section without the consent of theoccupant.

Search without warrant

63. (1) A senior SARS official may without a warrant exercise the powers referred toin section 61(3)—

(a) if the owner or person in control of the premises so consents in writing; or(b) if the senior SARS official on reasonable grounds is satis ed that—

(i) there may be an imminent removal or destruction of relevant materiallikely to be found on the premises;

(ii) if SARS applies for a search warrant under section 59, a search warrantwill be issued; and

(iii) the delay in obtaining a warrant would defeat the object of the search andseizure.

(2) A SARS official must, before carrying out the search, inform the owner or personin control of the premises—

(a) that the search is being conducted under this section; and(b) of the alleged failure to comply with an obligation imposed under a tax Act or

tax offence that is the basis for the search.(3) Section 61(4) to (8) applies to a search conducted under this section.(4) A SARS official may not enter a dwelling-house or domestic premises, except any

part thereof used for purposes of trade, under this section without the consent of theoccupant.

Legal professional privilege

64. (1) If SARS foresees the need to search and seize relevant material that may bealleged to be subject to legal professional privilege, SARS must arrange for an attorneyfrom the panel appointed under section 111 to be present during the execution of thewarrant.

(2) An attorney with whom SARS has made an arrangement in terms of subsection (1)may appoint a substitute attorney to be present on the appointing attorney’s behalfduring the execution of a warrant.

(3) If, during the carrying out of a search and seizure by SARS, a person alleges theexistence of legal professional privilege in respect of relevant material and an attorneyis not present under subsection (1) or (2), SARS must seal the material, makearrangements with an attorney from the panel appointed under section 111 to takereceipt of the material and, as soon as is reasonably possible, hand over the material tothe attorney.

(4) An attorney referred to in subsections (1), (2) and (3)—(a) is not regarded as acting on behalf of either party; and(b) must personally take responsibility—

(i) in the case of a warrant issued under section 60, for the removal from thepremises of relevant material in respect of which legal privilege isalleged;

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(ii) in the case of a search and seizure carried out under section 63, for thereceipt of the sealed information; and

(iii) if a substitute attorney in terms of subsection (2), for the delivery of theinformation to the appointing attorney for purposes of making thedetermination referred to in subsection (5).

(5) The attorney referred to in subsection (1) or (3) must within 21 business daysmake a determination of whether the privilege applies and may do so in the manner theattorney deems t, including considering representations made by the parties.

(6) If a determination of whether the privilege applies is not made under sub-section (5) or a party is not satis ed with the determination, the attorney must retain therelevant material pending nal resolution of the dispute by the parties or an order ofcourt.

(7) The attorney from the panel appointed under section 111 and any attorney actingon behalf of that attorney referred to in subsection (1) must be compensated in the samemanner as if acting as Chairperson of the tax board.

Person’s right to examine and make copies

65. (1) The person to whose affairs relevant material seized relates, may examine andcopy it.

(2) Examination and copying must be made—(a) at the person’s cost in accordance with the fees prescribed in accordance with

section 92(1)(b) of the Promotion of Access to Information Act;(b) during normal business hours; and(c) under the supervision determined by a senior SARS official.

Application for return of seized relevant material or costs of damages

66. (1) A person may request SARS to—(a) return some or all of the seized material; and(b) pay the costs of physical damage caused during the conduct of a search and

seizure.(2) If SARS refuses the request, the person may apply to a High Court for the return

of the seized material or payment of compensation for physical damage caused duringthe conduct of the search and seizure.

(3) The court may, on good cause shown, make the order as it deems t.(4) If the court sets aside the warrant issued in terms of section 60(1) or orders the

return of the seized material, the court may nevertheless authorise SARS to retain theoriginal or a copy of any relevant material in the interests of justice.

CHAPTER 6

CONFIDENTIALITY OF INFORMATION

General prohibition of disclosure

67. (1) This Chapter applies to—(a) SARS con dential information as referred to in section 68(1); and(b) taxpayer information, which means any information provided by a taxpayer or

obtained by SARS in respect of the taxpayer, including biometric information.(2) An oath or solemn declaration undertaking to comply with the requirements of this

Chapter in the prescribed form, must be taken before a magistrate, justice of the peaceor commissioner of oaths by—

(a) a SARS official and the Tax Ombud, before commencing duties or exercisingany powers under a tax Act; and

(b) a person referred to in section 70 who performs any function referred to in thatsection, before the disclosure described in that section may be made.

(3) In the event of the disclosure of SARS con dential information or taxpayerinformation contrary to this Chapter, the person to whom it was so disclosed may not in

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any manner disclose, publish or make it known to any other person who is not a SARSofficial.

(4) A person who receives information under section 68, 69, 70 or 71, must preservethe secrecy of the information and may only disclose the information to another personif the disclosure is necessary to perform the functions speci ed in those sections.

(5) The Commissioner may, for purposes of protecting the integrity and reputation ofSARS as an organisation and after giving the taxpayer at least 24 hours’ notice, disclosetaxpayer information to the extent necessary to counter or rebut false allegations orinformation disclosed by the taxpayer, the taxpayer’s duly authorised representative orother person acting under the instructions of the taxpayer and published in the media orin any other manner.

SARS con dential information and disclosure

68. (1) SARS con dential information means information relevant to the administra-tion of a tax Act that is—

(a) personal information about a current or former SARS official, whetherdeceased or not;

(b) information subject to legal professional privilege vested in SARS;(c) information that was supplied in con dence by a third party to SARS the

disclosure of which could reasonably be expected to prejudice the futuresupply of similar information, or information from the same source;

(d) information related to investigations and prosecutions described in section 39of the Promotion of Access to Information Act;

(e) information related to the operations of SARS, including an opinion, advice,report, recommendation or an account of a consultation, discussion ordeliberation that has occurred, if—(i) the information was given, obtained or prepared by or for SARS for the

purpose of assisting to formulate a policy or take a decision in theexercise of a power or performance of a duty conferred or imposed bylaw; and

(ii) the disclosure of the information could reasonably be expected tofrustrate the deliberative process in SARS or between SARS and otherorgans of state by—(aa) inhibiting the candid communication of an opinion, advice, report

or recommendation or conduct of a consultation, discussion ordeliberation; or

(bb) frustrating the success of a policy or contemplated policy by thepremature disclosure thereof;

(f) information about research being or to be carried out by or on behalf of SARS,the disclosure of which would be likely to prejudice the outcome of theresearch;

(g) information, the disclosure of which could reasonably be expected toprejudice the economic interests or nancial welfare of the Republic or theability of the government to manage the economy of the Republic effectivelyin the best interests of the Republic, including a contemplated change ordecision to change a tax or a duty, levy, penalty, interest and similar moneysimposed under a tax Act or the Customs and Excise Act;

(h) information supplied in con dence by or on behalf of another state or aninternational organisation to SARS;

(i) a computer program, as de ned in section 1(1) of the Copyright Act, 1978(Act No. 98 of 1978), owned by SARS; and

(j) information relating to the security of SARS buildings, property, structures orsystems.

(2) A person who is a current or former SARS official—(a) may not disclose SARS con dential information to a person who is not a

SARS official;(b) may not disclose SARS con dential information to a SARS official who is not

authorised to have access to the information; and

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(c) must take the precautions that may be required by the Commissioner toprevent a person referred to in paragraph (a) or (b) from obtaining access tothe information.

(3) A person who is a SARS official or former SARS official may disclose SARScon dential information if—

(a) the information is public information;(b) authorised by the Commissioner;(c) disclosure is authorised under any other Act which expressly provides for the

disclosure of the information despite the provisions in this Chapter;(d) access has been granted for the disclosure of the information in terms of the

Promotion of Access to Information Act; or(e) required by order of a High Court.

Secrecy of taxpayer information and general disclosure

69. (1) A person who is a current or former SARS official must preserve the secrecyof taxpayer information and may not disclose taxpayer information to a person who isnot a SARS official.

(2) Subsection (1) does not prohibit the disclosure of taxpayer information by aperson who is a current or former SARS official—

(a) in the course of performance of duties under a tax Act, including—(i) to the South African Police Service or the National Prosecuting

Authority, if the information relates to, and constitutes materialinformation for the proving of, a tax offence;

(ii) as a witness in civil or criminal proceedings under a tax Act; or(iii) the taxpayer information necessary to enable a person to provide such

information as may be required by SARS from that person;(b) under any other Act which expressly provides for the disclosure of the

information despite the provisions in this Chapter;(c) by order of a High Court; or(d) if the information is public information.

(3) An application to the High Court for the order referred to in subsection (2)(c)requires prior notice to SARS of at least 15 business days unless the court, based onurgency, allows a shorter period.

(4) SARS may oppose the application on the basis that the disclosure may seriouslyprejudice the taxpayer concerned or impair a civil or criminal tax investigation bySARS.

(5) The court may not grant the order unless satis ed that the following circumstancesapply:

(a) the information cannot be obtained elsewhere;(b) the primary mechanisms for procuring evidence under an Act or rule of court

will yield or yielded no or disappointing results;(c) the information is central to the case; and(d) the information does not constitute biometric information.

(6) Subsection (1) does not prohibit the disclosure of information—(a) to the taxpayer; or(b) with the written consent of the taxpayer, to another person.

(7) Biometric information of a taxpayer may not be disclosed by SARS except underthe circumstances described in subsection (2)(a)(i).

(8) The Commissioner may, despite the provisions of this section, publish—(a) the name and taxpayer reference number of a taxpayer; and(b) a list of approved public bene t organisations for the purposes of the

provisions of sections 18A and 30 of the Income Tax Act.

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Disclosure to other entities

70. (1) A senior SARS official may provide to the Director-General of the NationalTreasury taxpayer information or SARS con dential information in respect of—

(a) a taxpayer which is an—(i) institution referred to in section 3(1) of the Public Finance Management

Act, 1999 (Act No. 1 of 1999); or(ii) entity referred to in section 3 of the Local Government: Municipal

Finance Management Act, 2003 (Act No. 56 of 2003),to the extent necessary for the Director-General to perform the functions andexercise the powers of the National Treasury under those Acts; and

(b) a class of taxpayers to the extent necessary for the purposes of tax policydesign or revenue estimation.

(2) A senior SARS official may disclose to—(a) the Statistician-General the taxpayer information as may be required for the

purpose of carrying out the Statistician-General’s duties to publish statistics inan anonymous form;

(b) the Chairperson of the Board administering the National Student FinancialAid Scheme, the name and address of the employer of a person to whom aloan or bursary has been granted under that scheme, for use in performing theChairperson’s functions under the National Student Financial Aid SchemeAct, 1999 (Act No. 56 of 1999);

(c) a commission of inquiry established by the President of the Republic of SouthAfrica under a law of the Republic, the information to which the Commissionis authorised by law to have access; and

(d) to an employer (as de ned in the Fourth Schedule to the Income Tax Act) ofan employee (as de ned in the Fourth Schedule), but only the income taxreference number, identity number, physical and postal address of thatemployee and such other non- nancial information in relation to thatemployee, as that employer may require in order to comply with itsobligations in terms of a tax Act.

(3) A senior SARS official may disclose to—(a) the Governor of the South African Reserve Bank, or other person to whom the

Minister delegates powers, functions and duties under the Exchange ControlRegulations, 1961, issued under section 9 of the Currency and Exchanges Act,1933 (Act No. 9 of 1933), the information as may be required to exercise apower or perform a function or duty under the South African Reserve BankAct, 1989 (Act No. 90 of 1989), or those Regulations;

(b) the Financial Services Board, the information as may be required for thepurpose of carrying out the Board’s duties and functions under the FinancialServices Board Act, 1990 (Act No. 97 of 1990);

(c) the Financial Intelligence Centre, the information as may be required for thepurpose of carrying out the Centre’s duties and functions under the FinancialIntelligence Centre Act, 2001 (Act No. 38 of 2001); and

(d) the National Credit Regulator, the information as may be required for thepurpose of carrying out the Regulator’s duties and functions under theNational Credit Act, 2005 (Act No. 34 of 2005).

(4) A senior SARS official may disclose to an organ of state or institution listed in aregulation issued by the Minister under section 257, information to which the organ ofstate or institution is otherwise lawfully entitled to and for the purposes only of verifyingthe correctness of the following particulars of a taxpayer:

(a) name and taxpayer reference number(b) any identifying number;(c) physical and postal address and other contact details;

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(d) employer’s name, address and contact details; and(e) other non- nancial information as the organ of state or institution may require

for purposes of verifying paragraphs (a) to (d).(5) The information disclosed under subsection (2) or (3) may only be disclosed by

SARS or the persons or entities referred to in subsection (2) or (3) to the extent that itis—

(a) necessary for the purpose of exercising a power or performing a regulatoryfunction or duty under the legislation referred to in subsection (2) or (3); and

(b) relevant and proportionate to what the disclosure is intended to achieve asdetermined under the legislation.

(6) SARS must allow the Auditor-General to have access to information in thepossession of SARS that relates to the performance of the Auditor-General’s dutiesunder section 4 of the Public Audit Act, 2004 (Act No. 25 of 2004).

(7) Despite subsections (1) to (5), a senior SARS official may not disclose informationunder this section if satis ed that the disclosure would seriously impair a civil orcriminal tax investigation.

Disclosure in criminal, public safety or environmental matters

71. (1) If so ordered by a judge under this section, a senior SARS official mustdisclose the information described in subsection (2) to—

(a) the National Commissioner of the South African Police Service, referred to insection 6(1) of the South African Police Service Act, 1995 (Act No. 68 of1995); or

(b) the National Director of Public Prosecutions, referred to in section 5(2)(a) ofthe National Prosecuting Authority Act, 1998 (Act No. 32 of 1998).

(2) Subsection (1) applies to information which may reveal evidence—(a) that an offence (other than a tax offence) has been or may be committed in

respect of which a court may impose a sentence of imprisonment exceedingve years;

(b) that may be relevant to the investigation or prosecution of the offence; or(c) of an imminent and serious public safety or environmental risk.

(3) A senior SARS official may, if of the opinion that—(a) SARS has information referred to in subsection (2);(b) the information will likely be critical to the prosecution of the offence or

avoidance of the risk; and(c) the disclosure of the information would not seriously impair a civil or criminal

tax investigation,make an ex parte application to a judge in chambers for an order authorising SARS todisclose the information under subsection (1).

(4) The National Commissioner of the South African Police Service, the NationalDirector of Public Prosecutions or a person acting under their respective direction andcontrol, if—

(a) carrying out an investigation relating to an offence or a public safety orenvironmental risk referred to in subsection (2); and

(b) of the opinion that SARS may have information that is relevant to thatinvestigation,

may make an ex parte application to a judge in chambers for an order requiring SARSto disclose the information referred to in subsection (2).

(5) SARS must be given prior notice of at least 10 business days of an applicationunder subsection (4) unless the judge, based on urgency, allows a shorter period andSARS may oppose the application on the basis that the disclosure would seriouslyimpair or prejudice a civil or criminal tax investigation or other enforcement of a tax Actby SARS.

Self-incrimination

72. (1) A taxpayer may not refuse to comply with his or her obligations in terms oflegislation to complete and le a return or an application on the grounds that to do somight incriminate him or her, and an admission by the taxpayer contained in a return,application, or other document submitted to SARS by a taxpayer is admissible incriminal proceedings against the taxpayer for an offence under a tax Act, unless acompetent court directs otherwise.

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(2) An admission by the taxpayer of the commission of an offence under a tax Actobtained from a taxpayer under Chapter 5 is not admissible in criminal proceedingsagainst the taxpayer, unless a competent court directs otherwise.

Disclosure to taxpayer of own record

73. (1) A taxpayer or the taxpayer’s duly authorised representative is entitled toobtain—

(a) a copy, certi ed by SARS, of the recorded particulars of an assessment ordecision referred to in section 104(2) relating to the taxpayer;

(b) access to information submitted to SARS by the taxpayer or by a person on thetaxpayer’s behalf; and

(c) other information relating to the tax affairs of the taxpayer.(2) A request for information under subsection (1)(c) must be made under the

Promotion of Access to Information Act.(3) The person requesting information under subsection (1)(b) may be required to pay

for the costs of copies in accordance with the fees prescribed in section 92(1)(b) of thePromotion of Access to Information Act.

Publication of names of offenders

74. (1) The Commissioner may publish for general information the particularsspeci ed in subsection (2), relating to a tax offence committed by a person, if—

(a) the person was convicted of the offence; and(b) all appeal or review proceedings relating to the offence have been completed

or were not instituted within the period allowed.(2) The publication referred to in subsection (1) may specify—

(a) the name and area of residence of the offender;(b) any particulars of the offence that the Commissioner thinks t; and(c) the particulars of the ne or sentence imposed.

CHAPTER 7

ADVANCE RULINGS

De nitions

75. In this Chapter, unless the context indicates otherwise, the following terms, if insingle quotation marks, have the following meanings:

‘advance ruling’ means a ‘binding general ruling’, a ‘binding private ruling’ or a‘binding class ruling’;‘applicant’ means a person who submits an ‘application’ for a ‘binding privateruling’ or a ‘binding class ruling’;‘application’ means an application for a ‘binding private ruling’or a ‘binding classruling’;‘binding class ruling’ means a written statement issued by SARS regarding theapplication of a tax Act to a speci c ‘class’ of persons in respect of a ‘proposedtransaction’;‘binding effect’ means the requirement that SARS interpret or apply the applicabletax Act in accordance with an ‘advance ruling’ under section 82;‘binding general ruling’ means a written statement issued by a senior SARSofficial under section 89 regarding the interpretation of a tax Act or the applicationof a tax Act to the stated facts and circumstances;‘binding private ruling’ means a written statement issued by SARS regarding theapplication of a tax Act to one or more parties to a ‘proposed transaction’, in respectof the ‘transaction’;‘class’ means—(a) shareholders, members, bene ciaries or the like in respect of a company,

association, pension fund, trust, or the like; or(b) a group of persons, that may be unrelated and—

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(i) are similarly affected by the application of a tax Act to a ‘proposedtransaction’; and

(ii) agree to be represented by an ‘applicant’;‘class member’ and ‘class members’ means a member or members of the ‘class’to which a ‘binding class ruling’ applies;‘non-binding private opinion’ means informal guidance issued by SARS inrespect of the tax treatment of a particular set of facts and circumstances or‘transaction’, but which does not have a ‘binding effect’ within the meaning ofsection 88;‘proposed transaction’ means a ‘transaction’ that an ‘applicant’ proposes toundertake, but has not agreed to undertake, other than by way of an agreement thatis subject to a suspensive condition or is otherwise not binding; and‘transaction’ means any transaction, deal, business, arrangement, operation orscheme and includes a series of transactions.

Purpose of advance rulings

76. The purpose of the ‘advance ruling’ system is to promote clarity, consistency andcertainty regarding the interpretation and application of a tax Act by creating aframework for the issuance of ‘advance rulings’.

Scope of advance rulings

77. SARS may make an ‘advance ruling’ on any provision of a tax Act.

Private rulings and class rulings

78. (1) SARS may issue a ‘binding private ruling’ upon ‘application’ by a person inaccordance with section 79.

(2) SARS may issue a ‘binding class ruling’ upon ‘application’ by a person inaccordance with section 79.

(3) SARS may make a ‘binding private ruling’ or ‘binding class ruling’ subject to theconditions and assumptions as may be prescribed in the ruling.

(4) SARS must issue the ruling to the ‘applicant’ at the address shown in the‘application’ unless the ‘applicant’ provides other instructions, in writing, before theruling is issued.

(5) A ‘binding private ruling’ or ‘binding class ruling’ may be issued in the prescribedform and manner, must be signed by a senior SARS official and must contain thefollowing:

(a) a statement identifying it as a ‘binding private ruling’ or as a ‘binding classruling’ made under this section;

(b) the name, tax reference number (if applicable), and postal address of the‘applicant’;

(c) in the case of a ‘binding class ruling’, a list or a description of the affected‘class members’;

(d) the relevant statutory provisions or legal issues;(e) a description of the ‘proposed transaction’;(f) any assumptions made or conditions imposed by SARS in connection with the

validity of the ruling;(g) the speci c ruling made; and(h) the period for which the ruling is valid.

(6) In the case of a ‘binding class ruling’, the ‘applicant’ alone is responsible forcommunicating with the affected ‘class members’ regarding the ‘application’ for theruling, the issuance, withdrawal or modi cation of the ruling, or any other informationor matter pertaining to the ruling.

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Applications for advance rulings

79. (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 indesignating 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 ofa ‘class’.

(4) An ‘application’ must contain the following minimum information:(a) the ‘applicant’s’ name, applicable identi cation 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 nancial 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 undertakenafter the completion of the ‘proposed transaction’ which may have a bearingon the tax consequences of the ‘proposed transaction’ or may be considered tobe 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 eitherconsidered by the ‘applicant’ or of which the ‘applicant’ is aware, as towhether those authorities support or are contrary to the proposed ruling beingsought;

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

(k) a description of the information that the ‘applicant’ believes should be deletedfrom the nal ruling before publication in order to protect the con dentialityof the ‘applicant’ or ‘class members’;

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

(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 ofthe ‘class members’ or, if relevant, any connected person in relation tothe ‘applicant’ or to any ‘class member’.

(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 theproposed 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.

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Rejection of application for advance ruling

80. (1) SARS may reject an ‘application’ for an ‘advance ruling’ if the ‘application’—(a) requests or requires the rendering of an opinion, conclusion or determination

regarding—(i) the market value of an asset;

(ii) the application or interpretation of the laws of a foreign country;(iii) the pricing of goods or services supplied by or rendered to a connected

person in relation to the ‘applicant’ or a ‘class member’;(iv) the constitutionality of a tax Act;(v) a ‘proposed transaction’ that is hypothetical or not seriously contem-

plated;(vi) a matter which can be resolved by SARS issuing a directive under the

Fourth Schedule to the Income Tax Act;(vii) whether a person is an independent contractor, labour broker or personal

service provider; or(viii) a matter which is submitted for academic purposes;

(b) contains—(i) a frivolous or vexatious issue;

(ii) an alternative course of action by the ‘applicant’ or a ‘class member’ thatis not seriously contemplated; or

(iii) an issue that is the same as or substantially similar to an issue that is—(aa) currently before SARS in connection with an audit, investigation or

other proceeding involving the ‘applicant’ or a ‘class member’ or aconnected person in relation to the ‘applicant’ or a ‘class member’;

(bb) the subject of a policy document or draft legislation that has beenpublished; or

(cc) subject to dispute resolution under Chapter 9;(c) involves the application or interpretation of a general or speci c anti-

avoidance provision or doctrine;(d) involves an issue—

(i) that is of a factual nature;(ii) the resolution of which would depend upon assumptions to be made

regarding a future event or other matters which cannot be reasonablydetermined at the time of the ‘application’;

(iii) which would be more appropriately dealt with by the competentauthorities of the parties to an agreement for the avoidance of doubletaxation;

(iv) in which the tax treatment of the ‘applicant’ is dependent upon the taxtreatment of another party to the ‘proposed transaction’ who has notapplied for a ruling;

(v) in respect of a ‘transaction’ that is part of another ‘transaction’ which hasa bearing on the issue, the details of which have not been disclosed; or

(vi) which is the same as or substantially similar to an issue upon which the‘applicant’ has already received an unfavourable ruling;

(e) involves a matter the resolution of which would be unduly time-consuming orresource intensive; or

(f) requests SARS to rule on the substance of a ‘transaction’ and disregard itsform.

(2) The Commissioner may publish by public notice a list of additional considerationsin respect of which the Commissioner may reject an ‘application’.

(3) If SARS requests additional information in respect of an ‘application’ and the‘applicant’ fails or refuses to provide the information, SARS may reject the ‘application’without a refund or rebate of any fees imposed under section 81.

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Fees for advance rulings

81. (1) In order to defray the cost of the ‘advance ruling’ system, the Commissionermay by public notice prescribe fees for the issuance of a ‘binding private ruling’ or‘binding class ruling’, including—

(a) an ‘application’ fee; and(b) a cost recovery fee.

(2) Following the acceptance of an ‘application’ SARS must, if requested, provide the‘applicant’ with an estimate of the cost recovery fee anticipated in connection with the‘application’ and must notify the ‘applicant’ if it subsequently appears that this estimatemay be exceeded.

(3) The fees imposed under this section constitute fees imposed by SARS within themeaning of section 5(1)(h) of the SARS Act, and constitute funds of SARS within themeaning of section 24 of that Act.

(4) If there is more than one ‘applicant’ for a ruling in respect of a ‘proposedtransaction’ SARS may, upon request by the ‘applicants’, impose a single prescribed feein respect of the ‘application’.

Binding effect of advance rulings

82. (1) If an ‘advance ruling’ applies to a person in accordance with section 83, thenSARS must interpret or apply the applicable tax Act to the person in accordance with theruling.

(2) An ‘advance ruling’ does not have ‘binding effect’ upon SARS in respect of aperson unless it applies to the person in accordance with section 83.

(3) A ‘binding general ruling’ may be cited by SARS or a person in any proceedings,including court proceedings.

(4) A ‘binding private ruling’ or ‘binding class ruling’ may not be cited in anyproceeding, including court proceedings, other than a proceeding involving an‘applicant’ or a ‘class member’, as the case may be.

(5) A publication or other written statement issued by SARS does not have ‘bindingeffect’ unless it is an ‘advance ruling’.

Applicability of advance rulings

83. A ‘binding private ruling’ or ‘binding class ruling’ applies to a person only if—(a) the provision or provisions of the Act at issue are the subject of the ‘advance

ruling’;(b) the person’s set of facts or ‘transaction’ are the same as the particular set of

facts or ‘transaction’ speci ed in the ruling;(c) the person’s set of facts or ‘transaction’ falls entirely within the effective

period of the ruling;(d) any assumptions made or conditions imposed by SARS in connection with the

validity of the ruling have been satis ed or carried out;(e) in the case of a ‘binding private ruling’, the person is an ‘applicant’ identi ed

in the ruling; and(f) in the case of a ‘binding class ruling’, the person is a ‘class member’ identi ed

in the ruling.

Rulings rendered void

84. (1) A ‘binding private ruling’ or ‘binding class ruling’ is void ab initio if—(a) the ‘proposed transaction’ as described in the ruling is materially different

from the ‘transaction’ actually carried out;(b) there is fraud, misrepresentation or non-disclosure of a material fact; or(c) an assumption made or condition imposed by SARS is not satis ed or carried

out.(2) For purposes of this section, a fact described in subsection (1) is considered

material if it would have resulted in a different ruling had SARS been aware of it whenthe original ruling was made.

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Subsequent changes in tax law

85. (1) Despite any provision to the contrary contained in a tax Act, an ‘advanceruling’ ceases to be effective if—

(a) a provision of the tax Act that was the subject of the ‘advance ruling’ isrepealed or amended in a manner that materially affects the ‘advance ruling’,in which case the ‘advance ruling’ will cease to be effective from the date thatthe repeal or amendment is effective; or

(b) a court overturns or modi es an interpretation of the tax Act on which the‘advance ruling’ is based, in which case the ‘advance ruling’ will cease to beeffective from the date of judgment unless—(i) the decision is under appeal;

(ii) the decision is fact-speci c and the general interpretation upon which the‘advance ruling’ was based is unaffected; or

(iii) the reference to the interpretation upon which the ‘advance ruling’ wasbased was obiter dicta.

(2) An ‘advance ruling’ ceases to be effective upon the occurrence of any of thecircumstances described in subsection (1), whether or not SARS publishes a notice ofwithdrawal or modi cation.

Withdrawal or modi cation of advance rulings

86. (1) SARS may withdraw or modify an ‘advance ruling’ at any time.(2) If the ‘advance ruling’ is a ‘binding private ruling’ or ‘binding class ruling’, SARS

must rst provide the ‘applicant’ with notice of the proposed withdrawal or modi cationand a reasonable opportunity to object to the decision.

(3) SARS must specify the date the decision to withdraw or modify the ‘advanceruling’ becomes effective, which date may not be earlier than the date—

(a) the decision is delivered to an ‘applicant’, unless the circumstances insubsection (4) apply; or

(b) in the case of a ‘binding general ruling’, the decision is published.(4) SARS may withdraw or modify a ‘binding private ruling’ or a ‘binding class

ruling’ retrospectively if the ruling was made in error and if—(a) the ‘applicant’ or ‘class member’ has not yet commenced the ‘proposed

transaction’ or has not yet incurred signi cant costs in respect of thearrangement;

(b) a person other than the ‘applicant’ or ‘class member’ will suffer signi cant taxdisadvantage if the ruling is not withdrawn or modi ed retrospectively and the‘applicant’ will suffer comparatively less if the ruling is withdrawn ormodi ed retrospectively; or

(c) the effect of the ruling will materially erode the South African tax base and itis in the public interest to withdraw or modify the ruling retrospectively.

Publication of advance rulings

87. (1) A person applying for a ‘binding private ruling’ or ‘binding class ruling’ mustconsent to the publication of the ruling in accordance with this section.

(2) A ‘binding private ruling’ or ‘binding class ruling’ must be published by SARS forgeneral information in the manner and in the form that the Commissioner may prescribe,but without revealing the identity of an ‘applicant’, ‘class member’ or other personidenti ed or referred to in the ruling.

(3) Prior to publication, SARS must provide the ‘applicant’ with a draft copy of theedited ruling for review and comment.

(4) SARS must consider, prior to publication, any comments and proposed edits anddeletions submitted by the ‘applicant’, but is not required to accept them.

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(5) An ‘applicant’ for a ‘binding class ruling’ may consent in writing to the inclusionof information identifying it or the ‘proposed transaction’ in order to facilitatecommunication with the ‘class members’.

(6) The application or interpretation of the relevant tax Act to a ‘transaction’ does notconstitute information that may reveal the identity of an ‘applicant’, ‘class member’ orother person identi ed or referred to in the ruling.

(7) SARS must treat the publication of the withdrawal or modi cation of a ‘bindingprivate ruling’ or ‘binding class ruling’ in the same manner and subject to the samerequirements as the publication of the original ruling.

(8) Subsection (2) does not—(a) require the publication of a ruling that is materially the same as a ruling

already published; or(b) apply to a ruling that has been withdrawn before SARS has had occasion to

publish it.(9) If an ‘advance ruling’has been published, notice of the withdrawal or modi cation

thereof must be published in the manner and media as the Commissioner may deemappropriate.

Non-binding private opinions

88. (1) A ‘non-binding private opinion’ does not have ‘binding effect’ upon SARS.(2) A ‘non-binding private opinion’ may not be cited in any proceedings including

court proceedings, other than proceedings involving the person to whom the opinionwas issued.

Binding general rulings

89. (1) A senior SARS official may issue a ‘binding general ruling’ that is effective foreither—

(a) a particular tax period or other de nite period; or(b) an inde nite period.

(2) A ‘binding general ruling’ must state—(a) that it is a ‘binding general ruling’ made under this section;(b) the provisions of a tax Act which are the subject of the ‘binding general

ruling’; and(c) either—

(i) the tax period or other de nite period for which it applies; or(ii) in the case of a ‘binding general ruling’ for an inde nite period, that it is

for an inde nite period and the date or tax period from which it applies.(3) A ‘binding general ruling’ may be issued as an interpretation note or in another

form and may be issued in the manner that the Commissioner prescribes.(4) A publication or other written statement does not constitute and may not be

considered or treated as a ‘binding general ruling’ unless it contains the informationprescribed by subsection (2).

Procedures and guidelines for advance rulings

90. The Commissioner may issue procedures and guidelines, in the form of ‘bindinggeneral rulings’, for implementation and operation of the ‘advance ruling’ system.

CHAPTER 8

ASSESSMENTS

Original assessments

91. (1) If a tax Act requires a taxpayer to submit a return which does not incorporatea determination of the amount of a tax liability, SARS must make an original assessment

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based on the return submitted by the taxpayer or other information available or obtainedin respect of the taxpayer.

(2) If a tax Act requires a taxpayer to submit a return which incorporates adetermination of the amount of a tax liability, the submission of the return is an originalself-assessment of the tax liability.

(3) If a tax Act requires a taxpayer to make a determination of the amount of a taxliability and no return is required, the payment of the amount of tax due is an originalassessment.

(4) If a taxpayer does not or is not required to submit a return, SARS may make anassessment based on an estimate under section 95 if that taxpayer fails to pay the taxrequired under a tax Act.

(5) If a tax Act requires a taxpayer to submit a return—(a) the making of an assessment under subsection (4) does not detract from the

obligation to submit a return; and(b) the taxpayer in respect of whom the assessment has been issued may, within

the period described in section 104, request SARS to issue a reducedassessment or additional assessment by submitting a complete and correctreturn.

Additional assessments

92. If at any time SARS is satis ed that an assessment does not re ect the correctapplication of a tax Act to the prejudice of SARS or the scus, SARS must make anadditional assessment to correct the prejudice.

Reduced assessments

93. (1) SARS may make a reduced assessment if—(a) the taxpayer successfully disputed the assessment under Chapter 9;(b) necessary to give effect to a settlement under section 149;(c) necessary to give effect to a judgment pursuant to an appeal under Part E of

Chapter 9 and there is no right of further appeal; or(d) SARS is satis ed that there is an error in the assessment as a result of an

undisputed error by—(i) SARS; or

(ii) the taxpayer in a return.(2) SARS may reduce an assessment despite the fact that no objection has been

lodged or appeal noted.

Jeopardy assessments

94. (1) SARS may make a jeopardy assessment in advance of the date on which thereturn is normally due, if the Commissioner is satis ed that it is required to secure thecollection of tax that would otherwise be in jeopardy.

(2) In addition to any rights under Chapter 9, a review application against anassessment made under this section may be made to the High Court on the groundsthat—

(a) its amount is excessive; or(b) circumstances that justify a jeopardy assessment do not exist.

(3) In proceedings under subsection (2), SARS bears the burden of proving that themaking of the jeopardy assessment is reasonable under the circumstances.

Estimation of assessments

95. (1) SARS may make an original, additional, reduced or jeopardy assessmentbased in whole or in part on an estimate if the taxpayer—

(a) fails to submit a return as required; or(b) submits a return or information that is incorrect or inadequate.

(2) SARS must make the estimate based on information readily available to it.

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(3) If the taxpayer is unable to submit an accurate return, a senior SARS official mayagree in writing with the taxpayer as to the amount of tax chargeable and issue anassessment accordingly, which assessment is not subject to objection or appeal.

Notice of assessment

96. (1) SARS must issue to the taxpayer assessed a notice of the assessment made bySARS stating—

(a) the name of the taxpayer;(b) the taxpayer’s taxpayer reference number, or if one has not been allocated, any

other form of identi cation;(c) the date of the assessment;(d) the amount of the assessment;(e) the tax period in relation to which the assessment is made;(f) the date for paying the amount assessed; and(g) a summary of the procedures for lodging an objection to the assessment.

(2) In addition to the information provided in terms of subsection (1) SARS must givethe person assessed—

(a) in the case of an assessment described in section 95 or an assessment that isnot fully based on a return submitted by the taxpayer, a statement of thegrounds for the assessment; and

(b) in the case of a jeopardy assessment, the grounds for believing that the taxwould otherwise be in jeopardy.

Recording of assessments

97. (1) The particulars of an assessment and the amount of tax payable thereon mustbe recorded and kept by SARS.

(2) A notice of assessment issued by SARS is regarded as made by a SARS officialauthorised to do so or duly issued by SARS, until proven to the contrary.

(3) The record of an assessment is not open to public inspection.(4) The record of an assessment, whether in electronic format or otherwise, may be

destroyed by SARS after ve years from the date of assessment or the expiration of afurther period that may be required by the Auditor-General.

Withdrawal of assessments

98. (1) SARS may, despite the fact that no objection has been lodged or appeal noted,withdraw an assessment which—

(a) was issued to the incorrect taxpayer;(b) was issued in respect of the incorrect tax period; or(c) was issued as a result of an incorrect payment allocation.

(2) An assessment withdrawn under this section is regarded not to have been issued.

Period of limitations for issuance of assessments

99. (1) SARS may not make an assessment in terms of this Chapter—(a) three years after the date of assessment of an original assessment by SARS;(b) in the case of self-assessment for which a return is required, ve years after the

date of assessment of an original assessment—(i) by way of self-assessment by the taxpayer; or

(ii) if no return is received, by SARS;(c) in the case of a self-assessment for which no return is required, after the

expiration of ve years from the—(i) date of the last payment of the tax for the tax period; or

(ii) effective date, if no payment was made in respect of the tax for the taxperiod;

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(d) in the case of—(i) an additional assessment if the—

(aa) amount which should have been assessed to tax under the precedingassessment was, in accordance with the practice generally prevail-ing at the date of assessment, not assessed to tax; or

(bb) full amount of tax which should have been assessed under thepreceding assessment was, in accordance with the practice, notassessed;

(ii) a reduced assessment, if the preceding assessment was made inaccordance with the practice generally prevailing at the date of thatassessment; or

(iii) a tax for which no return is required, if the payment was made inaccordance with the practice generally prevailing at the date of thatpayment; or

(e) in respect of a dispute that has been resolved under Chapter 9.(2) Subsection (1) does not apply to the extent that—

(a) in the case of assessment by SARS, the fact that the full amount of taxchargeable was not assessed, was due to—(i) fraud;

(ii) misrepresentation; or(iii) non-disclosure of material facts;

(b) in the case of self-assessment, the fact that the full amount of tax chargeablewas not assessed, was due to—(i) fraud;

(ii) intentional or negligent misrepresentation;(iii) intentional or negligent non-disclosure of material facts; or(iv) the failure to submit a return or, if no return is required, the failure to

make the required payment of tax;(c) SARS and the taxpayer so agree prior to the expiry of the limitations period;

or(d) it is necessary to give effect to—

(i) the resolution of a dispute under Chapter 9; or(ii) a judgment pursuant to an appeal under Part E of Chapter 9 and there is

no right of further appeal.

Finality of assessment or decision

100. (1) An assessment or a decision referred to in section 104(2) is nal if, in relationto the assessment or decision—

(a) it is an assessment described—(i) in section 95(1) and no return described in section 91(5)(b) has been

received by SARS; or(ii) in section 95(3);

(b) no objection has been made, or an objection has been withdrawn;(c) after decision of an objection, no notice of appeal has been led;(d) the dispute has been settled under Part F of Chapter 9;(e) an appeal has been determined by the tax board and there is no referral to the

tax court under section 115;(f) an appeal has been determined by the tax court and there is no right of further

appeal; or(g) an appeal has been determined by a higher court and there is no right of further

appeal.(2) Subsection (1) does not prevent SARS from making an additional assessment, but

in respect of an amount of tax that has been dealt with in a disputed assessment referredto in—

(a) subsection (1)(d), (e) and (f), SARS may only make an additional assessmentunder the circumstances referred to in section 99(2)(a) and (b); and

(b) subsection (1)(g), SARS may not make an additional assessment.

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CHAPTER 9

DISPUTE RESOLUTION

Part A

General

De nitions


‘appellant’, except in Part E of this Chapter, means a person who has noted anappeal against an assessment or ‘decision’ under section 107;‘decision’ means a decision referred to in section 104(2);‘registrar’ means the registrar of the tax court; and‘rules’ mean the rules made under section 103.

Burden of proof

102. (1) A taxpayer bears the burden of proving—(a) that an amount, transaction, event or item is exempt or otherwise not taxable;(b) that an amount or item is deductible or may be set-off;(c) the rate of tax applicable to a transaction, event, item or class of taxpayer;(d) that an amount quali es as a reduction of tax payable;(e) that a valuation is correct; or(f) whether a ‘decision’ that is subject to objection and appeal under a tax Act, is

incorrect.(2) The burden of proving whether an estimate under section 95 is reasonable or the

facts on which SARS based the imposition of an understatement penalty under Chapter16, is upon SARS.

Rules for dispute resolution

103. (1) The Minister may, after consultation with the Minister of Justice andConstitutional Development, by public notice make ‘rules’ governing the procedures tolodge an objection and appeal against an assessment or ‘decision’, and the conduct andhearing of an appeal before a tax board or tax court.

(2) The ‘rules’ may provide for alternative dispute resolution procedures under whichSARS and the person aggrieved by an assessment or ‘decision’ may resolve a dispute.

Part B

Objection and appeal

Objection against assessment or decision

104. (1) A taxpayer who is aggrieved by an assessment made in respect of thetaxpayer may object to the assessment.

(2) The following decisions may be objected to and appealed against in the samemanner as an assessment:

(a) a decision under subsection (4) not to extend the period for lodging anobjection;

(b) a decision under section 107(2) not to extend the period for lodging an appeal;and

(c) any other decision that may be objected to or appealed against under a tax Act.

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(3) A taxpayer entitled to object to an assessment or ‘decision’ must lodge anobjection in the manner, under the terms, and within the period prescribed in the ‘rules’.

(4) A senior SARS official may extend the period prescribed in the ‘rules’ withinwhich objections must be made if satis ed that reasonable grounds exist for the delay inlodging the objection.

(5) The period for objection must not be so extended—(a) for a period exceeding 21 business days, unless a senior SARS official is

satis ed that exceptional circumstances exist which gave rise to the delay inlodging the objection;

(b) if more than three years have lapsed from the date of assessment or the‘decision’; or

(c) if the grounds for objection are based wholly or mainly on a change in apractice generally prevailing which applied on the date of assessment or the‘decision’.

Forum for dispute of assessment or decision

105. A taxpayer may not dispute an assessment or ‘decision’ as described insection 104 in any court or other proceedings, except in proceedings under this Chapteror by application to the High Court for review.

Decision on objection

106. (1) SARS must consider a valid objection in the manner and within the periodprescribed under this Act and the ‘rules’.

(2) SARS may disallow the objection or allow it either in whole or in part.(3) If the objection is allowed either in whole or in part, the assessment or ‘decision’

must be altered accordingly.(4) SARS must, by notice, inform the taxpayer objecting or the taxpayer’s

representative of the decision referred to in subsection (2), unless the objection is stayedunder subsection (6) in which case notice of this must be given in accordance with the‘rules’.

(5) The notice must state the basis for the decision and a summary of the proceduresfor appeal.

(6) If a senior SARS official considers that the determination of the objection or anappeal referred to in section 107, whether on a question of law only or on both a questionof fact and a question of law, is likely to be determinative of all or a substantial numberof the issues involved in one or more other objections or appeals, the official may—

(a) designate that objection or appeal as a test case; and(b) stay the other objections or appeals by reason of the taking of a test case on a

similar objection or appeal before the tax court,in the manner, under the terms, and within the periods prescribed in the ‘rules’.

Appeal against assessment or decision

107. (1) After delivery of the notice of the decision referred to in section 106(4), ataxpayer objecting to an assessment or ‘decision’ may appeal against the assessment or‘decision’ to the tax board or tax court in the manner, under the terms and within theperiod prescribed in this Act and the ‘rules’.

(2) A senior SARS official may extend the period within which an appeal must belodged for—

(a) 21 business days, if satis ed that reasonable grounds exist for the delay; or(b) up to 45 business days, if exceptional circumstances exist that justify an

extension beyond 21 business days.(3) A notice of appeal that does not satisfy the requirements of subsection (1) is not

valid.(4) If an assessment or ‘decision’ has been altered under section 106(3), the

assessment or ‘decision’ as altered is the assessment or ‘decision’ against which theappeal is noted.

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(5) By mutual agreement, SARS and the taxpayer making the appeal may attempt toresolve the dispute through alternative dispute resolution under procedures speci ed inthe ‘rules’.

(6) Proceedings on the appeal are suspended while the alternative dispute resolutionprocedure is ongoing.

Part C

Tax board

Establishment of tax board

108. (1) The Minister may by public notice—(a) establish a tax board or boards for areas that the Minister thinks t; and(b) abolish an existing tax board or establish an additional tax board as

circumstances may require.(2) Tax boards are established under subsection (1) to hear appeals referred to in

section 107 in the manner provided in this Part.

Jurisdiction of tax board

109. (1) An appeal against an assessment or ‘decision’ must in the rst instance beheard by a tax board, if—

(a) the tax in dispute does not exceed the amount the Minister determines bypublic notice; and

(b) a senior SARS official and the ‘appellant’ so agree.(2) SARS must designate the places where tax boards hear appeals.(3) The tax board must hear an appeal at the place referred to in subsection (2) which

is closest to the ‘appellant’s’ residence or place of business, unless the ‘appellant’ andSARS agree that the appeal be heard at another place.

