COPYRIGHT:This work has been transmitted to you as a subscriber or by a Sabinet subscriber.

All works and portion of

works published on Sabinet are the copyright of the publisher. No part of any work may be reproduced or used to create
works by the recipient or user, in any form or by any means, for any commercial or non-commercial purpose whatsoever,
without the publisher’s prior written permission. Any unauthorised reproduction of a work subject to copyright will constitute a
copyright infringement and render the doer under both civil and criminal law.

All questions on rights and licensing should be addressed to info@sabinet.co.za.

TAX ADMINISTRATION ACT 28 OF 2011

(English text signed by the President)

[Assented to: 2 July 2012]

[Commencement date: 1 October 2012, except for sections 187(2), (3)(a) to (e) and (4), 188(2) and (3) and 189(2) and (5) of
the Act; and

any provision of Schedule 1 to the Act that amends or repeals a provision of a tax Act relating to interest under that tax Act,
to the extent of that amendment or repeal]

[Proc. 51 / GG 35687 / 20120914]

as amended by:

Tax Administration Laws Amendment Act 21 of 2012

Employment Tax Incentive Act 26 of 2013

Tax Administration Laws Amendment Act 39 of 2013

Tax Administration Laws Amendment Act 44 of 2014

Tax Administration Laws Amendment Act 23 of 2015

Tax Administration Laws Amendment Act 16 of 2016

Tax Administration Laws Amendment Act 13 of 2017

Tax Administration Laws Amendment Act 22 of 2018

Tax Administration Laws Amendment Act 33 of 2019

Tax Administration Laws Amendment Act 24 of 2020

Tax Administration Laws Amendment Act 21 of 2021

Tax Administration Laws Amendment Act 16 of 2022

Tax Administration Laws Amendment Act 18 of 2023

proposed amendments by:

Tax Administration Laws Amendment Act 44 of 2014

Tax Administration Laws Amendment Act 23 of 2015

GENERAL EXPLANATORY NOTE:

[ ]Words in bold type in square brackets indicate omissions from existing enactments.

_____ Words underlined with a solid line indicate insertions in existing enactments.

ACT

To provide for the effective and efficient collection of tax; to provide for the alignment of the administration
provisions of tax Acts and the consolidation of the provisions into one piece of legislation to the extent practically
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 1 of 224
possible; to determine the powers and duties of the South African Revenue Service and officials; to provide for the
delegation of powers by the Commissioner; to provide for the authority to act in legal proceedings; to determine
the powers and duties of the Minister of Finance; to provide for the establishment of the office of the Tax Ombud;
to determine the powers and duties of the Tax Ombud; to provide for registration requirements; to provide for the
submission of returns and the duty to keep records; to provide for reportable arrangements; to provide for the
request for information; to provide for the carrying out of an audit or investigation by the South African Revenue
Service; to provide for inquiries; to provide for powers of the South African Revenue Service to carry out searches
and seizures; to provide for the confidentiality of information; to provide for the South African Revenue Service to
issue advance rulings; to make provision in respect of tax assessments; to provide for dispute resolution; to make
provision for the payment of tax; to provide for the recovery of tax; to provide for the South African Revenue
Service to recover interest on outstanding tax debts; to provide for the refund of excess payments; to provide for
the write-off and compromise of tax debts; to provide for the imposition and remittance of administrative non-
compliance penalties; to provide for the imposition of understatement penalties; to provide for a voluntary
disclosure programme; to provide for criminal offences and sanctions; to provide for the reporting of
unprofessional conduct by tax practitioners; and to provide for matters connected therewith.

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

ARRANGEMENT OF SECTIONS

CHAPTER 1
DEFINITIONS

1. Definitions

CHAPTER 2
GENERAL ADMINISTRATION PROVISIONS

Part A
In general

2. Purpose of Act
3. Administration of tax Acts
4. Application of Act
5. Practice generally prevailing

Part B
Powers and duties of SARS and SARS officials

6. Powers and duties

7. Conflict of interest
8. Identity cards
9. Decision or notice by SARS

Part C
Delegations

10. Delegations by the Commissioner

Part D
Authority to act in legal proceedings

11. Legal proceedings involving Commissioner

12. Right of appearance in proceedings

Part E
Powers and duties of Minister

13. Powers and duties of Minister

14. Power of Minister to appoint Tax Ombud

Part F
Powers and duties of Tax Ombud

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 2 of 224
15. Office of Tax Ombud
16. Mandate of Tax Ombud
17. Limitations on authority
18. Review of complaint
19. Reports by Tax Ombud
20. Resolution and recommendations
21. Confidentiality

CHAPTER 3
REGISTRATION

22. Registration requirements

23. Communication of changes in particulars
24. Taxpayer reference number

CHAPTER 4
RETURNS AND RECORDS

Part A
General

25. Submission of return

26. Third party returns
27. Other returns required
28. Statement concerning accounts
29. Duty to keep records
30. Form of records kept or retained
31. Inspection of records
32. Retention period in case of audit, objection or appeal
33. Translation

Part B
Reportable arrangements

34. Definitions
35. Reportable arrangements
36. Excluded arrangements
37. Disclosure obligation
38. Information to be submitted
39. Reportable arrangement reference number

CHAPTER 5
INFORMATION GATHERING

Part A
General rules for inspection, verification, audit and criminal investigation

40. Selection for inspection, verification or audit

41. Authorisation for SARS official to conduct audit or criminal investigation
42. Keeping taxpayer informed
42A. Procedure where legal professional privilege is asserted
43. Referral for criminal investigation
44. Conduct of criminal investigation

Part B
Inspection, request for relevant material, audit and criminal investigation

45. Inspection
46. Request for relevant material
47. Production of relevant material in person
48. Field audit or criminal investigation
49. Assistance during field audit or criminal investigation

Part C

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 3 of 224
 Inquiries

50. Authorisation for inquiry

51. Inquiry order
52. Inquiry proceedings
53. Notice to appear
54. Powers of presiding officer
55. Witness fees
56. Confidentiality of proceedings
57. Incriminating evidence
58. Inquiry not suspended by civil or criminal proceedings

Part D
Search and seizure

59. Application for warrant

60. Issuance of warrant
61. Carrying out search
62. Search of premises not identified in warrant
63. Search without warrant
64. Legal professional privilege
65. Person's right to examine and make copies
66. Application for return of seized relevant material or costs of damages

CHAPTER 6
CONFIDENTIALITY OF INFORMATION

67. General prohibition of disclosure

68. SARS confidential information and disclosure
69. Secrecy of taxpayer information and general disclosure
70. Disclosure to other entities
71. Disclosure in criminal, public safety or environmental matters
72. Self-incrimination
73. Disclosure to taxpayer of own record
74. Publication of names of offenders

CHAPTER 7
ADVANCE RULINGS

75. Definitions
76. Purpose of advance rulings
77. Scope of advance rulings
78. Private rulings and class rulings
79. Applications for advance rulings
80. Rejection of application for advance ruling
81. Fees for advance rulings
82. Binding effect of advance rulings
83. Applicability of advance rulings
84. Rulings rendered void
85. Subsequent changes in tax law
86. Withdrawal or modification of advance rulings
87. Publication of advance rulings
88. Non-binding private opinions
89. General rulings
90. Procedures and guidelines for advance rulings

CHAPTER 8
ASSESSMENTS

91. Original assessments

92. Additional assessments
93. Reduced assessments
94. Jeopardy assessments
95. Estimation of assessments

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 4 of 224
96. Notice of assessment
97. Recording of assessments
98. Withdrawal of assessments
99. Period of limitations for issuance of assessments
100. Finality of assessment or decision

CHAPTER 9
DISPUTE RESOLUTION

Part A
General

101. Definitions
102. Burden of proof
103. Rules for dispute resolution

Part B
Objection and appeal

104. Objection against assessment or decision

105. Forum for dispute of assessment or decision
106. Decision on objection
107. Appeal against assessment or decision

Part C
Tax board

108. Establishment of tax board

109. Jurisdiction of tax board
110. Constitution of tax board
111. Appointment of chairpersons
112. Clerk of tax board
113. Tax board procedure
114. Decision of tax board
115. Referral of appeal to tax court

Part D
Tax court

116. Establishment of tax court

117. Jurisdiction of tax court
118. Constitution of tax court
119. Nomination of president of tax court
120. Appointment of panel of tax court members
121. Appointment of registrar of tax court
122. Conflict of interest of tax court members
123. Death, retirement or incapability of judge or member
124. Sitting of tax court not public
125. Appearance at hearing of tax court
126. Subpoena of witness to tax court
127. Non-attendance by witness or failure to give evidence
128. Contempt of tax court
129. Decision by tax court
130. Order for costs by tax court
131. Registrar to notify parties of judgment of tax court
132. Publication of judgment of tax court

Part E
Appeal against tax court decision

133. Appeal against decision of tax court

134. Notice of intention to appeal tax court decision
135. Leave to appeal to Supreme Court of Appeal against tax court decision
136. Failure to lodge notice of intention to appeal tax court decision

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 5 of 224
137. Notice by registrar of period for appeal of tax court decision
138. Notice of appeal to Supreme Court of Appeal against tax court decision
139. Notice of cross-appeal of tax court decision
140. Record of appeal of tax court decision
141. Abandonment of judgment

Part F
Settlement of dispute

142. Definitions
143. Purpose of Part
144. Initiation of settlement procedure
145. Circumstances where settlement is inappropriate
146. Circumstances where settlement is appropriate
147. Procedure for settlement
148. Finality of settlement agreement
149. Register of settlements and reporting
150. Alteration of assessment or decision on settlement

CHAPTER 10
TAX LIABILITY AND PAYMENT

Part A
Taxpayers

151. Taxpayer
152. Person chargeable to tax
153. Representative taxpayer
154. Liability of representative taxpayer
155. Personal liability of representative taxpayer
156. Withholding agent
157. Personal liability of withholding agent
158. Responsible third party
159. Personal liability of responsible third party
160. Taxpayer's right to recovery
161. Security by taxpayer

Part B
Payment of tax

162. Determination of time and manner of payment of tax

163. Preservation order
164. Payment of tax pending objection or appeal

Part C
Taxpayer account and allocation of payments

165. Taxpayer account

166. Allocation of payments

Part D
Deferral of payment

167. Instalment payment agreement

168. Criteria for instalment payment agreement

CHAPTER 11
RECOVERY OF TAX

Part A
General

169. Debt due to SARS

170. Evidence as to assessment

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 6 of 224
171. Period of limitation on collection of tax

Part B
Judgment procedure

172. Application for civil judgment for recovery of tax

173. Jurisdiction of Magistrates' Court in judgment procedure
174. Effect of statement filed with clerk or registrar
175. Amendment of statement filed with clerk or registrar
176. Withdrawal of statement and reinstitution of proceedings

Part C
Sequestration, liquidation and winding-up proceedings

177. Institution of sequestration, liquidation or winding-up proceedings

178. 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 debts

180. Liability of financial management for tax debts
181. Liability of shareholders for tax debts
182. Liability of transferee for tax debts
183. Liability of person assisting in dissipation of assets
184. Recovery of tax debts from other persons

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 rules

188. Period over which interest accrues
189. Rate at which interest is charged

CHAPTER 13
REFUNDS

190. Refunds of excess payments

191. Refunds subject to set-off and deferral

CHAPTER 14
WRITE OFF OR COMPROMISE OF TAX DEBTS

Part A
General provisions

192. Definitions
193. Purpose of Chapter
194. Application of Chapter

Part B
Temporary write off of tax debt

195. Temporary write off of tax debt

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 7 of 224
196. Tax debt uneconomical to pursue

Part C
Permanent write off of tax debt

197. Permanent write off of tax debt

198. Tax debt irrecoverable at law
199. Procedure for writing off tax debt

Part D
Compromise of tax debt

200. Compromise of tax debt

201. Request by debtor for compromise of tax debt
202. Consideration of request to compromise tax debt
203. Circumstances where not appropriate to compromise tax debt
204. Procedure for compromise of tax debt
205. SARS not bound by compromise of tax debt

Part E
Records and reporting

206. Register of tax debts written off or compromised

207. Reporting by Commissioner of tax debts written off or compromised

CHAPTER 15
ADMINISTRATIVE NON-COMPLIANCE PENALTIES

Part A
General

208. Definitions
209. Purpose of Chapter

Part B
Fixed amount penalties

210. Non-compliance subject to penalty

211. Fixed amount penalty table
212. Reportable arrangement and mandatory disclosure penalty

Part C
Percentage based penalty

213. Imposition of percentage based penalty

Part D
Procedure

214. Procedures for imposing penalty

215. Procedure to request remittance of penalty

Part E
Remedies

216. Remittance of penalty for failure to register

217. Remittance of penalty for nominal or first incidence of non-compliance
218. Remittance of penalty in exceptional circumstances
219. Penalty incorrectly assessed
220. Objection and appeal against decision not to remit penalty

CHAPTER 16
UNDERSTATEMENT PENALTY

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 8 of 224
 Part A
Imposition of understatement penalty

221. Definitions
222. Understatement penalty
223. Understatement penalty percentage table
224. Objection and appeal against imposition of understatement penalty

Part B
Voluntary disclosure programme

225. Definitions
226. Qualification of person subject to audit or investigation for voluntary disclosure
227. Requirements for valid voluntary disclosure
228. No-name voluntary disclosure
229. Voluntary disclosure relief
230. Voluntary disclosure agreement
231. Withdrawal of voluntary disclosure relief
232. Assessment or determination to give effect to agreement
233. Reporting of voluntary disclosure agreements

CHAPTER 17
CRIMINAL OFFENCES

234. Criminal offences relating to non-compliance with tax Acts

235. Evasion of tax and obtaining undue refunds by fraud or theft
236. Criminal offences relating to secrecy provisions
237. Criminal offences relating to filing return without authority
238. Jurisdiction of courts in criminal matters

CHAPTER 18
REGISTRATION OF TAX PRACTITIONERS AND REPORTING OF UNPROFESSIONAL CONDUCT

239. Definitions
240. Registration of tax practitioners
240A.Recognition of controlling bodies
241. Complaint to controlling body
242. Disclosure of information regarding complaint and remedies of taxpayer
243. Complaint considered by controlling body

CHAPTER 19
GENERAL PROVISIONS

244. Deadlines
245. Power of Minister to determine date for submission of returns and payment of tax
246. Public officers of companies
247. Company address for notices and documents
248. Public officer in event of liquidation, winding-up or business rescue
249. Default in appointing public officer or address for notices or documents
250. Authentication of documents
251. Delivery of documents to persons other than companies
252. Delivery of documents to companies
253. Documents delivered deemed to have been received
254. Defect does not affect validity
255. Rules for electronic communication
256. Tax compliance status
257. Regulations by Minister

CHAPTER 20
TRANSITIONAL PROVISIONS

258. New taxpayer reference number

259. Appointment of Tax Ombud
260. Provisions relating to secrecy

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 9 of 224
261. Public officer previously appointed
262. Appointment of chairpersons of tax board
263. Appointment of members of tax court
264. Continuation of tax board, tax court and court rules
265. Continuation of appointment to a post or office or delegation by Commissioner
266. Continuation of authority to audit
267. Conduct of inquiries and execution of search and seizure warrants
268. Application of Chapter 15
269. Continuation of authority, rights and obligations
270. Application of Act to prior or continuing action
271. Amendment of legislation
272. Short title and commencement

SCHEDULE 1
[Arrangement of sections amended by s. 87 of Act 39/2013 and s. 26 of Act 33/2019 w.e.f. 15 January 2020]

CHAPTER 1

DEFINITIONS

1. Definitions

In this Act, unless the context indicates otherwise, a term which is assigned a meaning in another tax Act has the
meaning so assigned, and the following terms have the 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 section 208;

“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;

“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;

[Definition of “asset” inserted by s. 36(a) of Act 21/2012 deemed to have come into operation on 1 October 2012]

‘‘beneficial owner’’-

(a) of a company, has the meaning assigned to it by section 1 of the Companies Act, 2008 (Act No. 71 of 2008);

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

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

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

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

(c) of a trust, has the meaning assigned to it by section 1 of the Trust Property Control Act, 1988 (Act No. 57 of
1988);

[Definition of "beneficial owner" inserted by s. 25 of Act 18/2023 w.e.f. 22 December 2023]

“biometric information” means biological data used to authenticate the identity of a natural person by means of-

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 10 of 224
 (a) facial recognition;

(b) fingerprint 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 undersection
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 with the provisions of Chapter 9, excludes the days between 16 December of
each year and 15 January of the following year, both days inclusive;

“Commissioner” means the Commissioner for the South African Revenue Service appointed in terms ofsection 6 of
the SARS Act or the Acting Commissioner 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 defined in section 1 of the Income Tax Act;

“Customs and Excise Act” ...........

[Definition of “Customs and Excise Act” substituted by the definition of “customs and excise legislation” by s. 33 of Act 23/2015 w.e.f. 8 January 2016]

“customs and excise legislation” means the Customs and Excise Act, 1964 (Act No. 91 of 1964), the Customs Duty
Act, 2014 (Act No. 30 of 2014), or the Customs Control Act, 2014 (Act No. 31 of 2014);
[Definition of “customs and excise legislation” added as substitition of the definition of “Customs and Excise Act” by s. 33 of Act 23/2015 w.e.f. 8 January
2016]

“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 final order of sequestration is granted by a court;

“Diamond Export Levy Act” means the Diamond Export Levy Act, 2007 (Act No. 15 of2007);

“Diamond Export Levy (Administration) Act” means the Diamond Export Levy (Administration) Act, 2007 (Act No.
14 of 2007);

“document” means anything that contains a written, sound or pictorial record, or other record of information, whether
in physical or electronic form;

“effective date” is the date described in section 187(3), (4) and (5) of this Act, or the date from when interest is otherwise
calculated under a tax Act;

[Definition of “effecive date” substituted by s. 36(b) of Act 21/2012 deemed to have come into operation on 1 October 2012]

“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 an asset between a willing buyer and a
willing seller dealing at arm's length in an open market;
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 11 of 224
 “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 or displayed by any means;

“international tax agreement” means-

(a) an agreement entered into with the government of another country in accordance with a tax Act; or

(b) any other agreement entered into between the competent authority of the Republic and the competent authority
of another country relating to the automatic exchange of information under an agreement referred to in paragraph
(a);
[Definition of “international tax agreement” substituted by s. 37 of Act 44/2014 w.e.f. 1 October 2012]

“international tax standard” means-

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

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

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

subject to such changes as specified by the Minister in a regulation issued undersection 257;
[Definition of “international tax standard” inserted by s. 33 of Act 23/2015 w.e.f. 8 January 2016]

“jeopardy assessment” is an assessment referred to in section 94;

“judge” means a judge of the High Court of South Africa, whether in chambers or otherwise;

“magistrate” means a judicial officer as defined 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 the Mineral and Petroleum Resources
Royalty (Administration) Act, 2008 (Act No. 29 of 2008);

“Minister” means the Minister of Finance;

“official publication” means a binding general ruling, interpretation note, practice note or public notice issued by a
senior SARS official or the Commissioner;

“original assessment” is an assessment referred to in section 91;

“outstanding tax debt” means a tax debt not paid by the day referred to insection 162;
[Definition of “outstanding tax debt” inserted by s. 30 of Act 39/2013 w.e.f. 1 October 2012]

“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 to Information 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);

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 12 of 224
 “reduced assessment” is an assessment referred to in section 93;

“ registered tax practitioner” means a person registered under section 240;

[Definition of “registered tax practitioner” inserted by s. 36(c) of Act 21/2012 deemed to have come into operation on 1 October 2012]

“relevant material” means any information, document or thing that in the opinion of SARS is foreseeably relevant for
the administration of a tax Act as referred to in section 3;
[Definition of “relevant material” substituted by s. 30 of Act 39/2013 and s. 37 of Act 44/2014 w.e.f. 1 October 2012]

“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 submitting information to SARS that incorporates a
self-assessment, is a basis on which an assessment is to be made by SARS or incorporates relevant material required
under section 25, 26 or 27 or a provision under a tax Act requiring the submission of a return;
[Definition of “return” substituted by s. 30 of Act 39/2013 and s. 37 of Act 44/2014 w.e.f. 1 October 2012]

“SARS” means the South African Revenue Service established under the SARS Act;

“SARS Act” means the South African Revenue Service Act, 1997 (Act No. 34 of 1997);

“SARS confidential 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 or engaged by SARS, other than an external legal representative, for purposes of the
administration of a tax Act and who carries out the provisions of a tax Act under the control, direction or
supervision of the Commissioner;
[Definition of “SARS official” amended by s. 36(d) of Act 21/2012 deemed to have come into operation on 1 October 2012 and substituted by s. 47 of Act
16/2016 w.e.f. 19 January 2017]

“Securities Transfer Tax Act” means the Securities Transfer Tax Act, 2007 (Act No. 25 of 2007);

“Securities Transfer Tax Administration Act” means the Securities Transfer Tax Administration Act, 2007 (Act No.
26 of 2007);

“self-assessment” means a determination of the amount of tax payable under a tax Act by a taxpayer and-

(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 on conviction to imprisonment for a
period exceeding two years without the option of a fine or to a fine exceeding the equivalent amount of a fine under the
Adjustment of Fines Act, 1991 (Act No. 101 of 1991);

“shareholder” means a person who holds a beneficial interest in a company as defined in the Income Tax Act;
[Definition of “shareholder” substituted by s. 36(e) of Act 21/2012 deemed to have come into operation on 1 October 2012]

“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 a tax Act;
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 13 of 224
 “taxable event” means an occurrence which affects or may affect the liability of a person to tax;

“tax Act” means this Act or an Act, or portion of an Act, referred to insection 4 of the SARS Act, excluding customs
and excise legislation;
[Definition of “tax Act” substituted by s. 37 of Act 44/2014 w.e.f. 1 October 2012 and s. 33 of Act 23/2015 w.e.f. 8 January 2016]

“tax board” means a tax board established under section 108;

“tax court” means a court established under section 116;

“tax debt” means an amount referred to in section 169(1);

[Definition of “tax debt” substituted by s. 30 of Act 39/2013 w.e.f. 1 October 2012]

“tax offence” means an offence in terms of a tax Act or any other offence involving-

(a) fraud on SARS or on a SARS official relating to the administration of a tax Act; or

(b) theft of moneys due or paid to SARS for the benefit of the National Revenue Fund;
[Definition of “tax offence” substituted by s. 37 of Act 44/2014 w.e.f. 1 October 2012]

“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 defined insection 1 of the Income Tax Act;

(b) provisional tax or employees' tax, skills development levies as determined insection 3 of the Skills Development
Levies Act, and contributions as determined in section 6 of the Unemployment Insurance Contributions Act, the
period in respect of which the amount of tax payable must be determined under the relevant tax Act;

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

(d) royalty payable on the transfer of mineral and petroleum resources, a year of assessment as defined insection 1
of the Mineral and Petroleum Resources Royalty (Administration) Act;

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

(f) securities transfer tax, the period referred to insection 3 of the Securities Transfer Tax Administration Act;

(g) any other tax, the period or date of the taxable event in respect of which the amount 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;

“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 accordance with Part A of Chapter 16;

“Unemployment Insurance Contributions Act” means the Unemployment Insurance Contributions Act, 2002 (Act
No. 4 of2002);
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 14 of 224
 “Value-Added Tax Act” means the Value-Added Tax Act, 1991 (Act No. 89 of 1991);

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

CHAPTER 2

GENERAL ADMINISTRATION PROVISIONS

Part A

In general

2. Purpose of Act

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.

3. Administration of tax Acts

(1) SARS is responsible for the administration of this Act under the control or direction 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 a previous, 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 filed 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 debts and refund tax overpaid;

[Para. (e) substituted by s. 31 of Act 39/2013 w.e.f. 1 October 2012]

(f) investigate whether a tax offence has been committed, and, if so-

(i) to lay criminal charges; and

(ii) to provide the assistance that is reasonably required for the investigation and prosecution of the tax
offence;
[Para (f) substituted by s. 37(a) of Act 21/2012 deemed to have come into operation on 1 October 2012]

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

(h) perform any other administrative function necessary to carry out the provisions of a tax Act;
[Para. (h) amended by s. 34 of Act 23/2015 w.e.f. 8 January 2016]
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 15 of 224
 (i) give effect to the obligation of the Republic to provide assistance under an international tax agreement; and
[Para. (i) amended by s. 34 of Act 23/2015 w.e.f. 8 January 2016]

(j) give effect to an international tax standard.

[Para. (j) added by s. 34 of Act 23/2015 w.e.f. 8 January 2016]

(3) If SARS, in accordance with-

(a) an international tax agreement-

(i) received a request for, is obliged to exchange or wishes to spontaneously exchange information,
SARS may disclose or obtain the information for transmission to the competent authority of the other
country as if it were relevant material required for purposes of a tax Act and must treat the information
obtained as taxpayer information;

(ii) received a request for the conservancy or the collection of an amount alleged to be due by a person
under the tax laws of the requesting country, SARS may deal with the request under the provisions of
section 185; or

(iii) received a request for the service of a document which emanates from the requesting country, SARS
may effect service of the document as if it were a notice, document or other communication required
under a tax Act to be issued, given, sent or served by SARS; or

(b) an international tax standard, obtained information of a person, SARS may retain the information as if it
were relevant material required for purposes of a tax Act and must treat the information obtained as
taxpayer information.
[Subs. (3) amended by s. 37(b) of Act 21/2012 deemed to have come into operation on 1 October 2012, substituted by s. 38 of Act 44/2014 w.e.f. 1
October 2012 and s. 34 of Act 23/2015 w.e.f. 8 January 2016]

4. Application of Act

(1) This Act applies to every person who is liable to comply with a provision of a tax 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 is specifically 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 other Act prevails.

5. Practice generally prevailing

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

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

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

(b) a court overturns or modifies an interpretation of the tax Act which is the subject of the official publication to
an extent material to the practice from the date of judgment, unless-

(i) the decision is under appeal;

(ii) the decision is fact-specific and the general interpretation upon which the official publication was based
is unaffected; or

(iii) the reference to the interpretation upon which the official publication was based wasobiter dicta; or

(c) the official publication is withdrawn or modified by the Commissioner, from the date of the official publication
of the withdrawal or modification.
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 16 of 224
 (3) A binding general ruling ceases to be a practice generally prevailing in the circumstances described insection 85
or 86.

Part B

Powers and duties of SARS and SARS officials

6. Powers and duties

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

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

(3) Powers and duties required by this Act to be exercised by a senior SARS official must be exercised by-

(a) the Commissioner;

(b) a SARS official who has specific written authority from the Commissioner to do so; or

(c) a SARS official occupying a post designated by the Commissioner in writing for this purpose.
[Para (c) substituted by s. 38(a) of Act 21/2012 deemed to have come into operation on 1 October 2012]

(4) The execution of a task ancillary to a power or duty under subsection (2) or (3) may be done by a SARS official
under the control of an official referred to in subsection (3)(a), (b) or (c).
[Subs. (4) amended by s. 38(b) of Act 21/2012 deemed to have come into operation on 1 October 2012 and substituted by s. 35 of Act 23/2015 w.e.f. 8
January 2016]

(5) Powers and duties not specifically required by this Act to be exercised by the Commissioner or by a senior SARS
official, may be exercised by a SARS official.
[Subs. (5) substituted by s. 38(c) of Act 21/2012 deemed to have come into operation on 1 October 2012]

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

7. Conflict of interest

The Commissioner or a SARS official may not exercise a power or become involved 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 Commissioner or the official has or had, in the
previous three years, a personal, family, social, business, professional, employment or financial relationship
presenting a conflict of interest; or

(b) other circumstances present a conflict of interest,

that will reasonably be regarded as giving rise to bias.

8. Identity cards

(1) SARS may issue an identity card to each SARS official exercising powers and duties for purposes of the
administration of a tax Act.
[Subs. (1) substituted by s. 39 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(2) When a SARS official exercises a power or duty for purposes of the administration of a tax Act in person outside
SARS premises, the official must produce the identity card upon request by a member of the public.
[Subs. (2) substituted by s. 39 of Act 21/2012 deemed to have come into operation on 1 October 2012]

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

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 17 of 224
9. Decision or notice by SARS

(1) A decision made by a SARS official or a notice to a specific person issued by SARS under a tax Act, excluding a
decision given effect to in an assessment or a notice of assessment that is subject to objection and appeal, may
in the discretion of a SARS official described in paragraph (a), (b) or (c) or at the request of the relevant person,
be withdrawn or amended by-

(a) the SARS official;

(b) a SARS official to whom the SARS official reports; or

(c) a senior SARS official.

[Subs. (1) substituted by s. 22 of Act 13/2017 w.e.f. 18 December 2017]

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

(3) A decision made by a SARS official or a notice to a specific person issued by SARS under a tax Act is regarded
as made by a SARS official authorised to do so or duly issued by SARS, until proven to the contrary.
[Subs. (3) added by s. 22 of Act 13/2017 w.e.f. 18 December 2017]

Part C

Delegations

10. Delegations by the Commissioner

(1) A delegation by the Commissioner under section 6(2)-

(a) must be in writing;

(b) becomes effective only when signed by the Commissioner;

[Para. (b) substituted by s. 32 of Act 39/2013 w.e.f. 1 October 2012]

(c) is subject to the limitations and conditions the Commissioner may determine in making the delegation;

(d) may either be to-

(i) a specific individual; or

(ii) the incumbent of a specific 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

11. Legal proceedings involving Commissioner

[Heading of s. 11 substituted by s. 33 of Act 39/2013 w.e.f. 1 October 2012]

(1) No SARS official may institute or defend civil proceedings on behalf of the Commissioner unless authorised to do
so under this Act or by the Commissioner or by the person delegated by the Commissioner under section 6(2).

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 18 of 224
 [Subs. (1) substituted by s. 36 of Act 23/2015 w.e.f. 8 January 2016]

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

(3) An amount due or payable as a result of a cost order in favour of SARS recovered by the State Attorney resulting
from any civil proceedings under this Act must be paid to the National Revenue Fund.
[Subs. (3) substituted by s. 40 of Act 21/2012 deemed to have come into operation on 1 October 2012, s. 33 of Act 39/2013 and s. 48 of Act 16/2016
w.e.f. 19 January 2017]

(4) Unless the court otherwise directs, no legal proceedings may be instituted in the High Court against the
Commissioner, unless the applicant has given the Commissioner written notice of at least 10 business days of
the applicant's intention to institute the legal proceedings.
[Subs. (4) added by s. 33 of Act 39/2013 and substituted by s. 27 of Act 33/2019 w.e.f. 15 January 2020]

(5) The notice or any process by which the legal proceedings referred to in subsection (4) are instituted, must be
served at the address specified by the Commissioner by public notice.
[Subs. (5) added by s. 33 of Act 39/2013 w.e.f. 1 October 2012]

12. Right of appearance in proceedings

(1) Despite any law to the contrary, a senior SARS official may, on behalf of SARS or the Commissioner in
proceedings referred to in a tax Act, appear ex parte in a judge's chambers, in the tax court or in a High Court.
[Subs. (1) substituted by s. 24 of Act 24/2020 w.e.f. 20 January 2021]

(2) A senior SARS official may appear in the tax court or a High Court only if the person is a legal practitioner duly
admitted and enrolled under the Legal Practice Act, 2014 (Act No. 28 of 2014).
[Subs. (2) substituted by s. 28 of Act 33/2019 w.e.f. 15 January 2020]

Part E

Powers and duties of Minister

13. Powers and duties of Minister

(1) The powers conferred and the duties imposed upon the Minister by or under the 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 supervision of the Director-General.

14. Power of Minister to appoint Tax Ombud

(1) The Minister must appoint a person as Tax Ombud-

(a) for a term of five years, which term may be renewed; and
[Para. (a) substituted by s. 49 of Act 16/2016 w.e.f. 19 January 2017]

(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.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 19 of 224
 (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 five 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 imprisonment exceeding two years without the
option of a fine or to a fine exceeding the amount prescribed in the Adjustment of Fines Act, 1991 (Act No.
101 of 1991).

Part F

Powers and duties of Tax Ombud

15. Office of Tax Ombud

(1) The Tax Ombud must appoint the staff of the office of the Tax Ombud who must be employed in terms of the
SARS Act.
[Subs. (1) substituted by s. 50 of Act 16/2016 w.e.f. 19 January 2017]

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

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

(4) The expenditure connected with the functions of the office of the Tax Ombud is paid in accordance with a budget
approved by the Minister for the office.
[Subs. (4) substituted by s. 50 of Act 16/2016 w.e.f. 19 January 2017]

16. Mandate of Tax Ombud

(1) The mandate of the Tax Ombud is to-

(a) review and address any complaint by a taxpayer regarding a service matter or a procedural or
administrative matter arising from the application of the provisions of a tax Act by SARS; and

(b) review, at the request of the Minister or at the initiative of the Tax Ombud with the approval of the Minister,
any systemic and emerging issue related to a service matter or the application of the provisions of this Act
or procedural or administrative provisions of a tax Act.
[Subs. (1) substituted by s. 51 of Act 16/2016 w.e.f. 19 January 2017]
]
(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;
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 20 of 224
 (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 administrative provisions of a tax Act that impact negatively on
taxpayers.

17. Limitations on authority

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 arising from 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 an administrative matter relating to such
objection and appeal; or

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

18. Review of complaint

(1) The Tax Ombud may review any issue within the Tax Ombud's mandate on receipt 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 consider such 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 findings of other redress mechanisms with respect to the request.

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

(5) To determine whether there are compelling circumstances, the Tax Ombud must consider 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.

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

19. Reports by Tax Ombud

(1) The Tax Ombud must-

(a) report directly to the Minister;

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 21 of 224
 (b) submit an annual report to the Minister within five months of the end of SARS' financial 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 by taxpayers and identified
systemic and emerging issues referred to in section 16(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 item has remained on such
inventory; or

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

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

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

20. Resolution and recommendations

(1) The Tax Ombud must attempt to resolve all issues within the Tax Ombud's mandate at the level at which they
can most efficiently and effectively be resolved and must, in so doing, communicate with SARS officials identified
by SARS.

(2) The Tax Ombud's recommendations are not binding on a taxpayer or SARS, but if not accepted by a taxpayer or
SARS, reasons for such decision must be provided to the Tax Ombud within 30 days of notification of the
recommendations and may be included by the Tax Ombud in a report to the Minister or the Commissioner under
section 19.
[Subs. (2) substituted by s. 52 of Act 16/2016 w.e.f. 19 January 2017]

21. Confidentiality

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

(2) SARS must allow the Tax Ombud access to information in the possession of SARS 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 not disclose information of any kind that
is obtained by or on behalf of the Tax Ombud, or prepared from information obtained by or on behalf of the Tax
Ombud, to SARS, except to the extent required for the purpose of the performance of functions and duties under
this Part.

CHAPTER 3

REGISTRATION

22. Registration requirements

(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 this Chapter or, if applicable, the
relevant tax Act.
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 22 of 224
 (2) A person referred to in subsection (1) must-

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

(b) apply for registration for one or more taxes or undersection 26(3) in the prescribed form and manner; and
[Para. (b) substituted by s. 37 of Act 23/2015 w.e.f. 8 January 2016]

(c) provide SARS with the further particulars and any documents as SARS may require for the purpose of
registering the person for the tax or taxes or under section 26(3).
[Para. (c) substituted by s. 37 of Act 23/2015 w.e.f. 8 January 2016]

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

(a) proper identification 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 provided all particulars and documents
required by SARS, may be regarded not to have applied for registration until all the particulars and documents
have been provided to SARS.

(5) Where a person that is obliged to register with SARS under a tax Act fails to do so, SARS may register the
person for one or more tax types as is appropriate under the circumstances or for purposes of section 26(3).
[Subs. (5) substituted by s. 37 of Act 23/2015 w.e.f. 8 January 2016]

23. Communication of changes in particulars

A person who has been registered under section 22 must communicate to SARS within 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.

24. Taxpayer reference number

(1) SARS may allocate a taxpayer reference number in respect of one or more taxes 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 is not registered.

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

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

CHAPTER 4

RETURNS AND RECORDS

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 23 of 224
 Part A

General

25. Submission of return

(1) A person required under a tax Act or by the Commissioner to submit or who voluntarily submits a return must do
so-
[Words preceding para. (a) substituted by s. 34 of Act 39/2013 w.e.f. 1 October 2012]

(a) in the prescribed form and manner; and

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

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

(3) A return must be signed by the taxpayer or by the taxpayer's duly authorised representative and the person
signing the return is regarded for all purposes in connection 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 submit a return.

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

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

(7) The Commissioner may also extend the filing deadline generally or for specific classes of persons by public
notice.

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

26. Third party returns

(1) The Commissioner may by public notice, at the time and place and by the due date specified, require a person
who employs, pays amounts to, receives amounts on behalf of or otherwise transacts with another person, or has
control over assets of another person, to submit a return by the date specified in the notice.
[Subs. (1) substituted by s. 35 of Act 39/2013 w.e.f. 1 October 2012]

(2) A person required under subsection (1) to submit a return must do so in the prescribed form and manner and the
return must-

(a) contain the information prescribed by the Commissioner;

(b) be a full and true return; and

(c) for purposes of providing the information required in the return, comply with the due diligence requirements
as may be prescribed in a tax Act, an international tax agreement, an international tax standard or by the
Commissioner in a public notice consistent with the international tax agreement or the international tax
standard.
[Para. (c) substituted by s. 38 of Act 23/2015 w.e.f. 8 January 2016]

[Subs. (2) substituted by s. 39 of Act 44/2014 w.e.f. 1 October 2012]

(3) The Commissioner may, by public notice, require a person to apply to register as a person required to submit a
return under this section, an international tax agreement or an international tax standard.
[Subs. (3) added by s. 38 of Act 23/2015 w.e.f. 8 January 2016]

(4) If, in order to submit a return under subsection (1) and to comply with the requirements of this section, a person
requires information, a document or thing from another person, the other person must provide the information,
document or thing so required within a reasonable time.
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 24 of 224
 [Subs. (4) added by s. 38 of Act 23/2015 w.e.f. 8 January 2016]

[S. 26 substituted by s. 41 of Act 21/2012 deemed to have come into operation on 1 October 2012]

27. Other returns required

(1) A senior SARS official may require a person to submit further or more detailed returns regarding any matter for
which a return under section 25 or 26 is required or prescribed by a tax Act.

(2) A person required under subsection (1) to submit a return must do so in the prescribed form and manner and the
return must contain the information prescribed by the official and must be a full and true return.
[S. 27 substituted by s. 42 of Act 21/2012 deemed to have come into operation on 1 October 2012 and s. 36 of Act 39/2013 w.e.f. 1 October 2012]

28. Statement concerning accounts

(1) SARS may require a person who submits financial statements or accounts prepared by another person in
support of that person's submitted return, to submit a certificate 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 the documents from which the
books of account were written up; and

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

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

29. Duty to keep records

(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 specifically required under a tax Act or by the Commissioner by public notice; and
[Para. (b) substituted by s. 43(a) of Act 21/2012 deemed to have come into operation on 1 October 2012]

(c) enable SARS to be satisfied that the person has observed these requirements.

(2) The requirements of this Act to keep records, books of account or documents for a tax period apply to a person
who-
[Words preceding para (a) substituted by s. 43(b) of Act 21/2012 deemed to have come into operation on 1 October 2012]

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

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

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

(3) Records, books of account or documents need not be retained by the person described in-
[Words preceding para (a) substituted by s. 43(c) of Act 21/2012 deemed to have come into operation on 1 October 2012]

(a) subsection (2)(a), after a period of five years from the date of the submission of the return; and

(b) subsection (2)(c), after a period of five years from the end of the relevant tax period.

30. Form of records kept or retained

(1) The records, books of account, and documents referred to insection 29, must be kept or retained-

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 25 of 224
 (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 specifically 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 account or documents referred to in section 29 in a form acceptable to
the official.

31. Inspection of records

The records, books of account and documents referred to in section 29 whether in the form referred to insection 30(1)
or in a form authorised under section 30(2), must at all reasonable times during the required periods undersection 29,
be open for inspection by 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.

32. Retention period in case of audit, objection or appeal

Despite section 29(3), if-

(a) records, books of account or documents are relevant to an audit or investigation under Chapter 5 which the
person subject to the audit or investigation has been notified of or is aware of; or
[Para. (a) substituted by s. 44(a) of Act 21/2012 deemed to have come into operation on 1 October 2012]

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

the person must retain the records, books of account or documents relevant to the audit, investigation, objection or
appeal until the audit or investigation is concluded or the assessment or the decision becomes final.
[Words following para. (b) substituted by s. 44(b) of Act 21/2012 deemed to have come into operation on 1 October 2012]

33. Translation

(1) In the case of information that is not in one of the official languages of the Republic, a senior SARS official may
by notice require a person who must furnish the information to SARS, to produce a translation in one of the official
languages determined 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 specified by the notice; and

(b) if required by SARS, be prepared and certified by a sworn and accredited translator or another person
approved by the senior SARS official.

Part B

Reportable arrangements

34. Definitions

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

'arrangement' means any transaction, operation, scheme, agreement or understanding (whether enforceable or not);

'financial benefit' means a reduction in the cost of finance, including interest, finance charges, costs, fees and
discounts on a redemption amount;

'financial reporting standards' means, in the case of a company required to submit financial statements in terms of
the Companies Act, 2008 (Act No. 71 of 2008), financial reporting standards prescribed by that Act, or, in any other

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 26 of 224
 case, the International Financial Reporting Standards or appropriate financial reporting standards that provide a fair
presentation of the financial results and position of the taxpayer;
[Definition of 'financial reporting standards' substituted by s. 37 of Act 39/2013 w.e.f. 1 October 2012]

'participant', in relation to an 'arrangement', means-

(a) a 'promoter';

(b) a person who directly or indirectly will derive or assumes that the person will derive a 'tax benefit' or 'financial
benefit' by virtue of an 'arrangement'; or

(c) any other person who is party to an 'arrangement' listed in a public notice referred to insection 35(2);
[Definition of “participant” substituted by s. 40 of Act 44/2014 w.e.f. 20 January 2015 and s. 39 of Act 23/2015 w.e.f. 8 January2016]

'pre-tax profit', in relation to an 'arrangement', means the profit of a 'participant' resulting from that 'arrangement'
before deducting normal tax, which profit must be determined in accordance with 'financial reporting standards' after
taking into account all costs and expenditure incurred by the 'participant' in connection with the '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 principally responsible for organising, designing,
selling, financing or managing the 'arrangement';
[Definition of “promoter” substituted by s. 40 of Act 44/2014 w.e.f. 20 January 2015]

'reportable arrangement' means an 'arrangement' referred to in section 35(1) or 35(2) that is not an excluded
'arrangement' referred to in section 36;
[Definition of “reportable arrangement” inserted by s. 40 of Act 44/2014 w.e.f. 20 January 2015]

'tax benefit' means the avoidance, postponement, reduction or evasion of a liability for tax.
[Definition of “tax benefit” substituted by s. 40 of Act 44/2014 w.e.f. 20 January 2015]

[S. 34 amended by s. 45 of Act 21/2012 deemed to have come into operation on 1 October 2012]

35. Reportable arrangements

(1) An 'arrangement' is a 'reportable arrangement' if a person is a 'participant' in the 'arrangement' and the
'arrangement'-
[Words preceding para. (a) substituted by s. 41 of Act 44/2014 w.e.f. 20 January 2015]

(a) contains provisions in terms of which the calculation of 'interest' as defined insection 24J of the Income Tax
Act, finance costs, fees or any other charges is wholly or partly dependent on the assumptions relating to
the tax treatment of that 'arrangement' (otherwise than by reason of any change in the provisions of a tax
Act);

(b) has any of the characteristics contemplated insection 80C(2)(b) of the Income Tax Act, or substantially
similar characteristics;

(c) gives rise to an amount that is or will be disclosed by any 'participant' in any year 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 'financial
reporting standards'; or

(ii) revenue for purposes of 'financial 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 profit' for any 'participant'; or

(e) results in a reasonable expectation of a 'pre-tax profit' for any 'participant' that is less than the value of that
'tax benefit' to that 'participant' if both are discounted to a present value at the end of the first year of
assessment when that 'tax benefit' is or will be derived or is assumed to be derived, using consistent
assumptions and a reasonable discount rate for that 'participant'.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 27 of 224
 (2) An 'arrangement' is a 'reportable arrangement' if the Commissioner has listed the 'arrangement' in a public
notice.
[Subs. (2) substituted by s. 41 of Act 44/2014 w.e.f. 20 January 2015]

(3) ..........
[Subs. (3) deleted by s. 41 of Act 44/2014 w.e.f. 20 January 2015]

36. Excluded arrangements

(1) An 'arrangement' is an excluded 'arrangement' if it is-

(a) a debt in terms of which-

[Words preceding item (i) substituted by s. 46 of Act 21/2012 deemed to have come into operation on 1 October 2012]

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

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

(b) a lease;

(c) a transaction undertaken through an exchange regulated in terms of the Financial Markets Act, 2012 (Act
No. 19 of 2012); or
[Para. (c) substituted by s. 40 of Act 23/2015 w.e.f. 8 January 2016]

(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 connected to any other 'arrangement'
(whether entered into between the same or different parties); or

(b) would have qualified as having been undertaken on a stand-alone basis as required by paragraph (a), were
it not for a connected 'arrangement' that is entered into for the sole purpose of providing security and if no
'tax benefit' 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 benefit'; or

(b) in a specific manner or form that enhances or will enhance a 'tax benefit'.

(4) The Commissioner may determine an 'arrangement' to be an excluded 'arrangement' by public notice.
[Subs. (4) substituted by s. 42 of Act 44/2014 w.e.f. 20 January 2015]

37. Disclosure obligation

(1) The information referred to in section 38 in respect of a 'reportable arrangement' must be disclosed by a person
who-

(a) is a 'participant' in an 'arrangement' on the date on which it qualifies as a 'reportable arrangement', within 45
business days after that date; or

(b) becomes a 'participant' in an 'arrangement' after the date on which it qualifies as a 'reportable arrangement',
within 45 business days after becoming a 'participant'.
[Subs. (1) substituted by s. 43 of Act 44/2014 w.e.f. 20 January 2015]

(2) ..........
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 28 of 224
 [Subs. (2) deleted by s. 43 of Act 44/2014 w.e.f. 20 January 2015]

(3) A “participant” need not disclose the information if the 'participant' obtains a written statement from any other
'participant' that the other 'participant' has disclosed the 'reportable arrangement'.
[Subs. (3) amended by s. 47 of Act 21/2012 deemed to have come into operation on 1 October 2012 and substituted by s. 43 of Act 44/2014 w.e.f. 20
January 2015]

(4) ..........
[Subs. (4) deleted by s. 43 of Act 44/2014 w.e.f. 20 January 2015]

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

38. Information to be submitted

The following information in relation to a 'reportable arrangement', must be submitted in the prescribed form and
manner and by the date specified:
[Words preceding para. (a) substituted by s. 44 of Act 44/2014 w.e.f. 20 January 2015]

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

(b) a detailed description of the assumed 'tax benefits' 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 financial model that embodies its projected tax treatment.

39. Reportable arrangement reference number

SARS must, after receipt of the information contemplated insection 38, issue a 'reportable arrangement' reference
number to each 'participant' for administrative purposes only.
[S. 39 substituted by s. 45 of Act 44/2014 w.e.f. 20 January 2015]

CHAPTER 5

INFORMATION GATHERING

Part A

General rules for inspection, verification, audit and criminal investigation

40. Selection for inspection, verification or audit

SARS may select a person for inspection, verification or audit on the basis of any consideration relevant for the proper
administration of a tax Act, including on a random or a risk assessment basis.

41. Authorisation for SARS official to conduct audit or criminal investigation

(1) A senior SARS official may grant a SARS official written authorisation to conduct a field 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, the official must produce the
authorisation.

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

42. Keeping taxpayer informed

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 29 of 224
 (1) A SARS official involved in or responsible for an audit under this Chapter must, in the form and in the manner as
may be prescribed by the Commissioner by public notice, provide the taxpayer with a notice of commencement of
an audit and, thereafter, a report indicating the stage of completion of the audit.
[Subs. (1) substitited by s. 48(a) of Act 21/2012 deemed to have come into operation on 1 October 2012 and s. 16 of Act 22/2018 w.e.f. 17 January 2019]

(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 identified potential adjustments of a material nature, SARS must within 21 business days, or the
further period that may be required based on the complexities of the audit, provide the taxpayer with a
document containing the outcome of the audit, including the grounds for the proposed assessment or
decision referred to in section 104(2).

(3) Upon receipt of the document described in subsection (2)(b), the taxpayer must within 21 business days of
delivery of the document, or the further period requested by the 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.

(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 the assessment or make the decision
referred to in section 104(2) resulting from the audit and the grounds of the assessment or decision must be
provided to the taxpayer within 21 business days of the assessment or the decision, or the further period that may
be required based on the complexities of the audit or the decision.
[Subs. (6) substituted by s. 48(b) of Act 21/2012 deemed to have come into operation on 1 October 2012]

42A. Procedure where legal professional privilege is asserted

(1) For purposes of Parts B, C and D, if a person alleges the existence of legal professional privilege in respect of
relevant material required by SARS, during an inquiry or during the conduct of a search and seizure by SARS, the
person must provide the following information to SARS and, if applicable, the presiding officer designated under
section 51 or the legal practitioner referred to in section 64:
[Words preceeding para. (a) substituted by s. 29 of Act 33/2019 w.e.f. 15 January 2020]

(a) a description and purpose of each item of the material in respect of which the privilege is asserted;

(b) the author of the material and the capacity in which the author was acting;

(c) the name of the person for whom the author referred to in paragraph (b) was acting in providing the
material;

(d) confirmation in writing that the person referred to in paragraph (c) is claiming privilege in respect of each
item of the material;

(e) if the material is not in possession of the person referred to in paragraph (d), from whom did the person
asserting privilege obtain the material; and

(f) if the person asserting privilege is not the person referred to in paragraph (d), under what circumstances and
instructions regarding the privilege did the person obtain the material.

(2) A person must submit the information required under Part B to SARS at the place, in the format and within the
time specified by SARS, unless SARS extends the period based on reasonable grounds submitted by the person.

(3) If SARS disputes the assertion of privilege upon receipt of the information-

(a) SARS must make arrangements with a practitioner from the panel appointed under section 111 to take
receipt of the material;

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 30 of 224
 (b) the person asserting privilege must seal and hand over the material in respect of which privilege is asserted
to the practitioner;

(c) the practitioner must within 21 business days after being handed the material make a determination of
whether the privilege applies and may do so in the manner the practitioner deems fit, including considering
representations made by the parties;

(d) if a determination of whether the privilege applies is not made by the practitioner or a party is not satisfied
with the determination, the practitioner must retain the relevant material pending final resolution of the
dispute by the parties or an order of court; and

(e) any application to a High Court must be instituted within 30 days of the expiry of the period of 21 business
days, failing which the material must be handed to the party in whose favour the determination, if any, was
made.

(4) The appointed practitioner-

(a) is not regarded as acting on behalf of either party;

(b) must personally take responsibility for the safekeeping of the material;

(c) must give grounds for the determination under subsection (3)(d); and

(d) must be compensated in the same manner as if acting as chairperson of the tax board.
[S. 42A inserted by s. 41 of Act 23/2015 w.e.f. 8 January 2016]

43. Referral for criminal investigation

(1) If at any time before or during the course of an audit it appears that a taxpayer may have committed a serious tax
offence, the investigation of the offence must be referred to a senior SARS official responsible for criminal
investigations for a decision as to whether a criminal investigation should be pursued.
[Subs. (1) substituted by s. 49 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(2) Relevant material obtained under this Chapter from the taxpayer after the referral, must be kept separate from
the criminal investigation.
[Subs. (2) substituted by s. 49 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(3) If an investigation is referred under subsection (1) the relevant material and files relating 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.

44. Conduct of criminal investigation

(1) During a criminal investigation, SARS must apply the information gathering powers in terms of this Chapter with
due recognition of the taxpayer's constitutional rights as a suspect in a criminal investigation.

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

(3) Relevant material obtained during a criminal investigation may be used for purposes of audit as well as in
subsequent civil and criminal proceedings.
[Subs. (3) substituted by s. 17 of Act 22/2018 w.e.f. 17 January 2019]

Part B

Inspection, request for relevant material, audit and criminal investigation

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 31 of 224
45. Inspection

(1) A SARS official may, for the purposes of the administration of a tax Act and without prior notice, arrive at a
premises where the SARS official has a reasonable belief that a trade or enterprise is being carried on and
conduct an inspection to determine only-

(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 any part thereof used for the
purposes of trade, under this section without the consent of the occupant.

46. Request for relevant material

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

(2) A senior SARS official may require relevant material in terms of subsection (1) -

(a) in respect of taxpayers in an objectively identifiable class of taxpayers; or

(b) held or kept by a connected person, as referred to in paragraph (d)(i) of the definition of “connected person”
in the Income Tax Act, in relation to the taxpayer, located outside the Republic.
[Subs. (2) substituted by s. 42 of Act 23/2015 w.e.f. 8 January 2016]

(3) A request by SARS for relevant material from a person other than the taxpayer is limited to material maintained
or kept or that should reasonably be maintained or kept by the person in relation to the taxpayer.
[Subs. (3) substituted by s. 50(a) of Act 21/2012 deemed to have come into operation on 1 October 2012, s. 42 of Act 23/2015 and s. 30 of Act 33/2019
w.e.f. 15 January 2020]

(4) A person or taxpayer receiving from SARS a request for relevant material under this section must submit the
relevant material to SARS at the place, in the format (which must be reasonably accessible to the person or
taxpayer) and-

(a) within the time specified in the request; or

(b) if the material is held by a connected person referred to in subsection (2)(b), within 90 days from the date of
the request, which request must set out the consequences referred to in subsection (9) of failing to do so.
[Subs. (4) substituted by s. 46 of Act 44/2014 w.e.f. 1 October 2012 and s. 42 of Act 23/2015 w.e.f. 8 January 2016]

(5) If reasonable grounds for an extension are submitted by the person or taxpayer, SARS may extend the period
within which the relevant material must be submitted.
[Subs. (5) substituted by s. 50(b) of Act 21/2012 deemed to have come into operation on 1 October 2012 and s. 42 of Act 23/2015 w.e.f. 8 January 2016]

(6) Relevant material required by SARS under this section must be referred to in the request with reasonable
specificity.

(7) A senior SARS official may direct that relevant material-

(a) be provided under oath or solemn declaration; or

(b) if required for purposes of a criminal investigation, be provided under oath or solemn declaration and, if
necessary, in accordance with the requirements of section 212 or 236 of the Criminal Procedure Act, 1977
(Act No. 51 of 1977).
[Subs. (7) substituted by s. 38 of Act 39/2013 w.e.f. 1 October 2012]

(8) A senior SARS official may request relevant material that a person has available for purposes of revenue
estimation.
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 32 of 224
 (9) If a taxpayer fails to provide material referred to in subsection (2)(b), the material may not be produced by the
taxpayer in any subsequent proceedings, unless a competent court directs otherwise on the basis of
circumstances outside the control of the taxpayer and any connected person referred to in paragraph (d)(i) of the
definition of “connected person” in the Income Tax Act, in relation to the taxpayer.
[Subs. (9) added by s. 42 of Act 23/2015 w.e.f. 8 January 2016]

47. Production of relevant material in person

(1) A senior SARS official may, by notice, require a person, whether or not chargeable to tax, an employee of the
person or a person who holds an office in the person to attend in person at the time and place designated in the
notice for the purpose of being interviewed by a SARS official concerning the tax affairs of the person, if the
interview-

(a) is intended to clarify issues of concern to SARS-

(i) to render further verification or audit unnecessary; or

(ii) to expedite a current verification or audit; and

(b) is not for purposes of a criminal investigation.

[Subs. (1) substituted by s. 43 of Act 23/2015 w.e.f. 8 January 2016]

(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
specificity.

(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 person exceeds the distance prescribed by the Commissioner by
public notice.

48. Field audit or criminal investigation

(1) A SARS official named in an authorisation referred to insection 41 may require a person, with prior notice of at
least 10 business days, to make available at the person's premises specified in the notice relevant material that
the official may require to audit or criminally investigate in connection with the administration of a tax Act in
relation 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 the notice.