(4) In making a decision under subsection (1)(b), a senior SARS official mustconsider whether the grounds of the dispute or legal principles related to the appealshould rather be heard by the tax court.

(5) If the chairperson prior to or during the hearing, considering the grounds of thedispute or the legal principles related to the appeal, believes that the appeal should beheard by the tax court rather than the tax board, the chairperson may direct that theappeal be set down for hearing de novo before the tax court.

Constitution of tax board

110. (1) A tax board consists of—(a) the chairperson, who must be an advocate or attorney from the panel

appointed under section 111; and(b) if the chairperson, a senior SARS official, or the taxpayer considers it

necessary—(i) an accountant who is a member of the panel referred to in section 120;

and(ii) a representative of the commercial community who is a member of the

panel referred to in section 120.(2) Sections 122, 123, 124, 126, 127 and 128 apply, with the necessary changes, and

under procedures determined in the ‘rules’, to the tax board and the chairperson.

Appointment of chairpersons

111. (1) The Minister must, in consultation with the Judge-President of the Divisionof the High Court with jurisdiction in the area where the tax board is to sit, by publicnotice appoint advocates and attorneys to a panel from which a chairperson of the taxboard must be nominated from time to time.

(2) The persons appointed under subsection (1)—(a) hold office for ve years from the date the notice of appointment is published

in the public notice; and(b) are eligible for reappointment as the Minister thinks t.

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(3) The Minister may terminate an appointment made under this section at any timefor misconduct, incapacity or incompetence.

(4) A member of the panel must be appointed as chairperson of a tax board.(5) A chairperson will not solely on account of his or her liability to tax be regarded

as having a personal interest or a con ict of interest in any matter upon which he or shemay be called upon to adjudicate.

(6) A chairperson must withdraw from the proceedings as soon as the chairpersonbecomes aware of a con ict of interest which may give rise to bias which thechairperson may experience with the case concerned or other circumstances that mayaffect the chairperson’s ability to remain objective for the duration of the case.

(7) Either party may ask for withdrawal of the chairperson on the basis of con ict ofinterest or other indications of bias, under procedures provided in the ‘rules’.

Clerk of tax board

112. (1) The Commissioner must appoint a clerk of the tax board.(2) The clerk acts as convenor of the tax board.(3) If no chairperson is available in the jurisdiction within which the tax board is to be

convened, the clerk may convene the tax board with a chairperson from anotherjurisdiction.

(4) The clerk of the tax board must, within the period and in the manner provided inthe ‘rules’, submit a notice to the members of the tax board and the ‘appellant’specifying the time and place for the hearing.

Tax board procedure

113. (1) Subject to the procedure provided for by the ‘rules’, the chairpersondetermines the procedures during the hearing of an appeal as the chairperson sees t, andeach party must have the opportunity to put the party’s case to the tax board.

(2) The tax board is not required to record its proceedings.(3) The chairperson may, when the proceedings open, formulate the issues in the

appeal.(4) The chairperson may adjourn the hearing of an appeal to a convenient time and

place.(5) A senior SARS official must appear at the hearing of the appeal in support of the

assessment or ‘decision’.(6) At the hearing of the appeal the ‘appellant’ must—

(a) appear in person in the case of a natural person; or(b) in any other case, be represented by the representative taxpayer.

(7) If a third party prepared the ‘appellant’s’ return involved in the assessment or‘decision’, that third party may appear on the ‘appellant’s’ behalf.

(8) The ‘appellant’ may, together with the notice of appeal, or within the furtherperiod as the chairperson may allow, request permission to be represented at the hearingotherwise than as referred to in subsection (6).

(9) If neither the ‘appellant’ nor anyone authorised to appear on the ‘appellant’s’behalf appears before the tax board at the time and place set for the hearing, the tax boardmay con rm the assessment or ‘decision’ in respect of which the appeal has beenlodged—

(a) at the request of the SARS representative; and(b) on proof that the ‘appellant’ was furnished with the notice of the sitting of the

tax board.(10) If the tax board con rms an assessment or ‘decision’ under subsection (9), the

‘appellant’ may not thereafter request that the appeal be referred to the tax court undersection 115.

(11) If the senior SARS official fails to appear before the tax board at the time andplace set for the hearing, the tax board may allow the ‘appellant’s’ appeal at the‘appellant’s’ request.

(12) If the tax board allows the appeal under subsection (11), SARS may notthereafter refer the appeal to the tax court under section 115.

(13) Subsections (9), (10), (11) and (12) do not apply if the chairperson is satis ed thatsound reasons exist for the non-appearance and the reasons are delivered by the‘appellant’ or SARS to the clerk of the tax board within 10 business days after the date

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determined for the hearing or the longer period as may be allowed in exceptionalcircumstances.

Decision of tax board

114. (1) The tax board, after hearing the ‘appellant’s’ appeal against an assessment or‘decision’, must decide the matter in accordance with this Chapter.

(2) The Chairperson must prepare a written statement of the tax board’s decision thatincludes the tax board’s ndings of the facts of the case and the reasons for its decision,within 60 business days after conclusion of the hearing.

(3) The clerk must by notice in writing submit a copy of the tax board’s decision toSARS and the ‘appellant’.

Referral of appeal to tax court

115. (1) If the ‘appellant’ or SARS is dissatis ed with the tax board’s decision or theChairperson fails to deliver the decision under section 114(2) within the prescribed 60business day period, the ‘appellant’ or SARS may within 21 business days, or within thefurther period as the Chairperson may on good cause shown allow, after the date of thenotice referred to in section 114(3) or the expiry of the period referred to in section114(2), require, in writing, that the appeal be referred to the tax court for hearing.

(2) The tax court must hear de novo a referral of an appeal from the tax board’sdecision under subsection (1).

Part D

Tax court

Establishment of tax court

116. (1) The President of the Republic may by proclamation in the Gazette establisha tax court or additional tax courts for areas that the President thinks t and may abolishan existing tax court as circumstances may require.

(2) The tax court is a court of record.

Jurisdiction of tax court

117. (1) The tax court for purposes of this Chapter has jurisdiction over tax appealslodged under section 107.

(2) The place where an appeal is heard is determined by the ‘rules’.(3) The court may hear an interlocutory application relating to an objection or appeal

and may decide on a procedural matter as provided for in the ‘rules’.

Constitution of tax court

118. (1) A tax court established under this Act consists of—(a) a judge or an acting judge of the High Court, who is the president of the tax

court;(b) an accountant selected from the panel of members appointed in terms of

section 120; and(c) a representative of the commercial community selected from the panel of

members appointed in terms of section 120.(2) If the president of the tax court, a senior SARS official or the ‘appellant’ so

requests, the representative of the commercial community referred to in subsection(1)(c) must—

(a) if the appeal relates to the business of mining, be a registered mining engineer;or

(b) if the appeal involves the valuation of assets, be a sworn appraiser.

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(3) If an appeal to the tax court involves a matter of law only or is an application forcondonation or an interlocutory application, the president of the court alone must decidethe appeal.

(4) The president of the court alone decides whether a matter for decision involves amatter of fact or a matter of law.

(5) The Judge-President of the Division of the High Court with jurisdiction in the areawhere the relevant tax court is situated, may direct that the tax court consist of threejudges or acting judges of the High Court (one of whom is the president of the tax court)and the members of the court referred to in subsections (1)(b) and (c) and (2), wherenecessary, if—

(a) the amount in dispute exceeds R50 million; or(b) SARS and the ‘appellant’ jointly apply to the Judge-President.

Nomination of president of tax court

119. (1) The Judge-President of the Division of the High Court with jurisdiction in thearea for which a tax court has been constituted must nominate and second a judge or anacting judge of the division to be the president of that tax court.

(2) The Judge-President must determine whether the secondment referred to insubsection (1) applies for a period, or for the hearing of a particular case.

(3) A judge will not solely on account of his or her liability to tax be regarded ashaving a personal interest or a con ict of interest in any matter upon which he or shemay be called upon to adjudicate.

Appointment of panel of tax court members

120. (1) The President of the Republic by proclamation in the Gazette must appointthe panel of members of a tax court for purposes of section 118(1)(b) and (c) for a termof office of ve years from the date of the relevant proclamation.

(2) A person appointed in terms of subsection (1) must be a person of good standingwho has appropriate experience.

(3) A person appointed in terms of subsection (1) is eligible for reappointment for afurther period or periods as the President of the Republic may think t.

(4) The President of the Republic may terminate the appointment of a member underthis section at any time for misconduct, incapacity or incompetence.

(5) A member’s appointment lapses in the event that the tax court is abolished undersection 116(1).

(6) A member of the tax court must perform the member’s functions independently,impartially and without fear, favour or prejudice.

Appointment of registrar of tax court

121. (1) The Commissioner appoints the ‘registrar’ of the tax court.(2) A person appointed as ‘registrar’ and persons appointed in the ‘registrar’s’ office

are SARS employees.(3) The ‘registrar’ and other persons referred to in subsection (2) must perform their

functions under this Act and the ‘rules’ independently, impartially and without fear,favour or prejudice.

Con ict of interest of tax court members

122. (1) A member of the court must withdraw from the proceedings as soon as themember becomes aware of a con ict of interest which may give rise to bias which themember may experience with the case concerned or other circumstances that may affectthe member’s ability to remain objective for the duration of the case.

(2) Either party may ask for withdrawal of a member on the basis of con ict of interestor other indications of bias, under procedures provided in the ‘rules’.

(3) A member of the court will not solely on account of his or her liability to tax beregarded as having a personal interest or a con ict of interest in the case.

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Death, retirement or incapability of judge or member

123. (1) If at any stage during the hearing of an appeal, or after hearing of the appealbut before judgment has been handed down, one of the judges dies, retires or becomesotherwise incapable of acting in that capacity, the hearing of an appeal must be heard denovo.

(2) If the tax court has been constituted under section 118(5), the hearing of the appealreferred to in subsection (1) must proceed before the remaining judges and members, ifthe remaining judges constitute the majority of judges before whom the hearing wascommenced.

(3) If at any stage during or after the hearing of an appeal but before judgment hasbeen handed down, a member of the tax court dies, retires or becomes incapable ofacting in that capacity, the hearing of the appeal must proceed before the president of thetax court, any other judges, the remaining member, and, if the president deems itnecessary, a replacement member.

(4) The judgment of the remaining judges and members referred to in subsection (1)or (3) is the judgment of the court.

Sitting of tax court not public

124. (1) The tax court sittings for purposes of hearing an appeal under section 107 arenot public.

(2) The president of the tax court may in exceptional circumstances, on request of anyperson, allow that person or any other person to attend the sitting but may do so onlyafter taking into account any representations that the ‘appellant’ and a senior SARSofficial, referred to in section 12 appearing in support of the assessment or ‘decision’,wishes to make on the request.

Appearance at hearing of tax court

125. (1) A senior SARS official referred to in section 12 may appear at the hearing ofan appeal in support of the assessment or ‘decision’.

(2) The ‘appellant’ or the ‘appellant’s’ representative may appear at the hearing of anappeal in support of the appeal.

Subpoena of witness to tax court

126. SARS, the ‘appellant’ or the president of a tax court may subpoena any witnessin the manner prescribed in the ‘rules’, whether or not that witness resides within the taxcourt’s area of jurisdiction.

Non-attendance by witness or failure to give evidence

127. (1) A person subpoenaed under section 126 is liable to the ne or imprisonmentspeci ed in subsection (2), if the person without just cause fails to—

(a) give evidence at the hearing of an appeal;(b) remain in attendance throughout the proceedings unless excused by the

president of the tax court; or(c) produce a document or thing in the person’s possession or under the person’s

control according to the subpoena.(2) The president of the tax court may impose a ne or, in default of payment,

imprisonment for a period not exceeding three months, on a person described insubsection (1) upon being satis ed by—

(a) oath or solemn declaration; or(b) the return of the person by whom the subpoena was served,

that the person has been duly subpoenaed and that the person’s reasonable expenseshave been paid or offered.

(3) The president of the tax court may, in addition to imposing a ne or imprisonmentunder subsection (2), issue a warrant for the person to be apprehended and brought togive evidence or to produce the document or thing in accordance with the subpoena.

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(4) A ne imposed under subsection (2) is enforceable as if it were a penalty imposedby a High Court in similar circumstances and any laws applicable in respect of a penaltyimposed by a High Court apply with the necessary changes in respect of the ne.

(5) The president of the tax court may, on good cause shown, remit the whole or anypart of the ne or imprisonment imposed under subsection (2).

(6) The president of the tax court may order the costs of a postponement oradjournment resulting from the default of a witness, or a portion of the costs, to be paidout of a ne imposed under subsection (2).

Contempt of tax court

128. (1) If, during the sitting of a tax court, a person—(a) wilfully insults a judge or member of the tax court;(b) wilfully interrupts the tax court proceedings; or(c) otherwise misbehaves in the place where the hearing is held,

the president of a tax court may impose upon that person a ne or, in default of payment,imprisonment for a period not exceeding three months.

(2) An order made under subsection (1) must be executed as if it were an order madeby a Magistrate’s Court under similar circumstances, and the provisions of a law whichapply in respect of such an order made by a Magistrate’s Court apply with the necessarychanges in respect of an order made under subsection (1).

Decision by tax court

129. (1) The tax court, after hearing the ‘appellant’s’ appeal lodged under section 107against an assessment or ‘decision’, must decide the matter on the basis that the burdenof proof as described in section 102 is upon the taxpayer.

(2) In the case of an assessment or ‘decision’ under appeal, the tax court may—(a) con rm the assessment or ‘decision’;(b) order the assessment or ‘decision’ to be altered; or(c) refer the assessment back to SARS for further examination and assessment.

(3) In the case of an appeal against an understatement penalty imposed by SARSunder a tax Act, the tax court must decide the matter on the basis that the burden of proofis upon SARS and may reduce, con rm or increase the understatement penalty soimposed.

(4) If SARS alters an assessment as a result of a referral under sub-section (2)(c), the assessment is subject to objection and appeal.

Order for costs by tax court

130. (1) The tax court may, in dealing with an appeal under this Chapter and onapplication by an aggrieved party, grant an order for costs in favour of the party, if—

(a) the SARS grounds of assessment or ‘decision’ are held to be unreasonable;(b) the ‘appellant’s’ grounds of appeal are held to be unreasonable;(c) the tax board’s decision is substantially con rmed;(d) the hearing of the appeal is postponed at the request of the other party; or(e) the appeal is withdrawn or conceded by the other party after the ‘registrar’

allocates a date of hearing.(2) The costs referred to in subsection (1) must be determined in accordance with the

fees prescribed by the rules of the High Court.(3) A cost order in favour of SARS constitutes funds of SARS within the meaning of

section 24 of the SARS Act.

Registrar to notify parties of judgment of tax court

131. The ‘registrar’ must notify the ‘appellant’ and SARS of the court’s decisionwithin 21 business days of the date of the delivery of the written decision.

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Publication of judgment of tax court

132. A judgment of the tax court dealing with an appeal under this Chapter must bepublished for general information and, unless the sitting of the tax court was publicunder the circumstances referred to in section 124(2), in a form that does not reveal the‘appellant’s’ identity.

Part E

Appeal against tax court decision

Appeal against decision of tax court

133. (1) The taxpayer or SARS may in the manner provided for in this Act appealagainst a decision of the tax court under sections 129 and 130.

(2) An appeal against a decision of the tax court lies—(a) to the full bench of the Provincial Division of the High Court which has

jurisdiction in the area in which the tax court sitting is held; or(b) to the Supreme Court of Appeal, without an intermediate appeal to the

Provincial Division, if—(i) the president of the tax court has granted leave under the ‘rules’; or

(ii) the appeal was heard by the tax court constituted under section 118(5).

Notice of intention to appeal tax court decision

134. (1) A party who intends to lodge an appeal against a decision of the tax court(hereinafter in this Part referred to as the appellant) must, within 21 business days afterthe date of the notice by the ‘registrar’ notifying the parties of the tax court’s decisionunder section 131, or within a further period as the president of the tax court may ongood cause shown allow, lodge with the ‘registrar’ and serve upon the opposite party orthe opposite party’s attorney or agent, a notice of intention to appeal against thedecision.

(2) A notice of intention to appeal must state—(a) in which division of the High Court the appellant wishes the appeal to be

heard;(b) whether the whole or only part of the judgment is to be appealed against (if in

part only, which part), and the grounds of the intended appeal, indicating thendings of fact or rulings of law to be appealed against; and

(c) whether the appellant requires a transcript of the evidence given at the taxcourt’s hearing of the case in order to prepare the record on appeal (or if onlya part of the evidence is required, which part).

(3) If the appellant is the taxpayer and requires a—(a) transcript of the evidence or a part thereof from the ‘registrar’, the appellant

must pay the fees prescribed by the Commissioner by public notice; or(b) copy of the recording of the evidence or a part thereof from the ‘registrar’ for

purposes of private transcription, the appellant must pay the fees prescribedby the Commissioner in the public notice.

(4) A fee paid under subsection (3) constitutes funds of SARS within the meaning ofsection 24 of the SARS Act.

Leave to appeal to Supreme Court of Appeal against tax court decision

135. (1) If an intending appellant wishes to appeal against a decision of the tax court,the ‘registrar’ must submit the notice of intention to appeal lodged under section 134(1)

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to the president of the tax court, who must make an order granting or refusing leave toappeal having regard to the grounds of the intended appeal as indicated in the notice.

(2) If the president of the tax court cannot act in that capacity or it is inconvenient forthe president to act in that capacity for purposes of this section, the Judge-President ofthe relevant Division of the High Court may nominate and second another judge oracting judge to act as president of the tax court for that purpose.

(3) Subject to the right to petition the Chief Justice for leave to appeal to the SupremeCourt of Appeal in terms of section 21 of the Supreme Court Act, 1959 (Act No. 59 of1959), an order made by the president of the tax court under subsection (1) is nal.

Failure to lodge notice of intention to appeal tax court decision

136. (1) A person entitled to appeal against a decision of the tax court, who has notlodged a notice of intention to appeal within the time and in the manner required bysection 134, abandons, subject to any right to note a cross appeal, the right of appealagainst the decision.

(2) A person who under section 134 lodged a notice of intention to appeal against adecision of the tax court but who has subsequently withdrawn the notice, abandons theright to note an appeal or cross-appeal against the decision.

Notice by registrar of period for appeal of tax court decision

137. (1) After the expiry of the time allowed under section 134(1) for the lodging ofa notice of intention to appeal, the ‘registrar’ must—

(a) give notice to a person who has lodged a notice of intention to appeal whichhas not been withdrawn, that if the person decides to appeal, the appeal mustbe noted within 21 business days after the date of the ‘registrar’s’ notice; and

(b) supply to the person referred to in paragraph (a) a certi ed copy of an orderthat the president of the tax court made under section 135 which is the subjectof the intended appeal.

(2) The ‘registrar’may not give notice under subsection (1)(a) until the order has beenmade or the transcript has been completed if—

(a) it appears that the president of the tax court will make an order undersection 135; or

(b) an intending appellant requires a transcript of evidence given at the hearing ofthe case by the tax court as envisaged in section 134(2)(c).

(3) If the opposite party is not also an intending appellant in the same case, the‘registrar’ must provide to the opposite party copies of the notice and any order referredto in subsection (1)(a) and (b).

Notice of appeal to Supreme Court of Appeal against tax court decision

138. (1) If a person has—(a) appealed to the Supreme Court of Appeal from a court established under

section 118(5);(b) been granted leave to appeal to the Supreme Court of Appeal under

section 135; or(c) successfully petitioned to the Supreme Court of Appeal for leave to appeal,

the appeal which a party must note against a decision given in the relevant case must benoted to that Court.

(2) If the notice of intention to appeal was noted to the High Court or leave to appealto the Supreme Court of Appeal has been refused under section 135, the party wholodged the notice of intention to appeal must note an appeal to the appropriate ProvincialDivision of the High Court.

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(3) The notice of appeal must be lodged within the period referred to insection 137(1)(a) or within a longer period as may be allowed under the rules of thecourt to which the appeal is noted.

(4) A notice of appeal must be in accordance with the requirements in the rules of therelevant higher court.

Notice of cross-appeal of tax court decision

139. (1) A cross-appeal against a decision of the tax court in a case in which an appealhas been lodged under section 138, must be noted by lodging a written notice ofcross-appeal with the ‘registrar’, serving it upon the opposite party or the oppositeparty’s attorney and lodging it with the registrar of the court to which the cross-appealis noted.

(2) The notice of cross-appeal must be lodged within 21 business days after the datethe appeal is noted under section 138 or within a longer period as may be allowed underthe rules of the court to which the cross-appeal is noted.

(3) A notice of cross-appeal must state—(a) whether the whole or only part of the judgment is appealed against, and if a

part, which part;(b) the grounds of cross-appeal specifying the ndings of fact or rulings of law

appealed against; and(c) any further particulars that may be required under the rules of the court to

which the cross-appeal is noted.

Record of appeal of tax court decision

140. (1) The record lodged with a court to which an appeal against a decision of a taxcourt is noted, includes all documents placed before the tax court under the ‘rules’.

(2) Documents submitted in the tax court which do not relate to the matters in disputein the appeal may be excluded from the record with the consent of the parties.

Abandonment of judgment

141. (1) A party may by notice in writing lodged with the ‘registrar’ and the oppositeparty or the opposite party’s attorney or agent, abandon the whole or a part of a judgmentin the party’s favour.

(2) A notice of abandonment becomes part of the record.

Part F

Settlement of dispute

De nitions

142. In this Part, unless the context indicates otherwise, the following terms, if insingle quotation marks, have the following meanings:

‘dispute’ means a disagreement on the interpretation of either the relevant factsinvolved or the law applicable thereto, or of both the facts and the law, which arisespursuant to the issue of an assessment or the making of a ‘decision’; and‘settle’ means, after the lodging of an appeal under this Chapter, to resolve a‘dispute’ by compromising a disputed liability, otherwise than by way of eitherSARS or the person concerned accepting the other party’s interpretation of the factsor the law applicable to those facts or of both the facts and the law, and ‘settlement’must be construed accordingly.

Purpose of Part

143. (1) A basic principle in tax law is that it is the duty of SARS to assess and collecttax according to the laws enacted by Parliament and not to forgo a tax which is properlychargeable and payable.

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(2) Circumstances may require that the strictness and rigidity of this basic principle betempered, if such exibility is to the best advantage of the State.

(3) The purpose of this Part is to prescribe the circumstances in which it is appropriatefor SARS to temper the basic principle and ‘settle’ a ‘dispute’.

Initiation of settlement procedure

144. (1) Either party to a ‘dispute’ may initiate a ‘settlement’ procedure bycommunication with the other party.

(2) Neither SARS nor the taxpayer has the right to require the other party to engagein a ‘settlement’ procedure.

Circumstances where settlement is inappropriate

145. It is inappropriate and not to the best advantage of the State to ‘settle’ a ‘dispute’if in the opinion of SARS—

(a) no circumstances envisaged in section 146 exist and—(i) the action by the person concerned that relates to the ‘dispute’ constitutes

intentional tax evasion or fraud;(ii) the ‘settlement’ would be contrary to the law or a practice generally

prevailing and no exceptional circumstances exist to justify a departurefrom the law or practice; or

(iii) the person concerned has not complied with the provisions of a tax Actand the non-compliance is of a serious nature;

(b) it is in the public interest to have judicial clari cation of the issue and the caseis appropriate for this purpose; or

(c) the pursuit of the matter through the courts will signi cantly promote taxpayercompliance with a tax Act and the case is suitable for this purpose.

Circumstances where settlement is appropriate

146. The Commissioner may, if it is to the best advantage of the state, ‘settle’ a‘dispute’, in whole or in part, on a basis that is fair and equitable to both the personconcerned and to SARS, having regard to—

(a) whether the ‘settlement’ would be in the interest of good management of thetax system, overall fairness, and the best use of SARS’ resources;

(b) SARS’ cost of litigation in comparison to the possible bene ts with referenceto—(i) the prospects of success in court;

(ii) the prospects of the collection of the amounts due; and(iii) the costs associated with collection;

(c) whether there are any—(i) complex factual issues in contention; or

(ii) evidentiary difficulties,which are sufficient to make the case problematic in outcome or unsuitable forresolution through the alternative ‘dispute’ resolution procedures or thecourts;

(d) a situation in which a participant or a group of participants in a tax avoidancearrangement has accepted SARS’ position in the ‘dispute’, in which case the‘settlement’ may be negotiated in an appropriate manner required to unwindexisting structures and arrangements; or

(e) whether ‘settlement’ of the ‘dispute’ is a cost-effective way to promotecompliance with a tax Act by the person concerned or a group of taxpayers.

Procedure for settlement

147. (1) A person participating in a ‘settlement’ procedure must disclose all relevantfacts during the discussion phase of the process of ‘settling’ a ‘dispute’.

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(2) A ‘settlement’ is conditional upon full disclosure of material facts known to theperson concerned at the time of ‘settlement’.

(3) A dispute ‘settled’ in whole or in part must be evidenced by an agreement inwriting between the parties in the prescribed format and must include details on—

(a) how each particular issue is ‘settled’;(b) relevant undertakings by the parties;(c) treatment of the issue in future years;(d) withdrawal of objections and appeals; and(e) arrangements for payment.

(4) The agreement must be signed by a senior SARS official.(5) SARS must, if the ‘dispute’ is not ultimately ‘settled’, explain to the person

concerned the further rights of objection and appeal.(6) The agreement and terms of a ‘settlement’ agreement must remain con dential,

unless their disclosure is authorised by law or SARS and the person concerned agreeotherwise.

Finality of settlement agreement

148. (1) The settlement agreement represents the nal agreed position between theparties and is in full and nal ‘settlement’ of all or the speci ed aspects of the ‘dispute’in question between the parties.

(2) SARS must adhere to the terms of the agreement, unless material facts were notdisclosed as required by section 147(1) or there was fraud or misrepresentation of thefacts.

(3) If the person concerned fails to pay the amount due pursuant to the agreement orotherwise fails to adhere to the agreement, a senior SARS official may—

(a) regard the agreement as void and proceed with the matter in respect of theoriginal disputed amount; or

(b) enforce collection of the ‘settlement’ amount under the collection provisionsof this Act in full and nal ‘settlement’ of the ‘dispute’.

Register of settlements and reporting

149. (1) SARS must—(a) maintain a register of all ‘disputes’ that are ‘settled’ under this Part; and(b) document the process under which each ‘dispute’ is ‘settled’.

(2) The Commissioner must provide an annual summary of ‘settlements’ to theAuditor-General and to the Minister.

(3) The summary referred to in subsection (2) must be submitted by no later than thedate on which the annual report for SARS is submitted to Parliament for the year andmust—

(a) be in a format which, subject to section 70(5), does not disclose the identity ofthe person concerned; and

(b) contain details, arranged by main classes of taxpayers or sections of thepublic, of the number of ‘settlements’, the amount of tax forgone, and theestimated savings in litigation costs.

Alteration of assessment or decision on settlement

150. (1) If a ‘dispute’ between SARS and the person aggrieved by an assessment or‘decision’ is ‘settled’ under this Part, SARS may, despite anything to the contrarycontained in a tax Act, alter the assessment or ‘decision’ to give effect to the ‘settlement’.

(2) An altered assessment or ‘decision’ referred to in subsection (1) is not subject toobjection and appeal.

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CHAPTER 10

TAX LIABILITY AND PAYMENT

Part A

Taxpayers

Taxpayer

151. In this Act, taxpayer means—(a) a person chargeable to tax;(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.

Person chargeable to tax

152. A person chargeable to tax is a person upon whom the liability for tax due undera tax Act is imposed and who is personally liable for the tax.

Representative taxpayer

153. (1) In this Act, a representative taxpayer means a person who is responsible forpaying 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 apublic officer of a company) under a tax Act, must notify SARS accordingly in suchform as the Commissioner may prescribe, within 21 business days after becoming orceasing to be a representative taxpayer, as the case may be.

(3) A taxpayer is not relieved from any liability, responsibility or duty imposed undera 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.

Liability of representative taxpayer

154. (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 manage-

ment 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 repre-

sented;(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 speci ed by a tax Act.

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

Personal liability of representative taxpayer

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

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

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

Withholding agent

156. In this Act, withholding agent means a person who must under a tax Act withholdan amount of tax and pay it to SARS.

Personal liability of withholding agent

157. (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 orher liability under the relevant tax Act.

Responsible third party

158. In this Act, responsible third party means a person who becomes otherwise liablefor the tax liability of another person, other than as a representative taxpayer or as awithholding agent, whether in a personal or representative capacity.

Personal liability of responsible third party

159. A responsible third party is personally liable to the extent described in Part D ofChapter 11.

Right to recovery of taxpayer

160. (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 amountso paid.

(2) Unless otherwise provided for in a tax Act, a taxpayer on whose behalf an amountdeducted or withheld has been paid to SARS by a withholding agent is not entitled torecover from the withholding agent the amount so deducted or withheld.

Security by taxpayer

161. (1) A senior SARS official may require security from a taxpayer to safeguard thecollection of tax by SARS, if the taxpayer—

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(a) is a representative taxpayer, withholding agent or responsible third party whowas 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 taxpayerin terms of a tax Act.

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

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

(a) be collected as if it were a 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 themembers, shareholders or trustees who control or are involved in the management of thetaxpayer to enter into a contract of suretyship in respect of the taxpayer’s liability for taxwhich may arise from time to time.

Part B

Payment of tax

Determination of time and manner of payment of tax

162. (1) Tax must be paid by the day and at the place noti ed by SARS or as speci edin a tax Act, and must be paid as a single amount or in terms of an instalment paymentagreement under section 167.

(2) SARS may prescribe the method of payment of tax, including electronically.(3) Despite sections 96(1)(f) and 167, a senior SARS official may, if there are

reasonable grounds to believe that—(a) a taxpayer will not pay the full amount of tax;(b) a taxpayer will dissipate the taxpayer’s assets; or(c) that recovery may become difficult in the future,

require the taxpayer to—(i) pay the full amount immediately upon receipt of the notice of assessment or a

notice described in section 167(6) or within the period as the official deemsappropriate under the circumstances; or

(ii) provide such security as the official deems necessary.

Preservation order

163. (1) A senior SARS official may authorise an ex parte application to the HighCourt for an order for the preservation of any assets of a taxpayer or other personprohibiting any person, subject to the conditions and exceptions as may be speci ed inthe preservation order, from dealing in any manner with the assets to which the orderrelates.

(2) (a) SARS may, in anticipation of the application and in order to prevent anyrealisable assets from being disposed of or removed which may frustrate the collectionof the full amount of tax due, seize the assets pending the outcome of an application fora preservation order, which application must commence within 24 hours from the timeof seizure of the assets or the further period that SARS and the taxpayer or other personmay agree on.

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(b) Until a preservation order is made in respect of the seized assets, SARS must takereasonable steps to preserve and safeguard the assets.

(3) A preservation order may be made if required to secure the collection of tax andin respect of—

(a) realisable assets seized by SARS under subsection (2);(b) the realisable assets as may be speci ed in the order and which are held by the

person against whom the preservation order is being made;(c) all realisable assets held by the person, whether it is speci ed in the order or

not; or(d) all assets which, if transferred to the person after the making of the

preservation order, would be realisable assets.(4) The court to which an application for a preservation order is made may—

(a) make a provisional preservation order having immediate effect;(b) simultaneously grant a rule nisi calling upon the taxpayer or other person upon

a business day mentioned in the rule to appear and to show cause why thepreservation order should not be made nal; and

(c) upon application by the taxpayer or other person, anticipate the return day forthe purpose of discharging the provisional preservation order if 24 hours’notice of the application has been given to SARS.

(5) A preservation order must provide for notice to be given to the taxpayer and aperson from whom the assets are seized.

(6) For purposes of the notice or rule required under subsection (4)(b) or (5), if thetaxpayer or other person has been absent for a period of 21 business days from his or herusual place of residence or business within the Republic, the court may direct that it willbe sufficient service of that notice or rule if a copy thereof is affixed to or near the outerdoor of the building where the court sits and published in the Gazette, unless the courtdirects some other mode of service.

(7) The court, in granting a preservation order, may make any ancillary ordersregarding how the assets must be dealt with, including—

(a) authorising the seizure of all movable assets;(b) appointing a curator bonis in whom the assets of that taxpayer or another

person liable for tax vest;(c) realising the assets in satisfaction of the tax debt;(d) making provision as the court may think t for the reasonable living expenses

of a person against whom the preservation order is being made and his or herlegal dependants, if the court is satis ed that the person has disclosed underoath all direct or indirect interests in assets subject to the order and that theperson cannot meet the expenses concerned out of his or her unrestrainedassets; or

(e) any other order that the court considers appropriate for the proper, fair andeffective execution of the order.

(8) The court making a preservation order may also make such further order in respectof the discovery of any facts including facts relating to any asset over which the taxpayeror other person may have effective control and the location of the assets as the court mayconsider necessary or expedient with a view to achieving the objects of the preservationorder.

(9) The court which made a preservation order may on application by a personaffected by that order vary or rescind the order or an order authorising the seizure of theassets concerned or other ancillary order if it is satis ed that—

(a) the operation of the order concerned will cause the applicant undue hardship;and

(b) the hardship that the applicant will suffer as a result of the order outweighs therisk that the assets concerned may be destroyed, lost, damaged, concealed ortransferred.

(10) A preservation order remains in force—(a) pending the setting aside thereof on appeal, if any, against the preservation

order; or(b) until the assets subject to the preservation order are no longer required for

purposes of the satisfaction of the tax debt.(11) In order to prevent any realisable assets that were not seized under subsection (2)

from being disposed of or removed contrary to a preservation order under this section,

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a senior SARS official may seize the assets if the official has reasonable grounds tobelieve that the assets will be so disposed of or removed.

(12) Assets seized under this section must be dealt with in accordance with thedirections of the High Court which made the relevant preservation order.

Payment of tax pending objection or appeal

164. (1) Unless a senior SARS official otherwise directs in terms of subsection (3)—(a) the obligation to pay tax; and(b) the right of SARS to receive and recover tax,

will not be suspended by an objection or appeal or pending the decision of a court of lawpursuant to an appeal under section 133.

(2) A taxpayer may request a senior SARS official to suspend the payment of tax or aportion thereof due under an assessment if the taxpayer intends to dispute or disputes theliability to pay that tax under Chapter 9.

(3) A senior SARS official may suspend payment of the disputed tax having regardto—

(a) the compliance history of the taxpayer;(b) the amount of tax involved;(c) the risk of dissipation of assets by the taxpayer concerned during the period of

suspension;(d) whether the taxpayer is able to provide adequate security for the payment of

the amount involved;(e) whether payment of the amount involved would result in irreparable nancial

hardship to the taxpayer;(f) whether sequestration or liquidation proceedings are imminent;(g) whether fraud is involved in the origin of the dispute; or(h) whether the taxpayer has failed to furnish information requested under this

Act for purposes of a decision under this section.(4) If the payment of tax which the taxpayer intended to dispute was suspended under

subsection (3) and subsequently—(a) no objection is lodged;(b) an objection is disallowed and no appeal is lodged; or(c) an appeal to the tax board or court is unsuccessful and no further appeal is

noted,the suspension is revoked with immediate effect from the date of the expiry of therelevant prescribed time period or any extension of the relevant time period under thisAct.

(5) A senior SARS official may deny a request in terms of subsection (2) or revoke adecision to suspend payment in terms of that subsection with immediate effect ifsatis ed that—

(a) after the lodging of the objection or appeal, the objection or appeal is frivolousor vexatious;

(b) the taxpayer is employing dilatory tactics in conducting the objection orappeal;

(c) on further consideration of the factors referred to in subsection (3), thesuspension should not have been given; or

(d) there is a material change in any of the factors referred to in subsection (3),upon which the decision to suspend the amount involved was based.

(6) During the period commencing on the day that—(a) SARS receives a request for suspension under subsection (2); or(b) a suspension is revoked under subsection (5),

and ending 10 business days after notice of SARS’ decision or revocation has beenissued to the taxpayer, no recovery proceedings may be taken unless SARS has areasonable belief that there is a risk of dissipation of assets by the person concerned.

(7) If an assessment or a decision referred to in section 104(2) is altered in accordancewith—

(a) an objection or appeal;

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(b) a decision of a court of law pursuant to an appeal under section 133; or(c) a decision by SARS to concede the appeal to the tax board or the tax court or

other court of law,a due adjustment must be made, amounts paid in excess refunded with interest at theprescribed rate, the interest being calculated from the date that excess was received bySARS to the date the refunded tax is paid, and amounts short-paid are recoverable withinterest calculated as provided in section 187(1).

(8) The provisions of section 191 apply with the necessary changes in respect of anamount refundable and interest payable by SARS under this section.

Part C

Taxpayer account and allocation of payments

Taxpayer account

165. (1) SARS must maintain one or more taxpayer accounts for each taxpayer.(2) The taxpayer account must re ect the tax due in respect of each tax type included

in the account.(3) The taxpayer account must record details for all tax periods of—

(a) the tax owed;(b) any penalty imposed;(c) the interest payable on outstanding amounts due;(d) any other amount owed;(e) tax payments made by or on behalf of the taxpayer; and(f) any credit for amounts paid that the taxpayer is entitled to have set off against

the taxpayer’s tax liability.(4) From time to time, or when requested by the taxpayer, SARS must send to the

taxpayer a statement of account, re ecting the amounts currently due and the details thatSARS considers appropriate.

Allocation of payments

166. (1) Despite anything to the contrary contained in a tax Act, SARS may allocateany payment made in terms of a tax Act against the oldest amount of tax outstanding atthe time of the payment, other than amounts—

(a) for which payment has been suspended under this Act; or(b) that are payable in terms of an instalment payment agreement under section

167.(2) SARS may apply the rst-in- rst-out principle described in subsection (1) in

respect of a speci c tax type or a group of tax types in the manner that may be prescribedby the Commissioner by public notice.

(3) In the event that a payment in subsection (1) is insufficient to extinguish all taxdebts of the same age, the amount of the payment may be allocated among these taxdebts in the manner prescribed by the Commissioner by public notice.

(4) The age of a tax debt for purposes of subsection (1) is determined according to theduration from the date the debt became payable in terms of the applicable Act.

Part D

Deferral of Payment

Instalment payment agreement

167. (1) A senior SARS official may enter into an agreement with a taxpayer in theprescribed form under which the taxpayer is allowed to pay a tax debt in one sum or in

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instalments, within the agreed period if satis ed that—(a) criteria or risks that may be prescribed by the Commissioner by public notice

have been duly taken into consideration; and(b) the agreement facilitates the collection of the debt.

(2) The agreement may contain such conditions as SARS deems necessary to securecollection of tax.

(3) Except as provided in subsections (4) and (5), the agreement remains in effect forthe term of the agreement.

(4) SARS may terminate an instalment payment agreement if the taxpayer fails to payan instalment or to otherwise comply with its terms and a payment prior to thetermination of the agreement must be regarded as part payment of the tax debt.

(5) A senior SARS official may modify or terminate an instalment payment agreementif satis ed that—

(a) the collection of tax is in jeopardy;(b) the taxpayer has furnished materially incorrect information in applying for the

agreement; or(c) the nancial condition of the taxpayer has materially changed.

(6) A termination or modi cation—(a) referred to in subsection (4) or (5)(a) takes effect as at the date stated in the

notice of termination or modi cation sent to the taxpayer; and(b) referred to in subsection (5)(b) or (c) takes effect 21 business days after notice

of the termination or modi cation is sent to the taxpayer.

Criteria for instalment payment agreement

168. A senior SARS official may enter into an instalment payment agreement onlyif—

(a) the taxpayer suffers from a de ciency of assets or liquidity which isreasonably certain to be remedied in the future;

(b) the taxpayer anticipates income or other receipts which can be used to satisfythe tax debt;

(c) prospects of immediate collection activity are poor or uneconomical but arelikely to improve in the future;

(d) collection activity would be harsh in the particular case and the deferral orinstalment agreement is unlikely to prejudice tax collection; or

(e) the taxpayer provides the security as may be required by the official.

CHAPTER 11

RECOVERY OF TAX

Part A

General

Debt due to SARS

169. (1) An amount of tax due or payable in terms of a tax Act is a tax debt due toSARS for the bene t of the National Revenue Fund.

(2) A tax debt due to SARS is recoverable by SARS under this Chapter, and isrecoverable from—

(a) in the case of a representative taxpayer who is not personally liable undersection 155, any assets belonging to the person represented which are in therepresentative taxpayer’s possession or under his or her management orcontrol; or

(b) in any other case, any assets of the taxpayer.

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(3) SARS is regarded as the creditor for the purposes of an amount referred to insubsection (1) as well as any other amount if SARS has entered into an agreement undersection 4(1)(a)(ii) of the SARS Act in terms of which SARS is the creditor for the Stateor the organ of state or institution concerned.

(4) SARS need not recover an amount under this Chapter if the amount is less thanR100 or any other amount that the Commissioner may determine by public notice, butthe amount must be carried forward in the relevant taxpayer account.

Evidence as to assessment

170. The production of a document issued by SARS purporting to be a copy of or anextract from an assessment is conclusive evidence—

(a) of the making of the assessment; and(b) except in the case of proceedings on appeal against the assessment, that all the

particulars of the assessment are correct.

Period of limitation on collection of tax

171. Proceedings for recovery of a tax debt may not be initiated after the expirationof 15 years from the date the assessment of tax, or a decision referred to in section 104(2)giving rise to a tax liability, becomes nal.

Part B

Judgment procedure

Application for civil judgment for recovery of tax

172. (1) If a person fails to pay tax when it is payable, SARS may, after giving theperson at least 10 business days notice, le with the clerk or registrar of a competentcourt a certi ed statement setting out the amount of tax payable and certi ed by SARSas correct.

(2) SARS may le the statement irrespective of whether or not the amount of tax issubject to an objection or appeal under Chapter 9, unless the obligation to pay theamount has been suspended under section 164.

(3) SARS is not required to give the taxpayer prior notice under subsection (1) ifSARS is satis ed that giving notice would prejudice the collection of the tax.

Jurisdiction of Magistrates’ Court in judgment procedure

173. Despite anything to the contrary in the Magistrates’Courts Act, 1944 (Act No. 32of 1944), the certi ed statement referred to in section 172 may be led with the clerk ofthe Magistrate’s Court that has jurisdiction over the taxpayer named in the statement.

Effect of statement led with clerk or registrar

174. A certi ed statement led under section 172 must be treated as a civil judgmentlawfully given in the relevant court in favour of SARS for a liquid debt for the amountspeci ed in the statement.

Amendment of statement led with clerk or registrar

175. (1) SARS may amend the amount of the tax due speci ed in the statement ledunder section 172 if, in the opinion of SARS, the amount in the statement is incorrect.

(2) The amendment of the statement is not effective until it is initialled by the clerk orthe registrar of the court concerned.

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Withdrawal of statement and reinstitution of proceedings

176. (1) SARS may withdraw a certi ed statement led under section 172 by sendinga notice of withdrawal to the relevant clerk or registrar upon which the statement ceasesto have effect.

(2) SARS may le a new statement under section 172 setting out tax included in awithdrawn statement.

Part C

Sequestration, liquidation and winding-up proceedings

Institution of sequestration, liquidation or winding-up proceedings

177. (1) SARS may institute proceedings for the sequestration, liquidation orwinding-up of a person for a tax debt.

(2) SARS may institute the proceedings whether or not the person—(a) is present in the Republic; or(b) has assets in the Republic.

(3) If the tax debt is subject to an objection or appeal under Chapter 9 or a furtherappeal against a decision by the tax court under section 129, the proceedings may onlybe instituted with leave of the court before which the proceedings are brought.

Jurisdiction of court in sequestration, liquidation or winding-up proceedings

178. Despite any law to the contrary, a proceeding referred to in section 177 may beinstituted in any competent court and that court may grant an order that SARS requests,whether or not the taxpayer is registered, resident or domiciled, or has a place ofeffective management or a place of business, in the Republic.

Part D

Collection of tax debt from third parties

Liability of third party appointed to satisfy tax debts

179. (1) A senior SARS official may by notice to a person who holds or owes or willhold or owe any money, including a pension, salary, wage or other remuneration, for orto a taxpayer, require the person to pay the money to SARS in satisfaction of thetaxpayer’s tax debt.

(2) A person that is unable to comply with a requirement of the notice, must advise thesenior SARS official of the reasons for the inability to comply within the period speci edin the notice and the official may withdraw or amend the notice as is appropriate underthe circumstances.