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

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

49. Assistance during field audit or criminal investigation

(1) The person on whose premises an audit or criminal investigation is carried out and any other person on the
premises, must provide such reasonable assistance as is required by SARS to conduct the audit or investigation,
including-
[Words preceding para. (a) substituted by s. 51(a) of Act 21/2012 deemed to have come into operation on 1 October 2012]

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 33 of 224
 (a) making available appropriate facilities, to the extent that such facilities are available;

(b) answering questions relating to the audit or investigation including, if so required, in the manner referred to
in section 46(7); and
[Para. (b) substituted by s. 44 of Act 23/2015 w.e.f. 8 January 2016]

(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 accessor assistance as maybe required under subsection(1).

(3) The person may recover from SARS after completion of the audit or criminal investigation (or, at the person's
request, on a monthly basis) the costs for the use of photocopying facilities in accordance with the fees
prescribed in section 92(1)(b) of the Promotion of Access to Information Act.
[Subs. (3) substituted by s. 51(b) of Act 21/2012 deemed to have come into operation on 1 October 2012]

Part C

Inquiries

50. Authorisation for inquiry

(1) A judge may, on application made ex parte and authorised by a senior SARS official grant an order in terms of
which a person described in section 51(3) is designated to act as presiding officer at the inquiry referred to in this
section.
[Subs. (1) substituted by s. 47 of Act 44/2014 w.e.f. 1 October 2012]

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

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

51. Inquiry order

(1) A judge may grant the order referred to insection 50(1) if satisfied that there are reasonable grounds to believe
that-

(a) a person has-

(i) failed to comply with an obligation imposed under a tax Act;

(ii) committed a tax offence; or

(iii) disposed of, removed or concealed assets which may fully or partly satisfy an outstanding tax debt;
and

(b) relevant material is likely to be revealed during the inquiry which may provide proof of the failure to comply,
of the commission of the offence or of the disposal, removal or concealment of the assets.
[Subs. (1) substituted by s. 45 of Act 23/2015 w.e.f. 8 January 2016]

(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, the commission of the offence or the disposal, removal or concealment
of assets to be inquired into;
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 34 of 224
 (d) be reasonably specific as to the ambit of the inquiry; and

(e) be provided to the presiding officer.

[Subs. (2) substituted by s. 45 of Act 23/2015 w.e.f. 8 January 2016]

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

52. Inquiry proceedings

(1) The presiding officer determines the conduct of the inquiry as the presiding officer thinks fit.

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

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

53. Notice to appear

(1) The presiding officer may, by notice in writing, require a person, whether or not chargeable to tax, to-

(a) appear before the inquiry, at the time and place designated in the notice, for the 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 specificity.

54. Powers of presiding officer

The presiding officer has the same powers regarding witnesses at the inquiry as are vested in a president of the tax
court under sections 127 and 128.
[S. 54 substituted by s. 39 of Act 39/2013 w.e.f. 1 October 2012]

55. Witness fees

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

56. Confidentiality of proceedings

(1) An inquiry under this Part is private and confidential.

(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 or another person.

57. Incriminating evidence

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

(2) Incriminating evidence obtained under this section is not admissible in criminal proceedings 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 a solemn declaration;

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 35 of 224
 (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.

58. Inquiry not suspended by civil or criminal proceedings

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 is pending or contemplated against or involves the person, a witness or potential
witness in the inquiry, or another person whose affairs may be investigated in the course of the inquiry.

Part D

Search and seizure

59. Application for warrant

(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 where relevant material is kept to search the premises and any person
present on the premises and seize relevant material.

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

(3) Despite subsection (2), SARS may apply for the warrant referred to in subsection (1) and in the manner referred
to in subsection (2), to a magistrate, if the matter relates to an audit or investigation where the estimated tax in
dispute does not exceed the amount determined in the notice issued under section 109(1)(a).

60. Issuance of warrant

(1) A judge or magistrate may issue the warrant referred to insection 59(1) if satisfied that there are reasonable
grounds to believe that-

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

(b) relevant material likely to be found on the premises specified in the application may provide evidence of the
failure to comply or commission of the 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 defined 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.

61. Carrying out search

(1) A SARS official exercising a power under a warrant referred to insection 60 must produce the warrant, and if the
owner or person in control of the premises is not present, the SARS official must affix a copy of the warrant to the
premises in a prominent and visible place.
[Subs. (1) substituted by s. 52 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(2) Subject to section 63, a SARS official's failure to produce a warrant entitles a person 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
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 36 of 224
 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 a person found in the vessel, aircraft or vehicle, and question
the person with respect to a matter dealt with in a tax Act.

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

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

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

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

(8) If the SARS official seizes relevant material, the official must ensure that the relevant 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

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

62. Search of premises not identified in warrant

(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 identified 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 in terms of this Part, as if the
premises had been identified in the warrant.

(2) 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 the occupant.

63. Search without warrant

(1) A senior SARS official may without a warrant exercise the powers referred to insection 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 satisfied that-

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

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

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 37 of 224
 (iii) the delay in obtaining a warrant would defeat the object of the search and seizure.

(2) A SARS official must, before carrying out the search, inform the owner or person in 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 the occupant.

(5) If the owner or person in control of the premises is not present, the SARS official must inform such person of the
circumstances referred to in subsection (2) as soon as reasonably possible after the execution of the search and
seizure.
[Subs. (5) added by s. 53 of Act 21/2012 deemed to have come into operation on 1 October 2012]

64. Legal professional privilege

(1) If SARS foresees the need to search and seize relevant material that may be alleged to be subject to legal
professional privilege, SARS must arrange for a legal practitioner from the panel appointed under section 111 to
be present during the execution of the warrant.

(2) A legal practitioner with whom SARS has made an arrangement in terms of subsection (1) may appoint a
substitute legal practitioner to be present on the appointing legal practitioner's behalf during the execution of a
warrant.

(3) If, during the carrying out of a search and seizure by SARS, a person alleges the existence of legal professional
privilege in respect of relevant material and a legal practitioner is not present under subsection (1) or (2), SARS
must seal the material, make arrangements with a legal practitioner from the panel appointed under section 111
to take receipt of the material and, as soon as is reasonably possible, hand over the material to the legal
practitioner.

(4) A legal practitioner 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 undersection 60, for the removal from the premises of relevant material
in respect of which legal privilege is alleged;

(ii) in the case of a search and seizure carried out undersection 63, for the receipt of the sealed
information; and

(iii) if a substitute legal practitioner in terms of subsection (2), for the delivery of the information to the
appointing legal practitioner for purposes of making the determination referred to in subsection (5).

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

(6) If a determination of whether the privilege applies is not made under subsection (5) or a party is not satisfied with
the determination, the legal practitioner must retain the relevant material pending final resolution of the dispute by
the parties or an order of court.

(7) The leagal practitioner from the panel appointed under section 111 and any legal practitioner acting on behalf of
that legal practitioner referred to in subsection (1) must be compensated in the same manner as if acting as
Chairperson of the tax board.
[S. 64 substituted by s. 31 of Act 33/2019 w.e.f. 15 January 2020]

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 38 of 224
65. Person's right to examine and make copies

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

(2) Examination and copying must be made-

(a) at the person's cost in accordance with the fees prescribed in accordance withsection 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.

66. Application for return of seized relevant material or costs of damages

(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 during the conduct of the search and seizure.

(3) The court may, on good cause shown, make the order as it deems fit.

(4) If the court sets aside the warrant issued in terms ofsection 60(1) or orders the return of the seized material, the
court may nevertheless authorise SARS to retain the original or a copy of any relevant material in the interests of
justice.

CHAPTER 6

CONFIDENTIALITY OF INFORMATION

67. General prohibition of disclosure

(1) This Chapter applies to-

(a) SARS confidential 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 peace or commissioner of oaths by-

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

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

(3) In the event of the disclosure of SARS confidential information or taxpayer information contrary to this Chapter,
the person to whom it was so disclosed may not in any manner disclose, publish or make it known to any other
person who is not a SARS official.

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

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

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 39 of 224
 other manner.

68. SARS confidential information and disclosure

(1) SARS confidential information means information relevant to the administration of a tax Act that is-

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

(b) information subject to legal professional privilege vested in SARS;

(c) information that was supplied in confidence by a third party to SARS the disclosure of which could
reasonably be expected to prejudice the future supply of similar information, or information from the same
source;

(d) information related to investigations and prosecutions described insection 39 of 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 or deliberation 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 the exercise of a power or performance of a duty conferred or
imposed by law; and

(ii) the disclosure of the information could reasonably be expected to frustrate the deliberative process in
SARS or between SARS and other organs of state by-

(aa) inhibiting the candid communication of an opinion, advice, report or recommendation or conduct
of a consultation, discussion or deliberation; or

(bb) frustrating the success of a policy or contemplated policy by the premature 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 the research;

(g) information, the disclosure of which could reasonably be expected to prejudice the economic interests or
financial welfare of the Republic or the ability of the government to manage the economy of the Republic
effectively in the best interests of the Republic, including a contemplated change or decision to change a tax
or a duty, levy, penalty, interest and similar moneys imposed under a tax Act or the Customs and Excise
Act;

(g) information, the disclosure of which could reasonably be expected to prejudice the economic interests or financial
welfare of the Republic or the ability of the government to manage the economy of the Republic effectively in the best
interests of the Republic, including a contemplated change or decision to change a tax or a duty, levy, penalty, interest
and similar moneys imposed under a tax Act;

[Proposed amendment: Para. (g) to be substituted by s. 46 of Act 23/2015 w.e.f. immediately after the Customs Control Act 2014, has taken effect
in terms of section 944(1)]

(h) information supplied in confidence by or on behalf of another state or an international organisation to

SARS;

(i) a computer program, as defined in section 1(1) of the Copyright Act, 1978 (Act No. 98 of 1978), owned by
SARS;
[Para. (i) amended by s. 40 of Act 39/2013 w.e.f. 1 October 2012]

(j) information relating to the security of SARS buildings, property, structures or systems; and
[Para. (j) amended by s. 40 of Act 39/2013 w.e.f. 1 October 2012]

(k) information relating to the verification or audit selection procedure or method used by SARS, the
disclosure of which could reasonably be expected to jeopardise the effectiveness thereof.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 40 of 224
 [Para. (k) added by s. 40 of Act 39/2013 w.e.f. 1 October 2012]

(2) A person who is a current or former SARS official-

(a) may not disclose SARS confidential information to a person who is not a SARS official;

(b) may not disclose SARS confidential information to a SARS official who is not authorised to have access to
the information; and

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

(3) A person who is a SARS official or former SARS official may disclose SARS confidential 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.

69. Secrecy of taxpayer information and general disclosure

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

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

(a) in the course of performance of duties under a tax Act or customs and excise legislation such as-
[Words preceding subpara. (i) substituted by s. 47 of Act 23/2015 w.e.f. 8 January 2016]

(i) to the South African Police Service or the National Prosecuting Authority, if the information relates to,
and constitutes material information 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 on urgency, allows a shorter period.

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

(5) The court may not grant the order unless satisfied that the following circumstances apply:

(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;
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 41 of 224
 (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 under the circumstances described in
subsection (2)(a)(i).

(8) The Commissioner may, despite the provisions of this section, disclose-

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

(b) a list of-

(i) pension funds, pension preservation funds, provident funds, provident preservation funds and
retirement annuity funds as defined in section 1(1) of the Income Tax Act; and

(ii) organisations approved under sections 18A and 30 of the Income Tax Act and the type of approval;
[Subpara. (ii) substituted by s. 26 of Act 18/2023 w.e.f. 22 December 2023]

[Para. (b) substituted by s. 53 of Act 16/2016 w.e.f. 19 January 2017]

(c) the name and tax practitioner registration number of a registered tax practitioner; and

(d) taxpayer information in an anonymised form.

[Subs. (8) amended by s. 41 of Act 39/2013 and substituted by s. 48 of Act 44/2014 w.e.f. 1 October 2012]

70. Disclosure to other entities

(1) A senior SARS official may provide to the Director-General of the National Treasury taxpayer information or
SARS confidential 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 and exercise the powers of the
National Treasury under those Acts; and

(b) a class of taxpayers to the extent necessary for the purposes of tax policy design 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 in an anonymous form;

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

(c) a commission of inquiry established by the President of the Republic of South Africa under a law of the
Republic, the information to which the Commission is authorised by law to have access;

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 42 of 224
 [Para. (c) amended by s. 42 of Act 39/2013 w.e.f. 1 October 2012]

(d) to an employer (as defined in the Fourth Schedule to the Income Tax Act) of an employee (as defined in
the Fourth Schedule), but only the income tax reference number, identity number, physical and postal
address of that employee and such other non-financial information in relation to that employee, as that
employer may require in order to comply with its obligations in terms of a tax Act; and
[Para. (d) amended by s. 42 of Act 39/2013 w.e.f. 1 October 2012]

(e) a recognised controlling body (as defined in section 239) of a registered tax practitioner, such information in
relation to the tax practitioner as may be required to verify that sections 240A(2)(a) and 240A(3) are being
given effect to.
[Para. (e) inserted by s. 42 of Act 39/2013 w.e.f. 1 October 2012]

(f) the Department of Labour, the name and contact details of all employers registered for employees' tax and
eligible to receive the employment tax incentive in terms of section 2 of the Employment Tax Incentive Act,
2013.
[Para. (f) added by s. 13 of Act 26/2013 w.e.f. 1 January 2014]

(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 Regulations issued under section 9 of the Currency and Exchanges Act, 1933
(Act No. 9 of 1933), the information as may be required to exercise a power or perform a function or duty
under the South African Reserve Bank Act, 1989 (Act No. 90 of 1989), or those Regulations;
[Para. (a) substituted by ss. 25 of Act 24/2020 w.e.f. 20 January 2021]

(b) the Financial Sector Conduct Authority, the information as may be required for the purpose of carrying out
the Financial Sector Conduct Authority's duties and functions under the Financial Sector Regulation Act,
2017 (Act No. 9 of 2017);
[Para. (b) substituted by s. 18 of Act 22/2018 w.e.f. 1 April 2018]

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

[Para. (c) amended by s. 27(a) of Act 18/2023 w.e.f. 22 December 2023]

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

[Para. (d) amended by s. 27(b) of Act 18/2023 w.e.f. 22 December 2023]

(e) the Companies and Intellectual Property Commission, the information as may be required for the purpose
of carrying out the Commission’s duties and functions under the Companies Act, 2008 (Act No. 71 of 2008);

[Para. (e) added by s. 27(c) of Act 18/2023 w.e.f. 22 December 2023]

(f) the Directorate for Nonprofit Organisations, the information as may be required for the purpose of carrying
out the Directorate’s duties and functions under the Nonprofit Organisations Act, 1997 (Act No. 71 of 1997); and

[Para. (f) added by s. 27(c) of Act 18/2023 w.e.f. 22 December 2023]

(g) the Master as defined in section 1 of the Trust Property Control Act, 1988 (Act No. 57 of 1988), the
information as may be required for the purpose of carrying out the Master’s duties and functions under that Act.

[Para. (g) added by s. 27(c) of Act 18/2023 w.e.f. 22 December 2023]

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

(a) name and taxpayer reference number

(b) any identifying number;

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 43 of 224
 (c) physical and postal address and other contact details;

(d) employer's name, address and contact details; and

(e) other non-financial information as the organ of state or institution may require for purposes of verifying
paragraphs (a) to (d).

(5) The information disclosed under subsection (1), (2) or (3) may only be disclosed by SARS or the persons or
entities referred to in subsection (1), (2) or (3) to the extent that it is-

(a) necessary for the purpose of exercising a power or performing a regulatory function or duty under the
legislation referred to in subsection (1), (2) or (3); and

(b) relevant and proportionate to what the disclosure is intended to achieve as determined under the legislation.
[Subs. (5) substituted by s. 48 of Act 23/2015 w.e.f. 8 January 2016]

(6) SARS must allow the Auditor-General to have access to information in the possession of SARS that relates to
the performance of the Auditor-General's duties under 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 information under this section if satisfied
that the disclosure would seriously impair a civil or criminal tax investigation.

71. Disclosure in criminal, public safety or environmental matters

(1) If so ordered by a judge under this section, a senior SARS official must disclose 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 of 1995); or

(b) the National Director of Public Prosecutions, referred to insection 5(2)(a) of the 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 exceeding five 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 material to the prosecution of the offence or avoidance of the risk; and
[Para. (b) substituted by s. 54 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(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 to disclose the information
under subsection (1).

(4) The National Commissioner of the South African Police Service, the National Director of Public Prosecutions or a
person acting under their respective direction and control, if-

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

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

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 44 of 224
 may make an ex parte application to a judge in chambers for an order requiring SARS to disclose the information
referred to in subsection (2).

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

72. Self-incrimination

(1) A taxpayer may not refuse to comply with his or her obligations in terms of legislation to complete and file a
return or an application on the grounds that to do so might 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 in
criminal proceedings against the taxpayer for a tax offence, unless a competent court directs otherwise.

(2) An admission by the taxpayer of the commission of a tax offence obtained from a taxpayer underChapter 5 is not
admissible in criminal proceedings against the taxpayer, unless a competent court directs otherwise.
[S. 72 substituted by s. 55 of Act 21/2012 deemed to have come into operation on 1 October 2012]

73. Disclosure to taxpayer of own record

(1) A taxpayer or the taxpayer's duly authorised representative is entitled to obtain-

(a) a copy, certified by SARS, of the recorded particulars of an assessment or decision referred to insection
104(2) relating to the taxpayer;

(b) access to information submitted to SARS by the taxpayer or by a person on the taxpayer's behalf;
[Para. (b) substituted by s. 43 of Act 39/2013 w.e.f. 1 October 2012]

(c) information, other than SARS confidential information, on which the taxpayer's assessment is based; and
[Para. (c) subtituted by s. 43 of Act 39/2013 w.e.f. 1 October 2012]

(d) other information relating to the tax affairs of the taxpayer.

[Para. (d) added by s. 43 of Act 39/2013 w.e.f. 1 October 2012]

(2) A request for information under subsection (1)(d) must be made under the Promotion of Access to Information
Act.
[Subs. (2) substituted by s. 43 of Act 39/2013 w.e.f. 1 October 2012]

(3) ..........
[Subs. (3) deleted by s. 43 of Act 39/2013 w.e.f. 1 October 2012]

74. Publication of names of offenders

(1) The Commissioner may publish for general information the particulars specified 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 fit; and

(c) the particulars of the fine or sentence imposed.

CHAPTER 7
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 45 of 224
 ADVANCE RULINGS

75. Definitions

In this Chapter, unless the context indicates otherwise, the following terms, if in single 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 private ruling' or a 'binding class ruling';

'application' means an application for a 'binding private ruling' or a 'binding class ruling';

'binding class ruling' means a written statement issued by SARS regarding the application of a tax Act to a specific
'class' of persons in respect of a 'proposed transaction';

'binding effect' means the requirement that SARS interpret or apply the applicable tax Act in accordance with an
'advance ruling' under section 82;

'binding general ruling' means a written statement issued by a senior SARS official under section 89 regarding the
interpretation of a tax Act or the application of a tax Act to the stated facts and circumstances;

'binding private ruling' means a written statement issued by SARS regarding the application of a tax Act to one or
more parties to a 'proposed transaction', in respect of the 'transaction';

'class' means-

(a) shareholders, members, beneficiaries 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-

(i) are similarly affected by the application of a tax Act to a 'proposed transaction'; 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 in respect 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 of section
88;

'proposed transaction' means a 'transaction' that an 'applicant' proposes to undertake, but has not agreed to
undertake, other than by way of an agreement that is subject to a suspensive condition or is otherwise not binding; and

'transaction' means any transaction, deal, business, arrangement, operation or scheme and includes a series of
transactions.

76. Purpose of advance rulings

The purpose of the 'advance ruling' system is to promote clarity, consistency and certainty regarding the interpretation
and application of a tax Act by creating a framework for the issuance of 'advance rulings'.

77. Scope of advance rulings

SARS may make an 'advance ruling' on any provision of a tax Act.

78. Private rulings and class rulings

(1) SARS may issue a 'binding private ruling' upon 'application' by a person in accordance withsection 79.

(2) SARS may issue a 'binding class ruling' upon 'application' by a person in accordance withsection 79.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 46 of 224
 (3) SARS may make a 'binding private ruling' or 'binding class ruling' subject to the conditions 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 the ruling is issued.

(5) A 'binding private ruling' or 'binding class ruling' may be issued in the prescribed form and manner, must be
signed by a senior SARS official and must contain the following:

(a) a statement identifying it as a 'binding private ruling' or as a 'binding class ruling' 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 specific 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 for communicating with the affected
'class members' regarding the 'application' for the ruling, the issuance, withdrawal or modification of the ruling, or
any other information or matter pertaining to the ruling.

79. Applications for advance rulings

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

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

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

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

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

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

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

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

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

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

(g) the relevant statutory provisions or legal issues;

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

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 47 of 224
 (i) a statement of the 'applicant's' interpretation of the relevant statutory provisions or legal issues, as well as an
analysis of relevant authorities either considered by the 'applicant' or of which the 'applicant' is aware, as to
whether those authorities support or are contrary to the proposed ruling being sought;

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

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

(l) the 'applicant's' consent to the publication of the ruling by SARS in accordance withsection 87;
[Para. (l) amended by s. 56(a) of Act 21/2012 deemed to have come into operation on 1 October 2012]

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

(i) a description of the 'class members'; and

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

(n) a statement confirming that the 'applicant' complied with any registration requirements under a tax Act, with
regard to any tax for which the 'applicant' is liable, unless the 'application' concerns a ruling to determine if
the 'applicant' must register under a tax Act; and
[Para. (n) added by s. 56(b) of Act 21/2012 deemed to have come into operation on 1 October 2012]

(o) a statement confirming that all returns required to be rendered by that 'applicant' in terms of a tax Act have
been rendered and any tax has been paid or arrangements acceptable to SARS have been made for the
submission of any outstanding returns or for the payment of any outstanding tax debt.
[Para. (o) added by s. 56(b) of Act 21/2012 deemed to have come into operation on 1 October 2012 and substituted by s. 44 of Act 39/2013 w.e.f. 1
October 2012]

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

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

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

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

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

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

80. Rejection of application for advance ruling

(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 or associated
enterprise, as defined in section 31 of the Income Tax Act, in relation to the ‘applicant’ or a ‘class
member’;

[Subpara. (iii) substituted by s. 28 of Act 18/2023 w.e.f. 22 December 2023]

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 48 of 224
 (iv) the constitutionality of a tax Act;

(v) a 'proposed transaction' that is hypothetical or not seriously contemplated;

(vi) a matter which can be resolved by SARS issuing a directive under the Fourth Schedule or the Seventh
Schedule to the Income Tax Act;
[Subpara (vi) substituted by s. 57 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(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' that is 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 a connected person in relation to the 'applicant' or a 'class
member';

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

(cc) subject to dispute resolution under Chapter 9;

(c) involves the application or interpretation of a general or specific 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 reasonably determined at the time of the 'application';

(iii) which would be more appropriately dealt with by the competent authorities of the parties to an
agreement for the avoidance of double taxation;

(iv) in which the tax treatment of the 'applicant' is dependent upon the tax treatment of another party to the
'proposed transaction' who has not applied for a ruling;

(v) in respect of a 'transaction' that is part of another 'transaction' which has a 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 or resource intensive; or

(f) requests SARS to rule on the substance of a 'transaction' and disregard its form.

(2) The Commissioner may publish by public notice a list of additional considerations in 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.

81. Fees for advance rulings

(1) In order to defray the cost of the 'advance ruling' system, the Commissioner may by public notice prescribe fees
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 49 of 224
 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 estimate may be exceeded.

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

(4) If there is more than one 'applicant' for a ruling in respect of a 'proposed transaction' SARS may, upon request by
the 'applicants', impose a single prescribed fee in respect of the 'application'.

82. Binding effect of advance rulings

(1) If an 'advance ruling' applies to a person in accordance withsection 83, then SARS must interpret or apply the
applicable tax Act to the person in accordance with the ruling.

(2) An 'advance ruling' does not have 'binding effect' upon SARS in respect of a person 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 any proceeding, 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 'binding effect' unless it is an 'advance
ruling'.

83. Applicability of advance rulings

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' specified 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
satisfied or carried out;

(e) in the case of a 'binding private ruling', the person is an 'applicant' identified in the ruling; and

(f) in the case of a 'binding class ruling', the person is a 'class member' identified in the ruling.

84. Rulings rendered void

(1) A 'binding private ruling' or 'binding class ruling' is voidab 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 satisfied 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 when the original ruling was made.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 50 of 224
85. Subsequent changes in tax law

(1) Despite any provision to the contrary contained in a tax Act, an 'advance ruling' ceases to be effective if-

(a) a provision of the tax Act that was the subject of the 'advance ruling' is repealed 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 that the repeal or amendment is effective; or

(b) a court overturns or modifies an interpretation of the tax Act on which the 'advance ruling' is based, in which
case the 'advance ruling' will cease to be effective from the date of judgment unless-

(i) the decision is under appeal;

(ii) the decision is fact-specific 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' was based was obiter dicta.

(2) An 'advance ruling' ceases to be effective upon the occurrence of any of the circumstances described in
subsection (1), whether or not SARS publishes a notice of withdrawal or modification.

86. Withdrawal or modification of advance rulings

(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 first provide the 'applicant'
with notice of the proposed withdrawal or modification and a reasonable opportunity to make representations prior
to the decision whether to withdraw or modify the 'advance ruling'.
[Subs. (2) substituted by s. 26 of Act 24/2020 w.e.f. 20 January 2021]

(3) SARS must specify the date the decision to withdraw or modify the 'advance ruling' becomes effective, which
date may not be earlier than the date-

(a) the decision is delivered to an 'applicant', unless the circumstances in subsection (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
significant costs in respect of the arrangement;

(b) a person other than the 'applicant' or 'class member' will suffer significant tax disadvantage if the ruling is
not withdrawn or modified retrospectively and the 'applicant' will suffer comparatively less if the ruling is
withdrawn or modified retrospectively; or

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

87. Publication of advance rulings

(1) A person applying for a 'binding private ruling' or 'binding class ruling' must consent 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 for general 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 person identified or referred to in the ruling.

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

(4) SARS must consider, prior to publication, any comments and proposed edits and deletions submitted by the
'applicant', but is not required to accept them.
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 51 of 224
 (5) An 'applicant' for a 'binding class ruling' may consent in writing to the inclusion of information identifying it or the
'proposed transaction' in order to facilitate communication with the 'class members'.

(6) The application or interpretation of the relevant tax Act to a 'transaction' does not constitute information that may
reveal the identity of an 'applicant', 'class member' or other person identified or referred to in the ruling.

(7) SARS must treat the publication of the withdrawal or modification of a 'binding private ruling' or 'binding class
ruling' in the same manner and subject to the same requirements 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 modification thereof must be published in
the manner and media as the Commissioner may deem appropriate.

88. Non-binding private opinions

(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 opinion was issued.

89. Binding general rulings

(1) A senior SARS official may issue a 'binding general ruling' that is effective for either-

(a) a particular tax period or other definite period; or

(b) an indefinite 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 definite period for which it applies; or

(ii) in the case of a 'binding general ruling' for an indefinite period, that it is for an indefinite 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 information prescribed by subsection (2).

90. Procedures and guidelines for advance rulings

The Commissioner may issue procedures and guidelines, in the form of 'binding general rulings', for implementation
and operation of the 'advance ruling' system.

CHAPTER 8

ASSESSMENTS

91. Original assessments

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 52 of 224
 (1) If a tax Act requires a taxpayer to submit a return which does not incorporate a determination of the amount of a
tax liability, SARS must make an original assessment based on the return submitted by the taxpayer or other
information available or obtained in respect of the taxpayer.

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

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

(4) ..........
[Subs. (4) substituted by s. 32 of Act 33/2019 and deleted by s. 27 of Act 24/2020 w.e.f. 20 January 2021]

(5) ..........
[Subs. (5) substituted by s. 58(a) of Act 21/2012 deemed to have come into operation on 1 October 2012 and deleted by s. 27 of Act 24/2020 w.e.f. 20
January 2021]

(6) ..........
[Subs. (6) added by s. 58(b) of Act 21/2012 deemed to have come into operation on 1 October 2012 and deleted by s. 27 of Act 24/2020 w.e.f. 20
January 2021]

92. Additional assessments

If at any time SARS is satisfied that an assessment does not reflect the correct application of a tax Act to the prejudice
of SARS or the fiscus, SARS must make an additional assessment to correct the prejudice.