(3) A person receiving the notice must pay the money in accordance with the noticeand, if the person parts with the money contrary to the notice, the person is personallyliable for the money.

(4) SARS may, on request by a person affected by the notice, amend the notice toextend the period over which the amount must be paid to SARS, to allow the taxpayerto pay the basic living expenses of the taxpayer and his or her dependants.

Liability of nancial management for tax debts

180. A person is personally liable for any tax debt of the taxpayer to the extent that theperson’s negligence or fraud resulted in the failure to pay the tax debt if—

(a) the person controls or is regularly involved in the management of the overallnancial affairs of a taxpayer; and

(b) a senior SARS official is satis ed that the person is or was negligent orfraudulent in respect of the payment of the tax debts of the taxpayer.

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Liability of shareholders for tax debts

181. (1) This section applies where a company is wound up other than by means of aninvoluntary liquidation without having satis ed its tax debt, including its liability as aresponsible third party, withholding agent, or a representative taxpayer, employer orvendor.

(2) The persons who are shareholders of the company within one year prior to itswinding up are jointly and severally liable to pay the unpaid tax to the extent that—

(a) they receive assets of the company in their capacity as shareholders within oneyear prior to its winding-up; and

(b) the tax debt existed at the time of the receipt of the assets or would haveexisted had the company complied with its obligations under a tax Act.

(3) The liability of the shareholders is secondary to the liability of the company.(4) Persons who are liable for tax of a company under this section may avail

themselves of any rights against SARS as would have been available to the company.(5) This section does not apply—

(a) in respect of a ‘‘listed company’’ within the meaning of the Income Tax Act;or

(b) in respect of a shareholder of a company referred to in paragraph (a).

Liability of transferee for tax debts

182. (1) A person (referred to as a transferee) who receives an asset from a taxpayerwho is a connected person in relation to the transferee without consideration or forconsideration below the fair market value of the asset is liable for the tax debt of thetaxpayer.

(2) The liability is limited to the lesser of—(a) the tax debt that existed at the time of the receipt of the asset or would have

existed had the transferor complied with the transferor’s obligations under atax Act; and

(b) the fair market value of the asset at the time of the transfer, reduced by the fairmarket value of any consideration paid, at the time of payment.

(3) Subsection (1) applies only to an asset received by the transferee within one yearbefore SARS noti es the transferee of liability under this section.

Liability of person assisting in dissipation of assets

183. If a person knowingly assists in dissipating a taxpayer’s assets in order toobstruct the collection of a tax debt of the taxpayer, the person is jointly and severallyliable with the taxpayer for the tax debt to the extent that the person’s assistance reducesthe assets available to pay the taxpayer’s tax debt.

Recovery of tax debts from responsible third parties

184. (1) SARS has the same powers of recovery against the assets of a person referredto in this Part as SARS has against the assets of the taxpayer and the person has the samerights and remedies as the taxpayer has against such powers of recovery.

(2) SARS must provide a responsible third party with an opportunity to makerepresentations—

(a) before the responsible third party is held liable for the tax debt of the taxpayerin terms of section 180, 181, 182 or 183, if this will not place the collection oftax in jeopardy; or

(b) as soon as practical after the responsible third party is held liable for the taxdebt of the taxpayer in terms of section 180, 181, 182 or 183.

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Part E

Assisting foreign governments

Tax recovery on behalf of foreign governments

185. (1) If SARS has, in accordance with an international tax agreement, received—(a) a request for conservancy of an amount alleged to be due by a person under the

tax laws of the other country where there is a risk of dissipation orconcealment of assets by the person, a senior SARS official may apply for apreservation order under section 163 as if the amount were a tax payable bythe person under a tax Act; or

(b) a request for the collection from a person of an amount alleged to be due bythe person under the tax laws of the other country, a senior SARS official may,by notice, call upon the person to state, within a period speci ed in the notice,whether or not the person admits liability for the amount or for a lesseramount.

(2) A request described in subsection (1) must be in the prescribed form and mustinclude a formal certi cate issued by the competent authority of the other countrystating—

(a) the amount of the tax due;(b) whether the liability for the amount is disputed in terms of the laws of the

other country;(c) if the liability for the amount is so disputed, whether such dispute has been

entered into solely to delay or frustrate collection of the amount alleged to bedue; and

(d) whether there is a risk of dissipation or concealment of assets by the person.(3) In any proceedings, a certi cate referred to in subsection (2) is—

(a) conclusive proof of the existence of the liability alleged; and(b) prima facie proof of the other statements contained therein.

(4) If, in response to the notice issued under subsection (1)(b), the person—(a) admits liability;(b) fails to respond to the notice; or(c) denies liability but a senior SARS official, based on the statements in the

certi cate described in subsection (2) or, if necessary, after consultation withthe competent authority of the other country, is satis ed that—(i) the liability for the amount is not disputed in terms of the laws of the

other country;(ii) although the liability for the amount is disputed in terms of the laws of

the other country, such dispute has been entered into solely to delay orfrustrate collection of the amount alleged to be due; or

(iii) there is a risk of dissipation or concealment of assets by the person,the official may, by notice, require the person to pay the amount for which the person hasadmitted liability or the amount speci ed, on a date speci ed, for transmission to thecompetent authority in the other country.

(5) If the person fails to comply with the notice under subsection (4), SARS mayrecover the amount in the certi cate for transmission to the foreign authority as if it werea tax payable by the person under a tax Act.

(6) No steps taken in assistance in collection by any other country under aninternational tax agreement for the collection of an amount alleged to be due by a personunder a tax Act, including a judgment given against a person in the other country for theamount in pursuance of the agreement, may affect the person’s right to have the liabilityfor the amount determined in the Republic in accordance with the relevant law.

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Part F

Remedies with respect to foreign assets

Compulsory repatriation of foreign assets of taxpayer

186. (1) To collect a tax debt, a senior SARS official may apply for an order referredto in subsection (2), if—

(a) the taxpayer concerned does not have sufficient assets located in the Republicto satisfy the tax debt in full; and

(b) the senior SARS official believes that the taxpayer—(i) has assets outside the Republic; or

(ii) has transferred assets outside the Republic for no consideration or forconsideration less than the fair market value,

which may fully or partly satisfy the tax debt.(2) A senior SARS official may apply to the High Court for an order compelling the

taxpayer to repatriate assets located outside the Republic within a period prescribed bythe court in order to satisfy the tax debt.

(3) In addition to issuing the order described in subsection (2), the court may—(a) limit the taxpayer’s right to travel outside the Republic and require the

taxpayer to surrender his or her passport to SARS;(b) withdraw a taxpayer’s authorisation to conduct business in the Republic, if

applicable;(c) require the taxpayer to cease trading; or(d) issue any other order it deems t.

(4) An order made under subsection (2) applies until the tax debt has been satis ed orthe assets have been repatriated and utilised in satisfaction of the tax debt.

CHAPTER 12

INTEREST

General interest rules

187. (1) If a tax debt or refund payable by SARS is not paid in full by the effectivedate, interest accrues on the amount of the outstanding balance of the tax debt orrefund—

(a) at the rate provided under section 189; and(b) for the period provided under section 188.

(2) Interest payable under a tax Act is calculated on the daily balance owing andcompounded monthly, and the Commissioner may prescribe by public notice fromwhich date this method of determining interest will apply to a tax type.

(3) The effective date for purposes of the calculation of interest in relation to—(a) tax other than income tax or estate duty for any tax period, is the date by which

tax for the tax period is due and payable under a tax Act;(b) income tax for any year of assessment, is the date falling seven months after

the last day of that year in the case of a taxpayer that has a year of assessmentending on the last day of February, and six months in any other case;

(c) estate duty for any period, is the earlier of the date of assessment or 12 monthsafter the date of death;

(d) a xed amount penalty referred to in section 210, is the date for paymentspeci ed in the notice of assessment of the penalty, and in relation to anincrement of the penalty under section 211(2), the date of the increment;

(e) a percentage based penalty referred to in section 213, is the date by which taxfor the tax period should have been paid; and

(f) an understatement penalty, is the effective date for the tax understated.(4) The effective date in relation to an additional assessment or reduced assessment is

the effective date in relation to the tax payable under the original assessment.

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(5) The effective date in relation to a jeopardy assessment is the date for paymentspeci ed in the jeopardy assessment.

(6) If a senior SARS official is satis ed that interest payable by a taxpayer undersubsection (1) is payable as a result of circumstances beyond the taxpayer’s control, theofficial may, unless prohibited by a tax Act, direct that so much of the interest as isattributable to the circumstances is not payable by the taxpayer.

(7) The circumstances referred to in subsection (6) are limited to—(a) a natural or human-made disaster;(b) a civil disturbance or disruption in services; or(c) a serious illness or accident.

Period over which interest accrues

188. (1) Unless otherwise provided in a tax Act, interest payable under section 187 isimposed for the period from the effective date of the tax to the date the tax is paid.

(2) Interest payable in respect of the—(a) rst payment of provisional tax, is imposed from the effective date for the rst

payment of provisional tax until the earlier of the date on which the paymentis made or the effective date for the second payment of provisional tax; and

(b) second payment of provisional tax, is imposed from the effective date for thesecond payment of provisional tax until the earlier of the date on which thepayment is made or the effective date for income tax for the relevant year ofassessment.

(3) Unless otherwise provided under a tax Act—(a) interest on an amount refundable under section 190 is calculated from the later

of the effective date or the date that the excess was received by SARS to thedate the refunded tax is paid; and

(b) for this purpose, if a refund is offset against a liability of the taxpayer undersection 191, the date on which the offset is effected is considered to be the dateof payment of the refund.

Rate at which interest is charged

189. (1) The rate at which interest is payable under section 187 is the prescribed rate.(2) In the case of interest payable with respect to refunds on assessment of provisional

tax and employees’ tax paid for the relevant year of assessment, the rate payable bySARS is four percentage points below the prescribed rate.

(3) The prescribed rate is the interest rate that the Minister may from time to time xby notice in the Gazette under section 80(1)(b) of the Public Finance Management Act,1999 (Act No. 1 of 1999).

(4) If the Minister xes a different interest rate referred to in subsection (3) the newrate comes into operation on the rst day of the second month following the month inwhich the new rate becomes effective for purposes of the Public Finance ManagementAct, 1999.

(5) If interest is payable under this Chapter and the rate at which the interest is payablehas with effect from any date been altered, and the interest is payable in respect of anytax period or portion thereof which commenced before the said date, the interest to bedetermined in respect of—

(a) the tax period or portion thereof which ended immediately before the saiddate; or

(b) the portion of the tax period which was completed before the said date,must be calculated as if the rate had not been altered.

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CHAPTER 13

REFUNDS

Refunds of excess payments

190. (1) A person is entitled to a refund of—(a) an amount properly refundable under a tax Act and if so re ected in an

assessment; or(b) the amount erroneously paid in respect of an assessment in excess of the

amount payable in terms of the assessment.(2) SARS need not authorise a refund as referred to in subsection (1) until such time

that a veri cation, inspection or audit of the refund in accordance with Chapter 5 hasbeen nalised.

(3) SARS must authorise the payment of a refund before the nalisation of theveri cation, inspection or audit if security in a form acceptable to a senior SARS officialis provided by the taxpayer.

(4) A person is entitled to a refund under subsection (1)(b) only if the refund isclaimed by the person within three years, in the case of an assessment by SARS, or veyears, in the case of self-assessment, from the date of the assessment.

(5) If SARS pays to a person by way of a refund any amount which is not properlypayable to the person under a tax Act, the amount is regarded as tax that is payable bythe person to SARS from the date on which it is paid to the person.

(6) A decision not to authorise a refund under this section is subject to objection andappeal.

Refunds subject to set-off and deferral

191. (1) If a taxpayer has an outstanding tax debt, an amount that is refundable undersection 190, including interest thereon under section 188(3)(a), must be treated as apayment by the taxpayer that is recorded in the taxpayer’s account under section 165, tothe extent of the amount outstanding, and any remaining amount must be set off againstany outstanding debt under the Customs and Excise Act.

(2) Subsection (1) does not apply to a tax debt—(a) that is disputed under Chapter 9 and for which suspension of payment under

section 164 exists; or(b) in respect of which an instalment payment agreement under section 167 or a

compromise agreement under section 204 applies.(3) An amount is not refundable if the amount is less than R100 or any other amount

that the Commissioner may determine by public notice, but the amount must be carriedforward in the taxpayer account.

CHAPTER 14

WRITE OFF OR COMPROMISE OF TAX DEBTS

Part A

General provisions

De nitions


‘asset’ includes—(a) property of whatever nature, whether movable or immovable, corporeal or

incorporeal; and(b) a right or interest of whatever nature to or in the property;

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‘Companies Act’ means the Companies Act, 2008 (Act No. 71 of 2008);‘compromise’ means an agreement entered into between SARS and a ‘debtor’ interms of which—(a) the ‘debtor’ undertakes to pay an amount which is less than the full amount of

the tax debt due by that ‘debtor’ in full satisfaction of the tax debt; and(b) SARS undertakes to permanently ‘write off’ the remaining portion of the tax

debt on the condition that the ‘debtor’ complies with the undertaking referredto in paragraph (a) and any further conditions as may be imposed by SARS;

‘debtor’ means a taxpayer with an outstanding tax debt; and‘write off’ means to reverse a tax debt either in whole or in part.

Purpose of Chapter

193. (1) As a general rule, it is the duty of SARS to assess and collect all tax debtsaccording to a tax Act and not to forgo any tax debts.

(2) SARS may, when required by circumstances, deviate from the strictness andrigidity of the general rule referred to in subsection (1) if it would be to the bestadvantage of the State.

(3) The purpose of this Chapter is to prescribe the circumstances under which SARSmay deviate from the general rule and take a decision to ‘write off’ a tax debt or not topursue its collection.

Application of Chapter

194. This Chapter applies only in respect of a tax debt owed by a ‘debtor’ if theliability to pay the tax debt is not disputed by the ‘debtor’.

Part B



195. (1) A senior SARS official may decide to temporarily ‘write off’ an amount of taxdebt if satis ed that the tax debt is uneconomical to pursue as described in section 196at that time.

(2) A decision by the senior SARS official to temporarily ‘write off’ an amount of taxdebt does not absolve the ‘debtor’ from the liability for that tax debt.

(3) A senior SARS official may at any time withdraw the decision to temporarily‘write off’ a tax debt if satis ed that the tax debt is no longer uneconomical to pursue asreferred to in section 196 and that the decision to temporarily ‘write off’ wouldjeopardise the general tax collection effort.

Tax debt uneconomical to pursue

196. (1) A tax debt is uneconomical to pursue if a senior SARS official is satis ed thatthe total cost of recovery of that tax debt will in all likelihood exceed the anticipatedamount to be recovered in respect of the outstanding tax debt.

(2) In determining whether the cost of recovery is likely to exceed the anticipatedamount to be recovered as referred to in subsection (1), a senior SARS official must haveregard to—

(a) the amount of the tax debt;(b) the length of time that the tax debt has been outstanding;(c) the steps taken to date to recover the tax debt and the costs involved in those

steps, including steps taken to locate or trace the ‘debtor’;

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(d) the likely costs of continuing action to recover the tax debt and the anticipatedreturn from that action, including the likely recovery of costs that may beawarded to SARS;

(e) the nancial position of the ‘debtor’, including that ‘debtor’s’ ‘assets’ andliabilities, cash ow, and possible future income streams; and

(f) any other information available with regard to the recoverability of the taxdebt.

Part C



197. (1) A senior SARS official may authorise the permanent ‘write off’ of an amountof tax debt—

(a) to the extent satis ed that the tax debt is irrecoverable at law as referred to insection 198; or

(b) if the debt is ‘compromised’ in terms of Part D.(2) SARS must notify the ‘debtor’ in writing of the amount of tax debt ‘written off’.

Tax debt irrecoverable at law

198. (1) A tax debt is irrecoverable at law if—(a) it cannot be recovered by action and judgment of a court; or(b) it is owed by a ‘debtor’ that is in liquidation or sequestration and it represents

the balance outstanding after notice is given by the liquidator or trustee that nofurther dividend is to be paid or a nal dividend has been paid to the creditorsof the estate; or

(c) it is owed by a ‘debtor’ that is subject to a business rescue plan referred to inPart D of Chapter 6 of the ‘Companies Act’, to the extent that it is notenforceable in terms of section 154 of that Act.

(2) A tax debt is not irrecoverable at law if SARS has not rst explored action againstor recovery from the ‘assets’ of the persons who may be liable for the debt under Part Dof Chapter 11.

Procedure for writing off tax debt

199. (1) Before deciding to ‘write off’ a tax debt, a senior SARS official must—(a) determine whether there are any other tax debts owing to SARS by the

‘debtor’;(b) reconcile amounts owed by and to the ‘debtor’, including penalties, interest

and costs;(c) obtain a breakdown of the tax debt and the periods to which the outstanding

amounts relate; and(d) document the history of the recovery process and the reasons for deciding to

‘write off’ the tax debt.(2) In deciding whether to support a business rescue plan referred to in Part D of

Chapter 6 of the ‘Companies Act’ or ‘compromise’ made to creditors under section 155of the ‘Companies Act’ a senior SARS official must, in addition to considering theinformation as referred to in section 150 or 155 of that Act, take into account theinformation and aspects covered in the provisions of sections 200, 201(1), 202 and 203with the necessary changes.

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Part D



200. A senior SARS official may authorise the ‘compromise’ of a portion of a tax debtupon request by a ‘debtor’, which complies with the requirements of section 201, if—

(a) the purpose of the ‘compromise’ is to secure the highest net return from therecovery of the tax debt; and

(b) the ‘compromise’ is consistent with considerations of good management ofthe tax system and administrative efficiency.

Request by debtor for compromise of tax debt

201. (1) A request by a ‘debtor’ for a tax debt to be ‘compromised’ must be signed bythe ‘debtor’ and be supported by a detailed statement setting out—

(a) the ‘assets’ and liabilities of the ‘debtor’ re ecting their current fair marketvalue;

(b) the amounts received by or accrued to, and expenditure incurred by, the‘debtor’ during the 12 months immediately preceding the request;

(c) the ‘assets’ which have been disposed of in the preceding three years, or suchlonger period as a senior SARS official deems appropriate, together with theirvalue, the consideration received or accrued, the identity of the person whoacquired the ‘assets’ and the relationship between the ‘debtor’ and the personwho acquired the ‘assets’, if any;

(d) the ‘debtor’s’ future interests in any ‘assets’, whether certain or contingent orsubject to the exercise of a discretionary power by another person;

(e) the ‘assets’ over which the ‘debtor’, either alone or with other persons, has adirect or indirect power of appointment or disposal, whether as trustee orotherwise;

(f) details of any connected person in relation to that ‘debtor’;(g) the ‘debtor’s’ present sources and level of income and the anticipated sources

and level of income for the next three years, with an outline of the ‘debtor’s’nancial plans for the future; and

(h) the ‘debtor’s’ reasons for seeking a ‘compromise’.(2) The request must be accompanied by the evidence supporting the ‘debtor’s’claims

for not being able to make payment of the full amount of the tax debt.(3) The ‘debtor’ must warrant that the information provided in the application is

accurate and complete.(4) A senior SARS official may require that the application be supplemented by such

further information as may be required.

Consideration of request to compromise tax debt

202. (1) In considering a request for a ‘compromise’, a senior SARS official musthave regard to the extent that the ‘compromise’ may result in—

(a) savings in the costs of collection;(b) collection at an earlier date than would otherwise be the case without the

‘compromise’;(c) collection of a greater amount than would otherwise have been recovered; or(d) the abandonment by the ‘debtor’ of some claim or right, which has a monetary

value, arising under a tax Act, including existing or future tax bene ts, such ascarryovers of losses, deductions, credits and rebates.

(2) In determining the position without the ‘compromise’, a senior SARS official musthave regard to—

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(a) the value of the ‘debtor’s’ present ‘assets’;(b) future prospects of the ‘debtor’, including arrangements which have been

implemented or are proposed which may have the effect of diverting incomeor ‘assets’ that may otherwise accrue to or be acquired by the ‘debtor’ or aconnected person in relation to the ‘debtor’;

(c) past transactions of the ‘debtor’; and(d) the position of any connected person in relation to the ‘debtor’.

Circumstances where not appropriate to compromise tax debt

203. A senior SARS official may not ‘compromise’ any amount of a tax debt undersection 200 if—

(a) the ‘debtor’ was a party to an agreement with SARS to ‘compromise’ anamount of tax debt within the period of three years immediately before therequest for the ‘compromise’;

(b) the tax affairs of the ‘debtor’ (other than the outstanding tax debt) are not upto date;

(c) another creditor has communicated its intention to initiate or has initiatedliquidation or sequestration proceedings;

(d) the ‘compromise’ will prejudice other creditors (unless the affected creditorsconsent to the ‘compromise’) or if other creditors will be placed in a positionof advantage relative to SARS;

(e) it may adversely affect broader taxpayer compliance; or(f) the ‘debtor’ is a company or a trust and SARS has not rst explored action

against or recovery from the personal ‘assets’ of the persons who may beliable for the debt under Part D of Chapter 11.

Procedure for compromise of tax debt

204. (1) To ‘compromise’ a tax debt, a senior SARS official and the ‘debtor’ must signan agreement setting out—

(a) the amount payable by the ‘debtor’ in full satisfaction of the debt;(b) the undertaking by SARS not to pursue recovery of the balance of the tax debt;

and(c) the conditions subject to which the tax debt is ‘compromised’ by SARS.

(2) The conditions referred to in subsection (1)(c) may include a requirement that the‘debtor’ must—

(a) comply with subsequent obligations imposed in terms of a tax Act;(b) pay the tax debt in the manner prescribed by SARS; or(c) give up speci ed existing or future tax bene ts, such as carryovers of losses,

deductions, credits and rebates.

SARS not bound by compromise of tax debt

205. SARS is not bound by a ‘compromise’ if—(a) the ‘debtor’ fails to disclose a material fact to which the ‘compromise’ relates;(b) the ‘debtor’ supplies materially incorrect information to which the ‘compro-

mise’ relates;(c) the ‘debtor’ fails to comply with a provision or condition contained in the

agreement referred to in section 204; or(d) the ‘debtor’ is liquidated or the ‘debtor’s’ estate is sequestrated before the

‘debtor’ has fully complied with the conditions contained in the agreementreferred to in section 204.

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Part E

Records and reporting

Register of tax debts written off or compromised

206. (1) SARS must maintain a register of the tax debts ‘written off’ or‘compromised’ in terms of this Chapter.

(2) The register referred to in subsection (1) must contain—(a) the details of the ‘debtor’, including name, address and taxpayer reference

number;(b) the amount of the tax debt ‘written off’ or ‘compromised’ and the periods to

which the tax debt relates; and(c) the reason for ‘writing off’ or ‘compromising’ the tax debt.

Reporting by Commissioner of tax debts written off or compromised

207. (1) The amount of tax debts ‘written off’ or ‘compromised’ during a nancialyear must be disclosed in the annual nancial statements of SARS relating toadministered revenue for that year.

(2) The Commissioner must on an annual basis provide to the Auditor-General and tothe Minister a summary of the tax debts which were ‘written off’ or ‘compromised’ inwhole or in part during the period covered by the summary, which must—

(a) be in a format which, subject to section 70(5), does not disclose the identity ofthe ‘debtor’ concerned;

(b) be submitted by the end of the month following the end of the scal year; and(c) contain details of the number of tax debts ‘written off’ or ‘compromised’, the

amount of revenue forgone, and the estimated amount of savings in costs ofrecovery, which must be re ected in respect of main classes of taxpayers orsections of the public.

CHAPTER 15

ADMINISTRATIVE NON-COMPLIANCE PENALTIES

Part A

General

De nitions


‘administrative non-compliance penalty’ or ‘penalty’ means a ‘‘penalty’’imposed by SARS in accordance with this Chapter, and excludes an understate-ment penalty referred to in Chapter 16;‘ rst incidence’ means an incidence of non-compliance by a person if no ‘penaltyassessment’ under this Chapter was issued during the preceding 36 months,whether involving an incidence of non-compliance of the same or a different kind,and for purposes of this de nition a ‘penalty assessment’ that was fully remittedunder section 218 must be disregarded;‘penalty assessment’ means an assessment in respect of—(a) a ‘penalty’ only; or(b) tax and a ‘penalty’ which are assessed at the same time;‘preceding year’ means the year of assessment immediately prior to the year ofassessment during which a ‘penalty’ is assessed;‘remittance request’ means a request for remittance of a ‘penalty’ submitted inaccordance with section 215.

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160 No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012

Ad No. 18 oHOH Tu Adnunttotr.-rion A(.l, lOll

Purpose of Cbnpter

209. Tin: purpos~..: of this Clmpter is to ensure-{ a) the widest possible compliance with the provisions of a tax Act nnd the

ctTcclivc admini.slmlion of tax Acts; Ami (b) that an 'administ.mtive non-compliance penalty' is imposed impartially. .5

consistently, and proponionately ro the setionsness and dm·ation of the uou-complis.ncc.

Pmt B

Nou-<ompllauce subject to pennUy

210. ( I) JrSAR$ is s.alisfic<l dull uou-comp1iuncc by 8 pcn;on n: (cJTCd In in s nb$L-cliuu (2) exists, excluding the non-compliance refec·ed to in section 213. SARS must impose tlu: appwpliutc 'vcimJty• iu ac~ordnuc~..: witlJ the Table in s~.:cliou 21 t.

10

(2) Non-compliance is failure to comply with an obligation th at is imposed by or under a tax Act and is lis(ed in A public notice is$ned by the Commis.'J;ione.r. otherth'ln- 15

{a) the fu.iltm: co pay Lax subj«;.><:t to u p<:n:cntagc lHtst..:d pcuahy wtdcr Part C; or (b) non-compliance subject to an understotemem pen>lty under Chapter 16.

Fixed amount llCUnlty table

211. ( 1) For the non-compliance referred to in section 210. SARS must impose n 'pe-ua hy' in accc:ntLmcc: wi1h lh.: rollowing Tr-thlc: 20

Table: Amounl of Ad.Jninislrali\'e Nmi·Ccuuplhtm·e Penally

I 2 .\ lrt.lll Assessed loss or L'lxahle inrome (or 'preC'eding yt-ar' •Penalty" 25

( i) A.s>csscd loss R2SO (ii) RO-R250 000 R250

(iii) R250 001-R500 000 R500 (iv) R500 001-Rl 000 000 I~ I 000 JO (v) Rl 000 001-R5 000 000 R2 000 (vi) R5 000 00 1-R 10 OIKl 000 R·1 ooo (vii) RIO 000 001-R50 000 000 RSOOO

(viii) Above R50 000 Ollll Rl6000

(2) T he nll'lt)ttnl of the 'pcnHhy' in column 3 wil11ncrca~e RuiOnHllicJtl1y by 1he s:mue 35 amount for each month, or pru:t thereof, that the person fails to remedy the non·compli1tnce within one month after-

( a) tho dat< of~'" deli v el)" of the ' penalty """"""m<ul\ ifSARS is iu possc;sion of the cwTent address of the person nnd is able to deliver the assessment. bul limilcrl tO 35 months afi.:r IJtc: dale or ddiVCI)': Or .:10

{b) the date of the non--compliance ifSARS is not in possession of the curTem addrc:ss of tb~ pcrsou uud is WlDblc: to dcliv\.T the: 'pc:nally usscssm<."Ut'. but limited to 4 7 months after the dote of non-compliance.

(3) ·n1e fol lowing person.\, except those falling under item (viii) of the Table or 1hoAe thai did notlrodc dmiu)lthc year of assessment. an: treated as f'Dlliug tmdcr ilt:m (vii) of 45 tbe Table:

(n> 8 cumpHny listed on u n.o.coguisL'fl stock ~'tclumgc us n:rcn-cc-l lo in parngmpb 1 of the Eighth Schedule to the Income Tax Act:

(b) a company wh~ gros.,. receipts or accntals for 1he •preceding year' exceed R500 million: 50

(c) a company that tOnus part of a ••group of companies'' as defined in section 1 of1he Tnc()me T:l.X Act, which group includes a company described in irem (n) or (b) ; or


(d) a person or entity, exempt from income tax under the Income Tax Act butliable to tax under another tax Act, whose gross receipts or accruals exceedR30 million.

(4) SARS may, except in the case of persons referred to in subsection (3)(a) to (c), ifthe taxable income of the relevant person for the ‘preceding year’ is unknown or thatperson was not a taxpayer in that year—

(a) impose a ‘penalty’ in accordance with item (ii) of column 1 of the Table; or(b) estimate the amount of taxable income of the relevant person for the

‘preceding year’ based on available relevant material and impose a ‘penalty’in accordance with the applicable item in column 1 of the Table.

(5) Where, upon determining the actual taxable income or assessed loss of the personin respect of whom a ‘penalty’ was imposed under subsection (4), it appears that theperson falls within another item in column 1 of the Table, the ‘penalty’ must be adjustedin accordance with the applicable item in that column with effect from the date of theimposition of the ‘penalty’ issued under subsection (4).

Reportable arrangement penalty

212. (1) A ‘participant’ who fails to disclose the information in respect of a reportablearrangement as required by section 37 is liable to a ‘penalty’, for each month that thefailure continues (up to 12 months), in the amount of—

(a) R50 000, in the case of a ‘participant’ other than the ‘promoter’; or(b) R100 000, in the case of the ‘promoter’.

(2) The amount of ‘penalty’ determined under subsection (1) is doubled if the amountof anticipated ‘tax bene t’ for the ‘participant’ by reason of the arrangement (within themeaning of section 35) exceeds R5 000 000, and is tripled if the bene t exceedsR10 000 000.

Part C

Percentage based penalty

Imposition of percentage based penalty

213. (1) If SARS is satis ed that an amount of tax was not paid as and when requiredunder a tax Act, SARS must, in addition to any other ‘penalty’ or interest for which aperson may be liable under this Chapter, impose a ‘penalty’ equal to the percentage ofthe amount of unpaid tax as prescribed in the tax Act.

(2) In the event of a change to the amount of tax in respect of which a ‘penalty’ wasimposed under subsection (1), the ‘penalty’ must be adjusted accordingly with effectfrom the date of the imposition of the ‘penalty’.

Part D

Procedure

Procedures for imposing penalty

214. (1) A ‘penalty’ imposed under Part B or C is imposed by way of a ‘penaltyassessment’, and if a ‘penalty assessment’ is made, SARS must give notice of theassessment in the format as SARS may decide to the person, including the following:

(a) the non-compliance in respect of which the ‘penalty’ is assessed and itsduration;

(b) the amount of the ‘penalty’ imposed;(c) the date for paying the ‘penalty’;(d) the automatic increase of the ‘penalty’; and(e) a summary of procedures for requesting remittance of the ‘penalty’.

(2) A ‘penalty’ is due upon assessment and must be paid—(a) on or before the date for payment stated in the notice of the ‘penalty

assessment’; or

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(b) where the ‘penalty assessment’ is made together with an assessment of tax, onor before the deadline for payment stated in the notice of the assessment fortax.

(3) SARS must give the taxpayer notice of an adjustment to the ‘penalty’ inaccordance with section 211(2) or 213(2).

Procedure to request remittance of penalty

215. (1) A person who is aggrieved by a ‘penalty assessment’ notice may, on or beforethe date for payment in the ‘penalty assessment’, in the prescribed form and manner,request SARS to remit the ‘penalty’ in accordance with Part E.

(2) The ‘remittance request’ must include—(a) a description of the circumstances which prevented the person from

complying with the relevant obligation under a tax Act in respect of which the‘penalty’ has been imposed; and

(b) the supporting documents and information as may be required by SARS in theprescribed form.

(3) During the period commencing on the day that SARS receives the ‘remittancerequest’, and ending 21 business days after notice has been given of SARS’ decision, nocollection steps relating to the ‘penalty’ amount may be taken unless SARS has areasonable belief that there is—

(a) a risk of dissipation of assets by the person concerned; or(b) fraud involved in the origin of the non-compliance or the grounds for

remittance.(4) SARS may extend the period referred to in subsection (1) if SARS is satis ed

that—(a) the non-compliance in issue is an incidence of non-compliance referred to in

section 216 or 217, and that reasonable grounds exist for the late receipt of the‘remittance request’; or

(b) a circumstance referred to in section 218(2) rendered the person incapable ofsubmitting a timely request.

Part E

Remedies

Remittance of penalty for failure to register

216. If a ‘penalty’ is imposed on a person for a failure to register as and when requiredunder this Act, SARS may remit the ‘penalty’ in whole or in part if—

(a) the failure to register was discovered because the person approached SARSvoluntarily; and

(b) the person has led all returns required under a tax Act.

Remittance of penalty for nominal or rst incidence of non-compliance

217. (1) If a ‘penalty’ has been imposed in respect of—(a) a ‘ rst incidence’ of the non-compliance described in section 210, 212 or 213;

or(b) an incidence of non-compliance described in section 210 if the duration of the

non-compliance is less than ve business days,SARS may, in respect of a ‘penalty’ imposed under section 210 or 212, remit the‘penalty’, or a portion thereof if appropriate, up to an amount of R2 000 if SARS issatis ed that—

(i) reasonable grounds for the non-compliance exist; and(ii) the non-compliance in issue has been remedied.

(2) In the case of a ‘penalty’ imposed under section 212, the R2 000 limit referred toin subsection (1) is changed to R100 000.

(3) In the case of a penalty imposed under section 213, SARS may remit the ‘penalty’,or a portion thereof, if SARS is satis ed that—

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(a) the ‘penalty’ has been imposed in respect of a ‘ rst incidence’ of thenon-compliance described in section 210, 212 or 213, or involved an amountof less than R2 000;

(b) reasonable grounds for the non-compliance exist; and(c) the non-compliance in issue has been remedied.

Remittance of penalty in exceptional circumstances

218. (1) SARS must, upon receipt of a ‘remittance request’, remit the ‘penalty’ or ifapplicable a portion thereof, if SARS is satis ed that one or more of the circumstancesreferred to in subsection (2) rendered the person on whom the ‘penalty’ was imposedincapable of complying with the relevant obligation under the relevant tax Act.

(2) The circumstances referred to in subsection (1) are limited to—(a) a natural or human-made disaster;(b) a civil disturbance or disruption in services;(c) a serious illness or accident;(d) serious emotional or mental distress;(e) any of the following acts by SARS:

(i) a capturing error;(ii) a processing delay;

(iii) provision of incorrect information in an official publication or mediarelease issued by the Commissioner;

(iv) delay in providing information to any person; or(v) failure by SARS to provide sufficient time for an adequate response to a

request for information by SARS;(f) serious nancial hardship, such as—

(i) in the case of an individual, lack of basic living requirements; or(ii) in the case of a business, an immediate danger that the continuity of

business operations and the continued employment of its employees arejeopardised; or

(g) any other circumstance of analogous seriousness.

Penalty incorrectly assessed

219. If SARS is satis ed that a ‘penalty’ was not assessed in accordance with thisChapter, SARS may, within three years of the ‘penalty assessment’, issue an alteredassessment accordingly.

Objection and appeal against decision not to remit penalty

220. A decision by SARS not to remit a ‘penalty’ in whole or in part is subject toobjection and appeal under Chapter 9.

CHAPTER 16

UNDERSTATEMENT PENALTY

Part A

Imposition of understatement penalty

De nitions


‘repeat case’ means a second or further case of any of the behaviours listed underitems (i) to (v) of the understatement penalty percentage table re ected in section223 within ve years of the previous case;‘substantial understatement’ means a case where the prejudice to SARS or thescus exceeds the greater of ve per cent of the amount of ‘tax’properly chargeable

or refundable under a tax Act for the relevant tax period, or R1 000 000;

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'ti1x" means tax as rlefinerl in section 1, excluding a penalty and interest; 'lOX position' mecms cut usswoptiou wu.lcrlyiutt ouc or 1uon: UlilJ(.:<:ts of u tax n:tum. including whetbe.r or not-(nJ an amount .. transaction. evem or item i8 ta.xabJe~ (b) uu wnoWlt or itew is dcductiuk or mny I>< scH>fl: 5 (c) a lower rate of tax than the ma"X.imtmt applicable 10 that class of taxpayer.

lnnL'i.Hclion. cvenl ur item »pplic1:1; or (d) an amount qualifies as a reduction of tax payable: and •muler~Latemenl • mean,; any prejudice to SARS or the fi.fctu in respect of a rax period us a r<'Suh of- I 0 (a} a default in rendering a retum: (b) an omission from a remm: (c) an in<:ort«t s tatement in a return: or (d) if no retum is required, tlte failure to pay th.e cotTect amount of •tax·.

Understatement penni!)' I 5

222. (1) In the evenl of au 'understatemeJU' by n ta.xp:.tyer, the c·a.xp.1ye.r mus1 pay, in addition to tlu: •tax' payable for rhe n:lcvaut Lax pcri(x(, Lllc: undc:n;tah:mcnl penalty detenuined under subsec:cion (2).

(2) The unde1'8tatement (l<'Mity is rhe amount re.•mlting fi·om applying the highe..r upplicublc tuldcrslatcmcnl pctllllty p(.X<;~Illugc in n<.:corda.ucc with lb~ lab).: iu ~<:lion 20 223 to the sbortfufl determined Wlder subsections (3) and (4).

(3) 11re shortfall i.s rhe sum of-( a ) tlu: diJl'Crcuc~ between ll1c wuotmt of ' tax· p1upcrly chfl.f)l:~nblc for the tux.

pe~iod and dre rullOWl! of 'tax' rhat would bave beeu cb~eoble if the ·wldl!'rs-lnlcmcl&t' W~.-"n! accL-plt.!d~ 25

(b) the. difference between the amount properly refundable for the tax period nnd the ;\mount that would have been refimrlable if the ' tutderstatemenf were accepted: and

(CJ the ditfereuce between the :.tmotmt of a.n assessed loss o.r any other benefit to tile: litxpayer properly carried forward (rc)m lhc. tax Jk:l;od to a ~ucccc:diug l.tlx. 30 period and the amount t.lmt would have been cru"ried tOrwnrd if the ' tmderstatemem ' were accepted. mulriplied by the tax rate detem1ined tmder sul>sootion (5).

(4) If an ' rmderstotement' results in a difterence under both pomgraphs (a) rurd (b) of subsection (3), rhe shortfall must be reduced by the amount of any duplication berween 35 the pum)<mpW..

(S) l11c Ulx 11th! is lhC! maximum IHx NIIC! applicable In !lu:.- IAxpaycr, ignoring nn assessed loss or any other benefit brou~t forward from a precedin~ tax period to the ta."X period.

Understatement penal!)' 1>erceutage tnble

223. (1) Tiu: lUJdcrsuucw<:ut lJCunhy pcrccuta)IC toblc: is Wi folJows;

1 2 3 4 5 6 Item BeJmviour Standard If obstruc· Voluntary Voluntary

case live, or if d~losure disclosure it is a ' re- after uoti· before peat r ..... 'lse' fication of notifira.

audit tiou of audit

(i) 'Substantial tmder-statement'

25% 50"/o 5% 0%

(ii) Reasonable cnt·e not 50% 75% 25% 0% taken iu completing rettun

(iii) No reasonable grounds for ' tax t>osition' taken

75% 100% 35% 0%

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1 2 3 4 5 6 Item BdiRviout' Standard If obstruc· Voluuta.-y Voluutary

case live, or if disclosure disclosure it is a ' re- after noli· before peat r.asc' lication of notifica-

audit lion of audit

(iv) Gross negligence 100% 125% 50% 5% (v) lntentionallllx evasion 150% 200% 75% 1()0/o

(2) An undcndah::mcml pcuahy fi>r whic.:b pmvi.siou is macle uucta this Cl1aptc:r i$ also chargeable in case.s wbere-

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(nJ an a~se~~ment based on an e~timat1nn nnrler ~eclion 95 i~ m:.trle: or 25 (b) w• ussessmout agreed upou wilb lbo ta.xpay<T under scetiou 95(3) is issued.

(3) SARS must remit n 'peunlty' in1posed for a 'substantial understatement' ifSARS is Slltisfied th>1 the '"P"Y<~'-

(o) mad\: full disdostm: of tb~.: atnw~~w~o:ut, as defined iu SC<:Iiou 34·, tluu ~a\tc rise to the prejudice to SARS or the fisetts by no Inter dum the date th:u the 30 rclcwud 1'Ciw1' wa!O due~ nucl

{b) was in possession of an opinion by a registere-d ta't practitioner. as defined in section 2.:19, tluu-(i) wns issm.:d by uo hlt!:r tluu1 the.: dale l.l:Uillln: r4.'lcVBllt r4.'twn was due:

(ii) took account of the specific fuc5 and eiJcmnstances of the arrangement: 35 aud

{iii) ~onfun1ed that the ta.xpayer's position is more like.ly than not to be upheld if the matter Jlroceed\ to courl

Ohjec·tion ancl apJU~aJ ag:dwst dPdSiun not 10 N:ntil under.)lalemPnl prn:llty

224. A decision by SARS not to rentit \Ul undcrntiltcmem pen.1Jty is subject to 40 objccliou nud uppc.al 1mdcr Chapte~· 9.

l'nrt B

Volultlary disclosure programme

Definitions

225. Tu thi!\ Pnr1, lUllc.-ss tl1c contcxl indicates otherwise, tl1c fu l!uwius. lcnu, i( iu 45 s ingle quotation mnrks, has the tOllowing meaning:

•defauH' means the !iHbmission of inacc-urate n1· incomplete infottmuion to SARS. or the.: failure to submit iufonuatiou or the adopliou of a ' tax position', where sudt submission. non-!tubmission, or adoption resulted in-(a) 1lu: laXJ~yc:.r nor hc:iug <1$Stt~d f<.n· the c<;nn:cl ~unow11 of f2tx: SO {b) the c:·orrect nn1ow1l of tax no1 being paid by tbe taxpayer. or (c) an incorrect t•efimd being made by SARS.

Qwtlifyiug pe.rsou for vuluutary clisclosure

Z26. ( 1) A !'<'!'SOD may apply, whether in a personal. represeunuive, withholding or other capacity, for voluntury cliscloSW'C relief, nnlcss tlu11 pcrSou is awHn.' of- 55

(a> a peudinJ! audit or investigation into the afl'airs of the person se-eking relief: or (b) an (Uldlt or inve.stigatjon d1at has commenced, but has not yet been concluded.

(2) Ascuior SARS ofiidal muy direct tlmt n p<Non may apply for voluutnry dis<:losw1: rellet; despite the provisions of subsection (1), where the official is ofth.e view. having regard to 1he ci1'cunu:tance:s: and ambit of the audit or investigation. that- 60


(a) the ‘default’ in respect of which the person wishes to apply for voluntarydisclosure relief would not otherwise have been detected during the audit orinvestigation; and

(b) the application would be in the interest of good management of the tax systemand the best use of SARS’ resources.

(3) A person is deemed to be aware of a pending audit or investigation, or that theaudit or investigation has commenced, if—

(a) a representative of the person;(b) an officer, shareholder or member of the person, if the person is a company;(c) a partner in partnership with the person;(d) a trustee or bene ciary of the person, if the person is a trust; or(e) a person acting for or on behalf of or as an agent or duciary of the person,

has become aware of a pending audit or investigation, or that the audit or investigationhas commenced.

Requirements for valid voluntary disclosure

227. The requirements for a valid voluntary disclosure are that the disclosure must—(a) be voluntary;(b) involve a ‘default’which has not previously been disclosed by the applicant or

a person referred to in section 226(3);(c) be full and complete in all material respects;(d) involve the potential imposition of an understatement penalty in respect of the

‘default’;(e) not result in a refund due by SARS; and(f) be made in the prescribed form and manner.

No-name voluntary disclosure

228. A senior SARS official may issue a non-binding private opinion, as de ned insection 75, as to a person’s eligibility for relief under this Part, if the person providessufficient information to do so, which information need not include the identity of anyparty to the ‘default’.

Voluntary disclosure relief

229. Despite the provisions of a tax Act, SARS must, pursuant to the making of a validvoluntary disclosure by the applicant and the conclusions of the voluntary disclosureagreement under section 230—

(a) not pursue criminal prosecution for a statutory offence under a tax Act arisingfrom the ‘default’ or a related common law offence;

(b) grant the relief in respect of any understatement penalty to the extent referredto in column 5 or 6 of the understatement penalty percentage table insection 223; and

(c) grant 100 per cent relief in respect of an administrative non-compliancepenalty that was or may be imposed under Chapter 15 or a penalty imposedunder a tax Act, excluding a penalty imposed under that Chapter or in terms ofa tax Act for the late submission of a return or a late payment of tax.