93. Reduced assessments

(1) SARS may make a reduced assessment if-

(a) the taxpayer successfully disputed the assessment underChapter 9;

(b) necessary to give effect to a settlement underPart F of Chapter 9;

[Para. (b) substituted by s. 45 of Act 39/2013 w.e.f. 1 October 2012]

(c) necessary to give effect to a judgment pursuant to an appeal underPart E of Chapter 9 and there is no right
of further appeal;
[Para. (c) amended by s. 49 of Act 23/2015 w.e.f. 8 January 2016]

(d) SARS is satisfied that there is a readily apparent undisputed error in the assessment by-

(i) SARS; or

(ii) the taxpayer in a return;

[Para. (d) substituted by s. 49 of Act 23/2015 and amended by s. 18 of Act 21/2021 w.e.f. 19 January 2022]

(e) a senior SARS official is satisfied that an assessment was based on-

(i) the failure to submit a return or submission of an incorrect return by a third party undersection 26 or by
an employer under a tax Act;

(ii) a processing error by SARS; or

(iii) a return fraudulently submitted by a person not authorised by the taxpayer; or

[Subpara. (iii) amended by s. 28 of Act 24/2020 and s. 18 of Act 21/2021 w.e.f. 19 January 2022]

[Para. (e) added by s. 49 of Act 23/2015 w.e.f. 8 January 2016]

(f) the taxpayer in respect of whom an assessment has been issued undersection 95(1), requests SARS to
issue a reduced assessment under section 95(6).
[Para. (f) added by s. 28 of Act 24/2020 w.e.f. 20 January 2021]
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 53 of 224
 (2) SARS may reduce an assessment despite the fact that no objection has been lodged or appeal noted.

94. Jeopardy assessments

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

(2) In addition to any rights under Chapter 9, a review application against an assessment made under this section
may be made to the High Court on the grounds that-

(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 the making of the jeopardy
assessment is reasonable under the circumstances.

95. Estimation of assessments

(1) SARS may make an original, additional, reduced or jeopardy assessment based in whole or in part on an
estimate if the taxpayer-

(a) does not submit a return;

(b) submits a return or relevant material that is incorrect or inadequate; or

(c) does not submit a response to a request for relevant material undersection 46, in relation to the taxpayer,
after delivery of more than one request for such material.

[Subs. (1) substituted by s. 29 of Act 24/2020 w.e.f. 20 January 2021]

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

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

(4) The making of an assessment under subsection (1) does not detract from the obligation to submit a return or the
relevant material.

[Subs. (4) added by s. 29 of Act 24/2020 w.e.f. 20 January 2021]

(5) An assessment under subsection (1)(a) or (c) is only subject to objection and appeal if SARS decides not to
make a reduced or additional assessment after the taxpayer submits the return or relevant material under subsection
(6).

[Subs. (5) added by s. 29 of Act 24/2020 and substituted by s. 19 of Act 21/2021 w.e.f. 19 January 2022]

(6) The taxpayer in relation to whom the assessment under subsection (1)(a) or (c) has been issued may, within 40
business days from the date of assessment, or a longer period as the Commissioner may prescribe by public notice,
request SARS to make a reduced or additional assessment by submitting a true and full return or the relevant material.

[Subs. (6) added by s. 29 of Act 24/2020 and substituted by s. 19 of Act 21/2021 w.e.f. 19 January 2022 and s. 29(a) of Act 18/2023 deemed to have
come into operation on 31 July 2023]

(7) If reasonable grounds for an extension are submitted by the taxpayer, a senior SARS official may extend the period
referred to in subsection (6) within which the return or relevant material must be submitted, for a period not exceeding the
relevant period referred to in section 99(1) or forty business days, whichever is the longest.

[Subs. (7) added by s. 29 of Act 24/2020 and substituted by s. 19 of Act 21/2021 w.e.f. 19 January 2022]

(8) If SARS decides not to make a reduced or additional assessment as requested under subsection (6), the date
of the assessment made under subsection (1)(a) or (1)(c), for purposes of Chapter 9, is extended to the date of the
written notice of the decision.

[Subs. (8) added by s. 19 of Act 21/2021 w.e.f. 19 January 2022 and substituted by s. 29(b) of Act 18/2023 w.e.f. 22 December 2023]

96. Notice of assessment

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 54 of 224
 (1) SARS must issue to the taxpayer assessed a notice of the assessment made by SARS 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 identification;

(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 give the person assessed-

(a) in the case of an assessment described insection 95 or an assessment that is not fully based on a return
submitted by the taxpayer, a statement of the grounds for the assessment; and

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

97. Recording of assessments

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

(2) A notice of assessment issued by SARS is regarded as made by a SARS official authorised 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, including the return or records on which it was based, whether in electronic format
or otherwise, may be destroyed by SARS after seven years from the date of assessment or the expiration of a
further period that may be required-

(a) by the Auditor-General;

(b) as a result of the application ofsection 99(2)(c); or

(c) for purposes of a verification, audit or criminal investigation under Chapter 5 or a dispute under Chapter 9.
[Subs. (4) substituted by s. 54 of Act 16/2016 w.e.f. 19 January 2017]

98. Withdrawal of assessments

(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

[Para. (b) amended by s. 46 of Act 39/2013 w.e.f. 1 October 2012 and s. 50 of Act 23/2015 w.e.f. 8 January 2016]

(c) was issued as a result of an incorrect payment allocation.

[Para. (c) amended by s. 46 of Act 39/2013 w.e.f. 1 October 2012 and s. 50 of Act 23/2015 w.e.f. 8 January 2016]

(d) ..........
[Para. (d) added by s. 46 of Act 39/2013 w.e.f. 1 October 2012 and deleted by s. 50 of Act 23/2015 w.e.f. 8 January 2016]

(2) An assessment withdrawn under this section is regarded not to have been issued, unless a senior SARS official
agrees in writing with the taxpayer as to the amount of tax properly chargeable for the relevant tax period and
accordingly issues a revised original, additional or reduced assessment, as the case may be, which assessment
is not subject to objection or appeal.
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 55 of 224
 [Subs. (2) substituted by s. 46 o Act 39/2013 w.e.f. 1 October 2012]

99. Period of limitations for issuance of assessments

(1) An assessment may not be made in terms of this Chapter-

[Words preceding para. (a) substituted by s. 51 of Act 23/2015 w.e.f. 8 January 2016]

(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, five 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 five 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 tax period;

(d) in the case of-

(i) an additional assessment if the-

(aa) amount which should have been assessed to tax under the preceding assessment was, in
accordance with the practice generally prevailing at the date of the preceeding assessment, not
assessed to tax; or
[Item (aa) substituted by s. 59 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(bb) full amount of tax which should have been assessed under the preceding assessment was, in
accordance with the practice, not assessed;

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

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

(iv) a reduced or additional assessment under section 95(6); or

[Item (iv) inserted by s. 20 of Act 21/2021 w.e.f. 19 January 2022]

(e) in respect of a dispute that has been resolved underChapter 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 tax chargeable 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 chargeable was not assessed, was due
to-

(i) fraud;

(ii) intentional or negligent misrepresentation;

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 56 of 224
 (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;
[Para. (c) amended by s. 51 of Act 23/2015 w.e.f. 8 January 2016]

(d) it is necessary to give effect to-

(i) the resolution of a dispute under Chapter 9; or

[Subpara. (i) amended by s. 55 of Act 16/2016 w.e.f. 19 January 2017]

(ii) ..........
[Subpara. (ii) deleted by s. 55 of Act 16/2016 w.e.f. 19 January 2017]

(iii) an assessment referred to in section 93(1)(d) if SARS becomes aware of the error referred to in that
subsection before expiry of the period for the assessment under subsection (1); or
[Para. (d) amended by s. 47 of Act 39/2013 w.e.f. 1 October 2012 and substituted by s. 51 of Act 23/2015 w.e.f. 8 January 2016]

(e) SARS receives a request for a reduced assessment under section 93(1)(e).
[Para. (e) added by s. 51 of Act 23/2015 w.e.f. 8 January 2016]

(3) The Commissioner may, by prior notice of at least 30 days to the taxpayer, extend a period under subsection (1)
or an extended period under this section, before the expiry thereof, by a period approximate to a delay arising
from:

(a) failure by a taxpayer to provide all the relevant material requested within the period undersection 46(1) or
the extended period under section 46(5); or

(b) resolving an information entitlement dispute, including legal proceedings.

[Subs. (3) added by s. 51 of Act 23/2015 w.e.f. 8 January 2016]

(4) The Commissioner may, by prior notice of at least 60 days to the taxpayer, extend a period under subsection (1),
before the expiry thereof, by three years in the case of an assessment by SARS or two years in the case of self-
assessment, where an audit or investigation under Chapter 5 relates to-

(i) the application of the doctrine of substance over form;

(ii) the application of Part IIA of Chapter III of the Income Tax Act, section 73 of the Value-Added Tax Act or any
other general anti-avoidance provision under a tax Act;

(iii) the taxation of hybrid entities or hybrid instruments; or

(iv) section 31 of the Income Tax Act.

[Subs. (4) added by s. 51 of Act 23/2015 w.e.f. 8 January 2016]

100. Finality of assessment or decision

(1) An assessment or a decision referred to insection 104(2) is final if, in relation to the assessment or decision-

(a) it is an assessment described-

(i) in section 95(1)(a) or (c), and no return or response described in section 95(6) has been received by
SARS; or
[Subpara. (i) substituted by s. 30 of Act 24/2020 w.e.f. 20 January 2021]

(ii) in section 95(3);

(b) no objection has been made, or an objection has been withdrawn;

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 57 of 224
 (c) after the decision of an objection, no notice of appeal has been filed or a notice has been filed and is
withdrawn;
[Para. (c) substituted by s. 33 of Act 33/2019 w.e.f 15 January 2020]

(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 undersection 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 referred to in-

(a) subsection (1)(d), (e) and (f), if the relevant period under section 99(1)(a), (b) or (c) has expired, SARS may
only make an additional assessment under the circumstances referred to in section 99(2)(a) and (b); and
[Para. (a) substituted by s. 56 of Act 16/2016 w.e.f. 19 January 2017]

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

CHAPTER 9

DISPUTE RESOLUTION

Part A

General

101. Definitions

In this Chapter, unless the context indicates otherwise, the following terms, if in single quotation marks, have the
following meanings:

'appellant', except in Part E of this Chapter, means a person who has noted an appeal 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 undersection 103.

102. Burden of proof

(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;

[Para. (b) substituted by s. 23 of Act 13/2017 w.e.f. 18 December 2017]

(c) the rate of tax applicable to a transaction, event, item or class of taxpayer;

(d) that an amount qualifies 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 Chapter 16, is upon SARS.

103. Rules for dispute resolution

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 58 of 224
 (1) The Minister may, after consultation with the Minister of Justice and Constitutional Development, by public notice
make 'rules' governing the procedures to lodge an objection and appeal against an assessment or 'decision', and
the conduct and hearing of an appeal before a tax board or tax court.

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

(3) The Commissioner may prescribe the form of a document required to be completed and delivered under the
“rules”.
[Subs. (3) added by s. 48 of Act 39/2013 w.e.f. 1 October 2012]

Part B

Objection and appeal

104. Objection against assessment or decision

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

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

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

(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.

(3) A taxpayer entitled to object to an assessment or 'decision' must lodge an objection 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' within which objections must be made if
satisfied that reasonable grounds exist for the delay in lodging the objection.

(5) The period for objection must not be so extended-

(a) for a period exceeding 30 business days, unless a senior SARS official is satisfied that exceptional
circumstances exist which gave rise to the delay in lodging the objection;
[Para. (a) substituted by s. 57 of Act 16/2016 w.e.f. 19 January 2017]

(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 a practice generally prevailing which
applied on the date of assessment or the 'decision'.

105. Forum for dispute of assessment or decision

A taxpayer may only dispute an assessment or “decision” as described insection 104 in proceedings under this
Chapter, unless a High Court otherwise directs.
[S. 105 substituted by s. 52 of Act 23/2015 w.e.f. 8 January 2016]

106. Decision on objection

(1) SARS must consider a valid objection in the manner and within the period prescribed 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 stayed under subsection (6) in which case notice of this must be given in
accordance with the 'rules'.
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 59 of 224
 (5) The notice must state the basis for the decision and a summary of the procedures for appeal.

(6) If a senior SARS official considers that the determination of the objection or an appeal referred to insection 107,
whether on a question of law only or on both a question of fact and a question of law, is likely to be determinative
of all or a substantial number of 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'.

107. Appeal against assessment or decision

(1) After delivery of the notice of the decision referred to insection 106(4), a taxpayer 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 the period prescribed in this Act and the 'rules'.

(2) A senior SARS official may extend the period within which an appeal must be lodged for-

(a) 21 business days, if satisfied 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 the appeal is noted.

(5) By mutual agreement, SARS and the taxpayer making the appeal may attempt to resolve the dispute through
alternative dispute resolution under procedures specified in the 'rules'.

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

(7) SARS may concede an appeal in whole or in part before-

(a) the matter is heard by the tax board or the tax court; or

(b) an appeal against a judgment of the tax court or higher court is heard.
[Subs. (7) added by s. 60 of Act 21/2012 deemed to have come into operation on 1 October 2012]

Part C

Tax board

108. Establishment of tax board

(1) The Minister may by public notice-

(a) establish a tax board or boards for areas that the Minister thinks fit; 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 insection 107 in the manner
provided in this Part.

109. Jurisdiction of tax board

(1) An appeal against an assessment or 'decision' must in the first instance be heard by a tax board, if-

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

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 60 of 224
 (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' and SARS agree that the appeal be heard at another place.

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

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

110. Constitution of tax board

(1) A tax board consists of-

(a) the chairperson, who must be a legal practitioner from the panel appointed undersection 111; and
[Para. (a) substituted by s. 34 of Act 33/2019 w.e.f. 15 January 2020]

(b) if the chairperson, after considering any representations by a senior SARS official or the taxpayer, considers
it necessary-
[Words preceding subpara. (i) substituted by s. 24 of Act 13/2017 w.e.f. 18 December 2017]

(i) an accountant who is a member of the panel referred to insection 120; and

(ii) a representative of the commercial community who is a member of the panel referred to insection 120.

(2) Sections 122, 123, 124, 126, 127, 128 and 129 apply, with the necessary changes, and under procedures
determined in the 'rules', to the tax board and the chairperson.
[Subs. (2) substituted by s. 49 of Act 39/2013 w.e.f. 1 October 2012]

111. Appointment of chairpersons

(1) The Minister must, in consultation with the Judge-President of the Division of the High Court with jurisdiction in
the area where the tax board is to sit, by public notice appoint legal practitioners to a panel from which a
chairperson of the tax board must be nominated from time to time.
[Subs. (1) substituted by s. 35 of Act 33/2019 w.e.f. 15 January 2020]

(2) The persons appointed under subsection (1)-

(a) hold office for five years from the date the notice of appointment is published in the public notice;

(b) are eligible for re-appointment as the Minister thinks fit; and

(c) must be persons of good standing who have appropriate experience.

[Subs. (2) substituted by s. 53 of Act 23/2015 w.e.f. 8 January 2016]

(3) The Minister may terminate an appointment made under this section at any time for 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
conflict of interest in any matter upon which he or she may be called upon to adjudicate.

(6) A chairperson must withdraw from the proceedings as soon as the chairperson becomes aware of a conflict of
interest which may give rise to bias which the chairperson may experience with the case concerned or other
circumstances that may affect the chairperson's ability to remain objective for the duration of the case.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 61 of 224
 (7) Either party may ask for withdrawal of the chairperson on the basis of conflict of interest or other indications of
bias, under procedures provided in the 'rules'.

112. Clerk of tax board

(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 another jurisdiction.

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

113. Tax board procedure

(1) Subject to the procedure provided for by the 'rules', the chairperson determines the procedures during the
hearing of an appeal as the chairperson sees fit, and each 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 further period as the chairperson may allow,
request permission to be represented at the hearing otherwise 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 board may confirm the assessment or 'decision' in respect of
which the appeal has been lodged-

(a) at the request of the senior SARS official; and

[Para. (a) substituted by s. 25 of Act 13/2017 w.e.f. 18 December 2017]

(b) on proof that the 'appellant' was furnished with the notice of the sitting of the tax board.

(10) If the tax board confirms an assessment or 'decision' under subsection (9), the 'appellant' may not thereafter
request that the appeal be referred to the tax court under section 115.

(11) If the senior SARS official fails to appear before the tax board at the time and place 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 not thereafter refer the appeal to the tax
court under section 115.

(13) Subsections (9), (10), (11) and (12) do not apply if the chairperson is satisfied that sound 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 determined for the hearing or the longer period as may be allowed in exceptional
circumstances.
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 62 of 224
114. Decision of tax board

(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 that includes the tax board's
findings 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 to SARS and the 'appellant'.

115. Referral of appeal to tax court

(1) If the 'appellant' or SARS is dissatisfied with the tax board's decision or the Chairperson fails to deliver the
decision under section 114(2) within the prescribed 60 business day period, the 'appellant' or SARS may within 21
business days, or within the further period as the Chairperson may on good cause shown allow, after the date of
the notice referred to in section 114(3) or the expiry of the period referred to insection 114(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's decision under subsection (1).

Part D

Tax court

116. Establishment of tax court

(1) The President of the Republic may by proclamation in theGazette establish a tax court or additional tax courts
for areas that the President thinks fit and may abolish an existing tax court as circumstances may require.

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

117. Jurisdiction of tax court

(1) The tax court for purposes of this Chapter has jurisdiction over tax appeals lodged undersection 107.

(2) The place where an appeal is heard is determined by the 'rules'.

(3) The court may hear and decide an interlocutory application or an application in a procedural matter relating to a
dispute under this Chapter as provided for in the “rules”.
[Subs. (3) substituted by s. 50 of Act 39/2013 w.e.f. 1 October 2012]

118. Constitution of tax court

(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 ofsection 120; and

(c) a representative of the commercial community selected from the panel of members appointed in terms of
section 120.

(2) If the appeal involves-

(a) a complex matter that requires specific expertise and the president of the tax court so directs after
considering any representations by a senior SARS official or the 'appellant', the representative of the
commercial community referred to in subsection (1)(c) may be a person with the necessary experience in
that field of expertise;

(b) the valuation of assets and 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 be a sworn
appraiser
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 63 of 224
 [Subs. (2) amended by s. 51 of Act 39/2013 and substituted by s. 58 of Act 16/2016 w.e.f. 19 January 2017]

(3) If an appeal to the tax court involves a matter of law only or is an interlocutory application or application in a
procedural matter under the 'rules', the president of the court sitting alone must decide the appeal.
[Subs. (3) substituted by s. 51 of Act 39/2013 w.e.f. 1 October 2012]

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

(5) The Judge-President of the Division of the High Court with jurisdiction in the area where the relevant tax court is
situated, may direct that the tax court consist of three judges 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),
where necessary, if-

(a) the amount in dispute exceeds R50 million; or

(b) SARS and the 'appellant' jointly apply to the Judge-President.

119. Nomination of president of tax court

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

(2) The Judge-President must determine whether the secondment referred to in subsection (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 as having a personal interest or a
conflict of interest in any matter upon which he or she may be called upon to adjudicate.

120. Appointment of panel of tax court members

(1) The President of the Republic by proclamation in theGazette must appoint the panel of members of a tax court
for purposes of section 118(1)(b) and (c) for a term of office of five years from the date of the relevant
proclamation.

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

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

(4) The President of the Republic may terminate the appointment of a member under this 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.

121. Appointment of registrar of tax court

(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.

122. Conflict of interest of tax court members

(1) A member of the court must withdraw from the proceedings as soon as the member becomes aware of a conflict
of interest which may give rise to bias which the member may experience with the case concerned or other

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 64 of 224
 circumstances that may affect the 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 conflict of interest or 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 be regarded as having a personal
interest or a conflict of interest in the case.

123. Death, retirement or incapability of judge or member

(1) If at any stage during the hearing of an appeal, or after hearing of the appeal but before judgment has been
handed down, one of the judges dies, retires or becomes otherwise incapable of acting in that capacity, the
hearing of an appeal must be heard de novo.

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

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

124. Sitting of tax court not public

(1) The tax court sittings for purposes of hearing an appeal undersection 107 are not public.

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

125. Appearance at hearing of tax court

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

(2) ..........
[Subs. (2) deleted by s. 26 of Act 13/2017 w.e.f. 18 December 2017]

126. Subpoena of witness to tax court

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

127. Non-attendance by witness or failure to give evidence

(1) A person subpoenaed under section 126 is liable to the fine or imprisonment specified 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 fine or, in default of payment, imprisonment for a period not
exceeding three months, on a person described in subsection (1) upon being satisfied by-

(a) oath or solemn declaration; or

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 65 of 224
 (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 expenses have been paid or
offered.

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

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

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

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

128. Contempt of tax court

(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 fine 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 made by a Magistrate's Court under
similar circumstances, and the provisions of a law which apply in respect of such an order made by a Magistrate's
Court apply with the necessary changes in respect of an order made under subsection (1).

129. Decision by tax court

(1) The tax court, after hearing the 'appellant's' appeal lodged undersection 107 against an assessment or 'decision',
must decide the matter on the basis that the burden of proof as described in section 102 is upon the taxpayer.

(2) In the case of an assessment or “decision” under appeal or an application in a procedural matter referred to in
section 117(3), the tax court may-
[Words preceding para. (a) substituted by s. 52 of Act 39/2013 w.e.f. 1 October 2012]

(a) confirm the assessment or 'decision';

(b) order the assessment or 'decision' to be altered;

[Para. (b) amended by s. 19 of Act 22/2018 w.e.f. 17 January 2019]

(c) refer the assessment back to SARS for further examination and assessment; or
[Para. (c) amended by s. 19 of Act 22/2018 w.e.f. 17 January 2019]

(d) make an appropriate order in a procedural matter.

[Para. (d) added by s. 19 of Act 22/2018 w.e.f. 17 January 2019]

(3) In the case of an appeal against an understatement penalty imposed by SARS under a tax Act, the tax court
must decide the matter on the basis that the burden of proof is upon SARS and may reduce, confirm or increase
the understatement penalty.
[Subs. (3) substituted by s. 52 of Act 39/2013 w.e.f. 1 October 2012]

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 66 of 224
 (4) If SARS alters an assessment as a result of a referral under subsection (2)(c), the assessment is subject to
objection and appeal.

(5) Unless a tax court otherwise directs, a decision by the tax court in a test case designated undersection 106(6) is
determinative of the issues in an objection or appeal stayed by reason of the test case under section 106(6)(b) to
the extent determined under the “rules”.
[Subs. (5) added by s. 52 of Act 39/2013 w.e.f. 1 October 2012]

130. Order for costs by tax court

(1) The tax court may, in dealing with an appeal under this Chapter and on application 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 confirmed;

(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 awarded by the tax court under this section must be determined in accordance with the fees
prescribed by the rules of the High Court.
[Subs. (2) substituted by s. 53 of Act 39/2013 w.e.f. 1 October 2012]

(3) The tax court may make an order as to costs provided for in the “rules” in-

(a) a test case designated under section 106(5); or

(b) an interlocutory application or an application in a procedural matter referred to insection 117(3).

[Subs. (3) deleted by s. 61 of Act 21/2012 deemed to have come into operation on 1 October 2012, inserted by s. 53 of Act 39/2013 w.e.f. 1 October
2012]

131. Registrar to notify parties of judgment of tax court

The 'registrar' must notify the 'appellant' and SARS of the court's decision within 21 business days of the date of the
delivery of the written decision.

132. Publication of judgment of tax court

A judgment of the tax court dealing with an appeal under this Chapter must be published for general information and,
unless the sitting of the tax court was public under 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

133. Appeal against decision of tax court

(1) The taxpayer or SARS may in the manner provided for in this Act appeal against 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-

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 67 of 224
 (i) the president of the tax court has granted leave undersection 135; or
[Subpara. (i) substituted by s. 54 of Act 39/2013 w.e.f. 1 October 2012]

(ii) the appeal was heard by the tax court constituted undersection 118(5).

134. Notice of intention to appeal tax court decision

(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 after the date of the notice by the 'registrar' notifying the parties of
the tax court's decision under section 131, or within a further period as the president of the tax court may on good
cause shown allow, lodge with the 'registrar' and serve upon the opposite party or the opposite party's legal
practitioner or agent, a notice of intention to appeal against the decision.
[Subs. (1) substituted by s. 36 of Act 33/2019 w.e.f. 15 January 2020]

(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 the findings of fact or rulings of law to be appealed against; and

(c) whether the appellant requires a transcript of the evidence given at the tax court's hearing of the case in
order to prepare the record on appeal (or if only a 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 prescribed by 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.

135. Leave to appeal to Supreme Court of Appeal against tax court decision

(1) If an intending appellant wishes to appeal against a decision of the tax court to the Supreme Court of Appeal, the
'registrar' must submit the notice of intention to appeal lodged under section 134(1) to the president of the tax
court, who must make an order granting or refusing leave to appeal having regard to the grounds of the intended
appeal as indicated in the notice.
[Subs. (1) substituted by s. 62 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(2) If the president of the tax court cannot act in that capacity or it is inconvenient for the president to act in that
capacity for purposes of this section, the Judge-President of the relevant Division of the High Court may nominate
and second another judge or acting judge to act as president of the tax court for that purpose.

(3) Subject to leave to appeal to the Supreme Court of Appeal in terms ofsection 17 of the Superior Courts Act,
2013 (Act No. 10 of 2013), an order made by the president of the tax court under subsection (1) is final.
[Subs. (3) substituted by s. 54 of Act 23/2015 w.e.f. 8 January 2016]

136. Failure to lodge notice of intention to appeal tax court decision

(1) A person entitled to appeal against a decision of the tax court, who has not lodged a notice of intention to appeal
within the time and in the manner required by section 134, abandons, subject to any right to note a cross appeal,
the right of appeal against the decision.

(2) A person who under section 134 lodged a notice of intention to appeal against a decision of the tax court but who
has subsequently withdrawn the notice, abandons the right to note an appeal or cross-appeal against the
decision.

137. Notice by registrar of period for appeal of tax court decision

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 68 of 224
 (1) After the expiry of the time allowed undersection 134(1) for the lodging of a notice of intention to appeal, the
'registrar' must-

(a) give notice to a person who has lodged a notice of intention to appeal which has not been withdrawn, that if
the person decides to appeal, the appeal must be 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 certified copy of an order that the president of the tax
court made under section 135 which is the subject of the intended appeal.

(2) The 'registrar' may not give notice under subsection (1)(a) until the order has been made 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 of the 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 referred to in subsection (1)(a) and (b).

138. Notice of appeal to Supreme Court of Appeal against tax court decision

(1) If a person has-

(a) appealed to the Supreme Court of Appeal from a court established undersection 118(5);

(b) been granted leave to appeal to the Supreme Court of Appeal undersection 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 be noted to that Court.

(2) If the notice of intention to appeal was noted to the High Court or leave to appeal to the Supreme Court of Appeal
has been refused under section 135, the party who lodged the notice of intention to appeal must note an appeal
to the appropriate Provincial Division of the High Court.

(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 the court to which the appeal is noted.

(4) A notice of appeal must be in accordance with the requirements in the rules of the relevant higher court.

139. Notice of cross-appeal of tax court decision

(1) A cross-appeal against a decision of the tax court in a case in which an appeal has been lodged undersection
138, must be noted by lodging a written notice of cross-appeal with the 'registrar', serving it upon the opposite
party or the opposite party's legal practitioner and lodging it with the registrar of the court to which the cross-
appeal is noted.
[Subs. (1) substituted by s. 37 of Act 33/2019 w.e.f. 15 January 2020]

(2) The notice of cross-appeal must be lodged within 21 business days after the date the appeal is noted under
section 138 or within a longer period as may be allowed under the 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 findings 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.

140. Record of appeal of tax court decision

(1) The record lodged with a court to which an appeal against a decision of a tax court is noted, includes all
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 69 of 224
 documents placed before the tax court under the 'rules'.

(2) Documents submitted in the tax court which do not relate to the matters in dispute in the appeal may be excluded
from the record with the consent of the parties.

141. Abandonment of judgment

(1) A party may, by notice in writing, lodged with the 'registrar' and the opposite party or the opposite party's legal
practitioner or agent, abandon the whole or a part of a judgment in the party's favour.
[Subs. (1) substituted by s. 38 of Act 33/2019 w.e.f. 15 January 2020]

(2) A notice of abandonment becomes part of the record.

Part F

Settlement of dispute

142. Definitions

In this Part, unless the context indicates otherwise, the following terms, if in single quotation marks, have the following
meanings:

'dispute' means a disagreement on the interpretation of either the relevant facts involved or the law applicable thereto,
or of both the facts and the law, which arises pursuant to the issue of an assessment or the making of a 'decision'; and

'settle' means to resolve a 'dispute' by compromising a disputed liability, otherwise than by way of either SARS or the
person concerned accepting the other party's interpretation of the facts or the law applicable to those facts or of both
the facts and the law, and 'settlement' must be construed accordingly.
[Definition of “settle” substituted by s. 63 of Act 21/2012 deemed to have come into operation on 1 October 2012]

143. Purpose of Part

(1) A basic principle in tax law is that it is the duty of SARS to assess and collect tax according to the laws enacted
by Parliament and not to forgo a tax which is properly chargeable and payable.

(2) Circumstances may require that the strictness and rigidity of this basic principle be tempered, if such flexibility is
to the best advantage of the State.

(3) The purpose of this Part is to prescribe the circumstances in which it is appropriate for SARS to temper the basic
principle and 'settle' a 'dispute'.

144. Initiation of settlement procedure

(1) Either party to a 'dispute' may initiate a 'settlement' procedure by communication with the other party.

(2) Neither SARS nor the taxpayer has the right to require the other party to engage in a 'settlement' procedure.

145. Circumstances where settlement is inappropriate

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 departure from the law or practice; or

(iii) the person concerned has not complied with the provisions of a tax Act and the non-compliance is of a
serious nature;

(b) it is in the public interest to have judicial clarification of the issue and the case is appropriate for this purpose; or

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 70 of 224
 (c) the pursuit of the matter through the courts will significantly promote taxpayer compliance with a tax Act and the
case is suitable for this purpose.

146. Circumstances where settlement is appropriate

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 person concerned and to SARS, having regard to-

(a) whether the 'settlement' would be in the interest of good management of the tax system, overall fairness, and the
best use of SARS' resources;

(b) SARS' cost of litigation in comparison to the possible benefits with reference to the prospects of success in court;
[Para. (b) substituted by s. 55 of Act 23/2015 w.e.f. 8 January 2016]

(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 for resolution through the alternative
'dispute' resolution procedures or the courts;

(d) a situation in which a participant or a group of participants in a tax avoidance arrangement has accepted SARS'
position in the 'dispute', in which case the 'settlement' may be negotiated in an appropriate manner required to
unwind existing structures and arrangements; or

(e) whether 'settlement' of the 'dispute' is a cost-effective way to promote compliance with a tax Act by the person
concerned or a group of taxpayers.

147. Procedure for settlement

(1) A person participating in a 'settlement' procedure must disclose all relevant facts during the discussion phase of
the process of 'settling' a 'dispute'.

(2) A 'settlement' is conditional upon full disclosure of material facts known to the person concerned at the time of
'settlement'.

(3) A dispute 'settled' in whole or in part must be evidenced by an agreement in writing 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 confidential, unless their disclosure is
authorised by law or SARS and the person concerned agree otherwise.

148. Finality of settlement agreement

(1) The settlement agreement represents the final agreed position between the parties and is in full and final
'settlement' of all or the specified aspects of the 'dispute' in question between the parties.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 71 of 224
 (2) SARS must adhere to the terms of the agreement, unless material facts were not disclosed as required by
section 147(1) or there was fraud or misrepresentation of the facts.

(3) If the person concerned fails to pay the amount due pursuant to the agreement or otherwise 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 the original disputed amount; or

(b) enforce collection of the 'settlement' amount under the collection provisions of this Act in full and final
'settlement' of the 'dispute'.

149. Register of settlements and reporting

(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 the Auditor-General and to the Minister.

(3) The summary referred to in subsection (2) must be submitted by no later than the date on which the annual
report for SARS is submitted to Parliament for the year and must-

(a) be in a format which, subject tosection 70(6), does not disclose the identity of the person concerned; and

[Para. (a) substituted by s. 21 of Act 21/2021 w.e.f. 19 January 2022]

(b) contain details, arranged by main classes of taxpayers or sections of the public, of the number of
'settlements', the amount of tax forgone, and the estimated savings in litigation costs.

150. Alteration of assessment or decision on settlement

(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 contrary contained 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 to objection and appeal.

CHAPTER 10

TAX LIABILITY AND PAYMENT

Part A

Taxpayers

151. Taxpayer

In this Act, taxpayer means-

(a) a person who is or may be chargeable to tax or with a tax offence;

[Para. (a) substituted by s. 59 of Act 16/2016 w.e.f. 1 October 2012]

(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.

152. Person chargeable to tax

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 72 of 224
 A person chargeable to tax is a person upon whom the liability for tax due under a tax Act is imposed and who is
personally liable for the tax.

153. Representative taxpayer

(1) In this Act, a representative taxpayer means a person who is responsible for paying 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 theFourth 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 a public officer of a company)
under a tax Act, must notify SARS accordingly in such form as the Commissioner may prescribe, within 21
business days after becoming or ceasing to be a representative taxpayer, as the case may be.

(3) A taxpayer is not relieved from any liability, responsibility or duty imposed under a 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.

154. Liability of representative taxpayer

(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 management 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 represented;

(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 specified by a tax Act.

(2) A representative taxpayer may be assessed in respect of any tax under subsection (1), but such assessment is
regarded as made upon the representative taxpayer in such capacity only.

155. Personal liability of representative taxpayer

A representative taxpayer is personally liable for tax payable in the representative taxpayer's representative capacity,
if, while it remains unpaid-

(a) the representative taxpayer alienates, charges or disposes of amounts in respect of which the tax is chargeable;
or

(b) the representative taxpayer disposes of or parts with funds or moneys, which are in the representative taxpayer's
possession or come to the representative taxpayer after the tax is payable, if the tax could legally have been paid
from or out of the funds or moneys.

156. Withholding agent

In this Act, withholding agent means a person who must under a tax Act withhold an amount of tax and pay it to SARS.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 73 of 224
157. Personal liability of withholding agent

(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 or her liability under the relevant tax Act.

158. Responsible third party

In this Act, responsible third party means a person who becomes otherwise liable for the tax liability of another person,
other than as a representative taxpayer or as a withholding agent, whether in a personal or representative capacity.

159. Personal liability of responsible third party

A responsible third party is personally liable to the extent described inPart D of Chapter 11.

160. Taxpayer's right to recovery

[Heading of s. 160 substituted by s. 27 of Act 13/2017 w.e.f. 18 December 2017]

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

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

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

(2) Unless otherwise provided for in a tax Act, a taxpayer in respect of whom an amount has been paid to SARS by
a withholding agent under a tax Act or by a responsible third party under section 179, is not entitled to recover
from the withholding agent or responsible third party the amount so paid but is entitled to recover the amount of
an unlawful or erroneous payment from SARS.
[Subs. (2) substituted by s. 55 of Act 39/2013 w.e.f. 1 October 2012]

161. Security by taxpayer

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

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

(b) has been convicted of a tax offence;

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

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

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

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

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

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

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 74 of 224
 (a) be collected as if it were an outstanding tax debt of the taxpayer recoverable under this Act; or
[Para. (a) substituted by s. 56 of Act 39/2013 w.e.f. 1 October 2012]

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

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

Part B

Payment of tax

162. Determination of time and manner of payment of tax

(1) Tax must be paid by the day and at the place notified by SARS, the Commissioner by public notice or as
specified in a tax Act, and must be paid as a single amount or in terms of an instalment payment agreement under
section 167.
[Subs. (1) substituted by s. 49 of Act 44/2014 w.e.f. 1 October 2012]

(2) The Commissioner may by public notice prescribe the method of payment of tax, including electronically.
[Subs. (2) substituted by s. 49 of Act 44/2014 w.e.f. 1 October 2012]

(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 deems appropriate under the circumstances; or

(ii) provide such security as the official deems necessary.

163. Preservation order

(1) A senior SARS official may, in order to prevent any realisable assets from being disposed of or removed which
may frustrate the collection of the full amount of tax that is due or payable or the official on reasonable grounds is
satisfied may be due or payable, authorise an ex parte application to the High Court for an order for the
preservation of any assets of a taxpayer or other person prohibiting any person, subject to the conditions and
exceptions as may be specified in the preservation order, from dealing in any manner with the assets to which the
order relates.
[Subs. (1) substituted by s. 57 of Act 39/2013 w.e.f. 1 October 2012]

(2)
(a) SARS may, in anticipation of the application under subsection (1) seize the assets pending the outcome of
an application for a preservation order, which application must commence within 24 hours from the time of
seizure of the assets or the further period that SARS and the taxpayer or other person may agree on.
[Para. (a) substituted by s. 57 of Act 39/2013 w.e.f. 1 October 2012]

(b) Until a preservation order is made in respect of the seized assets, SARS must take reasonable steps to
preserve and safeguard the assets including appointing a curator bonis in whom the assets vest.
[Para. (b) substituted by s. 57 of Act 39/2013 w.e.f. 1 October 2012]

(3) A preservation order may be made if required to secure the collection of the tax referred to in subsection (1) and
in respect of-
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 75 of 224
 [Words preceding para. (a) substituted by s. 57 of Act 39/2013 w.e.f. 1 October 2012]

(a) realisable assets seized by SARS under subsection (2);

(b) the realisable assets as may be specified 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 specified 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 the preservation order should not be made final;
[Para. (b) amended by s. 57 of Act 39/2013 w.e.f. 1 October 2012]

(c) upon application by the taxpayer or other person, anticipate the return day for the purpose of discharging
the provisional preservation order if 24 hours' notice of the application has been given to SARS; and
[Para. (c) amended by s. 57 of Act 39/2013 w.e.f. 1 October 2012]

(d) upon application by SARS, confirm the appointment of thecurator bonis under subsection (2)(a) or appoint
a curator bonis in whom the seized assets vest.
[Para. (d) added by s. 57 of Act 39/2013 w.e.f. 1 October 2012]

(5) A preservation order must provide for notice to be given to the taxpayer and a person from whom the assets are
seized.

(6) For purposes of the notice or rule required under subsection (4)(b) or (5), if the taxpayer or other person has
been absent for a period of 21 business days from his or her usual place of residence or business within the
Republic, the court may direct that it will be sufficient service of that notice or rule if a copy thereof is affixed to or
near the outer door of the building where the court sits and published in the Gazette, unless the court directs
some other mode of service.

(7) The court, in granting a preservation order, may make any ancillary orders regarding how the assets must be
dealt with, including-

(a) authorising the seizure of all movable assets;

(b) if not appointed under subsection (4)(d), appointing acurator bonis in whom the assets vest;
[Para. (b) substituted by s. 57 of Act 39/2013 w.e.f. 1 October 2012]

(c) realising the assets in satisfaction of the tax debt;

(d) making provision as the court may think fit for the reasonable living expenses of a person against whom the
preservation order is being made and his or her legal dependants, if the court is satisfied that the person has
disclosed under oath all direct or indirect interests in assets subject to the order and that the person cannot
meet the expenses concerned out of his or her unrestrained assets; or

(e) any other order that the court considers appropriate for the proper, fair and effective execution of the order.

(8) The court making a preservation order may also make such further order in respect of the discovery of any facts
including facts relating to any asset over which the taxpayer or other person may have effective control and the
location of the assets as the court may consider necessary or expedient with a view to achieving the objects of
the preservation order.

(9) The court which made a preservation order may on application by a person affected by that order vary or rescind
the order or an order authorising the seizure of the assets concerned or other ancillary order if it is satisfied that-

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 76 of 224
 (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 the risk that the assets
concerned may be destroyed, lost, damaged, concealed or transferred.

(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 as sets that were not seized under subsection(2) from being disposed of or
removed contrary to a preservation order under this section, a senior SARS official may seize the assets if the
official has reasonable grounds to believe that the assets will be so disposed of or removed.

(12) Assets seized under this section must be dealt with in accordance with the directions of the High Court which
made the relevant preservation order.

164. Payment of tax pending objection or appeal

(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 law pursuant to an appeal
under section 133.

(2) A taxpayer may request a senior SARS official to suspend the payment of tax or a portion thereof due under an
assessment if the taxpayer intends to dispute or disputes the liability to pay that tax under Chapter 9.

(3) A senior SARS official may suspend payment of the disputed tax or a portion thereof having regard to relevant
factors, including-

(a) whether the recovery of the disputed tax will be in jeopardy or there will be a risk of dissipation of assets;

(b) the compliance history of the taxpayer with SARS;

(c) whether fraud is prima facie involved in the origin of the dispute;

(d) whether payment will result in irreparable hardship to the taxpayer not justified by the prejudice to SARS or
the fiscus if the disputed tax is not paid or recovered; or

(e) whether the taxpayer has tendered adequate security for the payment of the disputed tax and accepting it is
in the interest of SARS or the fiscus.
[Subs. (3) amended by s. 58 of Act 39/2013 and substituted by s. 50 of Act 44/2014 w.e.f. 20 January 2015]

(4) If payment of tax was suspended under subsection (3) and subsequently-
[Words preceding para. (a) substituted by s. 58 of Act 39/2013 w.e.f. 1 October 2012]

(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 the relevant prescribed time period
or any extension of the relevant time period under this Act.

(5) A senior SARS official may deny a request in terms of subsection (2) or revoke a decision to suspend payment in

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 77 of 224
 terms of subsection (3) with immediate effect if satisfied that-
[Words preceding para. (a) substituted by s. 58 of Act 39/2013 w.e.f. 1 October 2012]

(a) after the lodging of the objection or appeal, the objection or appeal is frivolous or vexatious;

(b) the taxpayer is employing dilatory tactics in conducting the objection or appeal;

(c) on further consideration of the factors referred to in subsection (3), the suspension 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 payment of the amount involved was based.
[Para (d) substituted by s. 64 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(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 been issued to the taxpayer, no
recovery proceedings may be taken unless SARS has a reasonable belief that there is a risk of dissipation of
assets by the person concerned.

(7) If an assessment or a decision referred to insection 104(2) is altered in accordance with-

(a) an objection or appeal;

(b) a decision of a court of law pursuant to an appeal undersection 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 the prescribed rate, the
interest being calculated from the date that excess was received by SARS to the date the refunded tax is paid,
and amounts short-paid are recoverable with interest calculated as provided in section 187(1).

(8) The provisions of section 191 apply with the necessary changes in respect of an amount refundable and interest
payable by SARS under this section.

Part C

Taxpayer account and allocation of payments

165. Taxpayer account

(1) SARS must maintain one or more taxpayer accounts for each taxpayer.

(2) The taxpayer account must reflect the tax liability in respect of each tax type included in the account.
[Subs. (2) substituted by s. 59 of Act 39/2013 w.e.f. 1 October 2012]

(3) The taxpayer account must record details for all tax periods of-

(a) the tax liability;

[Para. (a) substituted by s. 59 of Act 39/2013 w.e.f. 1 October 2012]

(b) any penalty imposed;

(c) the interest payable on outstanding tax debts;

[Para. (c) substituted by s. 59 of Act 39/2013 w.e.f. 1 October 2012]

(d) the tax liability for any other tax type;

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 78 of 224
 [Para. (d) substituted by s. 59 of Act 39/2013 w.e.f. 1 October 2012]

(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,
reflecting the amounts currently due and the details that SARS considers appropriate.

166. Allocation of payments

(1) Despite anything to the contrary contained in a tax Act, SARS may allocate any payment made in terms of a tax
Act against an amount of penalty or interest or the oldest amount of an outstanding tax debt at the time of the
payment, other than amounts-
[Words preceding para (a) substituted by s. 65 of Act 21/2012 deemed to have come into operation on 1 October 2012 and s. 60 of Act 39/2013 w.e.f. 1
October 2012]

(a) for which payment has been suspended under this Act; or

(b) that are payable in terms of an instalment payment agreement undersection 167.

(2) SARS may apply the first-in-first-out principle described in subsection (1) in respect of a specific tax type or a
group of tax types in the manner that may be prescribed by the Commissioner by public notice.

(3) In the event that a payment in subsection (1) is insufficient to extinguish all tax debts of the same age, the
amount of the payment may be allocated among these tax debts 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 the duration from the date the
debt became payable in terms of the applicable Act.

Part D

Deferral of Payment

167. Instalment payment agreement

(1) A senior SARS official may enter into an agreement with a taxpayer in the prescribed form under which the
taxpayer is allowed to pay a tax debt in one sum or in instalments, within the agreed period if satisfied 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 secure collection of tax.

(3) Except as provided in subsections (4) and (5), the agreement remains in effect for the term of the agreement.

(4) SARS may terminate an instalment payment agreement if the taxpayer fails to pay an instalment or to otherwise
comply with its terms and a payment prior to the termination 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 agreement if satisfied 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 financial condition of the taxpayer has materially changed.

(6) A termination or modification-

(a) referred to in subsection (4) or (5)(a) takes effect as at the date stated in the notice of termination or

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 79 of 224
 modification 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
modification is sent to the taxpayer.

168. Criteria for instalment payment agreement

A senior SARS official may enter into an instalment payment agreement only if-

(a) the taxpayer suffers from a deficiency of assets or liquidity which is reasonably certain to be remedied in the
future;

(b) the taxpayer anticipates income or other receipts which can be used to satisfy the tax debt;

(c) prospects of immediate collection activity are poor or uneconomical but are likely to improve in the future;

(d) collection activity would be harsh in the particular case and the deferral or instalment 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

169. Debt due to SARS

(1) An amount of tax due or payable in terms of a tax Act is a tax debt due to SARS for the benefit of the National
Revenue Fund.

(2) A tax debt is recoverable by SARS under this Chapter, and is recoverable from-
[Words preceding para. (a) substituted by s. 61 of Act 39/2013 w.e.f. 1 October 2012]

(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 the representative taxpayer's possession or under his or
her management or control; or

(b) in any other case, any assets of the taxpayer.

(3) SARS is regarded as the creditor for the purposes of any recovery proceedings related to a tax debt.
[Subs. (3) substituted by s. 61 of Act 39/2013 w.e.f. 1 October 2012]

(4) SARS need not recover a tax debt under this Chapter if the amount thereof is less than R100 or any other
amount that the Commissioner may determine by public notice, but the amount must be carried forward in the
relevant taxpayer account.
[Subs. (4) substituted by s. 61 of Act 39/2013 w.e.f. 1 October 2012]

170. Evidence as to assessment

The production of a document issued by SARS purporting to be a copy of or an extract from an assessment is
conclusive evidence-

(a) of the making of the assessment; and

(b) except in the case of proceedings on appeal instituted under Chapter 9 against the assessment, that all the
particulars of the assessment are correct.
[Para. (b) substituted by s. 20 of Act 22/2018 w.e.f. 17 January 2019]

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 80 of 224
171. Period of limitation on collection of tax

Proceedings for recovery of a tax debt may not be initiated after the expiration of 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 final.

Part B

Judgment procedure

172. Application for civil judgment for recovery of tax

(1) If a person has an outstanding tax debt, SARS may, after giving the person at least 10 business days' notice, file
with the clerk or registrar of a competent court a certified statement setting out the amount of tax payable and
certified by SARS as correct.
[Subs. (1) substituted by s. 62 of Act 39/2013 w.e.f. 1 October 2012]

(2) SARS may file the statement irrespective of whether or not the tax debt is subject to an objection or appeal under
Chapter 9, unless the period referred to in section 164(6) has not expired or the obligation to pay the tax debt has
been suspended under section 164.
[Subs. (2) substituted by s. 62 of Act 39/2013 w.e.f. 1 October 2012]

(3) SARS is not required to give the taxpayer prior notice under subsection (1) if SARS is satisfied that giving notice
would prejudice the collection of the tax.

173. Jurisdiction of Magistrates' Court in judgment procedure

Despite anything to the contrary in the Magistrates' Courts Act, 1944 (Act No. 32 of 1944), the certified statement
referred to in section 172 may be filed with the clerk of the Magistrate's Court that has jurisdiction over the taxpayer
named in the statement.

174. Effect of statement filed with clerk or registrar

A certified statement filed under section 172 must be treated as a civil judgment lawfully given in the relevant court in
favour of SARS for a liquid debt for the amount specified in the statement.

175. Amendment of statement filed with clerk or registrar

(1) SARS may amend the amount of the tax debt specified in the statement filed undersection 172 if, in the opinion
of SARS, the amount in the statement is incorrect.
[Subs. (1) substituted by s. 63 of Act 39/2013 w.e.f. 1 October 2012]

(2) The amendment of the statement is not effective until it is initialled by the clerk or the registrar of the court
concerned.

176. Withdrawal of statement and reinstitution of proceedings

(1) SARS may withdraw a certified statement filed under section 172 by sending a notice of withdrawal to the
relevant clerk or registrar upon which the statement ceases to have effect.

(2) SARS may file a new statement under section 172 setting out an amount of the tax debt included in a withdrawn
statement.
[Subs. (2) substituted by s. 64 of Act 39/2013 w.e.f. 1 October 2012]

(3) If SARS is satisfied that a person has paid the full amount of the tax debt set out in a certified statement filed
under section 172 and has no other outstanding tax debts, SARS must withdraw the statement if requested by the
person in the prescribed form and manner.
[Subs. (3) substituted by s. 64 of Act 39/2013 w.e.f. 1 October 2012]

Part C

Sequestration, liquidation and winding-up proceedings

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 81 of 224
177. Institution of sequestration, liquidation or winding-up proceedings

(1) A senior SARS official may authorise the institution of proceedings for the sequestration, liquidation or winding-
up of a person for an outstanding tax debt.
[Subs. (1) substituted by s. 65 of Act 39/2013 w.e.f. 1 October 2012 and s. 56 of Act 23/2015 w.e.f. 8 January 2016]

(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 underChapter 9 or a further appeal against a decision by the
tax court under section 129, the proceedings may only be instituted with leave of the court before which the
proceedings are brought.

178. Jurisdiction of court in sequestration, liquidation or winding-up proceedings

Despite any law to the contrary, a proceeding referred to insection 177 may be instituted 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 of effective management or a place of business, in the Republic.

Part D

Collection of tax debt from third parties

179. Liability of third party appointed to satisfy tax debts

(1) A senior SARS official may authorise the issue of a notice to a person who holds or owes or will hold or owe any
money, including a pension, salary, wage or other remuneration, for or to a taxpayer, requiring the person to pay
the money to SARS in satisfaction of the taxpayer's outstanding tax debt.
[Subs. (1) substituted by s. 66 of Act 39/2013 w.e.f. 1 October 2012 and s. 57 of Act 23/2015 w.e.f. 8 January 2016]

(2) A person that is unable to comply with a requirement of the notice, must advise the senior SARS official of the
reasons for the inability to comply within the period specified in the notice and the official may withdraw or amend
the notice as is appropriate under the circumstances.

(3) A person receiving the notice must pay the money in accordance with the notice and, if the person parts with the
money contrary to the notice, the person is personally liable for the money.

(4) SARS may, on request by a person affected by the notice, amend the notice to extend the period over which the
amount must be paid to SARS, to allow the taxpayer to pay the basic living expenses of the taxpayer and his or
her dependants.

(5) SARS may only issue the notice referred to in subsection (1) after delivery to the tax debtor of a final demand for
payment which must be delivered at the latest 10 business days before the issue of the notice, which demand
must set out the recovery steps that SARS may take if the tax debt is not paid and the available debt relief
mechanisms under this Act, including, in respect of recovery steps that may be taken under this section-

(a) if the tax debtor is a natural person, that the tax debtor may within five business days of receiving the
demand apply to SARS for a reduction of the amount to be paid to SARS under subsection (1), based on
the basic living expenses of the tax debtor and his or her dependants; and

(b) if the tax debtor is not a natural person, that the tax debtor may within five business days of receiving the
demand apply to SARS for a reduction of the amount to be paid to SARS under subsection (1), based on
serious financial hardship.
[Subs. (5) added by s. 57 of Act 23/2015 w.e.f. 8 January 2016]

(6) SARS need not issue a final demand under subsection (5) if a senior SARS official is satisfied that to do so would
prejudice the collection of the tax debt.
[Subs. (6) added by s. 57 of Act 23/2015 w.e.f. 8 January 2016]

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 82 of 224
180. Liability of financial management for tax debts

A person is personally liable for any outstanding tax debt of the taxpayer to the extent that the person's negligence or
fraud resulted in the failure to pay the tax debt if-
[Words preceding para. (a) substituted by s. 67 of Act 39/2013 w.e.f. 1 October 2012]

(a) the person controls or is regularly involved in the management of the overall financial affairs of a taxpayer; and

(b) a senior SARS official is satisfied that the person is or was negligent or fraudulent in respect of the payment of
the tax debts of the taxpayer.

181. Liability of shareholders for tax debts

(1) This section applies where a company is wound up other than by means of an involuntary liquidation without
having satisfied its outstanding tax debt, including its liability as a responsible third party, withholding agent, or a
representative taxpayer, employer or vendor.
[Subs. (1) substituted by s. 68 of Act 39/2013 w.e.f. 1 October 2012]

(2) The persons who are shareholders of the company within one year prior to its winding up are jointly and severally
liable to pay the tax debt to the extent that-
[Words preceding para. (a) substituted by s. 67 of Act 39/2013 w.e.f. 1 October 2012]

(a) they receive assets of the company in their capacity as shareholders within one year prior to its winding-up;
and

(b) the tax debt existed at the time of the receipt of the assets or would have existed 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 the tax debt of a company under this section may avail themselves of any rights
against SARS as would have been available to the company.
[Subs. (4) substituted by s. 68 of Act 39/2013 w.e.f. 1 October 2012]

(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).

182. Liability of transferee for tax debts

(1) A person (referred to as a transferee) who receives an asset from a taxpayer who is a connected person in
relation to the transferee without consideration or for consideration below the fair market value of the asset is
liable for the outstanding tax debt of the taxpayer.
[Subs. (1) substituted by s. 69 of Act 39/2013 w.e.f 1 October 2012]

(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 a tax Act; and

(b) the fair market value of the asset at the time of the transfer, reduced by the fair market value of any
consideration paid, at the time of payment.

(3) Subsection (1) applies only to an asset received by the transferee within one year before SARS notifies the
transferee of liability under this section.

183. Liability of person assisting in dissipation of assets

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 83 of 224
 If a person knowingly assists in dissipating a taxpayer's assets in order to obstruct the collection of a tax debt of the
taxpayer, the person is jointly and severally liable with the taxpayer for the tax debt to the extent that the person's
assistance reduces the assets available to pay the taxpayer's tax debt.

184. Recovery of tax debts from other persons

(1) SARS has the same powers of recovery against the assets of a person who is personally liable undersection
155, 157 or this Part as SARS has against the assets of the taxpayer and the person has the same rights and
remedies as the taxpayer has against such powers of recovery.

(2) SARS must provide a person referred to in subsection (1) with an opportunity to make representations-

(a) before the person is held liable for the tax debt of the taxpayer in terms ofsection 155, 157, 179, 180, 181,
182 or 183, if this will not place the collection of tax in jeopardy; or

(b) as soon as practical after the person is held liable for the tax debt of the taxpayer in terms ofsection 155,
157, 179, 180, 181, 182 or 183.
[S. 184 substituted by s. 51 of Act 44/2014 w.e.f. 20 January 2015]

Part E

Assisting foreign governments

185. Tax recovery on behalf of foreign governments

(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 or concealment of assets by the person, a senior SARS official
may authorise an application for a preservation order under section 163 as if the amount were a tax payable
by the person under a tax Act; or
[Para. (a) substituted by s. 58 of Act 23/2015 w.e.f. 1 October 2012]

(b) a request for the collection from a person of an amount alleged to be due by the 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
specified in the notice, whether or not the person admits liability for the amount or for a lesser amount.

(2) A request described in subsection (1) must be in the prescribed form and must include a formal certificate issued
by the competent authority of the other country stating-

(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 be due; and

(d) whether there is a risk of dissipation or concealment of assets by the person.

(3) In any proceedings, a certificate 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 certificate described in subsection
(2) or, if necessary, after consultation with the competent authority of the other country, is satisfied that-

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 84 of 224
 (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 or frustrate 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 has admitted liability or
the amount specified, on a date specified, for transmission to the competent authority in the other country.

(5) If the person fails to comply with the notice under subsection (4), SARS may recover the amount in the certificate
for transmission to the foreign authority as if it were a tax payable by the person under a tax Act.