Voluntary disclosure agreement

230. The approval by a senior SARS official of a voluntary disclosure application andrelief granted under section 229, must be evidenced by a written agreement betweenSARS and the qualifying person who is liable for the outstanding tax in the prescribedformat and must include details on—

(a) the material facts of the ‘default’ on which the voluntary disclosure relief isbased;

(b) the amount payable by the person, which amount must separately re ect theunderstatement penalty payable;

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(c) the arrangements and dates for payment; and(d) relevant undertakings by the parties.

Withdrawal of voluntary disclosure relief

231. (1) In the event that, subsequent to the conclusion of a voluntary disclosureagreement under section 230, it is established that the applicant failed to disclose amatter that was material for purposes of making a valid voluntary disclosure undersection 227, a senior SARS official may—

(a) withdraw any relief granted under section 229;(b) regard an amount paid in terms of the voluntary disclosure agreement to

constitute part payment of any further outstanding tax in respect of therelevant ‘default’; and

(c) pursue criminal prosecution for a statutory offence under a tax Act or a relatedcommon law offence.

(2) Any decision by the senior SARS official under subsection (1) is subject toobjection and appeal.

Assessment or determination to give effect to agreement

232. (1) If a voluntary disclosure agreement has been concluded under section 230,SARS may, despite anything to the contrary contained in a tax Act, issue an assessmentor make a determination for purposes of giving effect to the agreement.

(2) An assessment issued or determination made to give effect to an agreement undersection 230 is not subject to objection and appeal.

Reporting of voluntary disclosure agreements

233. (1) The Commissioner must annually provide to the Auditor-General and to theMinister a summary of all voluntary disclosure agreements concluded in respect ofapplications received during the period.

(2) The summary must—(a) subject to section 70(5), not disclose the identity of the applicant, and must be

submitted at such time as may be agreed between the Commissioner and theAuditor-General or Minister, as the case may be; and

(b) contain details of the number of voluntary disclosure agreements and theamount of tax assessed, which must be re ected in respect of main classes oftaxpayers or sections of the public.

CHAPTER 17

CRIMINAL OFFENCES

Criminal offences relating to non-compliance with tax Acts

234. A person who wilfully and without just cause—(a) fails or neglects to register or notify SARS of a change in registered

particulars as required in Chapter 3;(b) fails or neglects to appoint a representative taxpayer or notify SARS of the

appointment or change of a representative taxpayer as required undersection 153 or 249;

(c) fails or neglects to register as a tax practitioner as required under section 240;(d) fails or neglects to submit a return or document to SARS or issue a document

to a person as required under a tax Act;(e) fails or neglects to retain records as required under this Act;(f) submits a false certi cate or statement under Chapter 4;(g) issues an erroneous, incomplete or false document required under a tax Act to

be issued to another person;(h) refuses or neglects to—

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(i) furnish, produce or make available any information, document or thing,excluding information requested under section 46(8);

(ii) reply to or answer truly and fully any questions put to the person by aSARS official;

(iii) take an oath or make a solemn declaration; or(iv) attend and give evidence,as and when required in terms of this Act;

(i) fails to comply with a directive or instruction issued by SARS to the personunder a tax Act;

(j) fails or neglects to disclose to SARS any material facts which should havebeen disclosed under this Act or to notify SARS of anything which the personis required to so notify SARS under a tax Act;

(k) obstructs or hinders a SARS official in the discharge of the official’s duties;(l) refuses to give assistance required under section 49(1);(m) holds himself or herself out as a SARS official engaged in carrying out the

provisions of this Act;(n) fails or neglects to comply with the provisions of sections 179 to 182, if that

person was given notice by SARS to transfer the assets or pay the amounts toSARS as referred to in those sections; or

(o) dissipates that person’s assets or assists another person to dissipate that otherperson’s assets in order to impede the collection of any taxes, penalties orinterest,

is guilty of an offence and, upon conviction, is subject to a ne or to imprisonment fora period not exceeding two years.

Criminal offences relating to evasion of tax

235. (1) A person who with intent to evade or to assist another person to evade tax orto obtain an undue refund under a tax Act—

(a) makes or causes or allows to be made any false statement or entry in a returnor other document, or signs a statement, return or other document sosubmitted without reasonable grounds for believing the same to be true;

(b) gives a false answer, whether orally or in writing, to a request for informationmade under this Act;

(c) prepares, maintains or authorises the preparation or maintenance of falsebooks of account or other records or falsi es or authorises the falsi cation ofbooks of account or other records;

(d) makes use of, or authorises the use of, fraud or contrivance; or(e) makes any false statement for the purposes of obtaining any refund of or

exemption from tax,is guilty of an offence and, upon conviction, is subject to a ne or to imprisonment fora period not exceeding ve years.

(2) Any person who makes a statement in the manner referred to in subsection (1)must, unless the person proves that there is a reasonable possibility that he or she wasignorant of the falsity of the statement and that the ignorance was not due to negligenceon his or her part, be regarded as guilty of the offence referred to subsection (1).

(3) A senior SARS official may lay a complaint with the South African Police Serviceor the National Prosecuting Authority regarding an offence contemplated in sub-section (1).

Criminal offences relating to secrecy provisions

236. A person who contravenes the provisions of section 67(2) or (3), 68(2), 69(1) or(6) or 70(5) is guilty of an offence and, upon conviction, is subject to a ne or toimprisonment for a period not exceeding two years.

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Criminal offences relating to ling return without authority

237. A person who—(a) submits a return or other document to SARS under a forged signature;(b) uses an electronic or digital signature of another person in an electronic

communication to SARS; or(c) otherwise submits to SARS a communication on behalf of another person,

without the person’s consent and authority, is guilty of an offence and, upon conviction,is subject to a ne or to imprisonment for a period not exceeding two years.

Jurisdiction of courts in criminal matters

238. A person charged with a tax offence may be tried in respect of that offence by acourt having jurisdiction within any area in which that person resides or carries onbusiness, in addition to jurisdiction conferred upon a court by any other law.

CHAPTER 18

REPORTING OF UNPROFESSIONAL CONDUCT

De nitions

239. In this Chapter, unless the context otherwise indicates, the following terms, if insingle quotation marks, have the following meanings:

‘controlling body’ means a body established, whether voluntarily or under a law,with power to take disciplinary action against a person who, in carrying on aprofession, contravenes the applicable rules or code of conduct for the profession;and‘registered tax practitioner’ means a practitioner registered under section 240.

Registration of tax practitioners

240. (1) Every natural person who—(a) provides advice to another person with respect to the application of a tax Act;

or(b) completes or assists in completing a document to be submitted to SARS by

another person in terms of a tax Act,must register with SARS as a tax practitioner, in such form as the Commissioner maydetermine, within 30 days after the date on which that person for the rst time providesadvice or completes or assists in completing any such document.

(2) The provisions of this section do not apply in respect of a person who—(a) provides the advice or completes or assists in completing a document solely

for no consideration to that person or his or her employer or a connectedperson in relation to that employer or that person;

(b) provides the advice solely in anticipation of or in the course of any litigationto which the Commissioner is a party or where the Commissioner is acomplainant;

(c) provides the advice solely as an incidental or subordinate part of providinggoods or other services to another person;

(d) provides the advice or completes or assists in completing a document solely—(i) to or in respect of the employer by whom that person is employed on a

full-time basis or to or in respect of that employer and connected personsin relation to that employer; or

(ii) under the direct supervision of a person who is registered as a taxpractitioner in terms of subsection (1).

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(3) A person may not register as a tax practitioner under subsection (1) if the person—(a) during the preceding ve years has been removed from a related profession;

and(b) during the preceding ve years has been convicted (whether in the Republic or

elsewhere) of—(i) theft, fraud, forgery or uttering a forged document, perjury or an offence

under the Prevention and Combating of Corrupt Activities Act, 2004(Act No. 12 of 2004); or

(ii) any other offence involving dishonesty,for which the person has been sentenced to a period of imprisonmentexceeding two years without the option of a ne or to a ne exceeding theamount prescribed in the Adjustment of Fines Act, 1991 (Act No. 101 of1991).

Complaint to controlling body of tax practitioner

241. A senior SARS official may lodge a complaint with a ‘controlling body’ if a‘registered tax practitioner’ or person who carries on a profession governed by the‘controlling body’, did or omitted to do anything with respect to the affairs of a taxpayer,including that person’s affairs, that in the opinion of the official—

(a) was intended to assist the taxpayer to avoid or unduly postpone theperformance of an obligation imposed on the taxpayer under a tax Act;

(b) by reason of negligence on the part of the person resulted in the avoidance orundue postponement of the performance of an obligation imposed on thetaxpayer under a tax Act; or

(c) constitutes a contravention of a rule or code of conduct for the professionwhich may result in disciplinary action being taken against the ‘registered taxpractitioner’ or person by the body.

Disclosure of information regarding complaint and remedies of taxpayer

242. (1) Despite section 69, the senior SARS official lodging a complaint undersection 241 may disclose the information relating to the person’s tax affairs as in theopinion of the official is necessary to lay before the ‘controlling body’ to which thecomplaint is made.

(2) Before a complaint is lodged or information is disclosed, SARS must deliver to thetaxpayer and the person against whom the complaint is to be made noti cation of theintended complaint and information to be disclosed.

(3) The taxpayer or that person may, within 21 business days after the date of thenoti cation, lodge with SARS an objection to the lodging of the complaint or disclosureof the information.

(4) If on the expiry of that period of 21 business days no objection has been lodged or,if an objection has been lodged and SARS is not satis ed that the objection should besustained, a senior SARS official may thereupon lodge the complaint as referred to insection 241.

Complaint considered by controlling body

243. (1) The complaint is to be considered by the ‘controlling body’ according to itsrules.

(2) A hearing of the matter where details of a person’s tax affairs will be disclosed,may be attended only by persons whose attendance, in the opinion of the ‘controllingbody’, is necessary for the proper consideration of the complaint.

(3) The ‘controlling body’ and its members must preserve secrecy in regard to theinformation as to the affairs of a person as may be conveyed to them by SARS or as mayotherwise come to their notice in the investigation of the complaint and must notcommunicate the information to a person other than the person concerned or the personagainst whom the complaint is lodged, unless the disclosure of the information isordered by a competent court of law.

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CHAPTER 19

GENERAL PROVISIONS

Deadlines

244. (1) If—(a) a day noti ed by SARS or speci ed in a tax Act for payment, submission or

other action; or(b) the last day of a period within which payment, submission or other action

under a tax Act must be made,falls on a Saturday, Sunday or public holiday, the action must be done not later than thelast business day before the Saturday, Sunday or public holiday.

(2) The Commissioner may prescribe the time of day by which a payment, submissionor other action must be done, and if it is done after that time on the day it is regarded asdone on the rst business day following the speci ed day.

(3) If SARS is authorised to extend a deadline, the application for extension must besubmitted to SARS in the prescribed form before the deadline expires unless—

(a) reasonable grounds exist for the delay and the application is submitted within21 days of the deadline; or

(b) the delay is due to a circumstance referred to in section 218(2)(a) to (e) or anyother circumstance of analogous seriousness and the application is submittedwithin three years of the deadline.

Power of Minister to determine date for submission of returns and payment of tax

245. (1) Despite any other provision of a tax Act, if the date for the submission of areturn or the payment of tax is the last day of the nancial year of the Government, theMinister may by public notice prescribe any other date for submission of the return andpayment of the tax, which date must not fall on a day more than two business days priorto the last day of that year.

(2) The notice contemplated in subsection (1) must be published at least 21 businessdays prior to the date so prescribed by the Minister.

Public officers of companies

246. (1) Every company carrying on business or having an office in the Republic mustat all times be represented by an individual residing in the Republic.

(2) The individual representative under subsection (1) must be—(a) a person who is a senior official of the company and is approved by SARS;(b) appointed by the company or by an agent or attorney who has authority to

appoint such a representative for the purposes of a tax Act;(c) called the public officer of the company; and(d) appointed within one month after the company begins to carry on business or

acquires an office in the Republic.(3) If a public officer is not appointed as required under this section, the public officer

is the managing director, director, secretary or other officer of the company that SARSdesignates for that purpose.

(4) A company covered by this section that has not appointed a public officer is subjectto a tax Act, the same as if a tax Act did not require the public officer to be appointed.

(5) A public officer is responsible for all acts, matters, or things that the public officer’scompany must do under a tax Act, and in case of default, the public officer is subject topenalties for the company’s defaults.

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(6) A public officer’s company is regarded as having done everything done by thepublic officer in the officer’s representative capacity.

(7) If SARS is of the opinion that a person is no longer suitable to represent thecompany as public officer SARS may withdraw its approval under subsection (2)(a).

Company address for notices and documents

247. (1) A company referred to in section 246(1) must, within the period referred toin section 246(2)(d), appoint a place within the Republic approved by SARS at whichSARS may serve, deliver or send the company a notice or other document provided forunder a tax Act.

(2) Every notice, process, or proceeding which under a tax Act may be given to,served upon or taken against a company referred to in section 246(1), may be given to,served upon, or taken against its public officer, or if at any time there is no public officer,any officer or person acting or appearing to act in the management of the business oraffairs of the company or as agent for the company.

Public officer in event of liquidation or winding-up

248. In the event of a company referred to in section 246(1) being placed in voluntaryor compulsory liquidation, the liquidator or liquidators duly appointed are required toexercise in respect of the company all the functions and assume all the responsibilitiesof a public officer under a tax Act during the continuance of the liquidation.

Default in appointing public officer or address for notices or documents

249. (1) No appointment is deemed to have been made under section 246(2) untilnotice thereof specifying the name of the public officer and an address for service ordelivery of notices and documents has been given to SARS.

(2) A company must—(a) keep the office of public officer constantly lled and must at all times maintain

a place for the service or delivery of notices in accordance withsection 247(1); and

(b) notify SARS of every change of public officer or the place for the service ordelivery of notices within 21 business days of the change taking effect.

Authentication of documents

250. (1) A form, notice, demand or other document issued or given by or on behalf ofSARS or a SARS official under a tax Act is sufficiently authenticated if the name ofSARS or the name or official designation of the SARS official is stamped or printed onit.

(2) A return made or purporting to be made or signed by or on behalf of a person isregarded as duly made and signed by the person affected unless the person proves thatthe return was not made or signed by the person or on the person’s behalf.

(3) Subsection (2) applies to other documents submitted to SARS by or on behalf ofa person.

Delivery of documents to persons other than companies

251. If a tax Act requires or authorises SARS to issue, give, send, or serve a notice,document or other communication to a person (other than a company), SARS isregarded as having issued, given, sent or served the communication to the person if—

(a) handed to the person;

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(b) left with another person over 16 years of age apparently residing or employedat the person’s last known residence, office or place of business;

(c) sent to the person by post to the person’s last known address, whichincludes—(i) a residence, office or place of business referred to in paragraph (b); or

(ii) the person’s last known post office box number or that of the person’semployer; or

(d) sent to the person’s last known electronic address, which includes—(i) the person’s last known email address; or

(ii) the person’s last known telefax number.

Delivery of documents to companies

252. 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) delivered 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 thatof 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; or

(ii) last known telefax number.

Documents delivered deemed to have been received

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

(2) Subsection (1) does not apply if—(a) SARS is satis ed 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 satis ed that—

(a) a notice, document or other communication (other than a notice ofassessment) issued, given, sent or served in a manner referred to in section 251or 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 havebeen 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.

Defect does not affect validity

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

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(2) A notice of assessment or other notice or document issued under a tax Act is notto be considered invalid or ineffective by reason of defects if it is, in substance andeffect, in conformity with this Act, and the person assessed or affected by the notice ordocument is designated in it according to common understanding.

Rules for electronic communication

255. (1) The Commissioner may by public notice make rules prescribing—(a) the procedures for submitting a return in electronic format, and for other

electronic communications between SARS and other persons; and(b) requirements for an electronic or digital signature of a return or communica-

tion.(2) SARS may, in the case of a return or other document submitted in electronic

format, accept an electronic or digital signature as a valid signature for purposes of a taxAct if a signature is required.

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

Tax clearance certi cate

256. (1) A taxpayer may apply to SARS for a tax clearance certi cate in the prescribedform and manner.

(2) SARS must issue or decline to issue the certi cate within 21 business days fromthe date the application is duly led.

(3) A senior SARS official may provide a taxpayer with a tax clearance certi cate onlyif satis ed that the taxpayer is registered for tax and does not have any—

(a) tax debt outstanding, excluding a tax debt contemplated in section 167 or 204or a tax debt that has been suspended under section 164 or does not exceed theamount referred to in section 169(4); or

(b) outstanding return unless an arrangement acceptable to SARS has been madefor the submission of the return.

(4) A tax clearance certi cate must be in the prescribed form and include at least—(a) the tax clearance certi cate reference number assigned to the certi cate and

re ected in the records of SARS;(b) the name, taxpayer reference number, address and identity number or

company registration number of the taxpayer;(c) the date of the application for a certi cate;(d) a statement that the taxpayer has no outstanding tax debts as at the date of the

certi cate; and(e) the expiry date of the certi cate.

(5) Despite the provisions of Chapter 6, SARS may con rm the validity and expirydate of the certi cate upon request by a sphere of government or parastatal.

(6) SARS may withdraw a certi cate with effect from the date of the issue thereof ifthe certi cate—

(a) was issued in error; or(b) was obtained on the basis of fraud, misrepresentation or non-disclosure of

material facts.

Regulations by Minister

257. (1) The Minister may make regulations regarding—(a) any ancillary or incidental administrative or procedural matter that it is

necessary to prescribe for the proper implementation or administration of thisAct; and

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(b) any matter which under this Act is required or permitted to be prescribed.(2) The Minister may, after consultation with the Tax Ombud, make regulations

regarding—(a) the proceedings of the Tax Ombud; and(b) the limitations on the jurisdiction of the Tax Ombud, having regard to—

(i) the factual or legal complexity of any complaint dealt with by the TaxOmbud;

(ii) the nature of the taxpayer whose complaint is dealt with by the TaxOmbud; and

(iii) the maximum amount involved in the dispute between the taxpayer andSARS.

(3) For purposes of the regulations referred to in paragraph (e) of the de nition of‘‘biometric information’’ in section 1, the Minister must publish the draft regulations inthe Gazette for public comment and submit the draft regulations to Parliament forparliamentary scrutiny at least 30 days before the draft regulations are published.

CHAPTER 20

TRANSITIONAL PROVISIONS

New taxpayer reference number

258. If a person has been allocated a taxpayer, tax or other reference number forpurposes of a tax Act before the promulgation of this Act, the number remains in forceuntil the time that SARS allocates a taxpayer reference number to the person undersection 24 for purposes of the relevant tax type.

Appointment of Tax Ombud

259. (1) The Minister must appoint a person as Tax Ombud under section 14 withinone year of the commencement date of this Act.

(2) The rst Tax Ombud appointed under this Act may not review a matter that arosemore than one year before the day on which the Tax Ombud is appointed, unless theMinister requests the Tax Ombud to do so.

Provisions relating to secrecy

260. A person who took and subscribed to an oath or solemn declaration of secrecyunder a tax Act before the commencement date of this Act is regarded as having takenand subscribed to the oath or solemn declaration under section 67(2).

Public officer previously appointed

261. A public officer appointed or regarded as appointed under a tax Act and holdingoffice immediately before the commencement date of this Act, is regarded as a publicofficer appointed under this Act.

Appointment of chairpersons of tax board

262. An attorney or advocate appointed to the panel of persons who may serve aschairpersons of the tax board under a tax Act, who is on that panel immediately beforethe commencement date of this Act, is regarded as appointed under the provisions ofsection 111 until the earlier of—

(a) the expiry of the attorney or advocate’s appointment under the provisionspreviously in force; or

(b) termination of the attorney or advocate’s appointment under section 111(3).

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Appointment of members of tax court

263. A member of the tax court appointed under a tax Act who is a memberimmediately before the commencement date of this Act is regarded as appointed underthe provisions of section 120(1) until the expiry of his or her term of office in terms ofthe provisions previously in force, or until his or her appointment in terms ofsection 120(4) is terminated or lapses.

Continuation of tax board, tax court and court rules

264. (1) A tax board or tax court that was established under a tax Act and existsimmediately before the commencement date of this Act, is regarded as established undersection 108 or 116, respectively, of this Act.

(2) Rules of court issued by the Minister under a tax Act that are in force immediatelybefore the commencement date of this Act continue in force as if they were issued undersection 103.

Continuation of appointment to a post or office or delegation by Commissioner

265. (1) A person appointed to a post or office or delegated by the Commissionerunder the SARS Act or a tax Act, which appointment or delegation is in forceimmediately before the commencement date of this Act, is regarded as appointed ordelegated under this Act.

(2) Subsection (1) applies until the person is so appointed or delegated under this Actor the appointment or delegation is withdrawn.

Continuation of authority to audit

266. If a SARS official was issued a letter authorising the official to audit under a taxAct, and the letter is in force immediately before the commencement date of this Act, theletter is regarded as issued to the official under section 41.

Conduct of inquiries and execution of search and seizure warrants

267. (1) If the Commissioner authorised an inquiry under a tax Act and a judgegranted an order designating a person to act as presiding officer in the inquiry before thecommencement date of this Act, the inquiry is regarded as authorised under sections 50and 51.

(2) If a judge issued a search and seizure warrant under a tax Act that has not beenexecuted before the commencement date of this Act, the warrant is regarded as issuedunder section 60.

Application of Chapter 15

268. Chapter 15 applies to non-compliance resulting from a continuous failure by aperson to comply with an obligation that exists on the date a notice referred to insection 210(2) comes into effect, in which case the date on which the non-complianceoccurred will be regarded as the date that notice came into effect.

Continuation of authority, rights and obligations

269. (1) Rules and regulations issued under the provisions of a tax Act repealed bythis Act that are in force immediately before the commencement date of this Act, remainin force as if they were issued under section 103 or 257, respectively, to the extentconsistent with this Act.

(2) Forms prescribed under the authority of a tax Act before the commencement dateof this Act, and in use immediately before the date of commencement of this Act, areconsidered to have been prescribed under the authority of this Act, to the extentconsistent with this Act.

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(3) Rulings and opinions issued under the provisions of a tax Act repealed by this Actand in force immediately before the commencement date of this Act, which have notbeen revoked, are regarded as having been issued under the authority of this Act to theextent relevant to and consistent with this Act.

(4) An order of a court under the authority of a tax Act and in force immediatelybefore the commencement date of this Act, continues to have the same force and effectas if the provisions had not been repealed or amended, subject to any further order of thecourt.

(5) A right or entitlement enjoyed by, or obligation imposed on, a person under therepealed or amended provisions of a tax Act, that had not been exercised or compliedwith before the commencement date of this Act, is a valid right or entitlement of, orobligation imposed on, that person in terms of any comparable provision of this Act, asfrom the date that the right, entitlement or obligation rst arose, subject to the provisionsof this Act.

(6) The commission of an offence before the commencement date of this Act whichis a statutory offence under the provisions of a tax Act repealed by this Act, may beinvestigated by SARS, in the manner referred to in Chapter 5, and prosecuted as if thestatutory offence remained in force.

Application of Act to prior or continuing action

270. (1) Subject to this Chapter, this Act applies to an act, omission or proceedingtaken, occurring or instituted before the commencement date of this Act, but withoutprejudice to the action taken or proceedings conducted before the commencement dateof the comparable provisions of this Act.

(2) The following actions or proceedings taken or instituted under the provisions of atax Act repealed by this Act but not completed by the commencement date of thecomparable provisions of this Act, must be continued and concluded under theprovisions of this Act as if taken or instituted under this Act:

(a) a decision by a SARS official in terms of a statutory power to do so;(b) a request by a person for the withdrawal or amendment of a decision or notice

by SARS, registration for tax, form of record keeping, information, taxpayerrecord, advance ruling, refund, reduced assessment, suspension of a disputedtax debt, deferral, write off, compromise or waiver of a tax debt and theremittance of interest or a penalty;

(c) an inspection, veri cation, request for information, audit, criminal investiga-tion, inquiry or search and seizure;

(d) an objection, appeal to the tax board, tax court or higher court, alternativedispute resolution, settlement discussions or other related High Courtapplication;

(e) suspension of a disputed tax debt;(f) a deferment, write off or compromise of a tax debt; or(g) recovery of a tax debt, including the appointment of an agent to satisfy a tax

debt, execution of a civil judgment or sequestration, liquidation or winding-upinstituted by SARS or any other related court application.

(3) A form, notice, demand or other document issued, given or received by a personor SARS under the provisions of a tax Act repealed by this Act, must be regarded asissued, given or received in terms of any comparable provision of this Act, as from thedate that the form, notice, demand or other document was issued, given or receivedunder the repealed provisions.

(4) A record kept or retained by a person as required under the provisions of a tax Actrepealed by this Act, must be regarded as kept or retained as required under thecomparable provisions of this Act from the date that record was kept or retained underthe repealed provisions of the tax Act.

(5) If the period for an application, objection, appeal or prosecution had expiredbefore the commencement date of this Act, nothing in this Act may be construed as

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enabling the application, objection, appeal or prosecution to be made under this Act byreason only of the fact that a longer period is speci ed in this Act.

(6) Additional tax, penalty or interest which but for the repeal of the legislation inSchedule 1 would have been capable of being imposed, levied, assessed or recovered bythe commencement date of this Act, and which has not been imposed, levied, assessedor recovered by the commencement date of this Act, may be—

(a) imposed or levied as if the repeal had not been effected; and(b) assessed and recovered under this Act.

(7) Interest arising before the commencement date of this Act must be—(a) calculated in accordance with the relevant tax Act until the commencement

date; and(b) regarded as interest due under this Act from the commencement date of the

comparable provisions of this Act.(8) Interest arising on or after the commencement date of this Act but before the date

prescribed by the Commissioner under section 187(2) must be—(a) calculated in accordance with the relevant tax Act until the date prescribed by

the Commissioner; and(b) regarded as interest due under this Act.

Amendment of legislation

271. The Acts listed in Schedule 1 are amended to the extent set out in that Schedule.

Short title and commencement

272. (1) This Act is called the Tax Administration Act, 2011, and comes into operationon a date to be determined by the President by proclamation in the Gazette.

(2) The President may determine different dates for different provisions of this Act tocome into operation.

(3) Subparagraphs (g), (h), (i) and (j) of paragraph 60 of Schedule 1 come intooperation on the date on which Part VIII of Chapter II of the Income Tax Act, 1962,comes into operation.

(4) Paragraph 78 of Schedule 1 is deemed to have come into operation on 1 January2011 and applies in respect of premiums incurred on or after that date.

(5) Paragraph 184 of Schedule 1 is deemed to have come into operation on 1 March2010 and applies in respect of a mineral resource transferred on or after that date.

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19S No J.).491

Act No, 23 or 2011

No. nud ytnr Act ~o. JO or 19.19

Shon Ullr

SCHF.DUI.E I

SE<..' TI0:-1 271

OOVERN.\t£NTOAZE"nc. 4 JULY2Ut2

T~ Aduuntdl"ilhon Ac:.t, lOll

Extent of amcndmrUI or rr~ •~tansr~r Omy Act, Ammdm~nt or 5Ktlon 1 19J 9

I . S.Ction I of the Tmnsfrr Duty Act. 1949. is bcreby am<.:udcd-(n ) by the suhsrirunon for •h• definmon

of -commission..-- of !be foUowwg dclinitiou;

•· • Corurui~sionf'r" IUc.aJ~ lh~ Commissioner for !be Soulb Afri-f:an Revenue Ser\;c:e appointed in ll!tlOS o( St.-"Clion 6 o( the South AfiicBIJ Rc\-cnuc Service Ac1. 1997 (Act No. J~ of 1997}. or the Actinl! Conunissioner desi2Jl3ted in tet'fUS. of section 7 of ~llll A<l: " :

(IJ) by the insertion after the definition of "spouse· of the following. definition;

•• 'lil.~ Adminislrntion Act· menus rhe Ta.x Admini~rratinn Act, 20 J J: ••:

(c) by ilie renumbering of section I to section I ( I}: and

(d) by tl.<: insertion ancr suhscceiuu ( I) of th .. fnllnwing .~<:nh~tHrlnn•

"'{2) Unless lhe context indicate!t otbt..T\visc. a word or CXJZ!I.'SSiou to which a me311ina ha.\ been a.~c:i'ltled in lhe Ta'< Administrntion Act bean tlmt mcunimc for EW'I>OSCS uf lhis Aa.·•.

Amtndmtut or section 3 2. S.Crion 3 of d1e Tratl${er lJwy Ac~

1949. is hereby runetded (a ) by lbo: >ubstitution for subi<.-..1iou ( lA)

of the followi"!' wb<ection: " (lA) Where a pet'OO wbo ac-

quirn any propaty COUI<.'UJI'lalc-.1 in ~ (d). (~J or (gJ of me definition of "propeny .. fails 10 poy the duty within the period contcm-plakd in subs<:ction ( t). the IMtblio oJEe.r [as defiMd in st'Ciiou 101 ol lbt Income Tax Act, 1962 (Act No. 58 or 1962).1 of that c:owp;wy HUd the person from whom the sham or member's interest are acquired sb.'lll be jointly Wld •• , . .,,Uy liobl< for such duty: Provided that the public officer or person from whom !be



No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll sburc:; or mc.:w\K.'t·'s iutcn:sl was acquin-d, mt~y r..:CoYcr any tt.muunl of dmy p•id [by him or her] in teiDlS of this subsection [from-(u) the person who so ncqui1·ecl

Lhal pn•perly: ur (b) In the ra~ ofa pubUc officer,

from that COIJI(lOIIY] iu a<-cordance with sec-tion 16U of tbe Ta.x Adnllni.stration Act4 ":

(b) by tlJc suUslhutiou for aubsc~t:iou {1 n) of the following subsect-ion:

--(IS) Where a porsou who ac-<1uin:s any property coutt:mplatcd in parogroph (/) of the definition of ''prop~·ttyn rails to pny llu! duly within the period contemplated in subsoction (I}_ the uust and [the trusters] rt.:Er«.'Stutativc lfiXi!!!:tCr of tbot mtSr •hall be jointly and ..,.,·eraUy liable for such duty: Pro-vided tlml cite trusl or [truster] r~resenuuive mx~yer mily re-cover nny amount of duty paid in tcruts of this subs.;.'i:Lion by U1c trust or [tm 51eel renresent~trive I,_X•

P"-ver .• ,s the <·Me may be, [from-(a) thr per son who so ncqulred

thni pt'OJ>eJ'ty: or (b) in u •• c:1se of Ut• truslet",

from U1a t trust] in accordance witb section 160 of tltc Tax Administration Act. •·: and

(c) by the deletion of <ttb<ection (3).

Amendm ellt of srclion 4

3. Section 4 of the Transfer Duly Act. 1949. i• hereby amoudcd-(n) by the sub<titmion for d1e heading of

Ute foUowiog heading: " Pr n nlty [and iutrri'St] on lntr Jla)'IIH!IIl of duly";

20.! No J.).491

Act No, 23 or 2011

I No. nnd •·•nr Short tltl•

OOVERN.\t£NTOAZE"nc. 4JULY2UI2


F...xtC'nt of AmcnchuC"nt or reptoJ (b) by lhc •ubstituliou for 5Ub>c-cliou (I)

or the (oltO\\·iug sul):5Cdion:

"( I) If MY duty in respect of an)· lr.UlSOctioo eotered wto bofore t Mucla 2005. n:nuaimo WlpHid .r. ,.,. the dan! of the expiration of 1he period referred to in ~lion 3. [ there sball, subj('(lto the pro•i· s icu1S or suiiSfftion (3), in adill· don to the unpaid duty, he pay. oble] IlK: Cotlllllis>ioucr lllillol in accordance wilh Chopter I 5 of 1he 10.~ Administratioo Act impose o 1><:ualty. at lho rate of I 0 ~T C<'llt pu- a.nuwn on the an\owll of the m1pa.id duly~ alculatJ;.-d iu rc~lri.."C I

of each completed month in Lbt period from lhat dat. to the date of pnymcut[: Provided thai if in any l';tSe lhe 1wriod rrfrrrrd to Jn secUon 3 endt'd btfore 1 .July 1982 and the snid pennlty is rllargrnhiP or i.s in part dmrgrnblt In rtsp('(t of nny comr>lteed monllt couuuenctug before 1 July 198.2 thr p•nally p:tyablr In rr· :SI)«I or ~cb COutl'lt'lt:d lfiOUib nnd nny enrUer completed monlb or months shall bt'- the! ttmount of penalty wWch would han• Ueeu payablt In tenus of tbls subsec. lion before its nntendmeul by the Re,·enue Laws Amendment Arl, 1982. if LhP unpaid muowll of socb duty bnd hetn paid on tht day after the Clld of the only or latl'!ot of surh complrtrd months] ... : 31ld

( c I by the doh:tion of •ubscction (I A}.

Am•ndnttnt or secdon 10 -'· Section I 0 of the Transfer Omy Ao.

1949. is hereby amended (a) by lhc substitution for "'b.l."liuu (2)

of 1he follo\\ri:n! substction· "(2) The powers conferred and

tb< duti<S ilupoKd upon the Com· missioner by lhi!> Act may be cxcr· cised or performed by lheConunissioner [ptrsonnU~·J or by any [officer actiug under a dclegnliou from nrj SARS o fficial tmder the contro~ Lor] direction or suoet"isiou of the Commissioner.'": and



No. nnd yC'..nr Short title Extt'nt of a.mcncbur.nt or repc~ll (11) l>y tbdusortiou af~<nul>s.-.;tiuu (2) of

I lie: rollowing subs~tlon; "(3) Administrative reguil"e-

meuts a.nd Erocedures for eurposes or the IX:rfonunncc of an:l dutt:. power or oblin;ation or the exercise of anv ri~u in leJUlS of this Act are. lo tlu.: ~'(t\!ut uot rc!!tlatcd in Lhis Acl resulated by the Tax Adminis· rrntion Ace.".

Amemtuwnt of section 11 5. Scotiou II of tho Transfer Duty Act.

I 9~9. is hereby amended by the substiht· lion in subsection (3) for paragraph (a) of the following paragraph:

"(a} Whcro iu l<nns of Lsubsrctiou (2) of s.ctiun rllre• ] seclion 3(2) • deposit on account of the duty payable by nny person is modo pcndinjl tho dct\.-•nninnliml hy the ConLnliss.ioncr of

!be fait· value of the. pt-openy COil•

cerned_ of an runown equal to the duty t"Hkuluu:d on the c-uJI.Sidcmtion vaid or payable in re...~ct of Lhe acquisition of !be property or on the declared value lll\:"r1:ofr as tlu.: case uauy 1>\:, and tl1f.1·c is g1\•en to the Commissioner sectu·ity 10

hls or her s.atis.f3ction for the payment of lillY l>alllllte of U1U1Sfet duly Lor sunup duty] which may ~rill he pay .. able. the Commissioner may in his or her discretion issue to the person liable to p~y the duly a CL'l'tificaJC lhAI ::i1.1Ch

(lr::posi1 Juts IX!cn nutdr:: nud dml such IJieeurity has been given.''.

Rcpeol of S<"Crions llA, I IR, II C, liD atul liE

6. Scc.liuus 11 A, liB. I IC, l iD ami liE of 1he Transfer Du1y Act, 1949, are hereby repealed.

A.meudmt'ut of St'<'liou 13

7. Scctiun 13 ort1u.' Tnutsr(!r Only Acl. 1949, is hereby amended-(a) by the subSiilUtion for subsection (I)

of !be following subscotion: "(I) Whenever the Commis·

sioner is satisfied that !be duty puynl>lc <m<k r ihi>Aot iu n:spccl of the Acquisition of any propeny or the renunciation of any interest in or rc;slricliou upon the usc or dis-pOittl uf uuy prupc-ny lw uo1 tx.-cu



No. nnd yc-..nr Short title Extt'nt of a.mcncbur.nt or repc~ll pnid in full, lh< Cou:nni.ssioucr $hall, nolwilh$l;>tmling thttl the i'IC•

qu.isition hM Mready been re-gis-tered inn deeds registry. recove.r tbe difl"crCHCC bcrw cL'JI IJtc HlnQUill o(

the dury payllble a.nd the amount paid in accordance wid1 Chal!ter 11 of lhc T>L< Adwinistmliou Acl. ": and

(b) by lhe deletion of subsection (2). Rep•al of seclimL• 13A, 13R and 13C

8. Sections 13A, 13B uud 13C of lhe 1i'ans fer Onty Act .. 19·19, are hereby repealed. Amendment of section 14

9. Section J 4 of the Transfer Dury Act. 1949, i• hL'fcby UIU<ndcd-(n) by the A>ll><lin>tion for •nhsectiou (I)

of the following subsection: "(I) [Dcclnrniionsj A return ap-

prop1iate to the m:mne-r of 1he acquisition of property in any par-ti<:Ular ~as~ shall be s-ubmitted [clcrtt·on.irnll~,~ in thr rorm nnd mauner and coulain.iug suclt iu-fonuatlon as m ay be presalbed bl' the Connuissioncrl uy the par-ties to the transacrion whereby the property h>s been acquired and, if Lhc Cotwuissioau..:r ¥0 din:cts, abo by tlte agent, auctioneer, broker or other person who acted for or on behalf of eilher party to the trans-ac:tiou or, if the prop~o'fty hus been acquirect nrherwi"e rh;,n by way of a transaction., by the person who ac:quircd the propc:rty. H; aud

(b) by the deletion of• uhscctions(4). (6), (7) and (8).

AmcndlHNtt of section ·rs 10. Section 15 ofth< Transfer Duty Act.

1949. is lu.:n::by nmcm.led-(a) by tl1e substitution for subsection ( I)

of the followin~ subsection: "(I) [Enryl In adtlition to the

remtire.mem~ 11EQn 3 lttxpaver con· tained in sections 29. 30. 32 and 33 of lhc Tux Admiuistmtion Act. every :mctionee•· or othel' person



No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll

who has 4:.fft:cct:d a soh: of proJX.'TlY 011 lxhalf of ~me o1hcr pi!Tl»on shnU. for a period of five ye= from the dale oo wb.ic:h tbe- sale was cffcc1C(~ keL-p ft record of the ~nJe including ::t cle.scription of the pi'OJ)• erty sold, the person by whom and tho person to whom lhe pruporty ha• been sold and the 1•ice paid for the propeny.1

' : and ( IJ) by lhe dolotiou of sub..,ctiollli (2) aud

(~).

Rcpral of srrlion.s 17, 17 A, 178, 18, 10, 20A. 20C mul 20D

11. SectioM I 7. I 7 A, 17B, 18, 20, 20A, 20C twd 200 uf Ute Tmru;fcr Duty Act. 1949, •re hereby repealed.

Acl No. -'5 of 1955 Eslnlr Duly Acl, Amrudmcnl of srclion1 1955

12. Stctiuu I of lhc Estutc Duly Act. 1955, i• hereby amended-(a) by the sut>stitution for !he definition of

"Conunissionc:r'' of the foUowin~ dcfi11itimt:

•• 'Couu:u.issiouer' m~an§ the Commissioner for the Soutlt Afii-cau Rcvcmu.: Sctvicc apoointcd in tenns of sec1ion 6 of the SmUh Africrut Revenue Service Act. 1997 {Act No. 34 of 1997). or ~Jc Actin• Commissioner rlesianatecl in tenns of section 7 ofthatAcr:";

(/I) by the insertion allo:r lhc definition of .. stock!:! or sh.an:s .. of the following definition:

" ·1h..l:Admiu.istcationAct'. means !he Tox Administmtion Act. 2011.":

(c) hy the rcnwnbcriug l.lf sccliun I In

section 1(1): and (d) by dte insertion after subse<:tion (I) of

tbt.: following sllhscctiou: "(2) Unless: lhe context indicate~

othe.rnrise. a word or ~ression to wh.idt a wcaniu! luu; lx:\.'"11 assitw~d

in fhe Tax Admini~trntion Act beal"::i 1hat meaning for pum:Qses of this Act. ".

2'10 No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012



Amrudmcm ol' section Ci

13. Section 6 of tbe .Estate Duty Act, I ?55. is horeby IIJucudcd-( a ) hy ll1e suhslitntion for sub~eclion (2}

of Ute following subsection: u(2) The powers conferred and

tl1c dutjC$ imposed upou 1hc Con•-missioner by this Acl may be exer· cise-.d or performed by the Conunis-SlOUl:f [pcrsonnUy) or by IUlY

r nffkrr acUug Wlll~r =· drlegaliou from or] SARS official under lhe c.:ontrol! [or] dirc(:Liou ur supcrvi-sion nf the Commi~ioner.'': anrl

(b) by tl1e .substinuion fol' mbsection (3) of the followin~ subsection:

" (3) Administrative require:-TUCHIS wu( proccdtll't'S rur )lll!]>OSCS

of the ~l'fonnance of an;t du!;t. eower or obliS!tion or the exercise ofw•~ ri.Wt in lcnus of litis Act nrc. to the extent nor re~nlated ln this Act. re!ulated b~ the Tax 1\dminis-Lntiou Ac:l." .

Amendmem of section 7

14. Section 7 nf 1he K..t.a1e Outy Act, 1955, is hereby amended-(<1) by ~1c sub>titution in subsection ( I)

for 1he word.< preceding pan graph (a) of the fOllowing. words:

.. EV''TY \!Xi:(:Utur or. if lJ~ or sbl.! i~; called upon by rhe Commis· s ioner to do so. any person having the control of or 311Y interest in .wy propo11y included in ~10 cstat¢', s luall submil 10 I he Connnis..-<>ioncr a rerum [iu :t fonut prt'SCrilu!:d by hlmJ disclos~ lhe amount daim~d by tl1c person submilliu,g the renLm to represem the dutiable amoum of the estate together with fuU particulm rc~nrdiu .. - " : w•d

( b) by the deletion of subsection (2).

ReJ>eRI of sections 8, SA, SB, SC, SD and RE

15. Soolions 8, SA. 88. 8C. 80 1u1d SE of the Ell: tate Duty Ac~ 1955, are hereby repealed.

Amemlmt'nt of Sedinn 9

16. Section 9 of tbc Estate Duty Act. 1955, is hereby amended-(a} by the inse.1ion after snbseclinn (I) of

the following subsection:




··~ lA) H the Couuuissioutr. Erior to lh.: i:s:;ue of a nolic~ of asse.'>SITI('nf in renns of subsecrion ~ l )-( a ) is dissatisfied with anl:: Yalue 31

which nu:i p1ui:!£!t~ is .sliOW11 in nn:i remn1: nr

£b1 is of lhe o~inioo lhot lhe amount claimed tu n:E!rcscut the dutiable amonm M di.~dosed in anv remm. does n.ot re~resent tbe correct dutl-able amotwl.

rhe Commi"sioner shall adju.d such value or aruotwt and detemllne lhe dutiable nruotmt U2£U wlti<:b such as-scs&:mcnt shall be raised accordlnall:· ":

( /.1) hy 1he dc1cl1on of subsection (2): ami ( l" J by the inseniou of a new ~ubsecrion

(S) ofter subsection (4): ''{S) An tl.SSC"SS111'-'1U <;OUh,.'lU-

Elated in subsecrion (~)(a) and (IJ) is deemed to be 3D assessment bx_ wav of seJf-asscssrul.!ut.••.

ReJlMI of S<'CIIons 9A nnd 911

.17. Sections 9A and 9n of the il.<lare Duty Act. 1955. are hereby repealed. Amend.Jttent of sec:lion 10

18. Section I 0 of lhc Estate Duty Act. 1955, is hereby amended by U>e substiht· rion for ;ubseclion ( 1) of lhe following subs~:(: lion;

"( I) If [any duly remnins uupairl at Ute explrotlon of n period of thlrt~· dn~·s [l'Om Ute dntc of payment noli· tiro bt nccordnucc wJUt subsrctlou (2) of sec::tion nine, Lhr~ shall be IIUYiiblt', iu additlou lo the- unpaid duty, Interest nt tbc r otc of six per cent per annum on the AJUount of unpaid duty calculatt'd fromtbe dalt.> of tbe e.xplrntlon of the said petlod to tbc dote of JlAJ~ncut: Pro>ided that. whrrP.l rhe a~es.~menr of dmy is de· layed beyond a period of twelve ruoulhs u·om the dare of death. iutcn:SI :lt the prescribed rnte [of sh: rwr ("f'lll

per nnuumj shall be payoble as from a date twch·~ months afler the dute of de,.rh on the difference (if any) between the duty asse;sed and any deposit (if any) made Oll account of lhc duty pnyablc wilhin Lhc:. said JICliOd or rwelve months. '1

•

21~ No. 3.5491 GOVERN.MEN'I' OAZE"n'E. 4 JULY 2012


No. nnd yC'..nr Short title Extt'nt of a.mcndmr.nt or repc~ll Subslltutlou or section n

19. The Estote Duty Act. 1955, is hcn:Uy wm:udcd Oy tbe substilutiou lbr sectlou 12 uf du: f<lllowius sccli()u:

"Duty pay:tble by executor 12. Notwithstanding anythjn3 to

tlu: coulnuy COIIlHin.cd in section [ele>·en) !!· nny dmy p• ynble m1der this Act sbaU be payable by and recov-cmbh: from the ~;xc~;utor of the estate.: subject rn the dmy. to the extent con .. temEI•ted in ChaEt•r• I 0 and II of the Tax Administration Act [ : Pl-o1i dcd tlUt l the liability under this section of any execuror sh~ll he ;1 liabiliry iu his or her capndty as executor ouly and Cor nn amount not rxcccdlug lbr nvailabln n.~cts in tht rstnt('_, unlcs.~ the liability is due to fraud).''.

Rcp('R) or sections 12A, 128, 2J, 23/Ji<r, 24, 25, lSA ami 27

20. Scctiuns 12A. 12S. 23, 23bi.,·, 24, 25, 25Aand 27 the Estate.Dmy Act , 1955, are hereby repealed.

Auumdme-ut of St><'liou 28 21. Si:clion '2S of the P.s~ U..ft: Duly Ac1,

1955. is hereby amended-(a) by U>e substitution for the headiu~ of

tho foUowiug beadiutt: " LPENALTlliSj OFFENCES";

(b) by the deletion of subsection (1): and (c) by the deletion in .;ubsection {2) of

pam1,rnpbs (b) and (b)bis.

Rep<'al of sections 28A aud 30

22. Sccliuns '2SA ancl 30 or the E.<ilfiiC

Duiy Act. 1955. ore hereby repealed.

1 16 No J.).491 OOVERN.\t£NTOAZE"nc, 4JULY 2UI2

Act No, 23 or 2011 T~ Aduuntdl"ilhon Ac:.t, lOll

I No. nnd •·•nr Short tltl• F...xtC'nt of Amcncb:uC"nt or reptoJ

Art :.'o. 38 or 1962 Income Tn.~ Act. Amendment or section 1 1962

23. S.."Ctiou I of lbc Income Tax Ac1. l962. is hacby ann:ndc:d-(a) by the subsrirution for the defiruuoo

of .. as.ses.s.m~nt'' of the foUowa.o~ dcfiui:lion:

•· •ass~~ueut• [111P31L'i Ute] h>• the meani.n2 assistned under section I of lhc Tlll< AdminislrBtioo Acl. •nd indttdeu detenniMrion by 1he COilllllissiooer _j. b~' way or n notice of asscssmcm (including n noticP of ~nent in rleclnmk fonu) sern•d in a manner con· lemplalt'd iu st'Ctiou 106(2)--(a) of nn nmouut upon wWdJ

ony tax t~rlnblc wuiC'r this At·t is charge.Hblt"<: or

(b) of the nmount of any such tns: orl

(c) of •ny loss ranking for set-off: [or]

(<I) of nny ossc.:sscd capitol lo•s detennined in tenns of p::t1':1·

graph 9 of the Eig)uh Sched· ulc[.J: or

( t! or i\0~ 3 nl01tnl!i robe taken into account in the determination of tax ~a}::ablc on income in fururc

~ [aud for the purposo~ of P"rt Ill of Chapter lll lndodH any de-termination b~· !lit Commls-siouer in resp«t of any of the rPbates re.fern'd to iu seclion 6 and :my dtdston of tht Cotnml5-sioner whidl is in teniiS of this Ad subject to objection and 31'· ~all:":

(b) hy the dclctiwt of lbc dc:Jiuiliou of "'bn!.ineu clay"?:

(<') by the subsrirution for the ddioitiou .. of ucommiuioncr of the foUowinjt dcfini1ion:

·• ·Commlsstoner' - the Couunissioucr for the Soulh Afri. can Re:\·enue Service appomted in tenus of section 6 of the South Afiicwt Rcn:nuc Scrvict: Ac1. 1997 {Act No. J~ of 1997}. or the Acting Commissioner desi2).13ted in 1e1ms of section 7 of that Act •·;

118 No J.).491 OOVERN.\t£NTOAZE"nc. 4 JULY 2UI2


I No. nnd •·•nr Short till• F...xtC'nt of Amcncb:uC"nt or reptaJ (d) by tho dolotiou of the ddiuiliou of

"dat~ of A.'i...~stm:nl~~; (' ) by th~ insenion .uler lh~ ddinition of

"DOnna! ntlrtment agt" of lh• (allowing dcfinition.'i:

.. ·nonnal rnx· means income ta."< rdem:d loin :i<:<:tion 5(1}: •ofti're.r' mean..~, when uwd in the conte._"(( of a oerson who is eou2ed bx tlli: Colillllil,-sioncr in c!!!!!in! om the J!!!'i.sion~ of thi~ Act~ 3

SARS official as defined in ~tion 1 of the Ta.x Administration Act:··;

(j) by th~ ~ ... ~tjtution ror the ddiuitiuu of " prescribed rate .. of the foUowmz cWinition;

"' •nmcribt'd rntr'rncaiJ.a the ralc contetnEiated in oection 189(3) of the Tax Administrntioo Act;'';

(g ) by tltc •ubstituliou of the wot-.b in tl1c definition of ' 'represenu.tive t"x~

payer" preceding porn graph (a) of the foUowiu~ words;

u ·reprt"SeutuUve taxpuyt'r' means a natw·aJ 2£fSOl1 who resides iu 1t.c Rcuuhlic fin< I--":

(h) hy th"' ~1hdihninn for JllU"l'l8.""rh (h)

of the definition of ''representnrive liL,paycT·· of dac foUowiug (llll1ll!l11Vh:

u(b} in respect of the income under hi. or hcT lilllll•)lCUICUl. <fuvo-sition or comml. the agrnt of any (X"''n[, btdudiug rut agcall oppoiJilNI as such u1i· dcr the pro•·isiOtiS or S('CliOII nintry-nint., and ror thr pur. pooes or this p;rragraJib ~ ttrm -ag•ru- indudtS •··•rr pt'rson in tb• R•pubUc l.a•1ng thl" rt'<'elpt, managt"tu I!U1 or conlt'OI of iUcom.t on btbalf of auy person pt'nlll\Jlftltiy or tem])()rarily absrnl frotu the

Rtpublk or 1'!111lttiog or pa~--itlg UKotllr to or tfft'hillg mmrrys (or surh prrsc:m]~·- ~



No. nnd yc-..nr Short title Extt'nt of a.mcncbur.nt or repc~ll

( i) by tbc d~kliou of the words in the cldinition or " n:pn::~cntalivc lax ...

payer" following parngrnpb (/) bui prece<lln~; the proviso:

(j) by the imiL"t11uu nnL'r tile dcfinilion of

" retit·eme.m interest" nf the following definition:

" 'l'ttUI'U' UlCUUS 8 rchUll 8.S dt.:-fined in •ection I of the ,..,, Arl· ministration Act''~

(k) l>y the sul>stilutiou for lhc ddiuitiou of "tax' ' of 1he following definition:

" ·tax• means tax or a ~enaltv

iniEOSCd in t<."I111S of tltis A~l; .. ; ( I) by the insertion after the definition of

" tax" or the rolh·)\viug definition: ·• •Tax AdmiuistraUon Acl' means the Tax Administration Act. 2011:":

( m} by lhe snbsti tur.ion for the definition of utaxpayer" of the fOllowing deti-uiliou:

.. "taxpayt>r' me;"tn~ •ny person chargeable with auy mx leviable un· dcr this Act [and includes every pe.rsUII reCJuired by tltis Act ttl furul:sh ;-my rdu.ru)";

( 11 ) by the rcnuruborin~ of scotion 1 to m:cliou l{l); mul

( o) by the insertion after sub<ection ( 1) of the fOllowing subsection:

•'(2) Unless Lln: context indlca.tcs otherwise. a word or exQres..ll.ion m which a mean in! has been a.s~ iB!!ed

In the TaxAdministrationAct bears ll.tal wcunit1! for J>WEoscs of Litis Acl. '·.




Amendmcm ol' section z. 24. The lu~ome Ta.x Act. 1962, is

hcn:by wm:udcd by the substilutiou lbr sectlou 2 of the f<.l1lowing section:

" [Ad lo bP mlministeml by Com-ntlsslon~rJ Admlntstratton or Act

l . ( I) Titc Counnissioncr [shall be) !! l'i!sponsible for c::'lrrying om the provisions of this Act.

(2) Admiulsmativc rcguin:mcnts 1wd ~mcc:clun!s for pmJ20S~ of Lht l~rfot·· mance of nnx du!:Y. powe,r or oblitz:ntion or the exerc:ise of anx rirdu in tenus of this Act are. to the extent not rea_ulated in thi• Acl. rotrululcd bx Llw Tax Ad-ministntion AcL ••.

Amendment or section 3 25. Section .3 of the Income Tax Act.

1962. is hereby 8Jllcudcd-(n) by Ute sub<timtion for <ubsection (1)

of the following subsection:

"(I ) 'Mte powers confet"d and Ute duties imposed upon lhe Com-mhnliom::r by or unU~..T the pruvi-siom: of I his Act may be e-xercised or perl'ormed by lhe Commissioner LpcrsonaJJy,J or by MY ollie or Lor ))f'I'Son t>ngagecl in t·arrying out I he S(tid pro,·isious] under the ~ontrol. dircc:tion or i11pc::n·ision of lite Comntissiottt.T." :

( b) by the ddc,iou or s:ubsc:."Ciions (2) ft.ncl (3):

(c) by lhe substinttion for subsection (4) of th" followitt¥ •ubsection:

"(4) Any decision of the Com-missioner tmder the following. pro-Vl SIOJI!li of Ll1is Act [shaJJ be]]! .subject 10 objection anrl apJ>eaJ !!!_ accordance \Vith Cbaeter 9 of the Tax Admiuislmliou Act! namely-

124 No J.).491

Act No, 23 or 2011


OOVERN.\t£NTOAZE"nc, 4 JULY2UI2


F...xtC'nt of amcnchuC"nt or reptnl (a) lhc ddinitioWi of "lx:uclit

fw.1d", Hpat$iun fund'". .. pen·

orion preset~'Otion fund", •·providem fund''. '"pro" idem prcsenaliun fund'\ ... rccirement lUUUUiy fund'' and "spous.e" in section 1:

(b) [section 6, S«tion 8(-l)(h) . (r ) . (d) and (•J.l S«tion 8(S)(bl and (bAl. [SK1Jon 90J se«Joo JO(IXcAI. [(r ))!c/(i)(cc). [(iA)l . (j) and (nil), '""tion IOA(S). =lion II( e). (/1, (g). (gil.). (j)[J and (/). [(t), (rt) and ("')J scction 128(6). section 12C. sec1ion 12E... M!cCiou 120. section 12J(6), (6A). ond (7), section 13. st!'C-tion 14. sec-tion 15. section 22(1)(.1 1111d (3) faud (5 )1, section 2.!1 1(2), section 23K. S«tion24(2). section 24A(6). section 24C, section 2<10. section 241( 1) and (7). section 24J(9). section 2SA [section 250]. :;ccliuu 27. section (28(2)(<A)l2H(9), •ection 30, soecrion 30A , ~cction JOO, s«tion 3 1, section 3S(2). secLion 37A~ M!c1iou 37H. !lcclion [.1814)]38(1}(al and (b) and ill- section 44(l3)(a}. section 47(6)(cl(i) • .._..,tiou 57(2). section 62(1)(cKiii) and ldl and (2){a) and (4). (Sfftiou 76A,) section SOB and sectioo [ SOS I 103(2):

(<} par.tgrnpru 6. 7. 9. IJ, IJA. 14. 19 and 20 of the First &bedul<.

(dJ paral!J1111b 4 of lhc &ewe! Schedt~e:

(e} parngraphs 1-1{6). 18. [ 19(1).) 2()(J)(a} and (2). 20A(l) and ffi, 21. 2A and 27 ofrhe Fow1h Sch<dule:

(/1 paragraphs 10(3) and (4). 11(2) ami (7). 12(1) IWd 13 of !he Sixth Sch<dul<;

(g) parngrapbs 2@. 3, Gill!£l. 7(6). (7) WJd (8). [9 oud] II and 12A(3) of rhe Se1·emh Schedule; and

/lo) Plllli!D'apb> 12(5)(c}(i). 29(2A}, 29(7). 31(2). 6S( 1)(d) aud 66(1)(•) of~ •• Eighl.h Schcd· ule. "; md




(d) by WC sul>>liluliou for subS<"<:Iiou (6) or th~ following secliun:

"{6) Any person oggrieved by • decision of the e:-tecutive officer 10 approve or- IO willlclraw flU ap-prm·al of a fitnd in tenntO of ,::ub~ec:·

lion (5) wusl, nolwilhstaudinf. sec-liou26(2) of we Fimwdal Scrvicos Board A<~ 1990, lodge his or her objection with tbe Commissioner [in the manner contemplated in Pllrt m of C haplrr m of this Act] in accordance with the E:rovi-sious of ChliEI<r 9 of 1uc Ta.x Administration Act .. , .

Repe"l of secUou J

26. Section 4 of the tncnme Tl\x Act, 1962, is hereby repealed.

Amemlnumt of .set'tion 4A

27. The Iucowc Tux Acl. 1962. is hereby amended by 1he sub~tinttinn for sec.tion 4A of the following section.:

'rExerdse of powers a nd t>erfor-moure of duties b y MiuistCI'

4A. 111e powers confemd and the duties in1p0sed upon lhe Minister by or wld<T wo pJuvil;ious of Ibis Act may be e.xerchced or perfonned by the Mini~rer

personally or. excel!;! for the ~wer to issue notica: or rcs:ulations. dclt:-gatOO by llti.' Miui.l:>h .. 'T IO lhc Di.rcclor-Gcncml or lhc Na1ionnl Trcns:tuy rmd lite Dln..--cJOr-General may in tum deJegate the powers and duties r.o delegated to him or he•· to w1y ofih:cr ur }JCIWU w1dcr ills or b1.T

conh·ol. direction or supervision. ••.

Amendment o£ sociion 5

28. Scotiou 5 of Wo lucomc Tu.x Act. 1962, is he1-eby •mended by the <nbl:tihJ· tion for subsection (7) of d1e following subsc.~tiou:

"(7) Subject to we provisions of [sections 79 nnd 10~ ond Ute provi-s inns nf11he Founh Schedu1e, where a m.xpayer has been assessed for oonnaJ tn.x in rcs,xct of any year of asscssm(:nt .und the n.dc ufthc lax pa)11blc hy f1timl



No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll the taxpayer bas lx:cu subst:qucutly lixi.:d or va1~c:d, [hb) the laxpaycr's <'ls~c:s:smcnl

for $\lch yenr shall be adjusted, any :tmotmts paid in excess being refundable to fhbnl Lhc IA~a~L'l· nnd nmouul~

shonpaid being recoverable fmm [him) the- tnX;Q<wer.'". Amrnduuant of .serlion 6qunt

29. Section 6q:wl of lice Tuc(nne Tax A cr. 1962, is hereby amenderl b)' the substlmtion for subsection {S) of tlte followiu~ sub:;<:<:tiou:

" (5) Notwithstanding Lse<tlons 79 nnd 81(5)] section 93.99 or 100 uftbc Ta.x Adm.itahLraLiou Acl. an additional nr reduc·ed tt.Sses~mem in re:.'qlec-r of a year of asse-ssment (O give effecl to subsoctious (J ) and {lA) may be made witl1in six yean~ frum tlu: dale of the

original assessment in respec:c of thai year. 1

• •

AJIU:'mlun•ut of sec.·liou 8 30. Section 8 of the lucom(! Tax Aci ..

I 962, is hereby anteoded-(a) by the substitution in subsection (5)

for p;u·a.tm~Ph /bCJ of the fullowiJU< parngraph:

" (bC) Any pi.1'SOU who. "" • fotmer le!t!:<>r of property refaTed to in parngropb {bA) or as the owner tl11.rtof. LUis afl1..T the letmiuuliou of dte lease of such pMJlelty cott.ctented 10 dte fonner lessee, thereof using. enjoying or dealing with such prop-o:rty as contemplated in tho said pnncgmpll, ur is dt'Cm('<l lo hRvc so c:on~nted under the provisions of paragroph (bB)(ii). shoJI not later tl1w1 14 duys after lhc cud of tlm;:e months <'tfter d1e tennin:uion of the relevnnt lease advise tlte former lesS<:c of tl1c fuu· u111rkcl \'aluc of such prope.rty as detennined in AC·

cordance with paragraph (bA)L, and shnU furnish Ute Conunissioncr with a copy uf surh advkel. "~ and

(b) by Ute deletion in subsection (5) of t>aragroph (c).




Amrudmcm ol' section 10

31. Section 10 of the Income Ta.x Act, 1962. is hon:by wuou~od by t11o dolcliou m the furtl1!!r proviso "' ~\LhJSCclion

( !)(<A) ofp<~mgrnph (c).

Amenrln1ent of sertion lOA

32. Se<ticm lOA ufwc lncowo Tux Act, 1962, i .!oo lu:n:by am~mled-(a ) by ihe deletion of subsection (9) : and ( IJ) by the substitution for wb•ec:tiou (10)

c.')r 1he {i:,IJowin~ suhsccliun: "(10) Subjec< to <he provisions

of section l79) 99 of the Tax Administrntiuu Act. we final calcu-latiou or J'~-cu.lculution of the <:npihll e lement as m:.de In 1'elarion ro 1he year of assessment reterred to in subs<..,tiou (8) shall. subject to the provisions of snbsec<ion (6)(b), be final and conclusi\·e and shall ap-ply in ~spc.ct of all rdcvam ruwu-ily HIIUlUll l!; Which b L"COIUC t:luc IQ any person under the. annuity c.on· tract in question in any succeeding y~;ars of USSI:SSJUt:Ut, ~· .

Amendment of sKtloo 11 33. Section 11 of the lncome ·rax Act.

1962, is hereby amended by the deletion iu pm11tallph ( / ) of pw11grnpb (vi) of the pro vis().

Amendment of section UD

3-1. Section II 0 of ihe Income Tax Act, 1962, is hereby amended-(a) by the substitution forsuu><..,tiou (14)

of the following sub~ection; " (14) Notwithstanding LsKtlon

-1) CIJH)!tOr 6 of ~~c Tax Admiuis-tration Act~ the Commi.r.sioner m~y disclose to the ~liuister of Science aud Tcdwolojty iufonuation iu rc-!arion ro research and development as may be required by !hat tvlinister tOJ' pw·poscs of subm.ittin~ a rcpo11 In P::trliruncul in lcnns nf suhscc-lion ( 17).": and

232 No. 3.5491 GOVERN.MEN'l' OAZE"n 'E. 4 JULY 2012

Ad No. 18 oHOH Tu Adnunttotr.-rion A(.l, lOl l

No. nnd yc-..nr Short title Extt'nt of a.mcncbur.nt or repeal

(11) by tile addition uft•T sui>S<"<tiou (IS) or th~ following ~nhscclion:

"{19} For the 2u~ses of sub-s-«tion ( 1). the Couuuissioner nt3)!.

t tolwilh.slnntlltt~ the pmvi.sioml or section_• 99 and I 00 of the T•x Admiuistmtjon Act~ raise an addi-tional fiSS\:S:stm:ut for WlX: ~~liT of as..~es..\ltlelli with resnect ro a deduc:· lion in res~ct of research and dcvc.:lo~mcul which has Lccu al-lowed wher·e: apllf0\131 has been '"ithdrawn in tenus of subsection i!Ql.,_'' .

Ameurbtt(>llt of section 12G

35. S«tiou 12G of the Income Tu.<Act. 1962. is hereby amended-(a) by the S\tbstimtion for subsection (II)

of the followill! subsection: .. ( II ) Fnr (JH'l>OSCS or suhscc-

tion< (9) and ( 10), d1e Conunis-siooer may. uotwithstaru:ting the provisions of •cctions [79, 81(5 ) and 83( 18)]99 and 100 of the Tax Administration Act. raise an addi-lioual f.JSSC-SSIUCUl for lWY )'CI~T of as.coessment where an additional in .. dustrial investment allowance wbidJ has lx:~u allowed in u.uy previnus year nnt'it he dis?~llowed in terms of S\tbsection (9) or (I 0). "; and

(b) hy the dclclinn ol subsection (12).

Amembueut of secUou 121

.,6. Secrlon 121 of Lhe Income T:-tx Ac~ 1962. is hereby amended-(a) by the subt.tjtution for Ill< words

prccL"flittg pamgntltlt (u ) in subsection ( 13) of the following words:

u(13) The Commissioner may. uotwilb.shwdiuM, the provisions of [secUon 4] Cha2ter 6 of the Tax Administration Ac:t- ":

(11) by tbo substi1ution for subse<tiou {14) o f the following sub~ec:tion:

"(14) The Conuuissioner may, uolwith.stnndiug Lbc prov"ious of [so><'liou 79, 81(5) :nul 83( 18)1 sections 99 and I 00 of the Tax Adlllinistration Act, raise an addi-rioftitl <~S.•H:lSSmcnl for any ycHr of assessmem where an additional in· \les;tment allow;tnce which b .. been allowed in any previous year must be disnllowcd in l<:lllts of subJ~eclion ( 12) or ( 13).":

23~ No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012


No. nnd yC'..nr Short title Extt'nt of n.mcndmr.nt or repc~ll (c) uy the deletion of sub...,ctiou (IS): and (d) hy tltc: ~ubstilulion for tmht;.r;:ctimt (21)

of the following subsection; "(21) NotwithstandinFt the pro-

V1tiiom• of fsection Jl Chaplt...,. 6 or the Tax Admini!'>tration Act, the Comwissioner must disclose to the Minister ofTrndcrutd Indus try uud the ;~.djurlicaiion committ~. includ .. ln~ any person whos,e assistance hl\8 been oblttiu«l by that commit-lee, such infom1ation relating to the affairs of any company crurying on uu iudusuiul policy project "" is necessary to enable the Minister of Trndc. nnd TttdtiSh·y and tl1c a<.ljml.i-cation committee to perfonn tbeir fimctions in tellll$ of this section.··.

AmeJtdtueut of secliou 12.J

37. Section 12J uf !he Income. Ta..x Act, 1962. is hereby aru•nded by !he deletion of subsection (9).

Ameudmeut of sel"liou 23

38. Section 23 ul lhc Income Tnx Act. 1962. is hereby amended by !he •ubstitu· lion for para~pb (d) of the follow~ puragraph:

"(t/J any tax [, dur~·, Je\·y, iulen!."il nr penalty] imposed under this Act L, ony ndditionnl lox imposed un-cler SPdinn 60 of the V:~lue-AddNI TmcAct, 1991 (Act No, 89 of 1991) ondj or uuy iul<r<"SI or P<nlllty [poynble In consequence nf the httr tmymenl of any t:1.x, duty, 1~.\~y or contribution p::1y-ob1ej imposed undc::r any ~ Act adminis h::1'Cd by th\.1 Commis-sioner [, Uae Rt>gioual Sen •ktos Councils Act, 1985 (Act No. 109 of 1985), the KwoZulu nnd No-Uti Joint Servit'I'S Ar1, 1990 (Act No, 8-l of1990), the Skills ~v~l-

opmcm Le•ics Act, 1999 (Act No. 9 of 1999), am) the 11nem-pi0)1neut lnstJrnnce Conn1bu-lions Act, zooz (Act No.4 of 2002)]:".




Amrudmcm ol' section 2·3H

39. Section 23H of the Income lax Act, 1962, is hon:by wuou~od by tlto dolcliou or snllsecliou (4).

Amenclmt"nt of ser'tion 24J 40. Secliou 2;1J oflltc: Income: Tax Acl,

1962, is hereby amended by ilte deletion of subseoiion (II).

Amendment or section 2SA 41. Section 2SA oftl1e Income Tax Act,

1962, is hereby amcmlt:d by the ddt:tiuu of subsection (2). Amructuumt of se<·tion 35

J2. Section 35 of the Income Ta.:< Act, 1962. is hereby amended-(a) by the !,U~titution in subsection

(2)(11) fur tho words pr«oding the provisn of 1he following wor<i~:

"Any person who incurs a linbil-ity lO J.»lY to any oll:u.T ~ou who is not a re~idem any amonm refetnd to in subsection (l ), or who receives payment of any such an\o\utt on UcltH1r of s:nch oilier pctson. slmlt within 14 days after dte end of d>e month duri~ which the said liabil-ity is iuctun.-d or Lh~.: said payment is received. as dte case may be. or within such fiuther period as dte Cotwnisslom:r lWIY approve.:! uw.k<.: a payment (which shall he a final payment made on behalt' of such oth",. pt:rsou) to lh<.: Co1llll1issioutoT (u 1\:S~C:l of sm,:b otln.::r person's liabi1iry for tax in re1ntS of ~nbsec· tion (1), and slmll submH to tbe Collllllissiouc:.r at the t:ituc of such LRX pHymcnt H [ dccJnration itt SUCh

fonu as lbt' Couuu.issioner may prt'SCrlbej !!!!!!!!;'' ;

(b) by~"' sub.1itutiou iu subse<tion (2) for t"'ragraph (b) of !he following parn-graph:

"(b) Any pct>Ou Wilking a payment to ahe Conu.nissicmer in tenns of pam· graph (a/ •hall. notwithstanding any ngrct."IDl'Jll to t11c \."'ntnuy. be entitled ro rledtJcl or widthold 1he aJllOimt of ~tch payment from dte amount which Lhr j that person is liable to pay to the aforesaid other }X'T$()11 f, O( t.o r'<'CO\'CI'

l3S No J.).491 OOVERN.\t£NTOAZE"nc, 4JULY2UI2


I No. nnd •·•nr Short till• F...xtrnt or Amcncb:uC"nt or reptaJ tbe omount so paid from sudl otht-r person or to f'f'taiu OUI or an~· mon~· tl:mt ma~· be ill hb ~on or may comt to blm as the ageol o( such other (M'non nu :unow1t eiJLLal lo Utt" amount of sorb pa~uent] ... :

(c) by tho deletion in •~-c:tiou (2) of p>r.t~phs (d) and ( •r. and

(d) by lhe deletion of subsKtion (3). Ame:ndttiPnl ofSfftion 35}\

-U. S<-c:tiou 35A oflbe lucowo Till< AcL 1961, is her<>by amended-(a ) by the substitution for subsection (6)

of lhe following subsection: .. (6) Tho purchaser WU>l. lo-

ge1he:r with U1e payment comem-plared in subsection (4), submit ro the Commissioner a [dcclnrntlon in thr fonu and C"OUt.niniug IJit" i.uforumlion as the CouunJs-stoner may prescribe] rerunL'':

(b) by the subsrirution for subsection (7) of the followin@. subsection~

"(7) [ If a] AEurchaser is ~rson· uUv liable twdcr l11c circum~lunccs C(')ntentelated in section 15 7 of the Tax Administrntion Acl. for tbe amotwt t.luu ~1 be witla.bcld lUl-

der r.ubsection £I) onll:: if the pur-chaser knovos or should reasonably have kno\\n that thl! &dlcr i1 not n residcnl and [fails to withholcl any antOWlt R..~ M!QUirt'd b~· SUbs('('·

lion (1), that purdmser-(a) Is per.;on:illy Uablt for tllt

payment of the omount which he or she f:till'd lo mthbold: and

(b)) must pay lbal IUIOWll lo !he Carnmission..- notlatortban th• date on which paym<nJ should ban: bcm made if the lWIOWII

bad in facr hom withh•ld. ": (c) by the substirotion for subsection (9) of

the foUowin~ subsection. "(9) If •tmrdlllliCr fails lo pay any

amoum contemplattd in sub~«tion ( I) ro !he Coouuissiooer within lh< period allowed for payment in lnlU> of subsecrion (4). !hal purcha..n{-



No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repeal (ll) Is Unble for !merest at UIC

presc•·ihect ratt 011 any amouul outstanding raku-lnled from U1e day following thr ln.c;t dnte for pnymenl to ll1t' thate Uml the :uuounl Lo; recel\'ed b~' llle Conuuls-siouer: nnd

(b)] nuat pay a penalty equal to ten per cent of [tbal]tbe amount, in additiou to auy othor poualty or charge for which he or s:he may be liable uuder Ibis Act.··:

(c/} by the dolcliou of subscotiou (10): and

(c) chc substilttlion for suhscct.ion ( 13) of the following subsection:

"(13) The [purc.ltnser,] estate a,g~all or c:ouvc:ynm:cr r. as th(' case may be, may nwuver :my muuuul paid In terms of su!)sectlou (7) or (12) from the seUer] who p•id •n amount in te.ml.'i of subsection ( 12} is deemed to be • withllolding ll!<:nl for J:!:ll1:E:2S<:s of the Tax Ad-miniKtrilltion Acl~ ·•.

AJueuamcm or sec non 37H

44. Section 37H ofllle Income Tax Act. !962. is horcby lllUoud<d-(n.} hy the snhstinuion in snhsection (21)

for the words following paragraph ( IJ)

of tbc followiutt words: "the Commissioner 1111:1y, notwiLh-!\lllUJiing the provisions or :ocction [79] 99 of the Tax Admini•tratiou Acl, raise assessments in respect of t.hc c.:umpru1y as if suda c.:owpauy were no1 a qu:alifying company."; and

I b) by the dcloliou of subS«tiou (22}.

Repen.l of s.>ctlon .10 JS. Section 40 of the Income Tax Act.

1962. is hereby repealed.




Amrudmcm ol' section ~7C

46. Section 47C of the lncome Tax Act, 1962, is hcn:uy tlmcudcd by tltc substitu-r.ion for suhS«t.ion (2) of tln: following subsection:

"(2) This se.;t.ioo does oot apply to ;my amomll~ rcccivccl by or accmcd lo

tl1e t:txp:tyer-(a) from which the full runount of tax

has been withheld by a rcsidcul in temts. of section 471): or

(b) [In resJ)Kt of which the tnx hnsj which luwc been rcc.:ovc:n:d from a resident fin his or hrr personal ('apllcityl who i..Ci persona1iy liable for the amotmt in lernlS of section 470{1)."'.

Amendutt'Ut of st"t·tiou J 7F

47. Section 47F of the fncome Tax Act. 1962. is hereby =ended by the substitu-lion for subsections (1) and (2) of tho fol lowi1tg f:l l tbl:lcclioiiS:

" (J) A taxpayer must.. together with the payment contemplated in section 47C(1). sul>wi1 lo the Cotwnissiouer u re.mm rill the UHII111P.:r mul fonn mul contnhlh1g tlte 1nfonnntlon ns may be prcsoibed by thr Conunissionrr).

(2) A n:sid~:.·ut who pays to the Conuni..Cisioner ;toy ;tmount in tem•s of section 47E, nms·t together with that puyul\.'Dl submh to tlJc CoiWllissiuucr u rchm1 [in the manntr :mel form :mel r.:ontnining thl" infm"lllntion as may he-prescribt'(_J by tht" Couunissiouer)." .

Amendtuent of sec-tion J?G

48. Scotiou 47G oflhc Income Tu.<A<I. 1962, is hl!:rc::by ;mu::mJccl-

(n) by the substitution in ""bse<:tion ( I) for lhe words followin.• paragmph (b) of the (oiJuwiug '\\'Or<bi:

" i• persnnally lioble for payntenl of mat 31llOunt oftox [,which mny br 1-ccovet"t'd (rom that resident in trnm1 of this At'l 'L" if it is ll t;1x due by thnt res1demj in accor-dance wilb Prut A of ChaEI<T 10 of the Tax Administration Act. '' : and

(b) by tlte. deletion of subsection (2).

244 No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012 Ad No. 18 oHOH Tu Adnunttotr.-rion A(.l, lOll

No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repeal Repeal or~ctlons 47H and 471

49. Sections 4 7H and 471 of the Income Tax Ac1. 1962. arc h<:~<:by r<,.::al"d.

Amendmem of seclion 60 50. Section 60 of the Income Tax Act,

!962. is hereby aruended-(a) uy lhc suustitution for suuscction (I)

or lhc: rollowin@. ~·uu~~ctiun: " {1) Donations tox shall be paid

to the Collllllissioner [ "1tllln tile~ months] bv lhc end or the nt0111h followina the month durine: which

• donation takes effect or such lou,g_cr tx'liod as lhc: CoJmuissiow:r may ullow Ji·om the date upon which the doni\rion in l)uestion lakes e.Jfec.t. ··: and

( I.>) uy Ill<: suiJstiluliou for subs<-<:tiou (4) of 1he following snhseclion:

" (4) The paymenr of the tax in tenus of subsection (I) shall be ~CCOUIJ.lnlliCd IJy t1 I'ChU11 [in SUCh fonu as may bt> pnsc.·ribed by ll1r Commissioner].".

Auumdmrut of St><'liou 61 St. S<lC-Iilln 6 1 of ahc:: fnc(mu: Ts•x Ac:l,

1962. is hereby amended-(a) by the substitution for parograph (a)

of the following paragrapb: "(n) any reference in rsuhSfi•litlll

(1) or (2) of section ro•c11ty-four, paragraph (c) 01' (rl) of subst:-clion (1) of ~erliou .tflventy-fi,,tr or] paragraph (a) or {•) of the defu>ition of 'n:pn:scutativ~: tuxpayc.:r· in ~eclion romrl! [0 the income of nny person or to the gross il11:01Ut rc-~:civcd by or a~-Cnlccl lo Qr in fRVQur or any

(><'t~on shall be deemed to include a rettreoce to prop-<'11y disposed of by w•y per-~on u.nde1· a donation or to the value of such property. os the (;OUICX.t llUIY n;:quin:; ": lWd

(b) by~,. rleletion of paragraphs( b). (c), (c), {[) and (/1).

1.46 No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012


No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll Amrudmcm of section 62

~2. Section 62 of the Income Ta.x Act, 1962, is hcn:uy tlmcudcd by tl1c substitu-r.ion for suhS«t.ion (4) of tln: following subsection:

"(4) If the Commissioner is of the opinion dud the HHJowll shown in nny return ~s Lhe fair mal'ker value of any property is less tho.n the fair market vnluc of~111t property. be orshc may lix the f:tir maJ'kel value of ihat property, and the value .., fixed is[, s ubject to U1c provisions of section 63,] deemed for ~te 1llU-po<es o f this P•n to be the fait· mal'ket value nf such propel'ty. ".

Repeal or section 63

53. !kction 63 of the Income To.' Act, 1962. is hcn:uy r•vcr~cd.

Atuendmeut of section 6411 54. Section 64 B of the Income Tax Act.

1962. is hereby runended by the deletiou of subscetious (9) owd ( II).

Amendment of section 64K 55. Secrion 64 K of the Income Tax Act.

1962, is hereby amended by the deletion of subS<:Ctions (J), (:5), (o). (7) owd (8).

Atuendmeut of section ~L

56. Section Mt.of the Income ·rax Act .. 1962. is hereby ameuded by the substint-Lion for tl1C words pr<.-.;c-diu)t Pll11il"11J>h (a) of the following words:

.. [lfJ Notwid1standing the 12rovisions of Cha~ter 13 of die Tax Adnllnistrn-tion Act. if~!-.

Ameudnlt'Ut of .set·liou 6J~f

57. Section 6t1M of the Income TllxAct. 1962. is hereby amended by the substitu-tioo lor tho words proocdht~ paragraph (a) or lhc l(,lto\\'ing wtn·tl<;:

.. [If] Notwithstandin~ the f2t'Ovisions of Chaeter 13 of the Tax Adwinisu·a-tion Acl. if-",

Ameudm@ut of section 64R 58. Seciion 641-t of the income '13..xAct,

1962. is hereby amended by dte deletion of subsections (3). (4) and (5).

148 No J.).491 OOVERN.\t£NTOAZE"nc. 4JULY2UI2


I No. nnd •·•nr Short 1111• F...xtC'nt of Amcncb:uC"nt or reptoJ Repeal or section 6S

59. Section 65 of lhe Income To.~ Act. 1962 ... ben:by .. ,.....red. Amendm~nt of S«tloo 66

60. Section 66 of the Income To.~ Act. 1961, is hereby amended (a) by the substilutiou for lhc beadiuJ< of

abc Col1cm. ing lu:adin~ ··~otict" b~· CoUllllissiout<r ...,. qulrtog returns for :>SSfSSUimt of [!Jixesl nonual ta~ mtdor thl<Act (and 111.3Uitf'r of runtis-hing N'·

turns :md lnttrlnt returns]". (b) by the sub.1iluliou for sul>>~.-.;tion ( I)

of the followin~ subsection: "(I ) The Comm•ssioner miL"

annually give public notice IUtal aU] of the p<.TSOm -..bo [art per-sonal.ly or in a n>pri"Sf'nhttivt' G1J:mdty UuiJle to taxaHou umler this Ad or who] arc required by llec ConuuissiouCJ· lo fm11i..;ll n:· nuns for the assessment of uotuud rax[, mustl'urulsh returns] within ~ •• p<.:nod prcsctibcd in ~mt uo-tic~r, or such longrr ., .. riod ;ts Uw Commissioner may nUow, for Ute purposes of nsscssmcniS in •·c-S(.tPd of the ye~trs of ~L'tW .. 'i'!imenl SI>t><:llitd In tbatuoUce]." ;

(<') by tho dtl<lion of >-ubsoctium ( lA) . (2), (3) •nd (5):

(d) by the substirutiou for subs«tiou (5A) of the foUowing subsection:

" (SA) Any person wbo is uot in lcnns or this scctim1 n:quin.-d lu furnish • return in respect of auy year of assessmenl may for the purJ>OS<: of blniDg [his) that p.T·

son's liability for [ ttxatiou] ~ mal ta.~ tfe.1ennined on assessnlfllt furnish such a rctw:n within three )'<A"' afier the end of suoh YOM of assessment.··:

(c) by lhc dol<tiou ofsubs<-cbuus (6). (7). (7A), (7B). (7C). (70 }. (7E). (8), (9). {10) and ( 11):




(/) by the substituliou iu subli<."<:tiou ( 13) for lhc wont~ pr.:cediug J:Mntgraph (a )

of !he following words: "( 13) The reiUm [oflncomej !2!;

ri(Jnllfl1 IHX lo be mndt:! by •ny per1>nn in re"J>eCI of any yetlr of assessment .shaU be u [full Alld

true] r<ttUlt-":

(g) by rhe delerion m tile provi•o to subsection ( 13)(a) of the word " or" ut lite cud of paragraph (bJ(ii):

I II) by dte addition to the proviso to subse<:tioo ( 13)(a) of the following para)lraplt:

"(c) a ecrson ceases to be a 11!..'>idl!nt. A rclum SIUIII be mnclc (or

the eeriod commencin!! on rhe first da:r: of that l!~ar of assessment and \!udiua ou U1c da;t ~rcccdius the date thAt the ~rsnn ceases to be a resident: orH;

(i) uy tbc addition of the following pro-v i!IO in subsection ( 13)(b):

": Provided that where a com-EUUV CCiiS\:S to be • n:sidcul. " remm shall be n,.de for !he ~rind conuuenci.og on the first di'IY ofthnt financial year and cndins: on tl1c day urccccline tl1c dale tJud the COIIIJ2ai1V

cea&es to be a residem". (j) by the ~ubstinniou tor subsection

(J 3B) of tbc following subs."<:tiou; "(13£1) I" or the. purposes of

.wh~ec1 ions [(13),1 ( 13A)[,) and (13C) [:llld (1-1)1, the word 'in-com~:' must be coust:m1.-d as includ-ing any aggregate ca1>ital gain or a.g:gre.gate c-apita] loss.": and

(k) uy the dcl<tiou or subsoctious (14) and ( 15)_



No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll Amrndmcm ol' section Ul

61. Section 67 of the Income Ta.x Act, 1962. is lu.:n:by amcuded-( a) hy ll1e suhslitntion for sub~eclion (I)

of Ute following subsection: u(l) Every person who at any

1juH! hccomcto 1i~tblc fin· any nunual tllx or who becomes liilble to snh· mil any retwn contemplated in scctiou 66 umsl[, \\ithiu GO dn~·s aflrr so hec·tmling a t:tx(myer,J apply to the C<>wmissioner to be n:gistcn:d us u tax.pay\:r iu accord-ance with Ch.aeter 3 of the 1'ax Adminimarjon AcL .. ~ anrl

(b) by the deletion of subse<:tions ( lA) and (2).

Repe:ol ofs.><:tious 67 A, 69, 70, 70A, 70D nnd 71

62. Sections 67A. 69, 70. 70A. 70B and 71 of the Iuoomc Tox Act. 1962. arc hcrehy repe-aled.

Amendmem or section 72A

63. Section 72A of dte Income 1:"' Act, 1962. is bot-.:by amended by dt< substiru-tion fur i<nhf.l.:N:t1nu ( 1) nr du: (olluwing subsection:

"(1) EveJy resident who on the last day of tbo foreign tax year of a con-f1'0lled foreign company or immedi· ateJy before a foreign company ceases to be a controlled forci!u1 company directly or indirectly. together \\1ith any connected pel'son in relation to tltat resident holds at least LO percent of the p1u·Lidpuliou liglJts iu uuy c;outroUcd foreign company (od1ern~~e [han indi· reedy through a company which i~ a rcsjd!;'nt). must submil to t11c Conunis-$10111.'1" [such] " rclum [a< mny be JH't'.scribed by lltt' Couuuissiouer]. ··.

Repcn.l or scrtions 73 to SO

64. Soctions 73, 73A. 73B. 73C, 74. ?4A, 74R, 74C, 7•10. 75, 75A, 7.5B. 76, 76B. 76C, 76ll, 761!. 76F, 760, 76H. 761, 76J. 76K. 76L. 7GM. 76N. 760. 76P. 76Q, 76R. 76S. 77. 78. 79. 79A. 79B and SO of the Income Tax Act. J 962. ""' hereby repealed.

2.S4 No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012


No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll Amendmcm ol' section SOil

65. Sectioo 80B of the lncome Tax Act, 1962, is hcn:uy tlmcudcd by tl•c substitu-r.ion for suhS«t.ion (2) of tln: following subsection:

"(2) Subjec;t to the time limits hn-p<>>cd by fsoction 79, 79A(!)(tr) nnrl R1(2)(b)] sections 99, 100 and 104{S}(b1 of lhe Tax Administration Act. lhc Couuuissioucr must wnk..: compensating ;tdju.s:bnemx thai he or she is satisfied are necessary and appro-priatc to l..'llsun: the c:omi~tcut b'l:.atnu:ul of all partie• 10 the impe~nli.ssible avoid:mce 1lJT'angemenL ...

Repeal of sections SOK and 80M to 89upr

(i6. Scc!ious SOK. SOM, SON, 800. SOP. SOQ. SOR, SOS, SOT. 81 , 82, 83, 83A, 84, 85, 86A, 87, 88, 88/\, 88B, 88C. 880, SSE. SSF. SSG, SSH. 89. 89/>is, 89rcr, 89qurl1, 89quin, 89so; (Utd &9.w:pl ur lhc

income Tax Act. 1962. are hereby re-pealed,

Auumdme-ut of St><'tiou 90 67. Si:clitln 90 of ahc:: fnc(ntu: Thx Acl,

1962, is hereby amended by the substitu-tion in subsection (I) tor lhe words prcocdiuJ! lhc proviso of ~1c followiug word~:

usubject to the provisions of this Act and the Ta.'t Adminislnalion A<:t. tulY uonnal tax [(otlter than donations tax) 111111 :my iuteresl payable ill tenus ol' secllon 89(2) or S9quar, sltnU bej J! puyublc[-(n) by any reprP.srut~uivr taxpayrr,

U:1ble to reisessmeut or for Ute paym ent of suclt ta.x or Jnterl'St under thi'i Act or 1mdcr nny previous Income Tax AcC i

(c) Jn restltc1 or nny oUter Income and in aU other cnses,l by the p<>rson by whom fthe] anv taxable income is received or to whom or in wbos~..: favour it a~(lliCS or who is legally entitled to the receipt thereof .. ~ .