(6) No steps taken in assistance in collection by any other country under an international tax agreement for the
collection of an amount alleged to be due by a person under a tax Act, including a judgment given against a
person in the other country for the amount in pursuance of the agreement, may affect the person's right to have
the liability for the amount determined in the Republic in accordance with the relevant law.

Part F

Remedies with respect to foreign assets

186. Compulsory repatriation of foreign assets of taxpayer

(1) To collect an outstanding tax debt, a senior SARS official may apply for an order referred to in subsection (2), if-
[Words preceding para. (a) substituted by s. 70 of Act 39/2013 w.e.f. 1 October 2012]

(a) the taxpayer concerned does not have sufficient assets located in the Republic to 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 for consideration 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 by the 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 fit.

(4) An order made under subsection (2) applies until the tax debt has been satisfied or the assets have been
repatriated and utilised in satisfaction of the tax debt.

CHAPTER 12

INTEREST

187. General interest rules

(1) If a tax debt or refund payable by SARS is not paid in full by the effective date, interest accrues, and is payable,
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 85 of 224
 on the amount of the outstanding balance of the tax debt or refund-
[Words preceding para. (a) substituted by s. 59(1)(a) of Act 23/2015 w.e.f. 1 October 2012]

(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 and compounded monthly, and the
Commissioner may prescribe by public notice from which date this method of determining interest will apply to a
tax type.

(Commencement date of subs. (2): To be proclaimed)

(2) Interest payable under a tax Act is calculated on-

(a) the daily balance owing; or

(b) the daily balance owing and compounded monthly, which method of determining interest will apply to a tax type
from the date the Commissioner prescribes it by public notice.

[Proposed amendment: Subs. (2) to be substituted by s. 52(1) of Act 44/2014 w.e.f. date of operation of s. 187(2) of Act 28/2011 (Date of operation
substituted by s. 137(1) of Act 23/2015)]

(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;

(Commencement date of para. (a): To be proclaimed)

(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 assessment ending on the last day of February, and six months in any
other case;

(Commencement date of para. (b): To be proclaimed)

(c) estate duty for any period, is the earlier of the date of assessment or 12 months after the date of death;

(Commencement date of para. (c): To be proclaimed)

(d) a fixed amount penalty referred to in section 210, is the date of assessment of the penalty, and in relation to
an increment of the penalty under section 211(2), the date of the increment;
[Para. (d) substituted by s. 66 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(Commencement date of para. (d): To be proclaimed)

(e) a percentage based penalty referred to in section 213, is the date by which tax for the tax period should
have been paid;
[Para. (e) amended by s. 59(1)(b) of Act 23/2015 w.e.f. 8 January 2016]

(Commencement date of para. (e): To be proclaimed)

(f) an understatement penalty, is the effective date for the tax understated;

[Para. (f) amended by s. 59(1)(b) of Act 23/2016 w.e.f. 8 January 2016 and s. 31(a) of Act 24/2020 w.e.f. 20 January 2021]

(g) an outstanding tax debt referred to in section 190(5), is the date of payment of a refund which is not
properly payable under a tax Act; and

[Para. (g) added by s. 59(1)(b) of Act 23/2015 w.e.f. 8 January 2016 and amended by s. 31(b) of Act 24/2020 w.e.f. 20
January 2021]

(h) an erroneous payment referred to in section 190(1)(b), is the date 30 days after the date that the payment
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 86 of 224
 was made.
[Para. (h) added by s. 31(c) of Act 24/2020 w.e.f. 20 January 2021]

(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.

(Commencement date of subs. (4): To be proclaimed)

(5) The effective date in relation to a jeopardy assessment is the date for payment specified in the jeopardy
assessment.

(6) If a senior SARS official is satisfied that interest payable by a taxpayer under subsection (1) is payable as a result
of circumstances beyond the taxpayer's control, the official may, unless prohibited by a tax Act, direct that so
much of the interest as is attributable 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.

(8) SARS may not make a direction that interest is not payable under subsection (6) after the expiry of three years,
in the case of an assessment by SARS, or five years, in the case of self-assessment, from the date of
assessment of the tax in respect of which the interest accrued.
[Subs. (8) added by s. 59(1)(c) of Act 23/2015 w.e.f. 8 January 2016]

188. Period over which interest accrues

(1) Unless otherwise provided in a tax Act, interest payable undersection 187 is imposed 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) first payment of provisional tax, is imposed from the effective date for the first payment of provisional tax
until the earlier of the date on which the payment is made or the effective date for the second payment of
provisional tax;
[Para. (a) amended by s. 32(a) of Act 24/2020 w.e.f. 20 January 2021]

(Commencement date of para. (a): To be proclaimed)

(b) second payment of provisional tax, is imposed from the effective date for the second payment of provisional
tax until the earlier of the date on which the payment is made or the effective date for income tax for the
relevant year of assessment;
[Para. (b) amended by s. 32(b) of Act 24/2020 w.e.f. 20 January 2021]

(Commencement date of para. (b): To be proclaimed)

(c) the first payment under section 5(1) or 5A of the Mineral and Petroleum Resources Royalty (Administration)
Act, 2008 (Act No. 29 of 2008), is imposed from the effective date for the first payment until the earlier of the
date on which the payment is made or the effective date for the second payment under section 5(2) or 5A of
that Act for the relevant year of assessment; and
[Para. (c) added by s. 32(c) of Act 24/2020 w.e.f. 20 January 2021]

(Commencement date of para. (c): To be proclaimed)

(d) the second payment under section 5(2) or 5A of the Mineral and Petroleum Resources Royalty
(Administration) Act, 2008 (Act No. 29 of 2008), is imposed from the effective date for the second payment until
the earlier of the date on which the payment is made or the effective date for mineral and petroleum resources
royalty under section 6(2) of that Act for the relevant year of assessment.

[Para. (d) added by s. 32(c) of Act 24/2020 w.e.f. 20 January 2021]

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 87 of 224
 (Commencement date of para. (d): To be proclaimed)

(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 the date 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 date of payment of the refund.

(Commencement date of subs. (3): To be proclaimed)

189. Rate at which interest is charged

(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 for
purposes of final assessment of income tax or of mineral and petroleum resources royalty paid for the relevant
year of assessment, the rate payable by SARS is four percentage points below the prescribed rate.
[Subs. (2) substituted by s. 33 of Act 24/2020 w.e.f. 20 January 2021]

(Commencement date of subs. (2): To be proclaimed)

(3) The prescribed rate is the interest rate that the Minister may from time to time fix by notice in theGazette under
section 80(1)(b) of the Public Finance Management Act, 1999 (Act No. 1 of 1999).

(4) If the Minister fixes a different interest rate referred to in subsection (3) the new rate comes into operation on the
first day of the second month following the month in which the new rate becomes effective for purposes of the
Public Finance Management Act, 1999.

(5) If interest is payable under this Chapter and the rate at which the interest is payable has with effect from any date
been altered, and the interest is payable in respect of any period or portion thereof which commenced before the
said date, the interest to be determined in respect of-

(a) the period or portion thereof which ended immediately before the said date; or

(b) the portion of the period which was completed before the said date,must be calculated as if the rate had
not been altered.

[Subs. (5) substituted by s. 67 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(Commencement date of subs. (5): To be proclaimed)

CHAPTER 13

REFUNDS

190. Refunds of excess payments

(1) SARS must pay a refund if a person is entitled to a refund, including interest thereon undersection 188(3)(a), of-
[Words preceding para. (a) substituted by s. 60 of Act 23/2015 w.e.f. 1 October 2012]

(a) an amount properly refundable under a tax Act and if so reflected 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 verification, inspection,
audit or criminal investigation of the refund in accordance with Chapter 5 has been finalised.
[Subs. (2) substituted by s. 34 of Act 24/2020 w.e.f. 20 January 2021]

(3) SARS must authorise the payment of a refund before the finalisation of the verification, inspection, audit or
criminal investigation if security in a form acceptable to a senior SARS official is provided by the taxpayer.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 88 of 224
 [Subs. (3) substituted by s. 34 of Act 24/2020 w.e.f. 20 January 2021]

(4) An amount under subsection (1)(b) is regarded as a payment to the National Revenue Fund unless a refund is
made in the case of-

(a) an assessment by SARS, within three years from the later of the date of the assessment or the erroneous
payment;
[Para. (a) amended by s. 21 of Act 22/2018 w.e.f. 17 January 2019]

(b) self-assessment, within five years from the later of the date the return had to be submitted or, if no return is
required, payment had to be made in terms of the relevant tax Act or the erroneous payment was made; or
[Para. (b) amended by s. 21 of Act 22/2018 w.e.f. 17 January 2019]

(c) an erroneous payment claimed by a taxpayer within the period referred to in paragraph (a) or (b), but not
paid by SARS within the period.
[Para. (c) added by s. 21 of Act 22/2018 w.e.f. 17 January 2019]

[Subs. (4) substituted by s. 53 of Act 44/2014 w.e.f. 1 October 2012 and s. 60 of Act 23/2015 w.e.f. 8 January 2016]

(5) If SARS pays to a person by way of a refund any amount which is not properly payable to the person under a tax
Act, the amount, including interest thereon under section 187(1), is regarded as an outstanding tax debt from the
date on which it is paid to the person.
[Subs. (5) substituted by s. 71 of Act 39/2013 w.e.f. 1 October 2012 and by s. 60 of Act 23/2015 w.e.f. 1 October 2012]

(5A) If a person who carries on the 'business of a bank' as defined in the Banks Act, 1990 (Act No. 94 of 1990), holds
an account on behalf of a client into which an amount referred to in subsection (5) is deposited, reasonably
suspects that the payment of the amount is related to a tax offence, the person must immediately report the
suspicion to SARS in the prescribed form and manner and not proceed with the carrying out of any transaction in
respect of the amount for a period not exceeding two business days unless-

(a) SARS or a High Court directs otherwise; or

(b) SARS issues a notice under section 179.

[Subs. (5A) inserted by s. 60 of Act 23/2015 and substituted by s. 28 of Act 13/2017 w.e.f. 18 December 2017]

[Subs. (5A) inserted by s. 60 of Act 23/2015 w.e.f. 8 January 2016]

(6) A decision not to authorise a refund under subsection (1)(b) is subject to objection and appeal.
[Subs. (6) substituted by s. 60 of Act 23/2015 w.e.f. 8 January 2016]

191. Refunds subject to set-off and deferral

(1) An amount refundable under section 190, including interest thereon under section 188(3)(a), must be treated as a
payment by the taxpayer that is recorded in the taxpayer's account under section 165, of an outstanding tax debt,
if any, and any remaining amount must be set off against any outstanding debt under customs and excise
legislation.
[Subs. (1) substituted by s. 61 of Act 23/2015 and s. 39 of Act 33/2019 w.e.f. 15 January 2020]

(2) Subsection (1) does not apply to a tax debt-

(a) for which the period referred to in section 164(6) has not expired or suspension of payment undersection
164 exists; or
[Para. (a) substituted by s. 72 of Act 39/2013 w.e.f. 1 October 2012]

(b) in respect of which an instalment payment agreement undersection 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 carried forward in the taxpayer account.

CHAPTER 14
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 89 of 224
 WRITE OFF OR COMPROMISE OF TAX DEBTS

Part A

General provisions

192. Definitions

In this Chapter, unless the context indicates otherwise, the following terms, if in single quotation marks, have the
following meanings:

'asset' ..........
[Definition of “asset” deleted by s. 68 of Act 21/2012 deemed to have come into operation on 1 October 2012]

'Companies Act' means the Companies Act, 2008 (Act No. 71 of 2008);

'compromise' means an agreement entered into between SARS and a 'debtor' in respect of a tax debt in terms of
which-
[Words preceding para. (a) substituted by s. 73 of Act 39/2013 w.e.f. 1 October 2012]

(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 referred to in paragraph (a) and any further conditions as may be imposed by
SARS;

'debtor' means a taxpayer with a tax debt; and

[Definition of “debtor” substituted by s. 73 of Act 39/2013 w.e.f. 1 October 2012]

'write off' means to reverse an outstanding tax debt either in whole or in part.
[Definition of “write off” substituted by s. 73 of Act 39/2013 w.e.f. 1 October 2012]

193. Purpose of Chapter

(1) As a general rule, it is the duty of SARS to assess and collect all tax debts according to a tax Act and not to forgo
any tax debts.

(2) SARS may, when required by circumstances, deviate from the strictness and rigidity of the general rule referred
to in subsection (1) if it would be to the best advantage of the State.

(3) The purpose of this Chapter is to prescribe the circumstances under which SARS may deviate from the general
rule and take a decision to 'write off' a tax debt or not to pursue its collection.

194. Application of Chapter

Parts C and D of this Chapter apply only in respect of a tax debt owed by a 'debtor' if the liability to pay the tax debt is
not disputed under Chapter 9 by the 'debtor'.
[S. 194 substituted by s. 54 of Act 44/2014 and s. 60 of Act 16/2016 w.e.f. 1 October 2012]

Part B

Temporary write off of tax debt

195. Temporary write off of tax debt

(1) A senior SARS official may decide to temporarily“write off” an amount of tax debt-

(a) if satisfied that the tax debt is uneconomical to pursue as described insection 196 at that time; or

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 90 of 224
 (b) for the duration of the period that the“debtor” is subject to business rescue proceedings under Chapter 6
of the “Companies Act”, as referred to in section 132 of that Act.
[Subs. (1) substituted by s. 55 of Act 44/2014 w.e.f. 1 October 2012]

(2) A decision by the senior SARS official to temporarily 'write off' an amount of tax debt 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 satisfied that
the tax debt is no longer uneconomical to pursue as referred to in section 196 and that the decision to temporarily
'write off' would jeopardise the general tax collection effort.

196. Tax debt uneconomical to pursue

(1) A tax debt is uneconomical to pursue if a senior SARS official is satisfied that the total cost of recovery of that tax
debt will in all likelihood exceed the anticipated amount to be recovered in respect of the outstanding tax debt.

(2) In determining whether the cost of recovery is likely to exceed the anticipated amount to be recovered as
referred to in subsection (1), a senior SARS official must have regard 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';

(d) the likely costs of continuing action to recover the tax debt and the anticipated return from that action,
including the likely recovery of costs that may be awarded to SARS;

(e) the financial position of the 'debtor', including that 'debtor's' assets and liabilities, cash flow, and possible
future income streams; and

(f) any other information available with regard to the recoverability of the tax debt.

Part C

Permanent write off of tax debt

197. Permanent write off of tax debt

(1) A senior SARS official may authorise the permanent 'write off' of an amount of tax debt-

(a) to the extent satisfied 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'.

198. Tax debt irrecoverable at law

(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 no further dividend is to be paid or a final dividend has been
paid to the creditors of 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 not enforceable in terms of section 154 of that Act.

(2) A tax debt is not irrecoverable at law if SARS has not first explored action against or recovery from the assets of
the persons who may be liable for the debt under Part D of Chapter 11.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 91 of 224
199. Procedure for writing off tax debt

(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 inPart D of Chapter 6 of the 'Companies Act' or
'compromise' made to creditors under section 155 of the 'Companies Act' a senior SARS official must, in addition
to considering the information as referred to in section 150 or 155 of that Act, take into account the information
and aspects covered in the provisions of sections 200, 201(1), 202 and 203 with the necessary changes.

Part D

Compromise of tax debt

200. Compromise of tax debt

A senior SARS official may authorise the 'compromise' of a portion of a tax debt upon 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 the recovery of the tax debt; and

(b) the 'compromise' is consistent with considerations of good management of the tax system and administrative
efficiency.

201. Request by debtor for compromise of tax debt

(1) A request by a 'debtor' for a tax debt to be 'compromised' must be signed by the 'debtor' and be supported by a
detailed statement setting out-

(a) the assets and liabilities of the 'debtor' reflecting their current fair market value;

(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 such longer period as a senior
SARS official deems appropriate, together with their value, the consideration received or accrued, the
identity of the person who acquired the assets and the relationship between the 'debtor' and the person who
acquired the assets, if any;

(d) the 'debtor's' future interests in any assets, whether certain or contingent or subject to the exercise of a
discretionary power by another person;

(e) the assets over which the 'debtor', either alone or with other persons, has a direct or indirect power of
appointment or disposal, whether as trustee or otherwise;

(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' financial 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.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 92 of 224
 (4) A senior SARS official may require that the application be supplemented by such further information as may be
required.

202. Consideration of request to compromise tax debt

(1) In considering a request for a 'compromise', a senior SARS official must have 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 benefits, such as carryovers of losses, deductions, credits and rebates.

(2) In determining the position without the 'compromise', a senior SARS official must have regard to-

(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 income or assets that may otherwise accrue to or be acquired by the
'debtor' or a connected 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'.

203. Circumstances where not appropriate to compromise tax debt

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' an amount of tax debt within the period of
three years immediately before the request for the 'compromise';

(b) the tax affairs of the 'debtor' (other than the outstanding tax debt) are not up to date;

(c) another creditor has communicated its intention to initiate or has initiated liquidation or sequestration
proceedings;

(d) the 'compromise' will prejudice other creditors (unless the affected creditors consent to the 'compromise') or if
other creditors will be placed in a position of 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 first explored action against or recovery from the personal
assets of the persons who may be liable for the debt under Part D of Chapter 11.

204. Procedure for compromise of tax debt

(1) To 'compromise' a tax debt, a senior SARS official and the 'debtor' must sign an 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

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 93 of 224
 (c) give up specified existing or future tax benefits, such as carryovers of losses, deductions, credits and
rebates.

205. SARS not bound by compromise of tax debt

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 'compromise' relates;

(c) the 'debtor' fails to comply with a provision or condition contained in the agreement referred to insection 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 agreement referred to in section 204.

Part E

Records and reporting

206. Register of tax debts written off or compromised

(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.

207. Reporting by Commissioner of tax debts written off or compromised

(1) The amount of tax debts 'written off' or 'compromised' during a financial year must be disclosed in the annual
financial statements of SARS relating to administered revenue for that year.

(2) The Commissioner must on an annual basis provide to the Auditor-General and to the Minister a summary of the
tax debts which were 'written off' or 'compromised' in whole or in part during the period covered by the summary,
which must-

(a) be in a format which, subject tosection 70(5), does not disclose the identity of the 'debtor' concerned;

(b) be submitted within 60 business days following the end of the fiscal year; and
[Para. (b) substituted by s. 56 of Act 44/2014 w.e.f. 1 October 2012]

(c) contain details of the number of tax debts“written off” or “compromised” and the amount of revenue
forgone, which must be reflected in respect of main classes of taxpayers or sections of the public.
[Para. (c) substituted by s. 56 of Act 44/2014 w.e.f. 1 October 2012]

[Chapter 14 amended by the deletion of single quotes from the word 'asset' by s. 69 of Act 21/2012 deemed to have come into operation on 1 October
2012]

CHAPTER 15

ADMINISTRATIVE NON-COMPLIANCE PENALTIES

Part A

General

208. Definitions

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 94 of 224
 In this Chapter, unless the context indicates otherwise, the following terms, if in single quotation marks, have the
following meanings:

“administrative non-compliance penalty” or “penalty” means a “penalty” imposed by SARS in accordance with
this Chapter or a tax Act other than this Act, and excludes an understatement penalty referred to in Chapter 16;
[Definition of “administrative non-compliance penalty” or “penalty” substituted by s. 57 of Act 44/2014 w.e.f. 1 October 2012]

'first incidence' means an incidence of non-compliance by a person if no 'penalty assessment' 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 definition a 'penalty assessment' that was fully remitted under 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 of assessment during which a 'penalty'
is assessed;

'remittance request' means a request for remittance of a 'penalty' submitted in accordance withsection 215.

209. Purpose of Chapter

The purpose of this Chapter is to ensure-

(a) the widest possible compliance with the provisions of a tax Act and the effective administration of tax Acts; and

(b) that an 'administrative non-compliance penalty' is imposed impartially, consistently, and proportionately to the
seriousness and duration of the non-compliance.

Part B

Fixed amount penalties

210. Non-compliance subject to penalty

(1) If SARS is satisfied that non-compliance by a person referred to in subsection (2) exists, SARS must impose the
appropriate 'penalty' in accordance with the Table in section 211.

(2) Non-compliance is failure to comply with an obligation that is imposed by or under a tax Act and is listed in a
public notice issued by the Commissioner, other than-

(a) the failure to pay tax subject to a percentage based penalty under Part C;

(b) non-compliance in respect of which an understatement penalty underChapter 16 has been imposed; or

(c) the failure to disclose information subject to a reportable arrangement or mandatory disclosure penalty
under section 212.
[Para. (c) substituted by s. 40 of Act 33/2019 w.e.f. 15 January 2020]

[S. 210 substituted by s. 70 of Act 21/2012 deemed to have come into operation on 1 October 2012]

211. Fixed amount penalty table

(1) For the non-compliance referred to in section 210, SARS must impose a 'penalty' in accordance with the
following Table:

Table: Amount of Administrative Non-Compliance Penalty

1 2 3
Item Assessed loss or taxable income for 'preceding year' 'Penalty'

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 95 of 224
 (i) Assessed loss R250
(ii) R0-R250 000 R250
(iii) R250 001-R500 000 R500
(iv) R500 001-R1 000 000 R1 000
(v) R1 000 001-R5 000 000 R2 000
(vi) R5 000 001-R10 000 000 R4 000
(vii) R10 000 001-R50 000 000 R8 000
(viii) Above R50 000 000 R16 000

(2) The amount of the 'penalty' in column 3 will increase automatically by the same amount for each month, or part
thereof, that the person fails to remedy the non-compliance within one month after-

(a) the date of assessment of the penalty, if SARS is in possession of the current address of the person and is
able to deliver the assessment, but limited to 35 months after the date of assessmeny; or
[Para. (a) substituted by s. 71 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(b) the date of the non-compliance if SARS is not in possession of the current address of the person and is
unable to deliver the 'penalty assessment', but limited to 47 months after the date of non-compliance.

(3) The following persons, except those falling under item (viii) of the Table or those that did not trade during the
year of assessment, are treated as falling under item (vii) of the Table:

(a) a company listed on a recognised stock exchange as referred to in paragraph 1 of the Eighth Schedule to
the Income Tax Act;

(b) a company whose gross receipts or accruals for the 'preceding year' exceed R500 million;

(c) a company that forms part of a “group of companies” as defined insection 1 of the Income Tax Act, which
group includes a company described in item (a) or (b);or

(d) a person or entity, exempt from income tax under the Income Tax Act but liable to tax under another tax
Act, whose gross receipts or accruals exceed R30 million.

(4) SARS may, except in the case of persons referred to in subsection (3)(a) to (c),if the taxable income of the
relevant person for the 'preceding year' is unknown or that person 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 person in respect of whom a
'penalty' was imposed under subsection (4), it appears that the person falls within another item in column 1 of the
Table, the 'penalty' must be adjusted in accordance with the applicable item in that column with effect from the
date of the imposition of the 'penalty' issued under subsection (4).

212. Reportable arrangement and mandatory disclosure penalty

(1) A person referred to in-

(a) paragraph (a) or (b) of the definition of 'participant' insection 34, who fails to disclose the information in
respect of a 'reportable arrangement', as required by section 37; or

(b) the definition of intermediary in the regulations, issued in respect of paragraph (a) of the definition of
''international tax standard'', who fails to disclose the information required to be disclosed under the regulations,

is liable to a 'penalty', for each month that the failure continues (up to 12 months), in the amount of-

(i) R50 000, in the case of a 'participant' or intermediary, as the case may be, other than the 'promoter'; or

(ii) R100 000, in the case of the 'promoter'.

(2) The amount of 'penalty' determined under subsection (1) is doubled if the amount of anticipated 'tax benefit', as

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 96 of 224
 defined in section 34, for the 'participant' by reason of the arrangement (within the meaning ofsection 35) exceeds R5
000 000, and is tripled if the benefit exceeds R10 000 000.

(3) A person referred to in paragraph (c) of the definition of 'participant' in section 34, who fails to
disclose the information in respect of a 'reportable arrangement' as required by section 37 is liable to
a 'penalty' in the amount of R50 000.
[S. 212 amended by s. 62 of Act 23/2015 and substituted by s. 41 of Act 33/2019 w.e.f. 15 January 2020]

Part C

Percentage based penalty

213. Imposition of percentage based penalty

(1) If SARS is satisfied that an amount of tax was not paid as and when required under a tax Act, SARS must, in
addition to any other “penalty” or interest for which a person may be liable, impose a “penalty” equal to the
percentage of the amount of unpaid tax as prescribed in the tax Act.
[Subs. (1) substituted by s. 63 of Act 23/2015 w.e.f. 1 October 2012]

(2) In the event of a change to the amount of tax in respect of which a 'penalty' was imposed under subsection (1),
the 'penalty' must be adjusted accordingly with effect from the date of the imposition of the 'penalty'.

Part D

Procedure

214. Procedures for imposing penalty

(1) A 'penalty' imposed under Part B or C is imposed by way of a 'penalty assessment', and if a 'penalty assessment'
is made, SARS must give notice of the assessment 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 its duration;

(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

(b) where the 'penalty assessment' is made together with an assessment of tax, on or before the deadline for
payment stated in the notice of the assessment for tax.

(3) SARS must give the taxpayer notice of an adjustment to the 'penalty' in accordance withsection 211(2) or
213(2).

215. Procedure to request remittance of penalty

(1) A person who is aggrieved by a 'penalty assessment' notice may, on or before the 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

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 97 of 224
 (b) the supporting documents and information as may be required by SARS in the prescribed form.

(3) During the period commencing on the day that SARS receives the 'remittance request', and ending 21 business
days after notice has been given of SARS' decision, no collection steps relating to the 'penalty' amount may be
taken unless SARS has a reasonable 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 satisfied that-

(a) the non-compliance in issue is an incidence of non-compliance referred to insection 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 of submitting a timely request.

(5) If a tax Act other than this Act provides for remittance grounds for a“penalty”, SARS may despite the provisions
of section 216, 217 or 218 remit the “penalty” or a portion thereof under such grounds.
[Subs. (5) added by s. 58 of Act 44/2014 w.e.f. 1 October 2012]

Part E

Remedies

216. Remittance of penalty for failure to register

If a 'penalty' is imposed on a person for a failure to register as and when required under this Act, SARS may remit the
'penalty' in whole or in part if-

(a) the failure to register was discovered because the person approached SARS voluntarily; and

(b) the person has filed all returns required under a tax Act.

217. Remittance of penalty for nominal or first incidence of non-compliance

(1) If a 'penalty' has been imposed in respect of-

(a) a 'first incidence' of non-compliance; or

[Para. (a) substituted by s. 72(a) of Act 21/2012 deemed to have come into operation on 1 October 2012]

(b) an incidence of non-compliance described in section 210 if the duration of the non-compliance is less than
five 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 is satisfied 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 undersection 212, the R2 000 limit referred to in subsection (1) is changed to
R100 000.

(3) If a 'penalty' has been imposed under section 213, SARS may remit the 'penalty', or a portion thereof, if SARS is
satisfied that-

(a) the 'penalty' has been imposed in respect of a 'first incidence' of non-compliance, or involved an amount of
less than R2 000;

(b) reasonable grounds for the non-compliance exist; and

(c) the non-compliance in issue has been remedied.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 98 of 224
 [Subs. (3) substituted by s. 72(b) of Act 21/2012 deemed to have come into operation on 1 October 2012]

218. Remittance of penalty in exceptional circumstances

(1) SARS must, upon receipt of a 'remittance request', remit the 'penalty' or if applicable a portion thereof, if SARS is
satisfied that one or more of the circumstances referred to in subsection (2) rendered the person on whom the
'penalty' was imposed incapable 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 media release 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 financial 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 are jeopardised; or

(g) any other circumstance of analogous seriousness.

219. Penalty incorrectly assessed

If SARS is satisfied that a 'penalty' was not assessed in accordance with this Chapter, SARS may, within three years of
the 'penalty assessment', issue an altered assessment accordingly.

220. Objection and appeal against decision not to remit penalty

A decision by SARS not to remit a 'penalty' in whole or in part is subject to objection and appeal underChapter 9.

CHAPTER 16

UNDERSTATEMENT PENALTY

Part A

Imposition of understatement penalty

221. Definitions

In this Chapter, unless the context indicates otherwise, the following terms, if in single quotation marks, have the
following meanings:

“impermissible avoidance arrangement” means an arrangement in respect of which Part IIA of Chapter III of the
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 99 of 224
 Income Tax Act is applied and includes, for purposes of this Chapter, any transaction, operation, scheme or agreement
in respect of which section 73 of the Value-Added Tax Act or any other general anti-avoidance provision under a tax
Act is applied;
[Definition of “impermissible avoidance arrangement” inserted by s. 61 of Act 16/2016 w.e.f. 19 January 2017]

“repeat case” means a second or further case of any of the behaviours listed under items (i) to (vi) of the
understatement penalty 15 percentage table reflected in section 223 within five years of the previous case;
[Definition of “repeat case” substituted by s. 61 of Act 16/2016 w.e.f. 19 January 2017]

'substantial understatement' means a case where the prejudice to SARS or the fiscus exceeds the greater of five per
cent of the amount of 'tax' properly chargeable or refundable under a tax Act for the relevant tax period, or R1 000 000;

'tax' means tax as defined in section 1, excluding a penalty and interest, and will for purposes of this Part include an
employment tax incentive as referred to in section 2(1) of the Employment Tax Incentive Act, 2013 (Act No. 26 of
2013);
[Definition of "tax" substituted by s. 26 of Act 16/2022 w.e.f. 1 September 2022 and applies to any return, for purposes of paragraph 14(2) of the Fourth
Schedule to the Income Tax Act, submitted or after that date]

'tax position' means an assumption underlying one or more aspects of a tax return, including whether or not-

(a) an amount, transaction, event or item is taxable;

(b) an amount or item is deductible or may be set-off;

(c) a lower rate of tax than the maximum applicable to that class of taxpayer, transaction, event or item applies; or

(d) an amount qualifies as a reduction of tax payable; and

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

(a) failure to submit a return required under a tax Act or by the Commissioner;
[Para. (a) substituted by s. 22 of Act 22/2018 w.e.f. 17 January 2019]

(b) an omission from a return;

(c) an incorrect statement in a return;

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

(e) an “impermissible avoidance arrangement.

[Definition of “understatement” amended by s. 74 of Act 39/2013 and substituted by s. 61 of Act 16/2016 w.e.f. 19 January 2017]

222. Understatement penalty

(1) In the event of an “understatement” by a taxpayer, the taxpayer must pay, in addition to the “tax” payable for the
relevant tax period, the understatement penalty determined under subsection (2) unless the 'understatement'
results from a bona fide inadvertent error.
[Subs. (1) substituted by s. 75 of Act 39/2013 w.e.f. 1 October 2012]

(2) The understatement penalty is the amount resulting from applying the highest applicable understatement penalty
percentage in accordance with the table in section 223 to each shortfall determined under subsections (3) and (4)
in relation to each “understatement”.
[Subs. (2) substituted by s. 75 of Act 39/2013 and s. 23 of Act 22/2018 w.e.f. 17 January 2019]

(3) The shortfall is the sum of-

(a) the difference between the amount of 'tax' properly chargeable for the tax period and the amount of 'tax'
that would have been chargeable for the tax period if the 'understatement' were accepted;
[Para. (a) substituted by s. 75 of Act 39/2013 w.e.f. 1 October 2012 ]

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 100 of 224
 (b) the difference between the amount properly refundable for the tax period and the amount that would have
been refundable if the 'understatement' were accepted; and

(c) the difference between the amount of an assessed loss or any other benefit to the taxpayer properly carried
forward from the tax period to a succeeding tax period and the amount that would have been carried forward
if the 'understatement' were accepted, multiplied by the tax rate determined under subsection (5).

(4)
(a) If there is a difference under both paragraphs (a) and (b) of subsection (3), the shortfall must be reduced by
the amount of any duplication between the paragraphs.

(b) Where the 'understatement' is the failure to submit a return, the 'tax' that resulted from the 'understatement',
had the 'understatement' been accepted, for purposes of subsection (3), must be regarded as nil.
[Subs. (4) substituted by s. 75 of Act 39/2013 and s. 23 of Act 22/2018 w.e.f. 17 January 2019]

(5) The tax rate applicable to the shortfall determined under subsections (3) and (4) is the maximum tax rate
applicable to the taxpayer, ignoring an assessed loss or any other benefit brought forward from a preceding tax
period to the tax period.
[Subs. (5) substituted by s. 75 of Act 39/2013 w.e.f. 1 October 2012]

(6) Any penalty imposed under subsection (2) must be reduced by any penalty imposed undersection 4(2) of the
Employment Tax Incentive Act, 2013, in respect of the same employment tax incentive amount.
[Subs. (6) added by s. 27 of Act 16/2022 w.e.f. 1 September 2022 and applies to any return, for purposes of paragraph 14(2) of the Fourth Schedule to
the Income Tax Act, submitted on or after that date]

223. Understatement penalty percentage table

(1) The understatement penalty percentage table is as follows:

1 2 3 4 5 6
Item Behaviour Standard Case If obstructive, Voluntary Voluntary
or if it is a disclosure disclosure
'repeat case' after before
notification of notification of
audit or audit or
criminal criminal
investigation investigation
(i) 'Substantial under- 10% 20% 5% 0%
statement'
(ii) Reasonable care not 25% 50% 15% 0%
taken in completing
return
(iii) No reasonable 50% 75% 25% 0%
grounds for 'tax
position' taken
(iv) “Impermissible 75% 100% 35% 0%
avoidance
arrangement”
(v) Gross negligence 100% 125% 50% 5%
(vi) Intentional tax evasion 150% 200% 75% 10%

[Subs. (1) substituted by s. 76 of Act 39/2013 and s. 62 of Act 16/2016 w.e.f. 19 January 2017]

(2) An understatement penalty for which provision is made under this Chapter is also chargeable in cases where-

(a) an assessment based on an estimation under section 95 is made; or

(b) an assessment agreed upon with the taxpayer undersection 95(3) is issued.

(3) SARS must remit a 'penalty' imposed for a 'substantial understatement' if SARS is satisfied that the taxpayer-

(a) made full disclosure to SARS of the arrangement, as defined insection 34, that gave rise to the prejudice to
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 101 of 224
 SARS or the fiscus by no later than the date that the relevant return was due; and
[Para. (a) substituted by s. 42 of Act 33/2019 w.e.f. 15 January 2020]

(b) was in possession of an opinion by an independent registered tax practitioner that-

[Words preceding subpara. (i) substituted by s. 76 of Act 39/2013 w.e.f. 16 January 2014]

(i) was issued by no later than the date that the relevant return was due;

(ii) was based upon full disclosure of the specific facts and circumstances of the arrangement and, in the
case of any opinion regarding the applicability of the substance over form doctrine or the anti-
avoidance provisions of a tax Act, this requirement cannot be met unless the taxpayer is able to
demonstrate that all of the steps in or parts of the arrangement were fully disclosed to the tax
practitioner, whether or not the taxpayer was a direct party to the steps or parts in question; and

(iii) confirmed that the taxpayer's position is more likely than not to be upheld if the matter proceeds to
court.
[Para. (b) substituted by s. 73 of Act 21/2012 deemed to have come into operation on 1 October 2012]

224. Objection and appeal against imposition of understatement penalty

The imposition of an understatement penalty under section 222 or a decision by SARS not to remit an understatement
penalty under section 223(3), is subject to objection and appeal under Chapter 9.
[S. 224 substituted by s. 74 of Act 21/2012 deemed to have come into operation on 1 October 2012 and s. 77 of Act 39/2013 w.e.f. 1 October 2012]

Part B

Voluntary disclosure programme

225. Definitions

In this Part, unless the context indicates otherwise, the following term, if in single quotation marks, has the following
meaning:

“default” means the submission of inaccurate or incomplete information to SARS, or the failure to submit information
or the adoption of a “tax position”, where such submission, non-submission, or adoption resulted in an understatement.
[Definition of “default” substituted by s. 64 of Act 23/2015 w.e.f. 8 January 2016]

226. Qualification of person subject to audit or investigation for voluntary disclosure

(1) A person may apply, whether in a personal, representative, withholding or other capacity, for voluntary disclosure
relief.

(2) If the person seeking relief has been given notice of the commencement of an audit or criminal investigation into
the affairs of the person, which has not been concluded and is related to the disclosed 'default', the disclosure of
the 'default' is regarded as not being voluntary for purposes of section 227, unless a senior SARS official is of the
view, having regard to the circumstances and ambit of the audit or investigation, that-

(a) ..........

(b) the 'default' in respect of which the person has sought relief would not otherwise have been detected during
the audit or investigation; and

(c) the application would be in the interest of good management of the tax system and the best use of SARS'
resources.

(3) A person is deemed to have been notified of an audit or criminal investigation, if-

(a) a representative of the person;

(b) an officer, shareholder or member of the person, if the person is a company;

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 102 of 224
 (c) a partner in partnership with the person;

(d) a trustee or beneficiary of the person, if the person is a trust; or

(e) a person acting for or on behalf of or as an agent or fiduciary of the person,

has been given notice of the audit or investigation.

[S. 226 amended by s. 65 of Act 23/2015 and substituted by s. 63 of Act 16/2016 w.e.f. 19 January 2017]

227. Requirements for valid voluntary disclosure

The requirements for a valid voluntary disclosure are that the disclosure must-

(a) be voluntary;

(b) involve a “default” which has not occurred within five years of the disclosure of a similar “default” by the applicant
or a person referred to in section 226(3);
[Para. (b) substituted by s. 66 of Act 23/2015 w.e.f. 8 January 2016]

(c) be full and complete in all material respects;

(d) involve a behaviour referred to in column 2 of the understatement penalty percentage table insection 223;
[Para. (d) substituted by s. 66 of Act 23/2015 w.e.f. 8 January 2016]

(e) not result in a refund due by SARS; and

(f) be made in the prescribed form and manner.

228. No-name voluntary disclosure

A senior SARS official may issue a non-binding private opinion, as defined insection 75, as to a person's eligibility for
relief under this Part, if the person provides sufficient information to do so, which information need not include the
identity of any party to the 'default'.

229. Voluntary disclosure relief

Despite the provisions of a tax Act, SARS must, pursuant to the making of a valid voluntary disclosure by the applicant
and the conclusion of the voluntary disclosure agreement under section 230-
[Words preceding para. (a) substituted by s. 67 of Act 23/2015 w.e.f. 8 January 2016]

(a) not pursue criminal prosecution for a tax offence arising from the 'default';
[Para. (a) substituted by s. 75 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(b) grant the relief in respect of any understatement penalty to the extent referred to in column 5 or 6 of the
understatement penalty percentage table in section 223; and

(c) grant 100 per cent relief in respect of an administrative non-compliance penalty that was or may be imposed
under Chapter 15 or a penalty imposed under a tax Act, excluding a penalty imposed under that Chapter or in
terms of a tax Act for the late submission of a return.
[Para. (c) substituted by s. 67 of Act 23/2015 w.e.f. 8 January 2016]

230. Voluntary disclosure agreement

The approval by a senior SARS official of a voluntary disclosure application and relief granted undersection 229, must
be evidenced by a written agreement between SARS and the qualifying person who is liable for the outstanding tax
debt in the prescribed format and must include details on-
[Words preceding para. (a) substituted by s. 78 of Act 39/2013 w.e.f. 1 October 2012]

(a) the material facts of the 'default' on which the voluntary disclosure relief is based;

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 103 of 224
 (b) the amount payable by the person, which amount must separately reflect the understatement penalty payable;

(c) the arrangements and dates for payment; and

(d) relevant undertakings by the parties.

231. Withdrawal of voluntary disclosure relief

(1) In the event that, subsequent to the conclusion of a voluntary disclosure agreement undersection 230, it is
established that the applicant failed to disclose a matter that was material for purposes of making a valid voluntary
disclosure under section 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 debt in respect of the relevant 'default'; and
[Para. (b) substituted by s. 79 of Act 39/2013 w.e.f. 1 October 2012]

(c) pursue criminal prosecution for a tax offence.

[Para. (c) substituted by s. 76 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(2) Any decision by the senior SARS official under subsection (1) is subject to objection and appeal.

232. Assessment or determination to give effect to agreement

(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 assessment or 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.

233. Reporting of voluntary disclosure agreements

(1) The Commissioner must annually provide to the Auditor-General and to the Minister a summary of all voluntary
disclosure agreements concluded in respect of applications received during the period.

(2) The summary must-

(a) subject to section 70(6), not disclose the identity of the applicant, and must be submitted at such time as
may be agreed between the Commissioner and the Auditor-General or Minister, as the case may be; and

[Para. (a) substituted by s. 22 of Act 21/2021 w.e.f. 19 January 2022]

(b) contain details of the number of voluntary disclosure agreements and the amount of tax assessed, which
must be reflected in respect of main classes of taxpayers or sections of the public.

CHAPTER 17

CRIMINAL OFFENCES

234. Criminal offences relating to non-compliance with tax Acts

(1) Any person who willfully-

(a) submits a false certificate or statement under Chapter 4;

(b) issues an erroneous, incomplete or false document required to be issued under a tax Act to SARS or
another person;

(c) fails to-

(i) reply to or answer truly and fully any questions put to the person by a SARS official, as and when
required in terms of this Act; or

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 104 of 224
 (ii) take an oath or make a solemn declaration as and when required in terms of this Act;

(d) obstructs or hinders a SARS official in the discharge of the official's duties;

(e) refuses to give assistance required under section 49(1);

(f) holds himself or herself out as a SARS official engaged in carrying out the provisions of this Act; or

(g) dissipates that person's assets or assists another person to dissipate that other person's assets in order to
impede the collection of any taxes, penalties or interest,

is guilty of an offence and is liable, upon conviction, to a fine or to imprisonment for a period not exceeding two
years.

(2) Any person who wilfully or negligently fails to-

(a) register or notify SARS of a change in registered particulars as required in Chapter 3;

(b) appoint a representative taxpayer or notify SARS of the appointment or change of a representative
taxpayer as required under section 153 or 249;

(c) register as a tax practitioner as required under section 240;

(d) submit a return or document to SARS or issue a document to a person as required under a tax Act;

(e) retain records as required under a tax Act;

(f) furnish, produce or make available any information, document or thing, excluding information requested
under section 46(8), as and when required under this Act;

(g) attend and give evidence, as and when required under this Act;

(h) comply with a directive or instruction issued by SARS to the person under a tax Act;

(i) disclose to SARS any material facts which should have been disclosed under a tax Act or to notify SARS of
anything which the person is required to so notify SARS of under a tax Act;

(j) 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 to SARS as referred to in those sections; or

(k) in the event where that person becomes liable to make a payment for withholding any tax, deduct or
withhold or pay to SARS the amount of tax, as and when required under a tax Act,

is guilty of an offence and is liable, upon conviction, to a fine or to imprisonment for a period not exceeding two
years.
[S. 34 amended by s. 77 of Act 21/2012 deemed to have come into operation on 1 October 2012 , s. 43 of Act 33/2019 and s. 35 of Act 24/2020 w.e.f. 20
January 2021]

235. Evasion of tax and obtaining undue refunds by fraud or theft

[Heading of s. 235 substituted by s. 59 of Act 44/2014 w.e.f. 1 October 2012]

(1) A person who with intent to evade or to assist another person to evade tax or to obtain an undue refund under a
tax Act-

(a) makes or causes or allows to be made any false statement or entry in a return or other document, or signs
a statement, return or other document so submitted without reasonable grounds for believing the same to be
true;

(b) gives a false answer, whether orally or in writing, to a request for information made under this Act;

(c) prepares, maintains or authorises the preparation or maintenance of false books of account or other records
or falsifies or authorises the falsification of books 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,

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 105 of 224
 is guilty of an offence and, upon conviction, is subject to a fine or to imprisonment for a period not exceeding five
years.

(2) Any person who makes a statement in the manner referred to in subsection (1) may, unless the person proves
that there is a reasonable possibility that he or she was ignorant of the falsity of the statement and that the
ignorance was not due to negligence on his or her part, be regarded as being aware of the falsity of the
statement.
[Subs. (2) substituted by s. 68 of Act 23/2015 w.e.f. 8 January 2016]

(3) Only a senior SARS official may lay a complaint with the South African Police Service or the National
Prosecuting Authority regarding an offence under this section.
[Subs. (3) substituted by s. 78 of Act 21/2012 deemed to have come into operation on 1 October 2012 and s. 80 of Act 39/2013 w.e.f. 1 October 2012]

236. Criminal offences relating to secrecy provisions

A person who contravenes the provisions of section 67(2), (3) or (4), 68(2), 69(1) or (6) or 70(5) is guilty of an offence
and, upon conviction, is subject to a fine or to imprisonment for a period not exceeding two years.

[S. 236 substituted by s. 69 of Act 23/2015 w.e.f. 8 January 2016]

237. Criminal offences relating to filing return without authority

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 without the
person's consent and authority; 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 fine or to imprisonment for a period not exceeding two years.

[S. 237 substituted by s. 79 of Act 21/2012 deemed to have come into operation on 1 October 2012 ]

238. Jurisdiction of courts in criminal matters

A person charged with a tax offence may be tried in respect of that offence by a court having jurisdiction within any
area in which that person resides or carries on business, in addition to jurisdiction conferred upon a court by any other
law.

CHAPTER 18

REGISTRATION OF TAX PRACTITIONERS AND REPORTING OF UNPROFESSIONAL CONDUCT

[Heading of Chapter 18 substituted by s. 80(1) of Act 21/2012 w.e.f. 20 December 2012]

239. Definitions

In this Chapter, unless the context otherwise indicates, the following terms, if in single 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 a profession, contravenes the applicable rules or code of conduct for the
profession; and

'recognised controlling body' means a 'controlling body' recognised by the Commissioner under section 240A.

[Definition of 'recognised controlling body' inserted by s. 81(1)(a) of Act 21/2012 w.e.f. 20 December 2012]

'registered tax practitioner' ……….

[Definition of 'registered tax practitioner' deleted by s. 81(1)(b) of Act 21/2012 w.e.f. 20 December 2012]

240. Registration of tax practitioners

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 106 of 224
 (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 return by another person,

[Para. (b) substituted by s. 82(1)(a) of Act 21/2012 w.e.f. 20 December 2012]

must-

(i) register with or fall under the jurisdiction of a 'recognised controlling body' by the later of 1 July 2013 or 21
business days after the date on which that person for the first time provides the advice or completes or
assists in completing the return; and

(ii) register with SARS as a tax practitioner in the prescribed form and manner, within 21 business days after
the date on which that person for the first time provides the advice or completes or assists in completing the
return.
[Words following para. (b) substituted by s. 82(1)(b) of Act 21/2012 w.e.f. 20 December 2012]

(2) The provisions of this section do not apply in respect of a person who only-

(a) provides the advice or completes or assists in completing a return for no consideration to that person or his
or her employer or a connected person in relation to that employer or that person;

(b) provides the advice in anticipation of or in the course of any litigation to which the Commissioner is a party
or where the Commissioner is a complainant;

(c) provides the advice as an incidental or subordinate part of providing goods or other services to another
person;

(d) provides the advice or completes or assists in completing a return -

(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 the employer and connected persons in relation to the employer; or

(ii) under the supervision of a registered tax practitioner who has assigned or approved the assignment of
those functions to the person.

[Subs. (2) amended by s. 82(1)(c) and (d) of Act 21/2012 w.e.f. 20 December 2012 and substituted by s. 81 of Act 39/2013 w.e.f. 20 December 2012]

(2A) A tax practitioner who has assigned or approved the assignment of functions to a person under subsection (2)(d)
(ii) is regarded as accountable for the actions of that person in performing those functions for the purposes of a
complaint to a recognised controlling body under section 241(2).

[Subs. (2A) inserted by s. 81 of Act 39/2013 w.e.f. 20 December 2012]

(3) A person may not register as a tax practitioner under subsection (1) or SARS may deregister a registered tax
practitioner if the person or the registered tax practitioner, as the case may be-

[Words preceding para. (a) substituted by s. 60 of Act 44/2014 w.e.f. 1 October 2012]

(a) during the preceding five years has been removed from a related profession by a 'controlling body' for
serious misconduct;
[Para. (a) substituted by s. 82(1)(e) of Act 21/2012 w.e.f. 20 December 2012 and amended by s. 60 of Act 44/2014 w.e.f. 1 October 2012]

(b) during the preceding five 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 imprisonment exceeding two years without the
option of a fine or to a fine exceeding the amount prescribed in the Adjustment of Fines Act, 1991 (Act No.
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 107 of 224
 101 of 1991);

[Para. (b) amended by s. 60 of Act 44/2014 and s. 24 of Act 22/2018 w.e.f. 17 January 2019]

(c) during the preceding five years has been convicted of a serious tax offence; or
[Para. (c) added by s. 60 of Act 44/2014 and amended by s. 24 of Act 22/2018 w.e.f. 17 January 2019]

(d) during the preceding 12 months has for an aggregate period of at least six months not been tax compliant
to the extent referred to in section 256(3) and has failed to-

(i) demonstrate that he or she has been compliant for that period; or

(ii) remedy the non-compliance,

within the period specified in a notice by SARS.

[Para. (d) added by s. 24 of Act 22/2018 w.e.f. 17 January 2019]

(4) If prosecution for a serious tax offence has been instituted but not finalised against a person or registered tax
practitioner and if the person or registered tax practitioner continues with the commission of a serious tax offence
after the criminal proceedings have been instituted, a senior SARS official may-

(a) not register the person as a registered tax practitioner; or

(b) suspend the registration of the registered tax practitioner,

for the duration of the criminal proceedings commencing on the date that prosecution is instituted and ending on the
date that the person or registered tax practitioner is finally acquitted.
[Subs. (4) added by s. 60 of Act 44/2014 w.e.f. 1 October 2012]

240A. Recognition of controlling bodies

(1) The Commissioner must recognise as a 'recognised controlling body'-

(a) ..........
[Para. (a) deleted by s. 28 of Act 16/2022 w.e.f. 5 January 2023]

(b) the Legal Practice Council established under the Legal Practice Act, 2014 (Act No. 28 of 2014);
[Para. (b) substituted by s. 44 of Act 33/2019 w.e.f. 15 January 2020]

(c) ..........
[Para. (c) deleted by s. 44 of Act 33/2019 w.e.f. 15 January 2020]

(d) a statutory body that the Minister is satisfied is similar to the statutory bodies in this subsection and the
details of which are published in the Gazette.

(2) The Commissioner may recognise a 'controlling body', for natural persons who provide advice with respect to the
application of a tax Act or complete returns, as a 'recognised controlling body' if the body-

(a) in respect of such persons, maintains relevant and effective-

[Words preceding subpara. (i) substituted by s. 82 of Act 39/2013 w.e.f. 20 December 2012]

(i) minimum qualification and experience requirements;

(ii) continuing professional education requirements;

(iii) codes of ethics and conduct; and

(iv) disciplinary codes and procedures;

(b) is approved in terms of section 30B of the Income Tax Act for purposes of section 10(1)(d)(iv) of the Act;
and

(c) has at least 1 000 members when applying for recognition or reasonable prospects of having 1 000
members within a year of applying.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 108 of 224
 (3) A body must within the prescribed time period and in the prescribed form and manner, if recognised under-

(a) subsection (1), submit a list of its members to whom the provisions undersection 240(1) apply; and

(b) subsection (2), submit a report on its members and compliance with this Chapter.
[Subs. (3) substituted by s. 82 of Act 39/2013 and s. 61 of Act 44/2014 w.e.f. 20 December 2012]

(4) The Minister may appoint a panel of retired judges or persons of similar stature and competence one or more of
whom may decide, on behalf of a body recognised under subsection (2), complaints lodged under section 241-

(a) at the request of the body; or

(b) if the Minister is satisfied that the body's disciplinary process is ineffective.

(5) The costs of the panel in deciding complaints will be borne equally by such a body and SARS.

(6) If a body recognised under subsection (2) no longer meets the listed requirements, the Commissioner must notify
it that if it does not take corrective steps within the period specified in the notice, its recognition will be withdrawn
at the end of the period.
[S. 240A inserted by s. 83(1) of Act 21/2012 w.e.f. 20 December 2012]

241. Complaint to controlling body

(1) A senior SARS official may lodge a complaint with a 'controlling body' if a 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 the performance 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 or undue postponement of the
performance of an obligation imposed on the taxpayer under a tax Act;

(c) constitutes a contravention of a rule or code of conduct for the profession which may result in disciplinary
action being taken against the person by the body;

(d) constitutes conduct under subsection (2) by a registered tax practitioner.

(2) A senior SARS official may lodge a complaint with a 'recognised controlling body' if a registered tax practitioner
has, in the opinion of the official-

(a) without exercising due diligence prepared or assisted in the preparation, approval or submission of any
return, affidavit or other document relating to matters affecting the application of a tax Act;

(b) unreasonably delayed the finalisation of any matter before SARS;

(c) given an opinion contrary to clear law, recklessly or through gross incompetence, with regard to any matter
relating to a tax Act;

(d) been grossly negligent with regard to any work performed as a registered tax practitioner;

(e) knowingly given false or misleading information in connection with matters affecting the application of a tax
Act or participated in such activity; or

(f) directly or indirectly attempted to influence a SARS official with regard to any matter relating to a tax Act by
the use of threats, false accusations, duress, or coercion, or by offering gratification as defined in the
Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004).
[S. 241 substituted by s. 84(1) of Act 21/2012 w.e.f. 20 December 2012]

242. Disclosure of information regarding complaint and remedies of taxpayer

(1) Despite section 69, the senior SARS official lodging a complaint under section 241 may disclose the taxpayer
information as in the opinion of the official is necessary to lay before the 'controlling body' to which the complaint
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 109 of 224
 is made.
[Subs. (1) substituted by s. 83 of Act 39/2013 w.e.f. 1 October 2012]

(2) Before a complaint is lodged or information is disclosed, SARS must deliver to the taxpayer concerned and the
person against whom the complaint is to be made notification of the intended complaint and information to be
disclosed.
[Subs. (2) substituted by s. 83 of Act 39/2013 w.e.f. 1 October 2012]

(3) The taxpayer or that person may, within 21 business days after the date of the notification, lodge with SARS an
objection to the lodging of the complaint or disclosure of 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 satisfied that the objection should be sustained, a senior SARS official may thereupon
lodge the complaint as referred to in section 241.

243. Complaint considered by controlling body

(1) The complaint is to be considered by the 'controlling body' according to its rules.

(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 'controlling body', is necessary for the proper consideration of the
complaint.

(3) The 'controlling body' and its members must preserve secrecy in regard to the information as to the affairs of a
person as may be conveyed to them by SARS or as may otherwise come to their notice in the investigation of the
complaint and must not communicate the information to a person other than the person concerned or the person
against whom the complaint is lodged, unless the disclosure of the information is ordered by a competent court of
law.

CHAPTER 19

GENERAL PROVISIONS

244. Deadlines

(1) If-

(a) a day notified by SARS or specified 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 the last business day before
the Saturday, Sunday or public holiday.

(2) The Commissioner may prescribe the time of day by which a payment, submission or other action must be done,
and if it is done after that time on the day it is regarded as done on the first business day following the specified
day.

(3) If SARS is authorised to extend a deadline, the application for extension must be submitted to SARS in the
prescribed form before the deadline expires unless-

(a) reasonable grounds exist for the delay and the application is submitted within 21 business days of the
deadline; or
[Para. (a) substituted by s. 85(a) of Act 21/2012 deemed to have come into operation on 1 October 2012]

(b) the delay is due to a circumstance referred to insection 218(2)(a) to (e) or any other circumstance of
analogous seriousness and the application is submitted within three years of the deadline.

245. Power of Minister to determine date for submission of returns and payment of tax

(1) Despite any other provision of a tax Act, if the date for the submission of a return or the payment of tax is the last
day of the financial year of the Government, the Minister may by public notice prescribe any other date for
submission of the return and payment of the tax, which date must not fall on a day more than two business days

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 110 of 224
 prior to the last day of that year.

(2) The notice contemplated in subsection (1) must be published at least 21 business days prior to the date so
prescribed by the Minister.

246. Public officers of companies

(1) Every company carrying on business or having an office in the Republic must at all times be represented by an
individual residing in the Republic.