Amrudmcm ol' srcrtou 91

68. Section 91 of the Income Ta.x Act, 1962. is lu.:n:by amcuded-( a) hy tJu: dddiQn Of SHh$ t:CiiOn,:o (l} ami

{2); ond ( I>) by d1e rubstilUtion for •11bsectiou (S)

or lite.: (ollowillg Sllbl!OCCiiml:

"(.5) So much of any inrere.sT payable in terms of [section eighty-nine] Cbu11ter 12 of the Tax Administration Act M rehues to such portion of any lax as is in tenus of subsection {4) n:covcrnblc from 1he assers refetTed tn in that subsecrjon may also he recove.l'ed from such assets.".

Repealuf sectinu.s 9 1A to 101

69. Se<:tious9LA. 92. 93. 94, 95. 96. 97. 98, 99, 100 and 101 of the fncome Tax Act, 1962, are hereby repealed. Amtuulnnmt nf s~·rion 102

70. Sc:.:<.:tiou 102 uf tht..: fucomc Is.-.; Act. 1962, is hereby amenrled-(a) by the deletion of •ubsection {1); ( I>) by the substitution for subsc~tion

( lA) uf llu.,o rullow1ng $0ub.:t~ction:

"(lA) The Conunissioner may rethse to authorige a re-fund wtder [subS«tion {l)l scotiou 190 of the 'tax Admini!lltnttion Act, if rthat person] (tl / thut ~?C•~ou has foiled to fur·

uisb u return [for an.v year of assessnwul] •• required nly] in hmus of tills Act .. until tbnt pc-rsou hu.s fumisbcd sucb rc-nun M required.: or

(b) [has fnU..U to furnish U1e Coumtlssl.oncr Ln writing With pnl'tiMll.nrs of thnt pr-r-sou•s b•u•kll•g at•c.·ount or ACCOUlll \\1tb A Sllllll3T JnstJ. tntiou to enable !be Conuuis-sinner In transfer a rt'-fwu~ if :my, to IliA! ACCOUUI] tb< re-fw1d is claimed bv lhat 2(.TSou after a ~riod of three ve.t1Ni after the end of 1he !ear of asscssmcut. in lbc cru;:c where




that !?£non was oo1 n:guin:d b~ anx Em,rJsiun or lhiJS Acl lo funllsh 3 retunt of income for that :z:ear of ossessmellt and did nol n:nciL-r such n rchuu dtuing the 12e•iod of three yean;. Kince the end of that vear of a.ssess-wcnl."; and

(c) by I he deletion of subsection• (2), (3) and (4).

Rept>al of secliou l02A

7 1. Sccriou l02A of !he Income Tax Act, 1962, is hereby t•epealed.

Amendment of section 103 72. Section 1 03 of the lnc:nme Tax Act.,

1962. is hereby amended-(a) by ~tc subsriruliou for subs."<liou (4)

of the following subsection: "(4) [Any dedslon of the Com.

llliSsiOIIC1' under subsection (2) slmll he subject lu objNlinn aml appeal, amJ wht-ue,'t>r] !! in ~ obicctiou and ae~l proc(:cdin~s rehtliug fthri'ClO ]ro A dccislun un-der $Ubs.ection (2) it is proved that lhe a~reement or ch.an_ge in sluu'Cboldiug or mcmb~o:t"S' iutcn."StS 01' uustees or benefici::uies of the bust in question would result in the tavoidam:..: or tlu.: poslpoucmcnt of liability for raymem of any rax. dmy or levy imposed by this Act or any pn.:vious Im.:owc Tax A<:t or auy otbcr law adwiuisu:n:d Uy tlu: Cow-missioner. or in the reriuc.rion of the rullOU.nJ thereof. il ; ball be pre· suru~d. Wllil th~ ~:ontrary is proved in lhc case of any suclt ::tgn:cment or change in sbareholding ot· mem· bers· interes ts or trustees or benefi-~i 1ui4.;.'S of such b'Wit.lluu it bas bem emered into or effecterl solely or mainly for the pwpose of utilising lhe usscsscd loss. balance of as· ses.~ed los..' ell pi tal loss or assessed capital loss in question in order to avoid or poStpour: sutb liolJilily or to reduce the amount tl1ereof.": and

(b) by lhe deletion of subsection (6).




Rcpral or sections 10-1, lOS, lOSA, 106, 107A and 11 0

73. S<.:.clious 104, 105. 105A. 106. 107A •ud 110 of tlu: Income Tax Ad. 1962, ru-e hereby reperued.

Amendment of paragraph 13 of First Sdtedul•

74. Paragn.tph 13 of I he: Fir.st Sdactlule io the Income Tnx Ac~ 1962. is hereby amended by the substitution tOr subparn-~pit (3) of the following: s-uhpRrn¥f1tph:

.. (3) Evezy fanner who desires tn claim a deduction in te1ms of !.ubpam-!lfllph ( 1). shall [with his t-cturn of i.ucomr] for Lln: y..:ar of ass~'SSln<:ut iu \Vhich he or she "'ld lfvesroc.k on ac· .. count of conditions of drought or stock

d~""" or by reason or his or her p11.nicipation in • livest.ock l'ed~ scheme organized by the Govenunent[, or wttbln sucll prriod as thr Conunls· sinner mny nllow,l uo,ify tltt.: Co.nnni.~:>-

•ioner accordingly and [funtisb] obtain and retain full pmticulars in regard to the livc:stock so sold." .

Amendment of parnl!rniJb 19 of Jilrst Schedule

75. Paragraph 19 of the First Schedule to

~'" In~omc TllX Acl. 1962. is hereby amended by the snb~tihtrion for !lnbparn .. graph (3) of the following subpamgraph:

"(3) Wl&ct\: the lnxpaycr's ossc.roucut for tt rciC.\1Wll period luas in lcnus of ""crion [81(5) of Utis A <"II I 0() of the T•x Adulluistration Act, become final and conc.:Jusiv.;:. lht.: Couuuissiou~·r shalluot! merely by tellSO!l of the f•c t th>< the amount determined under subparogmpb (2)(o). as the ta.""<paycr's annual ovcra~t: htxflblc income (rum fanning ln rcl.alion to such period is incorrect, be required to wake " fiuther assessment upon tbe hLXJNIY\."1' fur suc;b pt.:riod lu t~'tlllb of -"'Ction [79 of Lhi~ Aclj 99 of th>i Act or to autl1o1ize a reftwd under section [102 of this Act] 190 of thai Act of any IlL< overpaid in respect of such period, w1p

less it appears that such annu.al average UlXabk iuc:outc from falllliu~ should be increa.~ Ol' reduced by "' l.ea.-cil .six hundred mod.,..

261 No J.).491 OOVERN.\t£NTOAZE"nc, 4JULY2UI2


I No. nnd •·•nr Short tltl• F...xtC'nt of Amcncb:uC"nt or reptaJ Amrodmcnt or pnmgrapb 20 or H rst Schednl•

76. l'urujmlpb 20 of lbc Fint Scbc-.Julc lo 1he Income Tax AcL. l962, is l1cn:Ly

amended (a) by the substitution an subp;=Jif"Ph

( I) for lhc \\onl'i pn."CL-din,! itc:m (111 of the following wonk

"If [:lilY] ! taxpayer (other than a coanpany) 1\bo dah·.,. incorrn: from f.umintt opmoriOM [submits an appUcatlon to lht Corunlls-sioncr] Dllikcs an election as pro-\'ided in $nhp>ragraph (6) ond if.., required proves to the satisfac-tion of the Commissioner ...

I b ) by the substitution in >ubparajm~pb (6) for itL•m (a) of the following item:

"{a) Any raxpayor (other than • company) may[, AI bls O(ltloo, make written OPllUrntion to tbe Cmumi.ssionfr] elect for tJ1e nor-mol tax payable by [blmj the lOX· payer to be d~..:tennincd luldcr this pttrapt~ph. ": and

(c! by the substitt>tion in subp3tasrnph (6)(!J) for Ill<: wurds vn:ccd..ius subitem (i) of d1e following worcb:

" [Any] For J2:W:QQSes of Stith [oppUcatlon sbRU b< subodttcd to th<' Connnissio.nrr nnd shnll b(l accompanied by) election the fol-lowin2 records must be obtained 1111d n:taincd(- );".

Ameudmeul of paragrnpb 1 of Fourlb Scbedolt

77. Paragrnph I of the Founh Schedule to the Income Ta'< Act. 1962. is hereby amended-(n} by the Sltbsrirmion in the definition of

"represelllltive employer" for ttern (bJ of the foUo"inJ< iran:

"(b) in the <Me of any [dhl-sloo:ll council, municipal councU, lillagc monogcment booed or like authority 1 mtmicip3li'V or MY body corporate or unincorporated (other than a company or 1 partnc:r· ship).;. any tnanagcr. sc.c:n:.Lary. or· fic:er or other person responsible for payin~ reuumerntion on beb:llt of •uch (council. board. author-ity] wuuici!!alit~ orlxxly:" : aud

26-& No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012


No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll (11) by tll~ sub•1itutiou in the definition of

'01't!))TC:SClll ail \ fC employer" ror ihc:

words following p:ll'ogr:tpll (tl) of the followin~ words:

• .._who rt~ n rcsidrntl re.llidcs in the Reuublic. bau nothing in thi~ definition shall be construed as n:licviug uuy txrs:ou from any ti-ahilicy, respons1bil1ry or duty 1m· posed upon him or her by tllis Schedule; aud",

Ameudm~nt of pnrngrnph 2 of fourth Schcdulr

78. Pamgraph 2 of the Fom1h Schedule to the Income Tax Act1 1962. is hereby aw~.:udcd by th~ ius<..Tliou in subpara~ph (~) of the following item •frer item (c):

" (cA! an;t Eremitun Eaid b;t an em-elol::cr of the ca.xea~·c-r dircctll': or iuclirccll:,t ror tlll.! bcncfil or

on beh>Jf of the taxpaver to the extenl thnc the polic:t; of iruur-tm<:t: in rcs~cl of which tbc nremimn is naid covers the rax· ~xer against the loss of income as • result of illness. iujurv. rlisabilitv or unemelovmem: nudn.

Amemllnrnt of paragraph 5 of Fourlh Scb~ule

79. l'aragrnph 5 nf the Fonnh Schedule to the Income Tax Act, I 962, is hereby amended by the substitution for sttbparo-graph ( I) of the JollowlnJil subpat1lgntph:

"( I) Subject to llte ,,..,,;s ions of subp:trograpb (6) [:my). if an employer [who fnlls to deduct or withhold tl1r full nmouut of employees· lSlX ns 11ro-vidfd in paragr:tpb 2 shall be] is personally liable lor the payment [to the Commissioner of !he amount] of <'111-ployee<' tax tmrler Cha2ter I 0 of the T•x AdmiJlistmtion Act. l wWcb h e or sh e fails to deduct 01' witWIO!d, and) the employer ~h"ll (, suhje~:t lo thr pmvi-slotiS of sub-pnr ngrnph (2),1 pay that wuow1t lo lhc Conunissiom:r not lat-cr rll.1n the dMe on which p"yment should have been made if d1e employees' tax had io fact been deducted or withheld in tenus or pat'ligntJlh 2 ....

26l5 No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012


No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll Ameudmellt of pnrngraph 6 or Jo' ourUI Scheel niP

SO. Pllrograph 6 oftbc Fourth Schedule 10 lhc: Iucomc Tax Ad, 1962, is hen::by amended (a) by the sut>.titution for subparagraph

( I) or the following subparngmpll: "{I ) If an employer fai ls to pay

any amount of employees' t:1x tOr which be or bcr is liablo wi~tiu lhc period allowable for payntent ther<ofin terms of parngraph 2 [he shnll, in nddilion Jo nuy ot11er (tPnalty or charge for whid1 he mny be Unble under rills Acl, pny) SARS UlUSt in accordance with CJ"'e'"' IS of tho Tal< Administra-lion Act, impo~c: n pcnnlty cqi.Ullto ten per cent[.] of such amount. ": and

(b) by the ddctiou of subpar& graphs (2). {2A) , (21~). (3) and {~).

Repeal of Jlnrngl"apb 8 of Founb Scllt'dnlr

81. Tiw Four~! Scbcdulo to tltc btcomc Tax Act, 1962, i• hereby amended hy 1he repeal of paragraph 8.

AIUt1.1Ubuent or par.tgrilph 118 or f' ourth Schedule

82. P•ragr•ph 1111 of the Fourth Sched· ule to thelncome TaxAcl, 1962. is hereby umoudcd by the dcktiou of suopwll~ph {4A).

Amendmtut of paragraph llC or Fourlll Schcdul~

83. Paragraph IIC of the Fourth Sched-ulc to ~'"Income To.x Acl, 1962, is hereby amended by the substinttion for finbparn .. graph (2) of the following subparagraph:

"(2) Subj.ct lo subpamgmph (6), every private company sb•ll 011 • monthly basis. in respect of every director of that <ompany. pay to tho Cmmnissioncr nn fUnouul dctcnuincd in accordance with subparag.-aph (3), which shall for d1e purpo.ses of [sec-lions 79, 89bis, 89tcr. 89qunt.l section 90 [, 102 nnd 102A] oftheAci, [111111] paragraphs I. 4. 6, II[, 12], 13 and 14 11nd Pwts ill w1d IV of this Schedule[,] and Chapters 8, 12 and t3 of the Tax Arlministrarjon Act. be deemed m he an amount of employees~ tax which was

263 No J)491 OOVERN.\t£NTOAZE"nc. 4JULY 2UI2


I No. nnd •·•nr Short 1111• F...xtC'nt of Amcncb:uC"nt or reptoJ n:quin:d to b<: d<:ducto.-d or \1 it!Wcld by lhc company as an employer in lern~ or pata!!"\ph 2 of UU. Schedule.··.

R•peal of paragraph 12 of fourth Scbodule

8.&. Titc Fout1h Schedule ro dtc Income Ta.• A<1. 1962. is h~by amended by the repeal of parapapb 12.

Ameudmeut of paragraph lJ of Fourth Sdlfdlllt

85. Paragraph 14 of the founh Schfd· uleto thelnCODle Ta.• Act. 1962.,. hereby amended--( n) by the sub<tinuion in •uhparapoph

( 1) for the words precedin! item (n} of the following words.

" [Emy) In addition lo lhc record'i r~tired in accordance with Pru1 AofChoeaer 4 of1he Tox Ad.w.i.uistrutiou Acl. t.: VC:!t, o.-:w· ployer shall in re...-~;pect of e11ch employee maintain a record show-in~\':

(b) hy ll1e s ubslitutiou for suhpamgn1ph (2) of the following subp•ngrapb:

.. (2) £,·eey elllJ)loyer shall when makiug llliY payw<-ul of employee•· blx submit m the Commissioner [sud1 dednrntlon cont:Uulng such lnfonunlion ns thr Conunissionrr may (lt-.snlhel ~---;

(cJ by the •ubstitution in subparngrnph (3) for the words following il<m (b) of the fuUowinl< "ords:

uor within such longer time as lhe: Commissioner may approve! rcnck:r tu the C onnuissioucr [ surh 1 !! rcttuu [as !he Commissioner ma~ pro· .scriM].":

(d) by lh<: ddotion of subpurnl!Il'Ph (4): and

(') by lhe substinuion for subparapaph (6) of lh<: foUowinJ< subvano11J11pb.:

"(6) If an employ..- fads to ren-der 10 the Commissioner a rerum n:faml IU in •ubpano11J11pb (3} \\;thin !he period pre<Cribed in that subporagmph. lhe ConmUssJooer rua;t i.nu>osc Wldcr Cha~tcr IS ot Lhc Tax A<hniuis lt'Hiiou Act em r.hal employer [sb:ill IX' ""!Uirt'd lu pay) a pereenraae based pen•lry

110 No J.).491 OOVERN.\t£NTOAZE"nc. 4JULY2UI2


I No. nnd •·•nr Short till• F...xtC'nt of Amcncb:uC"nt or reptaJ [equal toj for cucb woulb that 1bc ei!!Jlloxc:r fails to i!IUbmil a ~mu~lctc rerum whic:b in totl\1 max not ~'<-Cee<f I 0 per cent of the lOW amow>l of cmplo)'L"CS~ tax. <lL-duclcd or ~idaltdd

or which should h>1·• t-n doductod or withheld bv the em~loyer from the rtmWJ..,tiw of cwploy= for lhc period [relating to U1e relum .,.. qulnd In 1enns of] describ.d w that subparapupb [: Pro1idod lhllt the Cotnmissiouer ma~· IVUiil I hal ptn:tlty or ponlou thereof If be or she Is satlsliro thnt Ute clrcwn-stanN'..s ·warrant. it].".

Am eudm•ut of parngr;1pb 15 of F ourth Schtdulr

86. l'aral'J'8ph IS of the Fourth Scbcd· uli:: lo 1hc Income Tax Ac~l962. is hL-rchy Amended-. (a) by the >-ul>stituliou for sui>PliJ·•l!I11Vh

(1) of 1he follnwin!'- <nhp•rnl'J'8pl~: "(1) Every person who is au em-

ploycr •h•ll apply lo the Couuuill-sioner [in sm~h form n.'i U1e Cum-missioner may prescribe J in oc-<:ordancc wiU1 CbaJ:!ter 3 oflllc Tax Adminisrmtion Act for reg.istrntion [as ;w emplo)'er wilhiu 14 d;t)'~ aflrr br<onUuR an rmployrr, or within such ful'thrr period ns th(l Commissiout'-r umy "l't>ro••l: Providtd that where uo one of such <wploy...-"s <wploy<"<:S is liublc for uUil1llll tax. lhc pro>ision> of thi• par.tgtllph ~11 not apply to such employe~:··.

(b) by lhe ddctiou of •-ubvonprnpb (2); (~I by the &Ubsrinuion for •ubparal'l"'Ph

(3) of lhe follo\\ing >Ubpornl'J'8pb. "(3) Evcty pctWD \\bo [bas

applird or is <iffm•d IO Ita\«!

nppli«l for nogist.-.Uou undt"r subparagraph (l)j is r<j!istcrod as an employer sludl v. ithin [four-teeu] _!!days after [rbaugiug his nddress orj ceas~ to be an em-ploycr. notify the Couuuission<T i.u writing of 01is nrw mlclress or nf'] the fact of[blsj the employer ba1·· iu~ ceased to 1><: au employer[, ns lht> c~t> may bel:': and

(tf) by the deletion of snhp•rn!lf"pb (4).



No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll Rcpral ol' pnrngrapll 16 of fourU1 Scheel niP

87. Purngrnph 16 oflhc Fow:th S<h<d· nh: 10 Lh~ Tuct)m~ Tax Acl, 1962, 1s hen::by repealed.

Amendment ofpar:1graph 17 of Fourth Sdtedule

88. Paragraph 17 of the Fow1h Scbcd· ule Lo Llu:: Tucomc Ta.x Acl, 1962. is hereby amended-(a) by the substirution tor subparagraph

(5) of the followiug subpol1lgraph: ''(5) Titc Couunissioucr may fruul

time ro rime. h1lving regard to the rates of nom1al tax as fixed by Parliament or fore.shadowed by the Mwistcr iu his 2!:.b1 budgcc stute-mem or as vttried by the Mini$ler under section 5(3) of this Act, to tbe rebates nppljcablc in terms of section 6(2) and (3)(a) and se-ction 6qum of thi~ Act and to aoy other fac-tors having o bearin~ upon the probable liability of t!Lxpoycrs for uonual IlL,. prue:ribe table~ for nptjon:.l u.seo hy provisional taxpayers f.1lling within IWY category Spccifi<d by lhc Com· miJt~inner, or hy provlsiom11 taxpay .. ers generally. for lhe pmpose of cstimatiu~ the liability of such ta.,. payers for nonn11l tax. 11nd rhe Com .. missioner may prescribe th~ maw1er in which •uch tables •hall be applied roaetber with the eeriod for which sucl1 lahlt.."S shall rt.'lmtin in force."~

( b J by the deletion of subparagraph ( 6): and

(c) by the substitution for subparagraph (8) of th• following suht>aragraph:

11(8) Every person who is a pro'~ .. sional taxpayer shall[witltio 30 dnys Rrtrr thO dAtO UJlOO wlticb br bC· cnmtts a pnwfslnnal t;1xp:1yttr,] ap· ply to the Commissioner for registra-tiuu as a provi!tioual La.tpaycr !!! accordance with ChllJ11a 3 of r.ln: Tax Administrntion Act •·.

214 No. 3.5491

Ad No. 18 oHOH

No. nnd yc-..nr Short title

GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012

Tu Adnunttotr.-rion A(.l, lOll

Extt'nt of a.mcndmr.nt or repeal

Amendmem of paragraph 18 of fourU1 Scheel niP

S9. Paragrnph IS of lhc Fow:th Scbednh: 10 Lh~ Tuct)m~ Tax Acl, 1962, 1s hen::by amended by the substitution in subpouagrapb (J)(d) for lhe words precedin~

sul>itcm (1) of tiJc rollowing words: .. any namral pe1'$iOR [(otJtt>r than a

dlr~ctor of a prh·ace compnnyl] who on Lb\! last Way oftbc year of nss<:ssmC'ul will he [over the age ofl 65 ye•"' j)! older. if t11e Conuuissioner is satisfied that suc:b pc:n;on 's La;"abh: iuc:omc for fJ1t1t year-...

Amendment of paragraph 19 of FourU1 Schedule

90. Paragraph 19 oflhe Fourth Schedule to ~~• h!comc Ta.,Act. t 962. is hcn:by amended-(a) by !he substitution in subparagraph

( 1) for item (a) oflhc follow in_~ item: "(u} Every provlsimrnl Utxpaycr

(other !han a company} [or a t><'rson contemt>laCed In paragraph 18)1 shall. dw·iug cwry p<:riod wiU1in which provisional tax i.s or may be payable by [hbuj lhat provisioua.l \wcpaycr as providc.-d iu this Pali , r nr nn" l'Xlensiou of such J>ertod grancoo Itt tenus ol" paragraph 25{2),] submit to ~'" CnmmiJ;;sionel' r, in SUdl form as the Couuuissiouer may prescribe,] {should the Commissioner so require) a rcnun of no estimate ni lhc IUIAI IHxnblc income \\thich

wiU be de-rived by the taxpayer in res peel of the year of assessment in rc.spcc:l of which provis-iotwl lax is or may he payable by [him I the taxpayer.

116 No J.).491

Act No, 23 or 2011

I No. nnd •·•nr Short till•

OOVERN.\t£NTOAZE"nc, 4JULY2UI2


F...xtC'nt of Amcncb:uC"nt or reptaJ

(b) by lho substitution iu 5ubparaJ011Vb (l) for itc::nt (b) or tile: follnwin! itc:ua:

"(b) Ev<ry Comp:uly which i• a provisional taxpayer .tWL d~ C\'L'T)' period within "'hich pro' i•ionaltax is or lllllY be P•Yllble by 11

as pro1ided in Ibis P.ut [or ruJY extension or such !k'riod grnntrd in lfnns of paragmr>h 25(2).] subntil to lhe CotUJUissiooer L, In such ronu as the Commissioner may ,,,.....ribe,] {!!hot~d the Commissioner so regui.J!) a return of an estimate of ll.tC" total taxable iucowc which will be: derh cd hy tJac rom· p:my 1n rcspccl of lhc ye~tr of assessment in respect of wh.ich pro,·isional tax is or may be pay· ul>lt by the cowpuuy ... ,

(c) by the snbsritulion in subpara~ph (I) for item (c) of the following llem:

"(,·) The wuowat of WlY l.:) lUuutc so snhmitt:ect by ~ provi.sion:1l t~x

payer (other lhan a company) durin& the p.-,iod r.:fcm;d to iu J.'Wli8Jllph 21(1)(a} ror auy t'..:.\:lt'll~iun uf ~udl f>t'riod SJ."i'tUlnJ i.u (t"-Oll!l of (JitrU

JII"Rpb 25(2)]. or by • company (as a pro,;simml taxptylO..'T} chuing tJac period referrrd to in paragrnph 23(a) lor :my extension of sudt !k'rlod grnntrd in trnns or (lllnlgrflpb 25(2)], Wll. unleu the Cornmi!sioner. luning regard to the circum· stances of the case. ap-~ to ac~l au estimate or a lo"or Wl10WIL not be less than tbe ba.•ic amotun appliC3ble to lhe estimate in qu<stion. as <011tcmplat<-d in item ( d).-,

(d) by the substinuioo in sub(w;agrnph (I) for subsubitem (bb) of item (dKi) of tb<: follov.~ subiubitcm.

''(bb) [lhe ~ru<able portion or rua~· hoop sum] any amount contemplatrd in [S«<Ion 7A(4A) and] (>lllllliJliJ>l (dl of the defimtioo of ' gross income' m section 1: and'':

11¥ No J.).491

Act No, 23 or 2011

I No. nnd •·•nr Shorr tltl•



F...xtC'nt of Amcncb:uC"nt or reptaJ

( <) by lh~ substitution in subparaJ011Vb ( I) for tbc: provi~o to item (d' o( tile follo\\in!: pro\"'iso:

.. Pro,·ided lhot. if an estima1e under-item ( a } or (b) ltuL'o.l he nuwlc( n J more 1iwl I 8 month.<: •nd @ in respect of a period lhol <tlds

wore than one year. •fi<r lh< end of 1he l01est procedsng year of assessmen1 in rdauon to suc:b ~tiwatt. lbc basi~ IWlOWII

determined in renns of mbi~em (i) and (u) s.ball be increased by an 81l10WII (:qual IO eijilit p<T CCUI p<.T

annwu of lhal amoun1! from lhc end of suc::h yCl'lr to the t.:ud or the

year of anessmem in res-pe-ct of wlllch lhe estimale is made.··:

(/) by lhe substhuliou in subpm·agruph ( 1) for snbitem (ii) of i1em {r) of 1he following subitem:

·' (ii) in =vee I of which • uulie< uf ~sses..~mem relevant to abe estimate has been is~ued by the Couuuissium:r not J..:ss tbw1 [60)J.1 d:ly~ before the dine on whic.h tbe ciStlluillc: i' :mbruin«l to the Corumi.ssioncl': Pnnid.cd thnl wlu .. "f'C tl1c Commiuioner has in respect of any estimate required to be made by a pruvisioual ~~~.,.

payer i.<.<ued lo dte taxpayer a remm for the payment of pruvisioual tux upon wlllch lh< C<munissioocr has iudic:ared the t1."<p.tyer'• rauhle inc0111e for lhe latest peeced· ~ yar of USC$$rnt-"Ut, in re.~ or which 3 notice of assessment v.11s lSSUed prior to the ii:suc of $UCb ~ 20uc.h [ta'Ublr iurome) year of assessment Jb.all ac che option of lhe lal<p3yer be d<"WJCd lo be ltbr basir aJuowd 3(lplical.Jlr lo ~urh esthnatt] lhot latest preced· ina: Y<:BT of RSSt.•mm:nl. ••;

1¥0 No J)491

Act No, 23 or 2011

I No. nnd •·•nr S hort tltl•

OOVERN.\t£NTOAZE"nc. 4 JULY 2Ut2


F...xtC'nt of Amcncb:uC"nt or reptaJ (g) by tho substitution fur 5ubparaj1111J)b

(2) or the following ~ullpara~ph:

"(2) If 311)' provisional toxpoyer fails to submit ony e$liwate as n.-quired by •ubparagraph ( I). d1c Commis.~ may e..mnute the m:table income which is required

to b<: e.tiwot•-.1 [, and sucll tSri· male shall be final and ronclush<t] .. : and

(hi by the iiubstilutiou for subparaJI'liVh (3) of me following subponlgraph:

.. (3) The Commission..- m.1y call upon auy provuiornd llll<pllycr to jlL~ify "'"Y c:stlmalc: made hy him orbcr iulcnns of~·ubpamgntplt {1). or to furnish panieulan of his £!: her income and expenditure or any ~cr particula,.. that ruoy be rc· quired, and, if the Commissioner is dissatisfied with the said estimate. ltc ur sbc muy hu;n:usc Lhc UUIUlWI

rhe.t'eof to such amount as he or 5he considers re.asonoble [, nnd Ill~ cslimntr ns inct'Cnscd shnll De fi1ml and t'OIIdlLioiive]."'.

Amrnamem orparogrnJ>Il ~o or Founll Sdu!dule

91. Parogrupb 20 of tho Fourth Sched· nle ro the Income Tlt.X Act, 1962, is hereby amended (a) by the substitution for tho hcadin~ of

lhc followi:ng hcadin,g: .. [ADDmOXAl. TA:\1 Pf:N. ALTVI:'THEEVEl'10FTA..XAIILE L'ICO~lE UhlNG UNDERESIDIAIED,.:

(b) by the t.lli><tinuion in "'bparo!""'Jlh (1) for items (o) and (b) of th~ folloVi ~ items:

"(a/ ntore dun R I million ond such eslim.1te is less than 80 per c~-ul of the amocwl of the actn.1l raxahle income the Commissioner may. if be or she i• not satisfied lhat tho am01ml of ~-uch Ch:liumtc Wtul

serioudy calculated witb due re~ to the factors bavinJ> a bi:wiug: ili~.;.•t\.'OU 01 wu~ uul

deliberately or ne!'ligently understated. subject to the provisions of subparagraph (3). impose. in udditiuu to tl1e nonnat tax ch:ugeable in

1¥.1. No J.).491

Act No, 23 or 2011

I No. nnd •·•nr Shorr tltl•

OOVERN.\t£NTOAZE"nc. 4JULY 2UI2


F...xtC'nt of Amcncb:uC"nt or reptoJ n::;JX:~l of the ta.~vaycr"s taX·

able income for bUch year of Mse-.ssment.! [au awounl b~ wuy or odd!Uoual tru:J ~ !!!!l [up) cq1ud to 20 pcra.•ll

of me difference berween the amount of normal tax as oal· <U!atcd iu respe-ct of >11CU estimate md the amowu of uonml ta.' calculated. at 1M mles applicable iu rc>pc<:t or such year of n..~vnent. in resp«"t of a ta.uble in<:ome <-qual IO 80 per C<'lt of >UCh actual tuablc: income; and

(hi iu RnY olhcr CKSC~ less tlu.n 90 pet CeDI of tM anlOUOI of mch acrual taxable income aod "' ulso less than the lmsic tuuuuut applicable 10 the ~tim~tre in question. as ooutempl:ued in paruj<rdpU 19(1)(dj. the ~"'p•yer sllllll, subject 10 the pm· visioll!> of &ubpamgropbs (2) and (3), bl: ~ublc to pay to the Commissioner~ in adrlhion to dtc: nonu..U t.\.'t c.hnr.gcablc: i.u re>pcct of hil; or bet' taxable income for ~11ch year ur llJ,o

s:essment. ! [:w :unouul by woy of odd!Uonal t:uj ~ !!l!x <'iuulto 20 per cent of the difference berweeo the MllOUllt

of normal Ill.' as oalctdated in respect of such estimate and the l= of the !uUowW,. a.mo.mt.'l.. name.ly-(i) tit<: IIIIlOUlll of DOnUlll ta.•

calc11brcd. >1 1he rates apphcable in respect of sucb yc:ar of~ m r~ sp.•cl of a llvuiLic itK..'OtU&:

equal to 90 per cent of such acrual tu:lble in· comc-.aud

184 No J.).491

Act No, 23 or 2011




F...xtC'nt of Amcncb:uC"nt or l't'ptoJ (ii) du: amowll or nomutlta.-c

calculated in rosp«t of a ta."'ble income equ.>l to such basic amow1t. al lhc nu:u applicable in re'Jl«t

of sud! year of """" ' wcnt.·•:

{c) by the substitution for subpom@T.>ph (2) of lhe followilq< •ubvaru!'fliVb:

.. (2) Where~ Collllllissiooer" iUusficd that th<: IWJQWII of IUY

«:9iull'llc: n:Jc:rn:d lu iu btab)MOI·

graph (l )(b) was seriously "''lcolated with clue regard to the fuetoro having R heating thereon sud WRS

uot dclibrnudy or ucglil!cu~y Wt·

derst.uecl or if 1he Commis~ioner is paruy $0 satisfied. the Collllllis· liioo~r may in ills ur bcr dis~;_rctiou

remit the [:uldilioual tax]~ or a part thereot: .. ; and

{d) l>y the deletion of subpMJ)truph (4).

Amendment or pnrngrnph 20A ol' t ·ourth Srllrdnlr

92. Paragraph 20Aofthe Founh Schedule to t.hc.: Inc;: owe Ta.xA~t, L962, is h~.:n:by 1'1ll'lt:l l<lcd-

( a I by the substitmion for the heading of the following beading;

" [AODTTIO:-oAL TAll.l PENALTY ~ THE EVEJ\'T OF tiULURE TO SUUMlT ru'i l!:STTh1ATE OF TAXABLE INCO:\fE TThfEOUSLY .. :

(b) by the •ubstirution for subparagraph ( I) of the following subpom@I'Opb:

"( I) Subj<-.:ttu lhe ""'' i.ions of subparagraphs (2) and (3). where any pto\"isional ta.~payer is liable for th<: paywwt of uorutal lax in rosp«t of ony amount of taxable income deffi·ed by that pto\"isional ta.-q>aycr durin.@ aoy year of as$CS$· mc:ul and d1c cslimatc of his or lu:r

ra.:uble UlC'ome- for that year required to be submitted by him or her Wld<::r paraj!rupb 19( I) dwin.!! the period c:omemphned m J>anl· @I'Oph 21(1XbJ. 22(1) or 23(b} • .tht: ~asc way be. w~ uo11tubmiu-.-d by him or her on or before the la!lt doy of d10t year [or, If the (lerlod

186 No J)491 OOVERN.\t£NTOAZE"nc. 4JULY2UI2


I No. nnd •·•nr Short tltl• F...xtC'nt or Amcncb:uC"nt or reptoJ Cor tbe payment or pro•1sloonl ta'C dur by bhu or he-r in m-pKt or such period bas uud•r pant-grnpb 25(2) bHU tXItOdtd to 0 dntt later tbnn tllr rud or sudJ yf"3r. on or brfon> surh date~) the ta:q>ayer shall unless the Com· wissiwor bas e>tiwatc-d lbc said ta.uble income under paro~ph 19(2) or bas increased the amount th<-reof uuclcr I'""'I'I"Vb 19(3). be required to pay to the Commis-sioner. in addition to the nonnal tax olw}tcabl< in TCSJ>I:<I of >uch ta.~bk income. l on nmoum by WAY or addifionnJ l.SL'\:} H penally equal to 20 per cent of the amo\Wt by which the oonnal tax payable by IWu or b<r in resvcct uf >Uch raxable income exceed~ the .s1.un of any amounts of provisional ta.x paid by IWu or her iu n:svccl uf such r11xable income within any period aUowed for the payment of su<:h provisional hlX uudc.:1' this Pan for within any t'!.Xlt'nsion or :such pt-riod uudt"r part~-

grnpb 25('!)] and any amounts of employe~· trut dcduch.'tl or with-held from his or her remwu•.-rarion by his or her employer durin~ such yc:ur.":

(C) by the •ubstimrion for !Ubpara~ph (2) of the following subpara~ph:

"(2) The Coruroissioner may. if he or she is satis.fi<:d that tbevro• i-sional ra.xpayer·.s failure ro ~ubmit suc-h an estimate timeously W3S not daM: to an int'-"Dt to c\"adc or- pc>:.t· pone the payment of pro'i'i"""l tax or normal ta.,. rerun the wbol~ or any part of tho [addltloonl tax) l!:£!!!!!!.x. imposed w1dcr Mtb)»u'U-graph ( I) ... , •od

(d) by the deletion of subparal'f'lpb (3).

lU No J.).491 OOVERN.\t£NTOAZE"nc. 4JULY 2UI2


I No. nnd •·•nr Short tltl• F...xtC'nt of Amcncb:uC"nt or reptal Amrndmcnt or pnrngropb l3A of Fourth Schedule

93. l'anll'l"'Pb Z3AoCthc FourtbSchc-d· ul.: lo l11e Income Tax Acl. 1962~ i.!o l1cn:Ly amended (a) by lhe substitunoo for •u~

( I) of du: folio\\ Ul!' >ubpam!!'"'J~O: "(I) Any pro1-ilrional taxpayor

may for !he purpose of anndinJt or mlu<iul' W. or her liability for IllY interes~ which nuy become pay· able by him or her in respect of any yc11r of """'"'iiii!c-ol Wldct· [s«tiou 89qunJ] Chaeter 12 of the Tax Administration Act. elect 10 make an additional payment of pro1·i-s.ional ta." in ra.pcct of .such year.··, aud

(b) by the deletion of subpara!!faph (2).

Amrndment ofparngrnph 25 orFourlh Sdtedule

9J. Pnntgraph 25 of I he Fomth Sd1cd-ule 10 the lncorue Tax Act. L 962, is hereby amended-(a) by ~Jc SIW.Cilutiou for subpara,tmtph

( I) of rhe following 8Ubparngrapl.: "(I) If ofter !he end of any

period wilhiu which prvvi:tiuuaJ ll\X is payable in tem1s of this Schedule the ColllDlissioner bos under !he prol'isiow of •ubvarn-graph (3) of paragraph 19 in-creosed we runount of any estimare of '"-"'ble income submined by any provisiooal la.-q>aycr durin~ !.,1d1 period. any additionnJ pmvi· sionalta.'< payable u a rest~t of the Commissioner bo\-ioj[ made sucb inrn:asc shall. nor ... ;th.r811ding tl1e pro\-ision< of pato!'f"Ph< 21[, 2!) and 23. be payable '"lhin sucb p<:riod .. rbc Cornmi.slou<:r lWIY de.tmntne.. .. ; :md

(b) by lhc deletion of subparagraph (2).

Amrnclmrul of paragraph 27 of Fourth Schedole

95. Paragraph 27 of the Founh Sched-ulero tbclncome Ta:<Acr, 1962, is hereby awcudcd-(n) by lite sulmirurion for .<ubparagraph

( I} of the following subparagraph: "(1) If any provUioual taxpoycr

fails to pay any runowu of provi· sionnl I.HX (or whid1 he Or SlH! ls lirtble wid1in tlte period r\llowed for



No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll puyrucut tb~..:n..--of iu u.:nus of pura-graph 2 1 or 23, or p•r•graph 25( I). [or withlu such t>xteudM period ns the Couuulssloner mny nUow in lcnn< or pnrngrnph 25(2), he or slw mll';'l, in adclition to any otl1~r penni~• or cllar~e lncurrNI by Wm or her under this Act, 1>oy to the Commi.~siune.rl ihe Com· missioner must. tmder Ch:lpter 15 of lhe Ta.< Admiuistmtion Acl, im-pos:e 11 penalty equal to ten t>er cem of the amount not paid.'": and

( 11) by che dcleuon ofsubpara~n•ph (2).

h t"iertion of p~lragraph 28A of Fuurlh Schedule

96. Tlu~ fow'll1 Schedule to che Tncome Ta.x Act. 1962, is hereby amended by the insertion of tll< following pam~rnph after paragn1ph 28:

" 28A. Pa~ents b~ wa~ of ewElo~· e-es • ta.x and e;rovisiooal tax must. for thl.!' ~t~S<.:S uf this A~ I and sul>j\!CI tu the nmvisions of paractr"Qh 28. be reearded as h.avin2. been made in re-~cc1 of the IBX};!Rvcr's liaUilil:t, for 1a.x whethet• or not the llabilirv has been asc.e11nined or determined at the date of WI;! QHVUlCUt, " ,

Amendm~nl of paragraph 30 of f ourth Schedule

97. Parogrnph 30 of rhe FoUJth Sched-u1e to the Income TaxAct1 1962., is hereby umcudcd-(n) by rhe $tlbstinuion in rmb<ecrion (1)

for the words preceding subpamgrnpb (a) oftl1< foUowing words:

"Any pc·rsou who wilrnlly ami withouc just cause-u~

(b) by lhedelelioo in subparagrnpb (I) of ilems ( c). (tl). (c) rwd (iJ:

(c) by the !lttbnlnuion for item (j) in stJ.b. paragraph ( I) oflhe foUowing ilem:

" (j) [fails or neglects to 8Pilly to tht> Cnmml't"iionPr for rt>g.i."i-rrntlon AS 811 ~mploy~r ns required by subparagraph (J) ofl beina a ret!;isrered em· J2lover under pi.U1'1graph 15ill,



No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repeal

[or llnvlng so RJ>pUcdj Jails orm:glc:-cl" lo notiiy liu: Com• missioner of [:my dmnge of bls address or tile rart or blsj hav ing cc.ttscd lo be a:n t..'ln-

player :\S requit-ed by [sub-paragraph (3) ol' Utnt pam-grnpb] pw·ampb 15(3): or": and

(d) by the deletion of item (k) in subpam-JU'IIph (I).

Re)>eal or paragraphs 31 nud 32 of f ourth Scbl'dulr

98. Paragrnphs 31 and 32 of the Fomth Schedule to tl1e Income TnxAct. 1962. are hcrcby r<:pculod.

Amendment or l>a.rngraph 11 of SLxt11 Srbedulc

99. Paragraph II of tl1e Sixth Schedule to tho Jucowc Ta.' Act, 1962, U; hereby amended-(a) by the. deletion of subparagraph (3): (I>) by the substitution for •ubpara)U'8ph

(6} o( lhc (Q!Iowiug $UbJHlrfl f..'TUJ1h: "(6) Where the estimate de-

sc-ribed in subpru:n~rapb 41 a) is less th•u 80 per cent of the tuxublc h1nlove1· for the ye::tr of assessment, [addlllonal tax] a pe11alty equal to 20 p~r ~cut of tlJI.' di.ffcrcuc~ be-rween the tax pl\yable on 80 per cem of the taxable turnover for the yc:ur of aSs(..-ssm~ul uud tlu: tax puyuiJI~ 011 tlull \:StinlHll: UUJSl lH.: ch~rgecl ... ; and

(c) by th• substirutiou for subparagrnph (8) of the follo"inll subpnmgroph:

•t(S} Whc1·c the Commi.ss inucr

has iss\ted an assessment in re!Eect of the ~nl:ment r~uired in tenus of sulmul'liJ!!:!!ph (4). u l!!iualtv must not be imposed in tenns of snbp;l1'11• era~b (6). " .

Repeal of )t:tragraph 12 of Sixtlt Sdted-ole

100. Parng.raph 12 of the Sixth Sched-ule to the Income Tax Act, 1962. is hereby n:pcnlod.

294 No. 3.5491

Ad No. 18 oHOH




Extt'nt of a.mcndmr.nt or repeal Ameud mem or IIRtngrnph 14 ol' Slxtll Scheel niP

101. P!UliJ!fHph 14 oflioe Sixtl1 Schcdnh: 10 Llu:•_ Tuct)mc Tax Acl, 1962, 1s hereby amended by We subStitution for the words pr..:edin~ subpam111·oph (a) of d1e following words:

"[A]Norwithsnmdino, the provi~ion~

of Pan A of Chapler 4 of lioe Tax Admiuistrnlion Atl. a rtgislcn:d uticro bm;iness must only retain " record of._10 •

Repeal or paragnoph 15 urSixUo Sdoednle

lOZ. P~tn~gruph 15 of tho SixUo Schedule to the Income Ta.x Act. 1962, is hereby repealed. Amemlmt"nt of panLgraph 12A of Seventh Schedule

103. Par.grnph 12A of the Sev.,nth Schedule to the Income Tax Act, 1962, is hc11.:by umcudcd by the dclctiou of subparagrnph (~)-

Ameod mcllt or pnrngrnph 17 or Stwtmlh SchedulP

104. PUI"dgt1Lph 17 of UlC S~V<:Utll

Schedule to the Income Tax Ac.t, 1962. is hereby amended-( a) by the ddetioo of the proviso in

s ltb}Jarngraplt ('1); antl (b) by the deleoioo of subpata(!l'aph {5). Amcndmont or pnrngrnph 18 or Seventh Srhedule

l OS. Paral'faph I 8 of the Seventh Schedule to I he Tncmm: Tax Act., 1962, is hereby amended by the substitution for subparagraph (I) of the tollowin~ subparugrnph:

"{1) Eveoy employer shall on the return refen·ed to in pamgrnph 14 of the Fow·tL Sdocdtdc dcdw·c Utnt allta><able benefios enjoyed by employee.< of snoh employer during the period in respect of \'ihicb sucb n.:tw11 wwi Jiullislu:d. arc declared on the frJuployt"eSl employ .. ~es· lax certifictu~.s d~livered fO sucb cmploy~cs or on lUte] nnx oth~r return rto be fw·nishccl in l('nU$ of $C'Ction 69) •• mav be required by Ute Commissioner.".



No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repeal Rcpral or paragraph 19 ol' Se,·enth Schedule

106. Par•J<C•ph 19 of the Scv<:utb Sdtc:clulc:. IO llu: lnconn: Tax Acl, 1962, is hereby repealed.

Art No. 89 or1991 Value. A dried Tax Anoeurlnoent of Actll9 of 1991 Acl, 1991

10"7. Th~ Valnc--Added TaxAcl~ 1991 . (,., hereby amended by U1e substiiution fo>' the tenu 'oftic:er', where t~ in the c:ontext of a p('J'S<m who i~ Cttgltg('{l by lite Cmnmis -sioner in canying oul rhe pmvisi(')ns (')f that Act. oftl1e teJ'm 'SARS ollicial '.

AmendruPnt of serlion I 108. Section I of the Value-Added Ta.x

Aot. 1991. is h<roby wn<~>d<d-(a) by U1e deletion of the definition of

"business day!•; (b) by th< " 'bstitutiou for tl&c ddiuitiou of

.. Commissioner" of rhe following defulltion:

" •couuu:issionc1·· W\:UI..L"S lh< Commissione.~· for the Somh Afri· can Revenue Service appointed in t~mu of ~cc:rion 6 of th~ South AfriellH R.t:VL'1tu\: s~.vieeAct. 1997 {Act No. 34 of 1997). or the Acting Commissioner desigaated in tenus of St.-ctiou 7 of llutt Acl: ";

(c) by the S1thstitution fo1' the definition of ''prescribed rnte" of the following defwition:

.. •prcsoibed rate• means lhc rate contemEI•ted in section 189(3} of the Tax Administration Act:":

(d) by tho iumtiou u.Jlc'f tho definition of .. tax" of the followi.ng definition:

.. ·Tax Admiuistrnliou At·C" means tho Tax Administration Act. 2011 ;";

(•) by the deletion of the definition of "ta..x period": and




(/) by tbc subs-Lilulion for lht: di.'liuiliou of .. VAT rcgil)tndion nwnhcr'' or I he:

following definition: '" ·VAl' ~Uon nwnbtr~, in relation 10 1my vcuclor, m~lliO 1l1c

number •liocat«< to that vendor by 1he Commissioner [for lb.e 11ur-llOS<'S of Ibis Art] iu l<-nns of S<-cLiuu 24 of the T•x Administntrion Act;":

(g) by the renumbering of section l to sc<Liuu 1(1): and

(II) by rite in.~ion after •ub.<ection ( 1) of ilie following subsection:

"(2) Uui<:Ss tho context iudicutcs OlhcrNist:. a wmd or cxpr!!S.'iilon tu which n mc.uuiue ht1s been as.'litmcd in the Tax Administration Ac& be-ars that merullus; for pWl>Oses of this Ac:t ...

Substitution or SfftiOll 4 109. The Value-Add«< Tax Act. 1991. is

hcrcuy WU.,Idcd uy the S\IUStituliun for .section 4 of 1he following secrion:

" [Act to b<- mhrLinb1ered by Cormrlis-sloner J Admlnlstrntion of Art

-1. (I) The Conuuissiuuor [Shall bcj]! responsible fo1' canying cmt 1he p!'Ovi ..

sio11s of thi~ Act £2} Aclmiuismuivc: n:<JuirerneuL'l :1n(l

Qrotedmoes for ~urt10ses of the ~rfor-mance of an;:t dutv. 22wer or obliaation Or tl1c CXCn:isC of lUI~ 1iJll11 iu tC'nH!oO o(

lhis Aclan:. to the c:xtcnl not rl;.:!:Ulatcd in rhi.~ Ac~ re~ulat«< bv the Tax Admin is-tmtion Act. 't.

Amendment of St'Ctlou S 110. Section 5 of the Value-Add«< To.x

Aot. I 99 I. is horol>y wnoudod-(a) by Ure •nbstitution for subsection (I) of

the following subsection: "(!) l'he powers conferred and

the duties imposed upon lhe Com-ntissioti\.T by or iu H.:nus of t..bc pmvision."' ofdtis Acl or aJty ttuu::nd· went thereof may be exet·cised or ped'orm«< by lhe Couuilissione.r h)('J"SSilJlllyl . or by any romrc-J• en .. gaged in r:trry'ing out lhl' SHid pro,1slons under the control, dl-reclion or supen·ision of the Com-mis..;iimlf'rl SAI~S officiaJ.•'; and

(b) by the deletion of subsection (2).

.\00 No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012


No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll Rept>al or •<><lion 6

W. S<etiun 6 of tloo Vuluo·Addod Tax Act., 1991, i:s lu:n:Uy n:pe;<~led. Amenchuent of sertion .13

1U. Scotiou 13 uftbo Value· Added Ta.x Act, 1991. i$ hcn:hy ;mtl!ncll!d by the substitution in subsection (5) for par:~-

~raph (a) of1he followin~ p.VaForaph: ''(a) for the colleccion (in such numner

as the Commissioner may derer-wiuo) by u SARS officio~. or tloo[-(I) nny omct>r perfomllng his or

ber duties under tbe conlrol, dim:Unn or SUJte.rvbdcm of tl1e Cmnrni~im1er; or

(U}] Mana~~ Diro<:toc of the Sonlh Africnn Pust Office Linlited on behalf of tloe C:om· missioner. of the rax payable in tcmlll of tlois Act in ro.'SJ><.'Cl of rhe imponarion of any goods into the Republic: and''.

Amf'mbuenl of sedion 14

113. S.ction 14 of tbo Vnluo·Add•-d Tux Act, 1991 , is hereby amended by rhe substitution in subsection ( 1) for paragraph (Cl) oftloc following pw11j<ruph:

"(n) furnish rhe Commissioner with a. [docL~rntlon (In sud• ronn as tilt> Conuuissioner mny presuibe) <:orll.:liuing surh informmion as nmy be required] renun; and".

A1nrtulmeu1 of sec·lion 15 11-1. Section 15 of the Value-Added Tax

Act. 1991. is "'""by wom1d•-d by th~:

substitution for "'bsection (S) of the fol· lowing subsection:

"(S} If. in relation to any paniculars rcquirc~l tn be flLmishctl wtclcr subscc-don ( 4}[,}--(a) the runount referred to in subsection

(6)/b) ex•-.:cds tbc aruowot rdcm-d to in rubsection (6)(n)~ or

(Jll d1e amount referred to in s.ubsection (7}( b) c.x<c<-ds tloc aruowu rc fcrn:d to in "'"''"""ion (1)(a),

the runount of the excess shall be refund· abl(,: to llu: vendor Uy the Couuuissioucr i.u respec1 of the changeover period ::.s pro· vided in [section 4-l{l)) Chapter 13 of the Tax Administration Act. read wi1h sc~tion 16{5}.''.

J()J. No J)491

Act No, 23 or 2011

I No. nnd •·•nr Short 1111•

OOVERN.\t£NTOAZE"nc, 4JULY 2UI2


F...xtC'nt of Amcncb:uC"nt or reptoJ Amrndmcnt or st'ctlon 16

US. Section 16 of the Value-Added Tax

A<l. 1991. V. h<ttby 81U<'U<h:0-(a) hy the: substilut-iml for the proviMJ to

sub5«non (2) of lh< foUowmg pro-

··Pro\;dcd dual \o\liL'TC a blx iu\oit."C' or debit nore or c:redn note in relation to that supply bas b<el provid•:d in a«<fdancc \1 ith tbW Aa. or • bill of enny or other document bas b<el de!Jvered an ae<ordan<e with the CwtOUili and Exci"' Act, a.• rhe case 111liY be. the Commissioner may determine tba1 no deduction for input tax in relation to that supply or importation shalt be made unless tl1a1 tax iuvoic:e or debit note or credi1 no·re or !bat bill of entty or other document is retained iu uc<::ordaw.:~ with the provisions of <ection 55[(3)] •nd Pari A of Chapter 4 of the Tax Achuiuistmtiou Act,'': und

(b) by~ •• subsrimtiou fm· subsecrion (5) of the following subsection:

.. (l) tr. in r~lnliou to auy tux period of any vendor, the •!IS''e8a!e of the amounts lhnt may be dedueled under •ubse<tion (J) from the $"lUU rc.fcm.."<llo iu tlutl t:mln:;cc· lion. !he amoum (if any) refundable to the vendor under oection J 5(8). [tbe nmount (if ony) brought forwnrd Crom tbr tu period prect'diug tlat 6rsl·tneulloutcl ta __ -c ~rlod as pro,ided In par:tgrnpb (ii) or tbe pronso to scctiou .j.j(l) aud Ute amouut (if any) rnotlltecl undtr SK!lon .j.j(J) to tb~ l'fD·

dor·s account during tbr firstrnrntionecl ta:< period) and •ny other amount refundable under Chapt<r 13 of the Tax Admini>tnt· lion Ael. cxccc.-.:L~ 1hc !:oaicl !i1.un, 1he amount of the e.xce.u shall subject 10 the provisions of this Act. be refundable to the vcndur by the Commissioner as pt'O\'lded in [sP1"· don .j.j(l)] Chnpter 13 of the Tax Administrutiou Act. n .

J()4 No J)491

Act No, 23 or 2011


OOVERN.\t£NTOAZE"nc. 4 JULY2UI2


F...xtC'nt of amcncb:uC"nt or reptoJ Amrndrucnt or st'ctlon 17

U6. Section 17 of !he Value-Added Tax Acl. 1991. ;.. h<ttby 8Ul<'U<h:0-( a ) hy the .suln.titulion for tbc "'ord.s

preceding the provuo to subs«bon {I) of the foUowinjt wont.:

'""W'hen! ~ or st.-n-ict.":51 ~

acquired or imponed by a •·endor partly for CODSUD1ptioo. ~ or supply {hcrciuafltt ref<.-=<! to .. lbc intmded 11!<') in the Cotlr!iO of n..Xing la:mble supplies and portly for BUothcr wlaJd<.-d """- the tllcut to whic:h any &a.'t whic:.h hu b«.ome payl\hl• in .-..pect of "" supply to the ,·eruJor or me importation by the vendor. IU the: C:a.K: DUlY be. of iUtb goods or .scrvit.-cs or in J"ClopL~I of such ~oods under section 7(3) or •ny amount dete:nnintd in accordnnct with pl1111J!ntph (b! or (C) of the de>Jinition of•input tax' in ~Lion 1, is input ta..'i:, shall be an amount which bears to the full IUJIOlwt of snch 1ax or amotutt, ::.s the c11.se mAy be. the same ratio {as detennined by Ute Couunissiom.-r m ll<.:tordllu<.-c with a nlling as cometnpbued in Chapter 7 of the 1ax Administmuou Act orS<ctioo l~U orj 418) ostbc lniL'11th.">(( US~ Qr such !fOOtls Ur m•r-

ViCts in 1h~ course of making taxable supplies bears to lbc total mtended use of such ~ or sen·icts". and

I b J by the substitution for pwllpapb {iii) iu SttbsKtion {I} of the follomng patll·

graph: "{iii) "bm: a UK"thod for<k1CDUJin

in~ the ratio refmM to in thi\ subsection bas been appro1·ed by the ColllWi>J.ioncr. that method nuy only be chan~:ed 11;th dec! from a ~ tax

period. or from >ucb Olbcr date tas ahc Couunissionc-r may

consider tq~~ilabl• and ruch other date muSI fal1

.\06 No . 3.5491 GOVERN.MEN'l' OAZE"n 'E. 4 JULY 2012



(a a ) in the ~asc of a v~·udor who is • tttXpn:z:~· as defined in section I of the lncon1e Ta.~ Act. Within the ~CRT of fi.S -

se~~mem ;L4i defined in lbat Act; or

(bbl in the case of u v..:udor who is not~ taxpaver as defined in section I of tLc Iucomc Tax Act. within ~te ~riod of twelve months ending ou tbc last dnv of Feb· mao:;. or if s uch v.:udt)r dmws ~~~ :uunu,J limm-cial s·1atements in re· seect of a ~·ear endina other tbnn on the las t day of Febm111:Y, within that year.

dtu·iuw which the UE~Hcutiou for the aforementioned method was made b;t the V(.:'Udor." .

Amendment of section 23 117. Section 23 of the Value·AddedTax

Act. 1991, is hereby amended-(a) by ~tc substituHon for subs<:<:tion (2)

of 1he following subsection: '"(2) Every person who is not a

rc.sidwt oftl1c Rc~ublic. and who in lcm l$ or s:ubsection (I) or ,:;t"CJiuu SOA, bccoml'S linhlc to he re8isteK"<I [shall not latrr than 21 days :~ftor becomillg so Unb1~ OPilly to Ill~ Commissioner Cor registration in such fonu as thr Cummll)slonrr mny direct lllld pro>ide tit~ Com. mlSsiou~r willt such fu1·11t~r por-tlrulars :md any dcK'WUf'ntatJun AS tbe Comm.issiouE-r may require ill sucb ronu for Ul~ purllOS<' or rrg1~1-rrl11g thm prrson: PnlVIdrcl tbnt \Tht"re--

J~ No J)491

Act No, 23 or 2011




F...xtC'nt of Amcncb:uC"nt or l't'ptaJ

(I) n person who nppllrs ror rcgi~:tration under lhlq 11uhSH":· lion bas uol pro•·ided all partlrobrs and dOCtllli~Jltatloo

as ""Juired by the Cotmulssiontr. U1at person sl"tll l>e deemed not to lla•·~ applled for n>gisll'atioo until b~ bns pnni dffi all such particulars and dOCUDitotallon to tb~ Commissioner:

(ii) such rwrsou Is nol a n'Sitlrnl oftbt Rt(>Ubllc,sucb person] in ac<:ordant.-c willa Cba-ptt.-r 3 of the Tax Administration Act. shall be dt"C.mccl no1 10 h.avc applied for registration. in ad· clition to «<tioo 22(4) of the Tax Admini~tmtiou Acl. lWtil 11••1 such person hM[(nn)](o} appointed a repre-

- scutativc n:ndur u:; comemphuecl in section [4S(l )J 46 in the Ri:pnblic •ml furnished the Conuni~ .. ~loner witb the: pitrticulars of sucb rcprchcnlati\'c \·cuclur;

[(bb)Jill opeuedabankiugaecount with any bank, wulual bank or oth<r similar in..\tmuion. re~tered in temu of the Banks Act. 1990 (Act No. 94 of 1990). for the P""' poses of his or ller enterprise canicd ou in the Republic and furnished the Com· nuuioocr wttb the particulars of !ouch banking account. " :

JIO No J.).491

Act No, 23 or 2011




F...xtC'nt of amcncb:uC"nt or reptoJ (b) by tho •ubstitutiou fur tho wunls

fol lowing subparagrnpf1 (d} or .snbse<:tion (J) of the following words:

''may apply to the Commi.ss.ioner for re.~lrat:ion [in such ronu a..~

thr Commi~onr'r m.a~· c:lirrrt nnd pro\idt tbt Commissioner with such fnrtb\'r particulars and any docmnentaliou all lhr Couunlss!oner may rtquln In such ronu for thr pu~ or nogistering Umltwrsun) ... : and

(c) by the substitution in subsection (4) for par8Jii11Phs (u) and (/1 ) of tho followi1lg parngnt1tl1s.:

"(n' applied for rcgislmtion in ac

cordance with Chapter J of the Ta.x AdJnin.is.tmtion Act or subseotiou (2) or (3) •nd lhc Commissioner tS satisfied that that pet>Oou is eligible to be rcgist1:n:d iu li.!IULS uf tills Act, th•l person •h•ll he • vendor for the purposes of Ulls Ac:t with dl'c\:1 fi·um such d.·ne as the Commissioner m.'ly dc-toermiuc:; or

(b) not applied for registration in '""''" of [suhsfftion (2)) Chapter 3 of the rax Administration Acl and the Com· .W..iom.T is ••tislicd lha!lhal pen;on i< liable to be registered in tellllS oftltisAcl. that person sbaiJ be o ,·eudor for th~ putpOi<:S of t1tis Act "ilh effect from the dole on which

that perwn first become liobk to be "'!ristrn:d in tc:rnu of this Act: Pro\;.ted that the ConunissiOOef may. banog n:prd 10 the cirCWIUbUlCU

or ll1c case.. (lch:nuinc tlual

person to he a vendor fmm such later date os the Com· wissioucrwa y t."'ll$i dc:r -.-quit· able".




Amrudmcm ol' srcrtou 1.S

118. Section 25 ofthe Value·Added Tax Act. 1991, is hereby nmcudcd-(a) l>y the ~'Ub~t i t 1 11io• • ror tlu: words

preceding p=gmpb (a) of the fo1-lowins words:

·~ rsubjcct ro thi~ A ct)ln Hdclition

to :mv r~guiremem nnrler 1he Tax Administration Act, every vendor slmll within 21 dnys [nnd in sucb fonn as thP. Cumm~iouer may prescribe] notify the Commis-jioucr iu writing of-";

(b) by the lnlh<titution for paragraJ>h (a) of the followin@. Jl"l'llgt'llph:

"(a) any change in d1e (u.ruue, nddressJ 'onstirution or na-111!\! ul the pr1ncipsal enter-

prise or enterprise-s of that vendor:":

(c) by lbc deletion of parngJ"Rph 1/}; (d) by tl1e addition ofler p.rograph (g) of

the following paragraph: u(lt) flnY cJnlll!!~S in lh1.! rnujoritv

ownershie of anv company''~

and (c) by Lh1.! dclcliou of Lh1.: proviso. Substltutlou ol' section 26

119. The V•lne·Added 111.• Act, 1991 , is hereby ao1ended by the substitution for s ..:diou 26 of ilic followiug s..:~Uou:

" Liabilities not atrt"Clt'tl tJ~' pt"rsou ceasiug to be ,·em.lor

26. Titc nhligHI1nns ami liubililics under tlt.is Act or the '13x Administra .. tion Act of any person in respect of anything done. or omitted to be dum:. by dHu person white !hat person is a vendor shall not be affected by the fact ilia' that V'-"TSOn c(.:as<.·s to be a v~udor. o•· by the f•ct tha~ being registered •s • vendor, the Comntissioner cancels thnt p(.:t'Sou 's 1\:gislrutiou us a wudor.•·.

Jl~ No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012


No. nnd yC'..nr Short title Extt'nt of a.mcndmr.nt or repc~ll Amrudmcm ol' section l7

120. Section 27 of the Value-Added Tax Act. 1991, is hereby uwcndcd uy the suhstitoi.i01t for suhsc:ct.iou (6) <,r the:

following subsection: " (6) The tax periods applicable un-

clcr litis Acl to any vcuclor shall be lhc

lax periods npplicable to the Category within which the vendor taUs as con-tcmplatcd in ~tis sc<:tiou: Provided th:u-(i) the lUst such period shall com-

w~u~c on tln: c-onuncuc:~mi:u1 date or, where ;tny pen;on becornes a vendor on 11 later d;ue. such later date~

(il) any tax period cndiJljt on the la.it day o( fl IIICHtlh, fi.S nppJiCflb)c in

re.s:pect of rhe relevant Category, may, instead of endinfl on sucb 1M1 day. cud ou a fixed day approved by ihe Cnmmis¥:ioner. which ci;,y shall fall within I 0 days before or afkr such last day: Provided ~tat t11e fiacure la."<: eeriod so ape1'overl b:z: the CoUlOli.ssioner must be used b:z: Lhc vcudor for a nl.in.immn period of 12 momhs c:ommencina from the lax (;!eriod d1e ch•m2e ls made:

(iii) tl1c fini'L ciJty or any hlX period or

the vendor subsequent lO the vendor's first ta.~ period shall be the lUst day followinJI= !!!.!. tltc lll!>t day uftlte vendor's

preceding f.~tx period; or (b) the fixed da:z: as ·~eroved

b~ the Commissioner in leJ11\S of J>•rnmtlh (ii). ".

Amrudmellt of section 28

12L Section 28 of the Value-Added Tax Aet. 1991. is hen: by mncuded-(a) by the neleriou in subsecrion (1) of

paragraph (i) of the proviso; (b) by Ute substitution iu subse<tiou (I)

for paragraph (iii) of the proviso of the following paragraph:



No. nnd yc-..nr Short title Extt'nt of a.mcncbur.nt or repc~ll "(iii) a vendor n:lfish:rcd with the

Commiss;iom:r to suhmil n:•

rums [and paytnt>uCs] elec-tronically [(other than by menns or n debit order), nnL~l furnl'ih tl1e rt>lurn] is deemed to have made Q3:i!!;teot within the f!!:riod cout<=ml!latcd Ul

subsectinn (ll [ami make] if the vendor makes full payment of the mooWII oflliX within the period endin!t on the laKt busi· ne.s day of the mouth during whic:b tbnt twcuty·UHit dlly f•lb;

(C) by tl1C! ddclion in Sad-.sccliou (1) or para£:11lphs (iv) and (v) of the proviso; and

(c/) by Ute deletion of sul>scctious (3). (4). (5), (6), (7), (8) •nd (9).

Amendmrlll of section 29

122. Section 29 of the Value· Added Tax Act. 1991. is hereby BlliCUdcd uy tlte suhf\timtion in J>ar11graph (n) for tlte words preceding subparagraph (i) of tl1e lollow· iu~ words: "fumi~h the Commissioner with a re· tum [(In such form as the Conullls. s toner may t>rcsa·ibe)j n:Jkclin)L-'',

Repeal of section 30

l2.l. Section 30 of 1he Value-Added TilX Ac1. 1991, is hereby repealed.

Ameudment of sedion 31

124. Section 31 of the Value-Added Tax Act. 1991. is hon:uy BlliCudcd-(n) by the •nh•titution for 1mh•ection (I)

of I be following subsection: "(!) [Wilere]TI•c Counnissiou·

e1· m11~ make an assessment of the amoum of •ax ~a:!able: b~-[(a) any person fnlls to furnish

nny t'('turn ns l'cquircd by St>eliou 28, 29 or30 or fails to furnish ru>~' declaration as rcquit·cd by section 14: or

(b) the CnuuuL<tt.~ioner is nor ...;~11-lsticd "1Ut auy r eturn or declaration which any prr. 5011 l'i rec1uired lu furni.!ih under a section referred to in paragraph (11); or

J IS No J.).491

Act No, 23 or 2011

I No. nnd •·•nr Short till•



F...xtC'nt of amcncb:uC"nt or reptoJ

(<) the CoiUJilissloner bas rro. son to bf'lit,·e tiL'll any ptr· sou hns become Uoble for lhe p.•ymmt or ony Mllount or tax bnt bas nol pnid sudJ :uuomtt: or)

( di any person. oot bdn~ a n:ndor. !hat SUpplio> !'QOds or servic:es and represe:nt:J that tax is charged on that supply; or

( r } •ny 1·endor !.!!!1 supplies goods or senioes and such supply is no1 a taxable •uwly or such iupply is a taxable supply in n..~-pcct o( whic:lt lH.x

is chargeabl~ at a rate of zero per cent. and in either case lhal vt.-udor 1\.-pn:Scuts tlml tax is charged on ~uch supply At a rote in excess of zero per cent:

1./} uuy por.;on who holds hiwsclf om as :t. person entitled ro A

refimd or who produ~es. ft1r~ uishcs. nulburiscs. ur umkcs 1u::e of a.ny rax invoice or document or debjt note: omd

has obtained any twduc tax hcncfit or refUnd umh:r lhc provisions of an export iuceu~ tive scheme reterred to in p11n1graph (cl) of tho dc.li.uitiou of .. exponec1.·· in secrion I. to which such person is not en~ titled[,

lhe Coi11D1issioucr may. DOl·

n ithstandlug ll1r pnn·l~ions of SKdon 32 (S) or tills Act and S<'ction 83 (18) 1111d S3A (U J or tl1P lnroute Ta.·c Art. make au a.ssf:SSt:n~nt of lhr- amouut oC tax poyablc by the ~rson Unblc for th.- payment of such am own of t:tx, and tht> amouul of lax so assessed sball ~ paid by lht person oourrrned to lhe Commi~oner] ... :

(b) by !he deletion in subsection (2) of paragraph (a);

(') by the deletion of Sttb<ectinn (.1):

.320 No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012



(d) l>y the substituliun for tb" words thut precede pantgrnph (n) in ~ub~ccliuu (4) of the following words:

uTile CommiiSioner [shnll gh·r the fU':J'SOn col_1rC'rnC'd n written notice of s:uch mssessment., stating the nmoulll UI>On which tax Is payable, the runount or tax pay. a bit"_, tiJe amounl of any midi-llonnl tax payable tn tenus of section 60 and !Ito tax period (ir uny) in nola lion to whkh the nsstsstllfnt is made] must e,ive a uolkc of US\.'"SSillCul~ aud-.. i aud

(r.) by llu: delc:tiou of ~uhl'icclion'i (5) ami (SA).

Repeal of sections 31A nnd 3W

125. Sections 31A and 318 of the Volue·Addcd To.~ Ael. 1991, arc hereby n11calcd. Amcndrucnt of section 32

126. Section 32 of the Value· Added Tax Acl. 1991 , is hereby amended-(a) hy the subl:ililuliou for Lllc hcatling of

the following heading: " ObJections to certain dedslons lor nsscssmontsl":

(b) by tlte subsrinllion for subsecTion (I) of the following subsection:

"(!)[An y person who is dissnt. l~fird wilh-]'11Te followina deci· sions of The Commissioner nre ~ubjcct lo obj,-cLiou tmd HEEt:uJ: (a) auy dcdsiou JPv'-"11 iu writing

by 1he Commissioner-(i) in terms of section 23(7)

notifYing tbnl p<:rson oftbc Ccmnni.ssic:mL-r's rcfusnlln re-gister that person in letms of this Act; Lor]

(ii) in t"mts ofscctiou 24(6) or (7) notifying thaT pen;on of the Conuuissionerts dec.i-$ion to crutct::1 any re,tristru-tion of ihAt pe..,;on in teml~ of tlt.is Act or of the Com-m.V.-siou-1..-""r •s refusal to cau-eel such 1-e~rratinn: or



No. nnd yc-..nr Short title Extt'nt of a.mcnduar.nt or repc~ll [(W) In tenus ofsrctlon44(8)

of thP Conuuissiouer"s refusal to make ;J re-fund; or]

(iv) rcfitsiug '" npprvvc • method for detemtining the rntio contemplated in S<:<lion 17(1): or

!(\') in lenns ur se<'lion 43(5) nnd (6) notU:ytng n mem-btr, sbm'Cbolder or lrtL~Ier of a vendor lh:d bt Is requlredto pro,1de surety bt respect of tbc vendor's UnbUity for tnx from time to time: or

(vi) rt>fusiug to renlil, in ,,~bole or bt port, any ilmrrst or penni!)• in tenus of ""clion 39(7); nr

(b) :my n~ntot made upon ltiln wtdcr the pro\isions of section 31, 60 or 61; or]

(c) any l dlnctlon or supplemen-tnry dirrclion] decision lllHd< by the Commissioner •nd .scr\:ed on that pcC$0o in tenus

of>o<:tion SOA(3) or ( 4 )[, may lodge nn objer-tion tht'rcto wilh ll.ae Couuuissiouer].·· ~ and

(c) by the deletion of subsections (2). (2A). (3). (4) and {5) .

Reptal of sections 33 to 37

127. SL-.:Iions 33, 33A. 34, 35. 36 "' "137 of the Value-Added lox Ac~ 1991. are hereby repealed.

Amrudmeut of section 39 128. Sccliott .39 o(tltc Value-Added Ta..-c

Aet, 1991. is hereby amended-(a) by the substitution for the beading of

lbc foUowiuJ! hcodiuJ!: " Penally fatui iutert'Slj forfailure to pny tnx wben due"' ;

J24 No J.).491

Act No, 23 or 2011




F...xtC'nt of AmcnchuC"nt or reptoJ (b) by lhc substitution for sub>c-clion (I)

or the (oltO\\·iug stdnwcdion:

"( I) [(n)]lf any penon who is liable for the p;lyment of tax and is rL-quircd lo nuakc l.~tclt 1•ymcnt (in thE' manner }JI'1:'!Srrilwd lu] in accordance \\itb the pro\·isions of liC<Iioo 14. 28(1) or29. Caib to pay any amonm of !a1C:h ta.x \\;thin the period for the p;lyment of such tax sp•:ciJic-d iu the ..Ud [pro1isiou br shall] pm\'ision!l. th• Commi<sioner mus~ in [addltlou to such amount of tax, pay] acconlaucc wi1h Chapla 15 ofrhc Tax Admin· if.lrrtlion Act, imposc£-(i) ]a penalty equal to 10 por cent

of lhe said amount of tal<[: and (ii) where pn)~uent of tltr snid

amount uf la>< hi macl~» un ur afttr tilt first dny or thf moutll following tltr mon1h during whkh Urf prrhHI a1-lowed for pn)1nem or t11e lax rodrd, intrrrsl on tl1e snlil :unuunt uf l:L'( , c.·akuhrwd :tt lhc- pn-x ribttl rnlt' (bul ~'•bjecl lo tile pro,·lslons or section .tSA) ror C"flt'h month or part of a woutlt in tile p<rlod rKkonrd from the s:tld first dny.

(b) \\'1t•n> auy amount of "" bM In relntton 10 any tax ~rlod of an~· •·endor been refunded 10 the ,-eodor iu 1rnns of tile pro,ision.~ of section .a..&( I ), n"ad nlth S«tloo 16(5), or bas iu relation 10 tllnt p<'tiod ~~~ sel oil ngniuSI unpaid tax in trnns of lhe (Jro\isious of sectiou J-.1(6}, ;wd >Uch amount 1ms iu whole or In pan not prop<'rl~- n'fundnblr 10 tlte .-eudor under section 16(5). so much or sucb amount as was oo1 properly so refundable shoJI for II•• pllJ1K>SeS of paragraph (n)(l) be deemed 10 an RIUOUIII Of lOX

J26 No J)491

Act No, 23 or 2011




F...xtC'nt of AmcncbuC"nt or reptaJ requlred to be pnld by lbr •·rndor within lb• said period and for tlte purposes of parngrn(Jb (n)(il), tm :mtoum or ta.~ requlrfd to be prud by lh• •·•ndor dnring th• period iu which lht> re(mtd was Juadt). ··:

(c) by the deletion of subsection (2): (d) by the sub>litutiou for sub=tion (4)

of 1he fo11owin! subsection: " (4) Where any imponer of

!'oods which an: n:quin:d to I>< entered tmder the Cu.s:tom .. ~ and Excise Act. faib to pay any amount of ta.~ payable in fC>l"'Ct of the impomtioo of tho ~OO<b on tho dale on which tlJC: gocxls are f.."l l ·

tered under the .aid Act for home conslllnptioo io the Republic or the date on which cu.>tutm duty i~

p11ya.ble in 1emu of the said Act in respect of the importlltiou or. if • ucb duty is uut pay•bk ~Jc d!ttc on which it would be so pay•ble if it bad been payable, whichever dote: is later. th~: Couuuissium:r must. in ae:cordJtnce wirh Ch:mter 15 of the lax Ad.mini~trntion A<.t. impose oo that importer [sllnll, In addition to $Urh nmomu or rnx lm~·-

(oJJ a peo:llty equal to 10 per ctnt

of the oaid UIUOWII of tax[: and

(b) where (t:l~111enl or lb• said 3Dioont of tax Is madt on or after the first dny or the mouth folloni ng thr month during wWcb lbt ~rlod al. lowed for pD}liiCUI of lite tax ended, iutrrest on tht said amowat or la~ calcuh1tf'd ;tt lbe prescribed rntr (but subject to tbf' prO\-isiOI15 of SC'<'

tion JSA) for each mouth or part ora month In tht ptrlod reckoned from the said first day] ":



No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll (c) uy lhc suus titutiou lor SUUS<"<tiou (~)

of the: rullowing ~,.abstttion:

"(5) Where any per'K>n who is liable for the payment oftax fuils to pay RH Y RlliC.)Uill ur such I.RX Otl Jlu::O date on which in temu of the CustolllS and Excise Act. liability wi.sd for tlu: pa)'lm:ut of llu: CX(.;:;c

duty nr envimmnent.a.llevy ref~JTed to in section 1(3)(a), the Comulis-sioner wust. iu acc·ordaucc with Cha12ter 15 of the ~la."< Adminisu-a-riou Act. intQ2se ou that person (sltall, bt addition to suclt amount or tax, pay-(u )l fl pcru•lty cquallo 10 per CL'1ll

of tl1e said amoum of tax[: and

(b) where pa)~IICIII of tbc said mununl of l~1x is madP on or atler lite lirst day of Ute month foUowiug lite month during whirh the period al-lowed for payment of Ute tax ended, iltiCI'I'SI ou that mnnunl nf tax., '":11rulaLPII at tht' pnt.:scribt'd ml~ {but ::~ub-.Ject to tltr l>rovlslous of section 45A) for rnch mmHh or part or a mouth iu the p~rlod r~ckoned from lite soid first doy]. "; wtd

(/) by the delecinn of subsections (6), (GA). (7) and (8).

Repeal of ~ction -10

129. Section 40 of lhe Value-Added TH.' Act. 1991. is hereby r<'Pcalcd. Repeal of section J lA

130. Section ~ lA of d1e Value-Added Tn.x AcL 1991. is hereby repealed.

A.meudmeut of sectiou 41B

131. SL-ctlou 111 R ur Lhc Villuc-Addcd Tax Act, 1991. is hereuy amended by the substitution for !.ubsection (I) of the following sub:;(.:<:Liou:

"( I) ''11le Commissioner m:.y i~Slte a V/J class mling or a V/J n~ing and in applying lhc provisions [relatbtg to



No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repeal Part 1A or Chnptrr ill of tbc Income Ta:r Act,l of Chaph:r ? of 1l1c: Tax Admini5trnliou A<:t. a V.Kf <:las.s ruling oro VAT nilins must be dealt with as if it were a binding cl.~ts.-. ntling or a binrling privare nding, re.c;pectively: Provided that-(i) the provision~ of (SUbSfftiOIIS

(2)(k), (2)(1) ancl (5) of se<·lion 76£ and section 76F or tllt In-com r Tnx Act] •<ction 79(4}1 l)anu (kJ and (6) of !he 'lax Adminisu-.-tiou Act sholl not apply to any Vl\r olllss ruliu1< or Vl\r ruling;

(ii} an npplioBtion for a VAT class rulin1< or R VAT mliu~ in lcnm:l or l11iH section sboll not be accepted by dte Commissioner if the application-(<ra) is for '"' odvauco tax rulhiJ!

that qualifies for 3cceptn.nce in tem~> of [section 41Aj Chap-h.,. 7 of tlac Ta.'{ AduUu.i!;traliou Act; and

(bb) fulls within o category of rul-iugs pn:s<'libed by the Minister by regnl•tion for which appli-c ... uion.s for mlin~ in tcmu of this sc~tion may no1 be ac-CL1.JIC:cl. " .

Repent of SC<'tlons 42 nnd 43

132. Sections 42 and 43 of the Value-Added Tal< Act. 1991. arc borcby repealed.

Ameudmeul o£ section ~ 133. Sc<tiOu 44 of the Valuc-Add<-d Ta.•

Act, 1991, i• heJ'eby amended-(a) by the deletion of subsectioll!. ( 1) and

{2}; (b) by tl1c .suhs tituJi011 iu suhs.cclion (3) for

the words preceding paragraph (n) of the tOilowin~ words:

" TI1c Coullllissiou..:.-r •haU not make a refund tmder [subset·tion (2)] C'ho2ter U of the Tax Adminis-lraliou A<:t w:llt::.sS-":

(c) by rhe deletion in !nrbsectinn (3) nf p."agraphs (n} nnd (b):

( cl} by Ute deletion of &trb-;cctious (4}, (5) and (6);



No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll (c) Uy the substitution lOr sub.s~;.-<:tiou (7)

of the: following ~,.absttlion:

"{7) Where ihe vendor hos failed to fi.ul\.ish a ret\u'll for any tax period NS rc,Juirccl hy t l 1i~ AcL, l.hc Com-missioner m::ty withhold J>"yment of any runoWll refundable to the V<;~tdor wtdcr [su~cliou (1) or any auumul of iutt"n>Sl payable fu Ute •·eutlor b1 temts of section 45) section I 90 of dte Tux Aduuuistnt-cion Act tmtil the vendn1· has fttr-. nisbed ~uch return as so required.'":

([I uy lho deletion or subS(:ction (8): and (g) by tl1c: ;uldilion :1flt:r .suh~ecliou (9) of

ll1c f'hl lowia1g suhJ:>Cclion: "{10) l 1>e amount determined

under section 191(3) of the Tax AWtlluisu·atiou Act Ul\I.Sl be uc-counted for as Erovided in section l6iS), but an~ refundable antount {inC:!t_ECt:Liv~ of the gtU:UllUW

thereo!) is refundable in full to • vendor in respect of its final ta.x E~;.Tiod ou the (;1mcc:Uutiou of ils rep;istr;uion ;u l\ venctor. •1

,

suosmunon or secnou 45 134. Tite V.'llue-Added Tax Act, 1991, is

ben:by umcn<icd by lhc •ubstitution for ~>ection 45 of ahe following sec-rlon:

"!merest on delayed refunds

~5. { I) Where the Co11lllli~io11Cr

does not within th~ ~.riod of 21 busi· ness dal:s after the date on wh.id1 the v<:udor ·s r<:1WU iu n.:l!:E:~;.-c·l of u hLX

E•riod is received b:t a SARS office reftmd anr amount refttndable under the T a.x Admiuistrut.ioo Act. iulcn::sl willlx: E~id on such amount in accord;mce with Cba~tet· 12 of that Act.

(2} Dcseit~.: llu: Eatwisious uf Cl1aetcr 12 of the Tax Acbttinisrnuion Act. if a

12erson fails lO

No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012



(a) witho:uc iust caust: submit n.:lcv1w1 mr~tcri~tl , n:c1u~sh:d hx SARS ror pu~ses of verificmion. i1!!E:ection or :.1udit of a reftmd in accordance \V1Lh Chnplcr 5 or lllc Tax Admin-i~rrnrinn Act: or

£b1 fi.unisb SARS in \\'fitine with ~at-ti<.:ul.Hrs o( the HC<:OWI1 fCCIUircd in renns of section M(3J!dJ to enable SARS to transler a refund to that accounl.

no intete.st a centes on the amount refundable for the ~·iod from the date that-(il ln n:spc:cl of su1;!p11r.t,U'_!ttph ( a ). ihe:

rclcvtmt umtc1inl WR.S I'C!]uin.:d lo

be rubmitted: or (ii} iu reseect of subearal!rneb (b). the

refund is nuthodscd, mttil the W.te that the Eerson submits the relevant m.1te:rial or bank account " artie ulur•. ".

RtllMl of S<'Ctlon 45A

135. Secrjon 45A of U1e Value· Added Tax Act, 1991. is hereby repealed. AmendJttent of sec:lion J6

136. S..:tiou 46 of the Vuluc·Add<d T•.x Act. 1991. is hereby amended-(a) by tbe substitution tor ~le words

pr<:<cdiug punr)lmpb (a) of the fol· lowing word~:

"TI1e U3turaJ perr.on wbo lis n rt'Sident o!] r<'Sjdcs in tho R<'Public r<:spousibh: tOr tht: dulic:-a imposed by rhisAcr- ":

(b) by the substitution for paragraph (a) of the loUowin~ paragraph:

.. (11) on any compuny shall be the public officer tbereof [<'OU· temJlinted In section 101 ol' lhe lncomr Tn.x Arl] or. in the ca.~e of any company wlucb is placed in liquida· tion. the liquidalor thereof;": and

(c) by the deletion of d1e proviso.

Repe:~l uf secliorL' .17, .18 and 49

137. Soctious 47. 48 8lld 49 of tbc V•lne-Added Tox Act. 1991. are hereby repealed.

lJ6 No J)491 OOVERN.\t£NTOAZE"nc. 4JULY 2UI2


I No. nnd •·•nr Short 1111• F...xtC'nt of Amcncb:uC"nt or reptoJ Amrndrucnt or st'ctlon so

138. Se<:tion 50 of the Value-Added Ta.• Act. 1991. is h<.TCI.>y amc'Udcd l>y the suh~i1utio11 for- subsection (6) of tl1c following •ubs«tion:

"(6) Notw•lb.131ldW)t the pre«diDJ> pru\-isimt$ of Uti<i st."Ctiou. any (dirt'C· lion] ctec:ision or detmnina:tion of the Commissioner made under se<:t1on 15 or 27 in r<>p<.':l of the ,.,.,dar rcf<m:d to in $Ub5ecrion ( I) of this SKIJOn wll. for the purposes of this A<L apply equally to each it:paralc eut C1")11fi~:. br.mc.h or di\;sion of the vendor which l!: sepMarety registered tU\der rhis .see-rion: Pro1·ided that where o [din.-ction) dccitioo or dctamioatiou ii made by the Connnlsslmllor mulc:r ~ubscclim1 (2) of section 27 which applies in respect of nny such separate- enterprise. branch or division. tbi> subs<etiou shall uol be c:on.c;nuerl as preventing the Conunis-sioner from making n separate ldlrer. tion] d1..-cision or d~:tcnuinHtion tuJd..:r ~nbsec:tion (d) of the sairl s-ection m the circumst..111ces contempL1ted in that sul>scctiou in rcspec.:l or uuy utlu::r ,:;eparate emerprise. branch or division of the said vendor.··

Amrtuhnrnt of Sf'i'lion 5()A 139. Section 50A of lh<: Vuluc·Addc"<l

T•x Act. 1991, is hereby amended-(a) by ihe substirution for subsection ( I)

of the followin! subS<Ction: "(I} Notwithstaod~ the pro1i·

sions of S(.•<:Lion 23. ifdu: Cotmnift.

sioner ruak•• a [din.-cUon) deci-~under this section. the persons WIDl,-d in the [direction! decision wll be d~ed 10 be • •ingle person carrymg on the acth·ilie:s of au <-ut~ do:>Cril•:d in lhc [din>ctionl decision a.nd that per-son shall be liable to be repstered in tmus of S<.-.:tiou 23 w•lh clf<:<:t from the date of the [direction) d~isioo or, if the [dine-lion) ded· a ion so provides. from such date as nmy be spccifi~.ood Llu. .. orcin. ":

_us No J.>491 Act No, 23 or 2011

I No. nnd •·•nr S hort tltl•

OOVERN.\t£NTOAZE"nc. 4 JULY2Ut2


F...xtC'nt of amcncb:uC"nt or reptoJ (b) by the substitution in subs<-ctiou (2)

(or tit~ wmds-prcccd.iu~ pangrapl1 (n) of the following wonb:

''The Comm.issioner sball uo1 uud..c a (di!"M"tion 1 d~.··ci:.o.ion w.cL..,Ihis section warning any penon unless be or sb• is satisfied ••.

(c) by the •-ubstitutiou in •ubs<-c:tiou (2) for para!'>"Jlh (b) of the following p;uagraph: ''(b) that lh<: acti•itics in the <vwoc

of which he !!!:...!!!! nake!i or made tho.e ta-.abl• supplies folDl only part of ccnain acth i· lies -which should Jm'J.:>c:rly be rcgartkd as those o( the Ctth.•s._

prise described in lhe [din-c:tlon] decision. the other acthi~ tics of thai <-uti.'I)>rise being carried on at thl\t time or previ .. ously by one or more other pi.'t"SOllS; WJd";

(d) by the snb<tiiution for snbsecrion (.!) of the following subsection:

"(3) A [dir..,tiou] dcci•iou marie under this section sh~H be $C:n·cd on ca..:b of the pcr~on!l

named in it.••; (r) by 1hc 1:iUbslitution iu suL.s~o."Ctiou (JI)

for the words preceding paragraph (n) of the follow~ words:

"Whcro.:. aJ\<.T a [dir~tionl.!l.!;£i: sinn has been @i.ven under this section specifyin! a des«iption of the enterprise. it app<OIS to !It< Counuis:.ion<:r that a p<nou \\UO was not rumed in that [dll"I'Ctionl decision is makin! ta~able supplies in the """"" or fUIIhCiliiiCc of acri\iries which should properly be regarded as pan of lh<: acthities of that eolcrprir.<:. lbc Collllll1Uton<:r may make and Sl'r'\"C ou l1im ur her

a supplemennuy [din-c:tiou) deC1-sioo refemn~ to the earlier l<llrt<'· tion 1 decision und the dt."$caiptiou of lhe enterprise specified in il ond adding that pecson·s name to~ of the J.M."l"SSili uw.nt:d in the curlit.T [rlirt>Clionl decision with effect from "';

J40 No J.).491

Act No, 23 or 2011




F...xtC'nt of amcncb:uC"nt or reptnl

(fl by the •ubstitutiou for subscctiouo ($) aud (6), n:spect.ivdy, or the follo\\ lug miMec-lions.:

"(S) If. immediately before a (dii'C'Ction] decision (including 11

wpplementary [direction] decision) is ~ uod..- this s«tion. any p<non wuncd ill the: [dimtion) decision a re~Yered in ""''ffi of the m:mble supplies made by him 2!: bet- as coutcmplated ill oubliCctiou (2) or ( 4). he~ shall cease to be liable to be so repstered \\ith effect from-(a) the da1< \\ith effect from which

tl1c single pcrwu cnm:cmcd be~ came li•ble to be r.gi<t..-ed: or

(b) the date of the ld~llonj ~ siou.

whiclle\'er d:ue is rhe later. ( 6) In relation to an eutorprise

spcdlicd ill u [direction] dcoi•iuu (indnding • supplemenrnry r .u .... ·. tlonj decision) under this section. the JX'rsous named in such LdiJ't<'· Lion) decision. who TO£tether are deemed to be the liable pc.l·~on. nrc in rnbso<ti<>ns (i) and (S} rcfcrn:d to a. .. tl1c members. ••:

(g) by the substitution in subsection (7) for the words preceding para~pb (a I of the followin!< \\Urds:

"For the (>lll1lO!I6 of this A<L where a [dirt'ctiou) decision is made under this section .. : and

(/r) by tl1~ substitutiou for par11JD11VU (a) of <1thsec:rion (7) of the followin[l paragraph:

"(a) th~ J"-TSOD c:anyin~ w tl1~ enterprise specified in the (cliRctiou) detiSIOD shall be RPitrablc in such lW1lC: u r.hc mcmlK'TS may jointly nominate upon compltanct wrtb rhe provistons of section 23(2);n.

342 No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 20t2



Ameudmcm ol' section ss 1-40. Section 55 of the Value-Added

Tax Act. 1991. is bcn:by lillleudcd-(a) l>y the ~'Ub~t ilnlion ror tlu: words

preceding p=gmph ( a) of the fol-lowins words:

''rtvc-ry \'t'nclor <hnll keep such I.KK•ks of acc:ouut (whic-h books of nccouut, where gener-atcd by UICRllS of R CODIIIUICr, slmlllH' relaiurd iu H1e fonn nf a computer print-out) or oUter recot·ds RS may enable him to nhsrrve the. rfiJUiremenl"i of thio; Act nnd enable the Conmtls-siouer lo satisfy ltiuaself thai lhr vendor bas obscrYcd SUdl rc-quil"C'ntt'nts, RIH'l] ln ~ulclitiuu to the records r~uired under Part A of Chaeter 4 of the Tax Administra-cion Act. every v~.:udor fsbnll] rnust. in p:micull'lr. keep the following records aod docurue-ntsl-1:": and

(b) by the deletion of subscctions-(2). (3) and (4).

Repeal of sections 57 ro 570 1-41. Sections 57, 57A, 578, 57C and

570 of the Value-Added TILX Act. 1991, are hereby •·epe•le<l Amendment of scrtiou 58

142. Section 58 of the Value-Added Tux Act. 199 I. is he.,by amended-( 11) by the snb~timtion for the words

preceding p•ragmph (n) of the fol-lowing words:

" Any pc:rsuu who wilfuU~ and withom just cause--.. ~

(b) by the deletion of parngmphs ( a), (b) and (c):

(r) by t11c rmbs lilulion ror paragmph (d) of the foUowing pata!'J"'ph:

"(d) fails to comply with the pro-visions of sc(;tiou 14. for SP<'lion] 28( 1) or (2) or [ser-Uou]29[or sectiou3Q]; or";




(d) l>y tho dcloriou ofpallll'fllpbs (/) 10 {i): (e) by llu: ~mb.o; lltutiun ln paragntph (j) rur

subp.vagrapbs (ii) ond (iii) of the following subparagraphs: "(ii) (l<uowingly nnd withoul lnw.

ful r_..·u·aL"ie (Uw burden or }Jroof of which shall b~ upon him)] indudo• in or add> to rbo llrie:e or a.mount e:huged io 1he recipienl in relation 10 such s.upply ~:wy Ia.'<, when: in fac::l uo tax i,_ l'~yable in temu of this Act: or

(iii) [l,;uowlngly nud wltlrout la1•· ful <'XCllSC (the burdc.n or pl'oor of whirh shall he upon him)] include.s in or adds to the price or amount cba~ed to the rctipicul in rcludou 10 such supply any t.x in exce$8 of the lax properly leviable under tlus A<.:t iu n:spcc:t of Ute vu.lm: of such supply: or";

(/) by rhe substitution for paragraph (k) of lbo following pamgrnph:

"(k) (l<unwlugly aml wilhnut htwfuJ c:~cu.:st' (Ute burdc:u of proof of wWcb shall be upon him)) fi1iiR to comply with theprovisions of para· graph (i) of the proviso lo s<etiou 20(1) or IJlllliJPliPh (A) of the provi"' to <ection 21 (3); or": and

(g) by the deletion of paragraphs (/). (n). (v ). (p ) and (q).

Repeal of S«tlons 59 nnd 60 143. Sections 59 and 60 of lhe Value·

Added Tnx Act. 1991. are hereby re· ponied.

Amendment of SKtlon 61 14-l. Section 61 of rhe Valne· Added

Tax Act. 1991, is hereby runended-(a) by lbc substilulioo for subs<'Cliou (I)

of the following suh~ection:



No. nnd yc-..nr Short title Extt'nt of a.mcncbur.nt or repc~ll

"(I) \V!J.,·c in l\.'SJX.'(.:'( of any ."iupply nuiCI..: by a vc-udor, the: vendQr

has, in consequence of :u1y frnudu-lent ac-tion or a.ny misrepresentation by tile I"CCiJliL"Ill o( tJu.! liUppJy, 1ncor-

rectJy applied a rnte of 7.e1'0 per cent or 1reated such supply as being ex-t:~upt from tnx. tlac Conunissiuucr may. nom!idt.totanding :tnythins tn lhe contrary contaiued in this Act, raise: WI tiSSC~S.U.U.1ll upou th..: n:cipi-ent for rhe amntult of rax payable, together with any interest and pen-alty [or IIUct'tSI lllnt lias become payable in tfi'11Liil of ~K_tion 391 ~ l~~ts bcconn:: ~l:able Ul lcnus or Cha~ter 12, 15 or 16 of d>e Ta.x Adntin.istrnrion Act. as the case ma~ be. in ro>vc<t of such HllloWJt[, and. iu rai"ling suc·h ~l~SfSSIII e.111, u •• Conunlssloner may I'Stllnate tile amount on wWch tllr ta~ is pay-ablel": and

(b) by the deletion of subsection (2). Repeal of St't'lions 62, 63, 70 and 7l

1-'5. S<etiou.> 62, 63, 70 wad 71 uf the \falne-Adrlerl T•x Act, 1991, are hereby repealed. Amt'ndmenl or Sfelion 72

146. The Vuluc-Addcd Th.xAct. 1991, is hereby amended by rhe snb<tinujon for section 72 of the following section:

"Arrangements and ldll't'Ctlons] l!£2:: sii)Jt'i to nvrrrmue cliflkuJlirs, mmmn-Ues or iucougndties

72. If in any l"<lse the Col1llllissioner is satisli<:d tlmt in C0US4,.."Qll~ll(C of the manner in which any venrlor or class of ve-ndors conducts his. her or their bu.si-U<.-'SS. tmdc or oc:c;uputiou, difficu.lt.i~s,



No. nnd yc-..nr Short title Extt'nt of a.mcncbur.nt or repeal uuowulics or iucun)rru.itics have: mi.Si.:n or may <u~sc in n::ganltu tl1c: app1icaliun of MY of the provisions of this A«, tbe Commissioner may u1o"lk:e an 3rronge-mcnl or fgi\'e n cUI"('('tionl decision a~ rc>-(a) the rnrumer in which such provi-

•iuus shall be applied: ur (b) the calculation or payment of tax or

the application of any rate of zero per cent or w1y o..:xcmptjou fivm tax provided in ihis Act,

in the case of such vendor or class of vc:udors or any person trcuc;acting with such vendor or class of vendors as uppcnrs hl ovcreomc such difficuhic$, anomalies ot• incongruities: Provided that such [direction] decision or or-nWJ!<m~ul shuU uol IJBvc Ute clfcct of substantially reducing or lncreasing the ultimate liability for tax levied under this Act." ,

Act No_ 34 of 1997 South African Re••- Amendmem of section 1 rnor Service Art, 1997

1-17. Section l of ~tc South Ali:kuu Re\renue Service Act, 1997, is hereby amended by the subsritution lor tbe deli-oitiou of "n:,•cuue" of rite lollowinJ< definition:

" ·reveuu..-· means income derived from ta.X¢$, duties. levies. f~s[,

rhnr:-grs, nddirionnl tnx) ancl any o lhcr IIIQUCys imposed in ICnn!il or lcgislH-lion, including penalties and iute.rest in connection with such moneys;''.

Acl No- 9 of 1999 Skills De••elopmeul Amemhnt'fll of st-eliou 1 Levies Ace, 1999

148. Section I of the Skills Development Levies Ac~ 1999_ is hereby amended-1 a) by the suO.tirutiou for Ute dcfiuitiou of

''Cnmmi~innet• .. of lhe following definition:

" ·Commissioner* wean:; the Commis.t;ioner fnr the South African Revenue Service 3J!~in1'ed in




tcJUI.J) of s~--ctiou 6 of the Soulb A(-rlcan Revenue Scrv iccAcl, 1997 (Ad No. 34 o f 1997}. orlbeActino Co1wuissioner des:isaated in tenus or ,.cction 7 uftlutt Aci:H;

( I>) by 1he inse1t ion after the definition of 11Skills Development Act" of 1he foUowin~ ddiui1ion:

.. •Ta..'\: Aclminil<l'tntUnn Art' means the Tax Ad.ministrn.tion Ad1

2011:"; (c) by the renumbering of section 1 10

section 1(1) : and (c/) by tbc iuscrtiou aflcr subsccliou (l) or

U1..: fil11nwing snbsr:cllfm: .. (2) Unlcs. .. the conh:xl imlicalcs

otherwise. a word or expression lO

wbicb a meanins has been assi!_!!ed Ut the Tux Admiuistrntioo Act. be~rs that mel'lninp; fo1· J2W:EOSes of this Acr.··.

Amemhuenl of s~:tion 2

149. So:<liou 2 of We Skills Dcvdop-mem Levie.~ At~ 1999, i~ hereby amended-1 a) by ~Jc substiluliou for subs.-cliou (2)

of the following subsection: "(2) The Conuuissioner must

adulinislcr lhc provisious of tbe Ac.[ in so far as it relates to the coll•ction oflhe levy payable to the Commissioner in tcnn.s of this A~t! iu KCcorrlan cc will a the pnwisions or dte Tax A<lmini.slrHiion Acl. "; and

(b) by the iuserlioo afler subse<tion (2) of t.lu.: followiu~ sub~"tt·iou;

"(2A} Administrative reguire· mems and Erocedures for pt!!l2:!:!ses of the 2£lfonnan~;c of Wll dull· power or obliB!!tion or the exerc-ise o f anv rieJlt in tenus of this Ac'l are. lo lhc c:d\::UI uot rca!!lulcd Ua this Act. rel!.ulated bv the T:.x Admini.s· trntion Act " .

Amrmhnf'nt of senion 6

ISO. Scoliou 6 of ~•c Skills Develop-menr Le\·ies Ac~ 1999. jg hereby amended-(a) by W< substiruiiou for subsoc1ion (I)

or the (oll()\Y'ing subscccltm: "(1) Subjed to se.:tion 7. et•er-y

employer nuUti, not later than seven da:(!, or such looser ~riod as the ColiUJlissiom.:r dctaruim:.s. aft.;.-r

352 No. 3.5491

Ad No. 18 oHOH


GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012 Tu Adnunttotr.-rion A(.l, lOll

Extt'nt of a.mcndmr.nt or repc~ll

tbc cud of ~ach mouth in respect of which the levy is payable.. pay the levy to the Commissioner [iu the mnnn~r and] widlin d1e period rlclcnniucd in thi~ AcL ''; nml

(I>) by d1e suhl<rih1tinn for rmbsecrion (2) of the fOilowinl! subsection:

"(2) Au employer tmll<l[, 1101 b1ter tluUt Se\'en clayS:, or surh longer pertod as the Couuulssioner dctenuinrs, nfler !be end of eadamonth in rt'Site<'l of whkh the levy Is j~>yable, (Jay lite levy to U~e Commissioner nnd J to,ll<tber with [such] payment of the levy in CCnns of subscclio~ s.ubmit a [shllt"meut-(n) 111 such fonu ns the Conuuls

sioncr may require: and (b) reflf't·ting the mucmul nf thr

levy due by !lint employer and colllaining such other infonnalion as lhr Conunissloner mny require] rentm.' ' .

Repeal of s .. ·Liou 7 A 151. Soctiuu 7A of the Skills Dwclop

ment Levies Act, 1999, is hereby repealed. Amendment of seclionll

132. Section II of the Skills O.,veloplm:ut L~.:vit:s A(:~ t 999~ is ln:n:by amended-( a) by ll1e substitution for subsection ( I)

of the following subsection: "(I) If IIIl <.:mploy<:r fai ls to pay •

levy or ;my po11ion rhereof on the lost day for payment thereof, as cootauplatcd in scc·tion G(2) or 7(4), iutcf'Cl:il 1s IIMyablc nu the outstandi.ns amount [al thr ralt" contemplated paragra(Jb (b) ol' the definition of •prescribed rate' in set"Lim1l ofllw lm·mueT}IXAl'l, cnlculated from !he dny follon1ug that last day for paymenl to the clay that 1myrnent is t'f>c.·ehtpe] hy the Conunlssloner, SETA or approved body, as the case mny bel in Rce:ordance with the provisions of Chapter I Z of the Tax Adminis-trntion Acl. ": and

(b) l>y the deletion or subs,~cJjun (2).

.!54 No. 3.5491

Ad No. 18 oHOH




Extt'nt of a.mcndmr.nt or repc~ll Amrudmcm ol' section 12

1.53. Soction 12 of the Skills De\'elopwonl L<vios Aot. 1999. is hereby 11m ended-(a) by the substitution for subsection (I)

of the foJlowiug subse.;tioll: ••( l) Subjccl tt> subsection (2). ir

any levy remllins tutp~tid after 1he last day for payment thereof as oout<wplHtod in S<octiou 6 (2) or 7 {4). 1he Commis!-iioner musr.,. un .. der Chaplet' 15 of the Tax Administrntion Act. impose a penalty of 10 per c:ent of 1hat unpAid ttmn1u1t [ilf 1myable iu mlclition c.o the iulerest routt-JuplateU iu section llj. ";

(b) by the. suLstitutiun for suhsccliou (2) of the following subsection:

u(2) The Collltll.issioner or the cx'""<:utiv4.: o.ffic1.3" of Lltc SETA or approved body. as rhe ca~e may be, may[, ha•ing dut regard to the circumstances of the case,) Mnit the pen• lty or ""Y portion thereof imposed by subsection (1) utaccordunce With llH: prOViSions Of0uspter 15 of the Tax Adminisn':ltion Act."; and

(c) by the del<tion of •ubs<:otjou.s (3). (4) mtd (5).

Repeal of S<l<tlon 13 1~. Section l3 of the Skills Develop

ment Levies Act. 1999. is hereby repealed. Ameuduu~ut of .set·tiou 15

155. Section 15 of the Skills Deve1opmem Levies Ac~ 1999, is hereby amended by lhc addition after subsection (2) or lhc follQwing ~uhscclion:

"(3) An inspe<:tor has tl>e same powers afi:Orded to a senior SARS official. a SARS official or SARS tUJdcr Chapter S nf the l 'ax Administrntion Aet.".

Repeal of st>t'tions 16, ·11, 20, 20A nud 21

!.56. Section• 16. 17. 20. 20A and 2 1 of the Skills Development Le\'ies Act, 1999, aro hereby ropoal<d.



No. nnd yC'..nr Short title Extt'nt of a.mcndmr.nt or repc~ll

Act No. 4 of 2002 Unemployment In· Amcndmcm of section 1 suranre Conu·llm-lions Act, 2002

157. Scctiuu 1 of rlu: Unemploymeul Insurance Contributions Act. 2002, is hereby amended-(a) by tlu: suUsrltutiou rm· 1l1c definition

of "Commissioner .. of the following definition:

•· ·commission"r' means tho Commissione1· for rhe Som.h Afri· can Revenue Service npoointed in tonus of '"'etion 6 of the South Afiic:m RevenueServiceAct. 1997 {Ac1 No. 34 of 199!), or the Acting Commissioner desi21l.llted in tenus ofscc-tjoo 7 of that Ac-t;n;

(/J) by lhc in~crtiou ancr tltt.: definition or ''t'ellmnel'ation'" of the following definition:

·· ·Tax Administration Act" mean!-0 rhe 1Pix Admini~trntion Act, 2011 :":

(c) by 1be n;-nurub<~in~ of S<etion I 10 <ecljon 1(1): and

(d) by the insertion of the following subsection a!lcr sulJsc:ctiou (1):

" (2l Unless the comexT indic;ues otherwise. a word or ex12ression to which a mc:anina bas bc:cn assiancd iu 1ilc TAx Admiuistnatiuu Acl hears that meaning for J?:t!!12:oses of this Act."~

Amendment of section 3

lSS. Section 3 of 1bo Unomploymont Tnstu11ncc C n ttlrlhttliottR Acl, 2002, is hereby amend~ (a) by the substilulion for •ubsec1iou (I)

of the following subscc:tion: '-'{I) This Act mm;t be adn1inis·

tered by the Co1unliss-ioner~ in ac-cordnncc: with lltc J2rovisious of the Tax Administration Act." :



No. nnd yc-..nr Short title Extt'nt of a.mcncbur.nt or repc~ll (11) l>y tbdusortiou af~<nul>s.-.;tiuu ( I) of

I lie: rollowing subs~tlon; "(!A) Administrative reguil"e-

meuts and Erocedures for eurposes or the IX:rfonunncc of an:l dutt:. power or oblin;ation or the exe.rcise of anv ri~u in teJUlS of this Act are. lo tlu.: ~'(t\!ut uot rc!!tlatcd in lhis Acl resulated by the Tax Adminis· rrntion Act··; and

(c) l>y lho substitution fur sub•octiuu (2) of the following sub~ection:

" (2) [Tbe]ln addition to sectiou 9 of tl1c Ta.' AdwiuiStnlliou Act. and in ac:c:ordancc with S«lion 10 of tlmt Ac.t., the Commissioner· may delegate any power or assign any duty which relates to the collection of-( n) contributions payable to the

Unemployrue~u Insurance Couw1issioucl' Lu h.:ntUi of s...:c-tion 9: and

(b) any iufomllltioo to be submit· ted l>y <wploycrs iu tcnw. of tl1is Act, rn the Unemployment lmurauc.c Commissioner; ••.

Amemlnumt of .set'lion 8 159. Se<tiou 8 of tile Uucwploymeut

Tn~urance Conrrih11rions Act, 2002. is hereby omended-(a) by th< substitution for substttiou (2)

of the fu11owiug ~ubsccti<m: "'(2) An cn1ployc•·rmL~l. togl.!tllt.'r

widt lhe payment [contemplated] reten-ed to in subsection (1), sub-wit u lstotemclll in such fomt os lhe Conuuissinnt>r may rP(lUire nudj return reflectin~ the amomn of tho payment twd suc:h utlt~,.-

panic:nl:us M the Minister ml'ly prescribe [by regulntlou]."; and

(b) by lbc dcl<tiou of sul>scotioo (3).

J60 No J)491 OOVERN.\t£NTOAZE"nc. 4JULY 2UI2


I No. nnd •·•nr Short tltl• F...xtC'nt of amcncb:uC"nt or reptoJ Amrndrucnt or st'ctlon 9A

160. Section 9A of the Unemployorent lns:unwc:e Contnl>utioWI Act. 2002. .. h~by amended by the substilulion for-subs«tton (I) of the following sut-c-tion;

'~(I) W1tc:l"e HUY employer "lm i~ reqtured 10 p3y the liJtlOWl! of all employee.· contributions and the em-ployo:r•• contnl>utious in ro:>p<:<:t of ._.ery employee in the emplo)'lllent of that employer to l the Collll11lsslouer In temiS of section 8 or to) tho Un<:w-ployrnem Insurance Commi.Mione.r in tenns of section 9 (a ) bas failed to subntit a statement ••

roquircd in t<tiD$ of [srctton SP) or) SL..:Uon 9(2);

(b) has furnished a return as required in tenus of [section 8(2A) or] oe<tion [9(2A)J ~but tho Cum-missioner i~ not sa11fifled with 1he renmt;

(c) hus faikd to deduct or withhold employee$' conrnbtltion.s: or

(d) ih'lll foiled to pay over any comribu-lions dcduch.:d or wiUWCI<.l.

l'lnd such employer hi\S not been Ab-soLYed from his or her liabilities iu tcmu of th~ provision& of this A~t. th~ [Commissioner or thrl l}JtL"'Upluy• ment insurance Commissioner{. u.s tl1e rnse may ~J may make a reasonable ""tiwatc of tho amowtl of any coutribu-lions du<: in t\."tiUS of St.'c-tiou 6 and V»uc ro 1he: ~mploye:r a notice of as..~ssrnern for the unpaid an1ount. •· .

Amrmbur-nt of section 10 161. S..-.:tion 10 of the l,;uc-wplo)'Wc'tlt

Inwrance: Coruribtmons Act 2001 • .. hereby amended-(a / by tho substitutiou for sub.<...:tiou ( I)

of the: followtng snbsec.uon: " ( !) An employer to whom tlu•

Act applies ww.1apply forrcJU'tru-rion to theCommi~ioner. in accord· ance with Cha~ter 3 of the Tax Administration Act. or the Uncm· pJoymt.!ttl fnsumncc Connui.r sioner. ["Wcht>\·er is appUcalJil' to sntb tmployer In ttrms or




section 8 or 9,J iu sud1maauu.T and wilhin sm:lt period i'I.S mily be:: p1·c::· scribed by the [Couuni,.louer or] Unempl.oyme01 lns1.111lnc:e Com-mis~lonerf.J 1-esperli\'cl~~]. ' ' ; l!lnd

( />) by the deletion Qf subsecliQn (2). R('penl or section t 2

162. Section 12 of the Unemployment JJt.~ltriUICC CoJllrihulioJtS Act .. 2002. ls hereby repealed.

Amendm('nt of seC"tion ·13

163. Section 13 of tlte Unemployment liiSUI'HJlCC Ccutti;Luliolt~ Ac~ 2002, ,. hereby t1menrled--(n) hy ~te •nbstirution fot· .. ~>section ( I)

of the fOllowing. subsection: " ( I) If auy ooutributiou remains

unpaid after ~te last day for pay-me-ut thereof as conte-mplated in soction S(l ) or 9(1) . the Conuuis-sioner mn~, under Ch~pter 15 of the '!'axAdmi.nisb·arionAct. im~se • penalty of I 0 per cent of the nupnid l:nnomll fis pnynb1e in nd-diriou lo Ute iulerf'St coutt>m-plated In section 12.] but the Couuuissioucr or the Uucmploy-mem Insurance Commissioner. as the case may be, may[, ha\1llg due rrgord to the circwnstanccs of lhe ca~e,l rem it Lhe penalry or any portion thereof in accordance with the Erovis ioos of Cha2ter J 5 of the Tax Admit1btnlliou A<:t. ··: and

(b) by the delelion ofsub<ections (2), (J) and (4).

R•peal of se<:tion IJ 164. Scotion 14 of Ute Uuc:mploymcut

Insurance Comribnrions Act~ 2002. jg

hereby repealed.




Amrudmcm ol' section IS

165. Sec.tion 15 of the Unemployment Ius-w111tc\: CouU'l"butious Act. 2002, is hc:n::by 1unended by lhc:: tulciilion .. nc:-r subsection (I) of the following subsec-tion:

" (2) Au iu~clor has 1l1c same pow-et~ ttfforrled toR. ~enior SARS offici ttl, a SARS official or SARS under Cba~ter 5 of Ute TIIX Administrntion Att."

Repeal of ~ctlou 17

166. Section 17 o f the Unemployment lnsunmc-e Contributions Act. 2002. is bcn:by r<.'P¢alcd.

Acl No. 14 uf 2007 UbtuiUJUI Export Ameml.Juent nf sPClion 1 Le' 'Y (Admlul.stra-tiou) Acl, 2007

167. Section 1 of the Diamond Expo11 Levy (Adtuiui• b'lllion) Att. 2007, is hereby • menrled-(a) by lhe substitution for the definition

of "Couuuissiom::r'• of t.hc foUowiu!t defini1ion:

.. •Couuuissiout'r• means the Commissioner fOr the South Afri-can R.::v4;:nn'" Sctvlcc ~p1)0in11:cl in

t~nn~ of section 6 of the South African Revenue Setvic.e Act. 1997 (Act No. 34 of 199Z). or ~IcActiuo Commis~ionel' de~innated in te-nn~ of section 7 of that Ac.t:'' ;

(b) by lhc inscJt iou after ~1c ddiuitiou of " regis-rered person '1 of the following definition:

u ·I'n.x Admlnl.strntiou Act' tm.'3lls Lin: Tux A<huiui.stnuiou Act. 201 J :~;

(c) by Ute renumbering of section 1 to se<tion I (I); and

(tl) hy the insertion a ncr 511h~cc1·;on ( I) of the following subsection:

u(2) Unless the coutext indicates otherwise. 8 word or cxen:ssion to which :t mean inn. l'llls been assitmed ln the Tax Admiaistrn.tioo Act be-ars t.hal mcaniu! fur E:UlEOSc.s of this Acr. ''.

36() No. 3.5491

Ad No. 18 oHOH




Extt'nt of a.mcndmr.nt or repc~ll

Amrndmcm of section 7

168. Section 7 of the Diotllond r:xport L<:vy (Admiuistratlou) Act. 200i. is hc:n::by amc:ltd!!tl-

(a) by the substitution in subsection (I) for the words pre<:edin~ parasraph (a} or llu: roll owing wunl~:

" [Evef1'] In addition to the records required under the Ta..x Adlniu.islrnliou A<.:t cv'-·-ry rcglsterecl person must ret11in [rfi:ordl;! IIKfssnry to observf the requirements of tltis Act nnd tltc Lel'y Act, iudurling1 the followinll record~ p: and

(b) by rhe deletion of subsections (2) and (3).

Rep•:tl of sections 10 lo 15

169. Sections 10, II , 12, 13, I~ •nd 15 of the Diamond Expon Uo\'Y (Administration) Act, 200i, arc hereby repealed.

Amemhnent of sKliou 16

170. Secrion 16 of rhe Di:tmond Expcm Levy (Admini.stTation) Act. 2007, is hereby amended-( " ) l>y lhu sml..JO;titutiun fm· JO;uh~ .... clion ( 1)

of the following subsection: "(1) The C01lllllissioner will be

11.:~-pou.siblc for odu.ti.uistcliug thls Act and rhe l .. evy Act. in :tccord· ance with the provi!.ious ofche Tax Adluinistrutiou Act. together with the assistam.:e of lhe Regulator a:; described in snbsecrion (2). ·~:

(b) by the insertion after subsection ( I) of lln: [Ollowi.t~ subsctliou:

"( lA) Administrative require· meuts and procedures for purposes of the P5Jfonnancc of any duty. powc.-r or oblisalion nr the cxCl·cisc

of any rittht in tet'lllS of this Act ar.e. to theextent not re.gulated in this Act. n:~rulatcd bv t.lu: Tax Administration Act": 111.nd

(c) by the deletion of Mlbsection (3). Repeal uf se('Liou 17

171. Section 17 of tit< Diamond Export l...,vy (Adminisll'lltion) Act. 2007, i• hereby repealed.



No. nnd ye-Ar Short title Extt'nt of a.mcndmr.nt or repc~ll Act No. 26 of!-007 Securities Trnnsfcr Amcudmcm or section 1

Tnx Adminis-tration Act, 2007

172. Sec1iou I oi llu:: SccurlLies Tr.ms• fer Tax Admiuistration Ac1, 2007. is hereby amended-( a ) by the suhstituliou (Qr suhsL-cliou (I)

of the following snh~ection: "(1} The Commiss.ioner must ad-

miuisl~T lhis A<:l und lhc Sccwili\:s Trllnsfer 'lax Act, 2007. in •ccord· ance: with the j2rovi~ions of the Ta.x Adminislnltion Acl 201 J.":

(b) by fhe insenion after !<ttl><ecrion (I) of the following sut-ction:

"{lA} Administrative ~lire-IUalt.i and J21'0CCdurcs for e\UE2;SCS

o( 1hc ~riomuutce: of uuy dut~,

~'"er or oblie;ation or We exercise of an:t ri~t in tetms of this Acl are. to lhc <:x!Cul uot re~ulutcd iu lhis Act, remtJaterl by the -rax Arlmini.<:· mttion Act 20 J 1.":

(c) by the substitution for subs<ctiou (2) of the following subsection:

"(2) Unless tlte context indicates OUI\:fWiSC. U WOttl Or C:Xi:!~SiOU to which a mea.ninB has been ru:sitmed in the Tax Administration Act. 2011, and any word or expression to which a mctmiug lin~:~ Lcc:u n.'»iguccl iu lh~.t

Securities 1'mn~fer Ta.x Ac1, 2007. bears the meaning so a.signed for tl1e purposes of this Act."; and

(d) by t!Jc ddctiou of subsection (3).

Amendment or SKtloo 3 173. Section 3 of the Secwitie.s Transfer

Tax Administration Act. 2007. is hereby amondcd by ~tc ddetion of subsoction (4) Lhel'eof.




Ameudmcm ol' section ~

174. Se-ction 4 of the Securities Trans-f<:r Tax Adullnistratlou Aot. 2007. is hc:n::by ~~tnC:Itd!!tl-

(a) by U1e .•ubsrirution for subsection ( I) of the foJlowiug subse.;tioa1:

" ( !) Tiac Counltis.. .. ioncr IU\lSI

refi.Uld 1he amomu of any overpay· mem of tax or of auy interesl or pc-ually p1vporly dmrl'cubk in n:-spec:t of rlte rrnnsfe.r of any securiry, [II' appUcntlon for th~ ret\md Is mode within two years after the date nf that on~rpaymentl i!!..!£:. cordance \\~lh sections 190 a.nd 191 of dte 1'a"< Adruiuistrntion Act. 201l. " ; aod

(b) by ~dch:lion or subs\.'ctinns (2) a ml (4).

Repcnl of ~c('tion.c; 5, 6 nnd 7

175. Sections 5, 6 and i of U1c Sccuri-tiel; Tnu U:i r ct• Tax Alhninil:;lrnlim• Acl.,

2007. are hereby repealed. Amcnclm<'nt of s('("·tion S

176. The Sccwitics Transfer Tax Admin-i~lnltion Act, :1007. i.a lu.:n:hy unu.:ndo:d by !he rubstitution for ~ction s of the tOllowiu!l section:

"8. lut~rrst on overdue payments aud pem1lty em defnu1l no<·m·erilhle from ~rson to whom securl()' Is rrausfert't!d.~l) lu tho cnso of olist"d sccwi.1y, n un:mbcr or parci<.:ipiult muy recover ihe l\tnonnt of rthr 1 ime1'est Lr~f~rred to In section s, p~unlty on dernull refcrt't!d to ill section6 or the) or penalty [in tl1e (":;1St' of ev;1sion referred to in section 7] payable by !hat member or participant [In tenus of thlc; Ac.tl under t1u: Ta.x Acbninil:d:ration Act from the ~rson-(a) to whom a listed security is trans-

f"m:d; Ol'

(b) whn cancetJ: nr redeems a. listed security,

to l11~..: <:xtcntlluu tlH: ~:~ ctiou or i.un(:tiou of tJ111t pen:on resulted in the intere.-(1 or pelllllty.

3"r1 No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012 Ad No. 18 oHOH Tu Adnunttotr.-rion A(.l, lOll


(2) Ju the c""" ofau wilisccd s.cwity, I h.: cmnp;my which i~sul!d tbal s~cmily may rec.over the ruuount of [the] inter-est [referred to in section 5, peunlty on dcfnult refenf"d to in ~cction G or tlte] or penalty [iu lhP t·a.~e of ev~1shm referred 10 in section 71 payable by thut compHny [in tenus of this Act] tmder the Tax Administration Act from the person to whom that security was trausf~:n1:d, to the cxlcnlthat the actiou or inaction of th::tt pef'S(')n re.-\ulterl in the interest or penalty.".

R epeal of srt·ticm:; 9, 10, 11, 12, 14, 15, 16, 17, 18 :nul 19

177. Sections 9, 10. II . 12. 14. 15, 16, 17. 18 onrl 19 of d1e Sec111itie< Trnn$fer Tax_Adnllnisrrarion Act, 2007 ~ are hereby ropcal<d.

Sul.lsliluliou of St"ctiou 20

178. The Securitie$0 Transfer Ta:< Arl· ministration Act. 2007, is hereby amended by the sub$titution for section 20 ur lllc (oil owing scclion:

" Ofl'eutl'S laud pemdlies] 20. LAn~~J In addition to the ofteuces contained in sections 235 aud 236 of d1e Tax Arlminisu";trion A cr. 2011. any person who 1-{<I) fails or neglects to furnish, file or

suhmitnny rledar;ation or dO<:u-ment ns nud wlleu required by or under !his Act;

(b) wltboutjnst causcsllown, rci\Jscs ur neglerlS to furui.ldt any infor-matiou, donmat'ul or Lhiug re-fcrred to ill section 12:

(ol fail<> ao disdosc any matt'rial facl itt Ute dec.:htr}tliou referred lo iu section Z or 3;

(tl} obstructs or llindc1-s any pCI'son in thr perfonmuu~e of his or her functions under or ill tenus or this Act:

('1) submits or furnishr~'ii a f:.lse l't'r-tlficme or stntemem; or




(f) I a<quircs IU1 unlisted scourity WJd fi1ils lo infonn a he cmnpnny of I he: tr.tnSfer within Ute period refen·ed to in section 2. is guilty of an offence and liable on couvlctic;m tn a fine or to itn(nisomne:nt for a period not exceedin~ [12 mon ths! lwo ycurs.n.

RepMI or section ll

179. Se-ction 21 ofrhe SecmitiesTrans· fer Tax Administratlon Act. 2007. is hereby r''J)Calcd.

Act No. 36 of 2007 Revenue Lnws Sec- Repeal or sections 33 and 36 ond Amcodmcnl Act. !007

180. Sections 33 and 36 oflhe Re\'enue L&wv S~:coud Am~udmt:ut A<.:l. 2007, urc hereby ret>ealerl.

Acl No. 4 of 2008 Tnxntion Lnws Sec- Repent of sections 16 nnd 18 oud AmrJulrnenl Act, 2008

181. Sections 16 and IS ofthe 'l'ax.rion Lows Second Amendment Ac~ 2008, are hereby l'l:pculcd.

Amendment or section 23 182. Section 23 of rhe Tax;t.rion l.;\ws

Second Amendment Act, 2008. is hereby 1Uilcudcd by the deletion of subse<liou (I).

Act No. 29 or 1008 Nlinernl and l'eU·o. Amend ment or scclion 1 lewn R PSCJUrt'e.loi

Royally (Admiuis-lnlliou) Act, 2008

183. Section I nf dte Mineral and Petroleum Resources Royolty (Admini•-tratiou) Act, 2008, is bon:by amended-( ll ) by lilc subslilulion ror the definition

o f "Commissioner'' of the following definition:

" ·Conuuissioncr' Ull:ft.ll.S ibc Commissioner for lhe Somh Afri· can Revenue Service appointed in lcnns of section 6 of lhc Soulh A fric3n Revenue Se1v ice Act. 1997 {Act No. 34 of 199Z). or the Actinz Conm1issioucr dt::Si,!!u:slcd iu tenus of section 7 of l1tal Act: .. ~

3'/6 No. 3.5491

Ad No. 18 oHOH




Extt'nt of a.mcndmr.nt or repeal (11) l>y tl1c ddcliun of tl1c definition of

''1u;mhimling priv.ttl! opinion"; (c) by the $Ubstitutiou for the definition

of n unocjc:e of assessment-'' of tbe ro11owing dcrinition:

._. •nolic~e of asst-.Sl\1utml' me::.m: a notice of asseSSlllent [mentioned in section 9] as dcscr1l>cd in scotiou 96 of Lhe Ta."< AdministraJionAcr~··~ and

1 d) l>y the iu.scrtiuu alkT the dcliuitiou of " Roy•lty Act" of the following deli· Wtjon:

" '111.~ Administration Acr means thcTnxAduilltisb·ationAct. 2011:": tutd

(<J by the insertion after subsection (2) of the foUowing subsection:

"(3) Unless the context indicates otherwise. a word or expression to which a mean.in~ has been assi2.lled iu 1.bc Ta.x AdnU.uistnlliouAct. bi.'UJ'S th:lt meanin!l; for ptupose:s of 1his Act".

Amembuen1 of sei'lion 4 18·t Sc"<tion 4 of tl1c Miucrul 1u&d PcU<>·

lemn Resonrc~• Royalty (Administration) Act. 2008, is he1-.by :uuendoo by the substitution insul>sc"<tiou ( 1) for J>Ul1l!'I'"Pb (b) of rhe following paragraph:

••(b) of which one or more members [of tlll\t unlucorJ)orntcd bodyj bold a pn)S{I<!c1ing 1iglll, n:lcnlion pc.nuit. cxp1om.t1on 1~ght, miu.ing tight, mining pennit or pt'Oduction right gramed put'su-ant to the Mineral and Petroleum Resow1:cs Dcvdoym\.1ll Act (or u Li;:USI.! or sublea~e mentioned in section 11 of(U1e Mln~rnl nud P~trolermt Rt'SOurces Derelopmrnt) that Atl in rcsp<:tt of such u right): and".-




Amrudmcm ol' section s 185. Section 5 of the Mineral and Petro·

lemu R<sources Roynhy (Admiuisln1tion) Acl, 2008, i~ hen:: by amended-(a) by U1e .•ubsrirution for subsecrion (I)

of the foJlowiug subse.;tioll: ••( l) A regilillcn:.-.d pcl'$QU mu.~ l

submit an e~timMe of the royalty payable in respect of a year of ru;s<:ssmcnt within six IUoul1ts aflcr the firsr dilly of lh;tt yel'lr and nut~t make a payment (together with [such]!! rctwu for Umt v•ymcut[ns !he Connul1)sinner nmy pre-scrlb~]) equal to one-half of the amotml of ihe fO)'llhy so esri-mated.";_ and

(b) by the. suL.s-titutiun for suhscclion (2) of the following subsection:

u(2) A re~istered pe.rsou must submit au cslimul<: of the royally p•yable in respect of :t ye.at• (')f assessment by the last day of that year mtd submit 11 payment ( lo-gether with [sud.1]!. rerum for tl~t payment Las tb~ Conunlssloner mny preSC111lC]) cquaJ IO tlJC

3moum of rhe J'Oy,.hy so e~fimated

~\80 No. 3.5491 GOVERN.MEN'l' OAZE"n'E. 4 JULY 2012



l<:ss tlu: amowll paid as JU<.."Iltiom:d in $Uh~cxtion ( 1) .".

RClK'Rl or :rectlon 7

186. Se-ction 7 of the Mineral and Pcuolcwu RcsoW'CCS Roynlty (Adwiuis-Ira Lion) Acl, 2008, ls lu:n:by n::pea1cd.

Amendment ol' section 8

187. Section s of tho Mineral and Pcuolcwu Resow-cos Royalty (Aduriuis-lr.tliou) Act, '2008, is hcn:by ;,nu:ndcd-(a) by the substitution iu .ubsection (I)

for the words precedinjl paragraph (a) or I he roll owing won:l'i:

" [A] In addition to d>e record.• r~nired tmde1· [he ·rax Administ1'3• lion Act. a registered person must retain [sucl1 rccol'ds os are n rccs-sary to satisfy lhr rt>fluire-m ents of this Act nod the Royalty Act, including-Jthc lollowiu~ l'ecords: · ~ : and

(I>) by the" deletion of subsection (2). Ameurbtt(>llt of section 9

188. S<:ctiou 9 of Ute IV!iuorul IUid

Petroleum Resources Royt1lty (Adminls· tri'ltjou) Act~ 20087 is. here-by runc-udc:d by tht dtlction of substttions (1). (2). (3) Hll<l (5).

Rc~ol or sections 10, 11, 12, 13 and 16

189. Sections 10. II, 12. 13 ond 16 of tbt Mineral and P~trolt\Ull RcsoUKcs RQyahy {A<hniuisfmlicm) Act. 2008, ure hc1-cby n.1tcalcd.

Atucndmrnt or section 17

190. Sectjon 17 of d1e Mineral and Pcuoltwn Rosour<c• Royalty (Adminis-li'Mtion) Act, '2008, is hereby Jt.rucmJcd·- -

(a) by the substitution for subsection (I) or 1h!o! roll owing snLs ccllQn:

"(I) The Commissioner is respon-sible for administeLing this Act and Lin: Royally Acl. in accordance with d1e umvisions of che Tttx Adminiatrn· tiou Ac-L ": and



No. nnd yc-..nr Short title Extt'nt of a.mcndmr.nt or repc~ll (11) by WC sul>>liluliou for subS<"<:Iiou (2)

or th~ following ~nhscclion: "{2) Administrative reguil"e-

meuts a.nd Erocedures for eurposes of 1hc IX:rfonunncc of an:l dult:, power or oblin;ation or the exercise of anv ri~u in leJUlS of this Act are. lo tlu.: ~'(t\!ut uot rc!!tlatcd in lhis Acl resulated by the Tax Adminis· rrntion Ac.t '".

Rep•al of seclinu 18

191. Scctiou 18 of 1hc Mineral nud Petroleruu Resources Royalty (Arlminico· traliou) Ac1, 2008, is hereby repealed. Amendment of section ISA

192. Section I8A of 1he Mineml and Pclroktwt Rcsow-<c. Royalty (Admiuis· m~tiou) Ac~ 200S is hereby amended-(11) by the substitution for subsection (I)

of tltc fOllowintt subsc:~liou: "(1) rn1e] For ~II!JX>Se< of lhis

Ac.t. the Commissioner may only issue a non-bindiJ.l.Jt, private opinion I to n person rcgn~·ding lhe tn.x lrt-ai.J.Ut'Ul of a parUcuJa.r set of facts nud cl«mnstauct>S or a par. ticulnr trnnsnrtionl iu tenus of Chaprer 7 of the Tax Administration Act."; and

111) by tho ddctiuu of subscotiuus (2) uud (3).

Actl'io. 61 of 2008 Rc>·ruuc Laws Sec- Repeal of sections 3, 13 and 14 ond A lllf'IICllllf'lll

Ad., 2008

193. s~ctious 3, 13 and I4 of the Revenue t..aws Second Amendment Act, 2008. are hereby repealed.

Alllf'Juburul uf ~ecliou 16 194. Scoliou 16 of !he Rcvouuo Laws

Second Amenrlmem Acr, 2008, is be1-eby amended by the deletion in subsection (I) ofpurugr•ph (11).

R~ptal or section 20 195. Sec1lon 20 of rhe Revenue l,.aws

Second Amendment Act. 2008. is hereby rcp<:>1Icd.




Act No. 18 of!-009 Tnxndou Lows Src- Rcprnl or sections 12, l3, 1-1, 33, 3-1 nod ond Amtnrlment 38 Acl, 2009

196. Sections 12, 13, 14. J3. 34 and 38 of the ·r."lx3tion Laws Second Amendment Act. 2009! nre hereby repealed.