(2) The individual representative under subsection (1) must be-

(a) approved by SARS and-

(i) must be a person who is a senior official of the company; or

(ii) if no senior official resides in the Republic, may be another suitable person;
[Para. (a) substituted by s. 84 of Act 39/2013 w.e.f. 1 October 2012]

(b) appointed by the company or by an agent or legal practitioner who has authority to appoint such a
representative for the purposes of a tax Act;

[Para. (b) substituted by s. 45 of Act 33/2019 w.e.f. 15 January 2020]

(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 director, company
secretary or other officer of the company that SARS designates for that purpose.
[Subs. (3) substituted by s. 84 of Act 39/2013 w.e.f. 1 October 2012]

(4) A company that has not appointed a public officer is subject to a tax Act as if a tax Act did not require the public
officer to be appointed.
[Subs. (4) substituted by s. 86 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(5) A public officer is responsible for all acts, matters, or things that the public officer's company must do under a tax
Act, and in case of default, the public officer is subject to penalties for the company's defaults.

(6) A public officer's company is regarded as having done everything done by the public officer in the officer's
representative capacity.

(7) If SARS is of the opinion that a person is no longer suitable to represent the company as public officer SARS
may withdraw its approval under subsection (2)(a).

(8) A person who is disqualified in terms of section 6 of the Trust Property Control Act, 1988 (Act No. 57 of 1988),
section 25A of the Nonprofit Organisations Act, 1997 (Act No. 71 of 1997), or section 69 of the Companies Act, 2008
(Act No. 71 of 2008), may not be appointed as a public officer under this section.
[Subs. (8) added by s. 30 of Act 18/2023 w.e.f. 22 December 2023]

247. Company address for notices and documents

(1) A company referred to in section 246(1) must, within the period referred to in section 246(2)(d), appoint a place
within the Republic approved by SARS at which SARS may serve, deliver or send the company a notice or other
document provided for under 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
or affairs of the company or as agent for the company.

248. Public officer in event of liquidation, winding-up or business rescue

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 111 of 224
 [Heading of s. 248 substituted by s. 62 of Act 44/2014 w.e.f. 20 January 2015]

(1) In the event of a company referred to insection 246(1) being placed in voluntary or compulsory liquidation, the
liquidator or liquidators duly appointed are required to exercise in respect of the company all the functions and assume
all the responsibilities of a public officer under a tax Act during the continuance of the liquidation.

[Para. numbered as subs. (1) by s. 62 of Act 44/2014 w.e.f. 20 January 2015]

(2) In the event of a company referred to insection 246(1) being subject to a business rescue plan referred to in Part
D of Chapter 6 of the “Companies Act”, the business rescue practitioner as defined in that Chapter is required to
exercise, in respect of the company, all the functions and assume all the responsibilities of a public officer under a
tax Act for the period that the company is subject to the business rescue plan.
[Subs. (2) added by s. 62 of Act 44/2014 w.e.f. 20 January 2015]

249. Default in appointing public officer or address for notices or documents

(1) No appointment is deemed to have been made under section 246(2) until notice thereof specifying the name of
the public officer and an address for service or delivery of notices and documents has been given to SARS.

(2) A company must-

(a) keep the office of public officer constantly filled and must at all times maintain a place for the service or
delivery of notices in accordance with section 247(1); and

(b) notify SARS of every change of public officer or the place for the service or delivery of notices within 21
business days of the change taking effect.

250. Authentication of documents

(1) A form, notice, demand or other document issued or given by or on behalf of SARS or a SARS official under a
tax Act is sufficiently authenticated if the name of SARS or the name or official designation of the SARS official is
stamped or printed on it.

(2) A return made or purporting to be made or signed by or on behalf of a person is regarded as duly made and
signed by the person affected unless the person proves that the 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 of a person.

251. Delivery of documents to persons other than companies

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 is regarded as having issued, given, sent or served the communication to the
person if-

(a) handed to the person;

(b) left with another person over 16 years of age apparently residing or employed at 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, which includes-

(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's employer; or

(d) sent to the person's last known electronic address, which includes-

(i) the person's last known email address;

(ii) the person's last known telefax number; or

(iii) the person's electronic address as defined in the rules issued undersection 255(1).
[Para. (d) substituted by s. 70 of Act 23/2015 w.e.f. 25 August 2014]

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 112 of 224
252. Delivery of documents to companies

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

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

[Para. (a) substituted by s. 87 of Act 21/2012 deemed to have come into operation on 1 October 2012]

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

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

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

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

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

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

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

(i) last known email address;

(ii) last known telefax number; or

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

[Para. (d) substituted by s. 71 of Act 23/2015 w.e.f. 25 August 2014]

253. Documents delivered deemed to have been received

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

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

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

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

(3) If SARS is satisfied that-

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

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

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

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

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

254. Defect does not affect validity

(1) A notice of assessment or other notice or document issued to a person under a tax Act is not to be considered
invalid or ineffective by reason of a failure to comply with the requirements of section 251 or 252 if the person had
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 113 of 224
 effective knowledge of the fact of the notice or document and of its content.

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

255. Rules for electronic communication

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

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

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

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

[Subs. (1) substituted by s. 88 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(2) SARS may, in the case of a return or other document submitted in electronic format, accept an electronic or
digital signature of a person as a valid signature for purposes of a tax Act if a signature is required.
[Subs. (2) substituted by s. 63 of Act 44/2014 w.e.f. 1 October 2012]

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

256. Tax compliance status

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

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

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

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

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

(i) contemplated in section 167 or 204; or

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

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

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

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

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

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

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

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

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

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

(aa) reached the first date on which the taxpayer is required to submit a return or make a payment
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 114 of 224
 under a tax Act in respect of a tax for which the taxpayer is registered; or

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

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

whichever occurs first.

[Subs. (4) substituted by s. 29 of Act 16/2022 w.e.f. 5 January 2023]

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

(a) an organ of state; or

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

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

(a) the access was provided -

(i) in error; or

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

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

and SARS has given the taxpayer prior notice and an opportunity to respond to the allegations of at least 10
business days prior to the revocation.
[Subs. (6) substituted by s. 29 of Act 16/2022 w.e.f. 5 January 2023]

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

[S. 256 substituted by s. 89(1) of Act 21/2012 w.e.f. 20 December 2012, amended by s. 85 of Act 36/2013, substituted by s. 64 of Act 44/2014, amended
by and s. 72 of Act 23/2015 and substituted by s. 46 of Act 33/2019 w.e.f. 15 January 2020]

257. Regulations by Minister

(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 this Act; and

(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 mandate of the Tax Ombud, having regard to-
[Words preceding subpara (i) substituted by s. 90(a) of Act 21/2012 deemed to have come into operation on 1 October 2012]

(i) the factual or legal complexity of any complaint dealt with by the Tax Ombud;

(ii) the nature of the taxpayer whose complaint is dealt with by the Tax Ombud; and

(iii) the maximum amount involved in the dispute between the taxpayer and SARS.

(2A) For purposes of a confirmation of tax compliance status of a taxpayer undersection 256, the Minister may make
regulations regarding-

(a) the circumstances when a confirmation or an update of or a change in the tax compliance status of a

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 115 of 224
 taxpayer may be required from a person or SARS;

(b) the period of validity of a confirmation of tax compliance status of a taxpayer; or

(c) any procedure to further regulate the issue or withdrawal of a confirmation of tax compliance status of a
taxpayer.
[Subs. (2A) inserted by s. 90(b) of Act 21/2012 deemed to have come into operation on 1 October 2012 and substituted by s. 73 of Act 23/2015 w.e.f. 8
January 2016]

(3) For purposes of the regulations referred to in paragraph (e) of the definition of “biometric information” insection
1, the Minister must publish the draft regulations in theGazette for public comment and submit the draft
regulations to Parliament for parliamentary scrutiny at least 30 days before the draft regulations are published.

CHAPTER 20

TRANSITIONAL PROVISIONS

258. New taxpayer reference number

If a person has been allocated a taxpayer, tax or other reference number for purposes of a tax Act before the
promulgation of this Act, the number remains in force until the time that SARS allocates a taxpayer reference number
to the person under section 24 for purposes of the relevant tax type.

259. Appointment of Tax Ombud

(1) The Minister must appoint a person as Tax Ombud under section 14 within one year of the commencement date
of this Act.

(2) The first Tax Ombud appointed under this Act may not review a matter that arose more than one year before the
day on which the Tax Ombud is appointed, unless the Minister requests the Tax Ombud to do so.

260. Provisions relating to secrecy

A person who took and subscribed to an oath or solemn declaration of secrecy under a tax Act before the
commencement date of this Act is regarded as having taken and subscribed to the oath or solemn declaration under
section 67(2).

261. Public officer previously appointed

A public officer appointed or regarded as appointed under a tax Act and holding office immediately before the
commencement date of this Act, is regarded as a public officer appointed under this Act.

262. Appointment of chairpersons of tax board

A legal practitioner appointed to the panel of persons who may serve as chairpersons of the tax board under a tax Act,
who is on that panel immediately before the commencement date of this Act, is regarded as appointed under the
provisions of section 111 until the earlier of-

(a) the expiry of the legal practitioner's appointment under the provisions previously in force; or

(b) termination ofthe legal practitioner's appointment under section 111(3).

[S. 262 substituted by s. 47 of Act 33/2019 w.e.f. 15 January 2020]

263. Appointment of members of tax court

A member of the tax court appointed under a tax Act who is a member immediately before the commencement date of
this Act is regarded as appointed under the provisions of section 120(1) until the expiry of his or her term of office in
terms of the provisions previously in force, or until his or her appointment in terms of section 120(4) is terminated or
lapses.

264. Continuation of tax board, tax court and court rules

(1) A tax board or tax court that was established under a tax Act and exists immediately before the commencement
date of this Act, is regarded as established under section 108 or 116, respectively, of this Act.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 116 of 224
 (2) Rules of court issued by the Minister under a tax Act that are in force immediately before the commencement
date of this Act continue in force as if they were issued under section 103.

265. Continuation of appointment to a post or office or delegation by Commissioner

(1) A person appointed to a post or office or delegated by the Commissioner under the SARS Act or a tax Act, which
appointment or delegation is in force immediately before the commencement date of this Act, is regarded as
appointed or delegated under this Act.

(2) Subsection (1) applies until the person is so appointed or delegated under this Act or the appointment or
delegation is withdrawn.

266. Continuation of authority to audit

If a SARS official was issued a letter authorising the official to audit under a tax Act, and the letter is in force
immediately before the commencement date of this Act, the letter is regarded as issued to the official under section 41.

267. Conduct of inquiries and execution of search and seizure warrants

(1) If the Commissioner authorised an inquiry under a tax Act and a judge granted an order designating a person to
act as presiding officer in the inquiry before the commencement date of this Act, the inquiry is regarded as
authorised under sections 50 and 51.

(2) If a judge issued a search and seizure warrant under a tax Act that has not been executed before the
commencement date of this Act, the warrant is regarded as issued under section 60.

268. Application of Chapter 15

Chapter 15 applies to non-compliance resulting from a continuous failure by a person to comply with an obligation that
exists on the date a notice referred to in section 210(2) comes into effect, in which case the date on which the non-
compliance occurred will be regarded as the date that notice came into effect.

269. Continuation of authority, rights and obligations

(1) Rules, notices and regulations issued under the provisions of a tax Act repealed by this Act that are in force
immediately before the commencement date of this Act, remain in force as if they were issued under the
equivalent provisions of this Act, to the extent consistent with this Act, until new rules, notices and regulations are
issued under such provisions.
[Subs. (1) substituted by s. 91 of Act 21/2012 deemed to have come into operation on 1 October 2012]

(2) Forms prescribed under the authority of a tax Act before the commencement date of this Act, and in use
immediately before the date of commencement of this Act, are considered to have been prescribed under the
authority of this Act, to the extent consistent with this Act.

(3) Rulings and opinions issued under the provisions of a tax Act repealed by this Act and in force immediately
before the commencement date of this Act, which have not been revoked, are regarded as having been issued
under the authority of this Act to the extent relevant to and consistent with this Act.

(4) An order of a court under the authority of a tax Act and in force immediately before the commencement date of
this Act, continues to have the same force and effect as if the provisions had not been repealed or amended,
subject to any further order of the court.

(5) A right or entitlement enjoyed by, or obligation imposed on, a person under the repealed or amended provisions
of a tax Act, that had not been exercised or complied with before the commencement date of this Act, is a valid
right or entitlement of, or obligation imposed on, that person in terms of any comparable provision of this Act, as
from the date that the right, entitlement or obligation first arose, subject to the provisions of this Act.

(6) The commission of an offence before the commencement date of this Act which is a statutory offence under the
provisions of a tax Act repealed by this Act, may be investigated by SARS, in the manner referred to in Chapter 5,
and prosecuted as if the statutory offence remained in force.

270. Application of Act to prior or continuing action

(1) Subject to this Chapter, this Act applies to an act, omission or proceeding taken, occurring or instituted before

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 117 of 224
 the commencement date of this Act, but without prejudice to the action taken or proceedings conducted before
the commencement date of the comparable provisions of this Act.

(2) The following actions or proceedings taken or instituted under the provisions of a tax Act repealed by this Act but
not completed by the commencement date of the comparable provisions of this Act, must be continued and
concluded under the provisions 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, taxpayer record, advance ruling, refund, reduced assessment,
suspension of a disputed tax debt, deferral, write off, compromise or waiver of a tax debt and the remittance
of interest or a penalty;

(c) an inspection, verification, request for information, audit, criminal investigation, inquiry or search and
seizure;

(d) an objection, appeal to the tax board, tax court or higher court, alternative dispute resolution, settlement
discussions or other related High Court application;

(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-up instituted by SARS or any other related court
application.

(3) A form, notice, demand or other document issued, given or received by a person or SARS under the provisions
of a tax Act repealed by this Act, must be regarded as issued, given or received in terms of any comparable
provision of this Act, as from the date that the form, notice, demand or other document was issued, given or
received under the repealed provisions.

(4) A record kept or retained by a person as required under the provisions of a tax Act repealed by this Act, must be
regarded as kept or retained as required under the comparable provisions of this Act from the date that record
was kept or retained under the repealed provisions of the tax Act.

(5) If the period for an application, objection, appeal or prosecution had expired before the commencement date of
this Act, nothing in this Act may be construed as enabling the application, objection, appeal or prosecution to be
made under this Act by reason only of the fact that a longer period is specified in this Act.

(6) Additional tax, penalty or interest may be imposed or levied as if the repeal of the legislation in Schedule 1 had
not been effected and may be assessed and recovered under this Act, if-

(a) additional tax, penalty or interest which but for the repeal would have been capable of being imposed,
levied, assessed or recovered by the commencement date of this Act, has not been imposed, levied,
assessed or recovered by the commencement date of this Act; or

(b) an understatement penalty, administrative non-compliance penalty or interest under this Act cannot be
imposed, levied, assessed or recovered in respect of an understatement as defined in section 221, non-
compliance or failure to pay that occurred before the commencement date of this Act.
[Subs. (6) substituted by s. 86 of Act 39/2013 w.e.f. 1 October 2012]

(6A) For the purposes of subsection (6), “capable of being imposed” means that the verification, audit or investigation
necessary to determine the additional tax, penalty or interest had been completed before the commencement
date of this Act.
[Subs. (6A) inserted by s. 86 of Act 39/2013 w.e.f. 1 October 2012]

(6B) If a return was due by the commencement date of this Act, the requirement under section 223(3)(b)(i) is regarded
as having been met for the purposes of remittance of a substantial understatement penalty.
[Subs. (6B) inserted by s. 86 of Act 39/2013 w.e.f. 1 October 2012]

(6C) A person who made a valid voluntary disclosure before the commencement date of this Act, qualifies for the relief
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 118 of 224
 referred to in section 229(b) if the audit or investigation of the person's affairs has commenced before but only
concluded after commencement date of this Act and the requirements of Part B of Chapter 16 have been met.
[Subs. (6C) inserted by s. 86 of Act 39/2013 w.e.f. 1 October 2012]

(6D) If an understatement penalty is imposed as a result of an understatement, as defined insection 221, made in a
return submitted before the commencement date of this Act, a taxpayer may object against the penalty under
Chapter 9 (whether or not the taxpayer has previously objected against the assessment imposing the penalty)
and if the return was required under-

(a) the Income Tax Act, excluding returns required under the Fourth Schedule to that Act, a senior SARS
official must, in considering the objection, reduce the penalty in whole or in part if satisfied that there were
extenuating circumstances; or
[Para. (a) substituted by s. 65 of Act 44/2014 w.e.f. 1 October 2012]

(b) the Value-Added Tax Act or the Fourth Schedule to the Income Tax Act, a senior SARS official must reduce
the penalty in whole if the penalty was imposed under circumstances other than the circumstances referred
to in item (vi) of the understatement penalty table in section 223(1).
[Para. (b) substituted by s. 65 of Act 44/2014 and s. 64 of Act 16/2016 w.e.f. 19 January 2017]

[Subs. (6D) inserted by s. 86 of Act 39/2013 w.e.f. 1 October 2012]

(6E) Until the date on which the whole of Chapter 12 and of Schedule 1 to this Act come into operation in respect of a
tax type-

(a) the accrual and payment of interest on an understatement penalty imposed undersection 222 must be
calculated in the manner that interest upon an additional tax penalty imposed under a tax Act, prior to the
repeal of the penalty by this Act, was calculated in terms of the interest provisions of the relevant tax Act;
and

(b) the effective date referred to in section 187(3)(f) for tax understated before 1 October 2012 must be
regarded as the commencement date of this Act.
[Subs. (6E) inserted by s. 74 of Act 23/2015 and substituted by s. 29 of Act 13/2017 w.e.f. 18 December 2017]

(6F) From the date on which the whole ofChapter 12 and of Schedule 1 to this Act come into operation, the accrual
and payment of interest on an understatement penalty imposed under section 222 must be calculated in the
manner prescribed by Chapter 12 in respect of an understatement penalty imposed after such date.
[Subs. (6F) inserted by s. 74 of Act 23/2015 w.e.f. 1 October 2012]

(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 payable under this Act from the commencement date of the comparable provisions of
this Act.
[Para. (b) substituted by s. 86 of Act 39/2013 w.e.f. 1 October 2012]
(8) ...........
[Subs. (8) amended by s. 86 of Act 39/2013 and deleted by s. 65 of Act 44/2014 w.e.f. 1 October 2012]

271. Amendment of legislation

The Acts listed in Schedule 1 are amended to the extent set out in that Schedule.

272. Short title and commencement

(1) This Act is called the Tax Administration Act, 2011, and comes into operation on 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 to come into operation and for the
purposes of Chapter 12 and the provisions relating to interest inSchedule 1, the Minister may determine by public
notice the date on which they come into operation in respect of a tax type.
[Subs. (2) substituted by s. 30 of Act 13/2017 w.e.f. 18 December 2017]

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 119 of 224
 (3) Subparagraphs (g), (h), (i) and (j) of paragraph 60 of Schedule 1 come into operation on the date on whichPart
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 January 2011 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 March 2010 and applies in respect of
a mineral resource transferred on or after that date.

SCHEDULE 1

SECTION 271

(Commencement of Schedule 1: 1 October 2012, except for any provision that amends or repeals a provision of a tax Act
relating to interest under that tax Act, to the extent of that amendment or repeal: To be proclaimed. See Proclamation 51 of
2012 and SARS Interpretation Note 68 (Issue 3) of 8 December 2020)

No. and year Short title Extent of amendment or repeal

Act No. 40 of 1949 Transfer Duty Act, 1949 Amendment of section 1
1. Section 1 of the Transfer Duty Act, 1949, is
hereby amended-

(a) by the substitution for the definition of

“Commissioner” of the following
definition:

“ 'Commissioner' means the

Commissioner for the South African
Revenue Service appointed in terms of
section 6 of the South African Revenue
Service Act, 1997 (Act No. 34 of 1997),
or the Acting Commissioner designated
in terms of section 7 of that Act;”;

(b) by the insertion after the definition of

“spouse” of the following definition:

“'Tax Administration Act' means the

Tax Administration Act, 2011; “;

(c) by the renumbering of section 1 to

section 1(1); and

(d) by the insertion after subsection (1) of

the following subsection:

“ (2) Unless the context indicates

otherwise, a word or expression to
which a meaning has been
assigned in the Tax Administration
Act bears that meaning for
purposes of this Act.”.
Amendment of section 3

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 120 of 224
 2. Section 3 of the Transfer Duty Act, 1949, is
hereby amended-

(a) by the substitution for subsection (1A) of

the following subsection:

“(1A) Where a person who acquires any

property contemplated in
paragraph (d), (e) or (g) of the
definition of “property” fails to pay
the duty within the period
contemplated in subsection (1), the
public officer [as defined in
section 101 of the Income Tax
Act, 1962 (Act No. 58 of 1962),] of
that company and the person from
whom the shares or member's
interest are acquired shall be jointly
and severally liable for such duty:
Provided that the public officer or
person from whom the shares or
member's interest was acquired,
may recover any amount of duty
paid [by him or her] in terms of
this subsection [from-

(a) the person who so

acquired that property; or

(b) in the case of a public

officer, from that company]
in accordance with section
160 of the Tax Administration
Act.”;

(b) by the substitution for subsection (1B) of

the following subsection:

“(1B) Where a person who acquires any

property contemplated in
paragraph (f) of the definition of
“property” fails to pay the duty
within the period contemplated in
subsection (1), the trust and [the
trustees] representative taxpayer
of that trust shall be jointly and
severally liable for such duty:
Provided that the trust or [trustee]
representative taxpayer may
recover any amount of duty paid in
terms of this subsection by the trust
or [trustee] representative tax
payer, as the case may be, [from-

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 121 of 224
 (a) the person who so
acquired that property; or

(b) in the case of the trustee,

from that trust] in
accordance with section 160
of the Tax Administration
Act.”; and

Amendment
(c) by of
thesection
deletion4 of subsection (3).

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 122 of 224
 3. Section 4 of the Transfer Duty Act, 1949, is
hereby amended-

(a) by the substitution for the heading of the

following heading:

“Penalty [and interest] on late

payment of duty”;

(b) by the substitution for subsection (1) of

the following subsection:

“(1) If any duty in respect of any

transaction entered into before 1
March 2005, remains unpaid after
the date of the expiration of the
period referred to in section 3,
[there shall, subject to the
provisions of subsection (3), in
addition to the unpaid duty, be
payable] the Commissioner must
in accordance with Chapter 15 of
the Tax Administration Act impose
a penalty, at the rate of 10 per cent
per annum on the amount of the
unpaid duty, calculated in respect
of each completed month in the
period from that date to the date of
payment[: Provided that if in any
case the period referred to in
section 3 ended before 1 July
1982 and the said penalty is
chargeable or is in part
chargeable in respect of any
completed month commencing
before 1 July 1982 the penalty
payable in respect of such
completed month and any earlier
completed month or months
shall be the amount of penalty
which would have been payable
in terms of this subsection
before its amendment by the
Revenue Laws Amendment Act,
1982, if the unpaid amount of
such duty had been paid on the
day after the end of the only or
latest of such completed
months].”; and

(c) by the deletion of subsection (1A).

Amendment of section 10

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 123 of 224
 4. Section 10 of the Transfer Duty Act, 1949, is
hereby amended-

(a) by the substitution for subsection (2) of

the following subsection:

“(2) The powers conferred and the

duties imposed upon the
Commissioner by this Act may be
exercised or performed by the
Commissioner [personally] or by
any [officer acting under a
delegation from or] SARS official
under the control, [or] direction or
supervision of the Commissioner.”;
and

(b) by the insertion after subsection (2) of

the following subsection:

“ (3) Administrative requirements and

procedures for purposes of the
performance of any duty, power or
obligation or the exercise of any
right in terms of this Act are, to the
extent not regulated in this Act,
regulated by the Tax Administration
Act.”.
Amendment of section 11
5. Section 11 of the Transfer Duty Act, 1949, is
hereby amended by the substitution in
subsection (3) for paragraph (a) of the
following paragraph:

“ (a) Where in terms of [subsection (2) of

section three] section 3(2) a deposit on
account of the duty payable by any
person is made pending the
determination by the Commissioner of
the fair value of the property concerned,
of an amount equal to the duty
calculated on the consideration paid or
payable in respect of the acquisition of
the property or on the declared value
thereof, as the case may be, and there is
given to the Commissioner security to
his or her satisfaction for the payment of
any balance of transfer duty [or stamp
duty] which may still be payable, the
Commissioner may in his or her
discretion issue to the person liable to
pay the duty a certificate that such
deposit has been made and that such
security has been given.”.
Repeal of sections 11A, 11B, 11C, 11D and 11E

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 124 of 224
 6. Sections 11A, 11B, 11C, 11D and 11E of the
Transfer Duty Act, 1949, are hereby repealed.
Amendment of section 13
7. Section 13 of the Transfer Duty Act, 1949, is
hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) Whenever the Commissioner is

satisfied that the duty payable
under this Act in respect of the
acquisition of any property or the
renunciation of any interest in or
restriction upon the use or disposal
of any property has not been paid
in full, the Commissioner shall,
notwithstanding that the acquisition
has already been registered in a
deeds registry, recover the
difference between the amount of
the duty payable and the amount
paid in accordance with Chapter 11
of the Tax Administration Act.”; and

(b) by the deletion of subsection (2).

Repeal of sections 13A, 13B and 13C

8. Sections 13A, 13B and 13C of the Transfer

Duty Act, 1949, are hereby repealed.

Amendment of section 14

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 125 of 224
 9. Section 14 of the Transfer Duty Act, 1949, is
hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) [Declarations] A return

appropriate to the manner of the
acquisition of property in any
particular case shall be submitted
[electronically, in the form and
manner and containing such
information as may be
prescribed by the
Commissioner] by the parties to
the transaction whereby the
property has been acquired and, if
the Commissioner so directs, also
by the agent, auctioneer, broker or
other person who acted for or on
behalf of either party to the
transaction or, if the property has
been acquired otherwise than by
way of a transaction, by the person
who acquired the property.”; and

(b) by the deletion of subsections (4), (6),

(7) and (8).
Amendment of section 15
10. Section 15 of the Transfer Duty Act, 1949, is
hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) [Every] In addition to the

requirements upon a taxpayer
contained in sections 29, 30, 32
and 33 of the Tax Administration
Act, every auctioneer or other
person who has effected a sale of
property on behalf of some other
person shall, for a period of five
years from the date on which the
sale was effected, keep a record of
the sale including a description of
the property sold, the person by
whom and the person to whom the
property has been sold and the
price paid for the property.”; and

(b) by the deletion of subsections (2) and

(3).

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 126 of 224
 Repeal of sections 17, 17A, 17B, 18, 20, 20A,
20C and 20D
11. Sections 17, 17A, 17B, 18, 20, 20A, 20C and
20D of the Transfer Duty Act, 1949, are
hereby repealed.
Act No. 45 of 1955 Estate Duty Act, 1955 Amendment of section 1
12. Section 1 of the Estate Duty Act, 1955, is
hereby amended-

(a) by the substitution for the definition of

“Commissioner” of the following
definition:

“ 'Commissioner' means the

Commissioner for the South African
Revenue Service appointed in terms of
section 6 of the South African Revenue
Service Act, 1997 (Act No. 34 of 1997),
or the Acting Commissioner designated
in terms of section 7 of that Act;”;

(b) by the insertion after the definition of

“stocks or shares” of the following
definition:

“ 'Tax Administration Act', means the

Tax Administration Act, 2011.”;

(c) by the renumbering of section 1 to

section 1(1); and

(d) by the insertion after subsection (1) of

the following subsection:

“ (2) Unless the context indicates

otherwise, a word or expression to
which a meaning has been
assigned in the Tax Administration
Act bears that meaning for
purposes of this Act. “.
Amendment of section 6

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 127 of 224
 13. Section 6 of the Estate Duty Act, 1955, is
hereby amended-

(a) by the substitution for subsection (2) of

the following subsection:

“(2) The powers conferred and the

duties imposed upon the
Commissioner by this Act may be
exercised or performed by the
Commissioner [personally] or by
any [officer acting under a
delegation from or] SARS official
under the control, [or] direction or
supervision of the Commissioner.”;
and

(b) by the substitution for subsection (3) of

the following subsection:

“ (3) Administrative requirements and

procedures for purposes of the
performance of any duty, power or
obligation or the exercise of any
right in terms of this Act are, to the
extent not regulated in this Act,
regulated by the Tax Administration
Act.”.
Amendment of section 7
14. Section 7 of the Estate Duty Act, 1955, is
hereby amended-

(a) by the substitution in subsection (1) for

the words preceding paragraph (a) of the
following words:

“Every executor or, if he or she is called

upon by the Commissioner to do so, any
person having the control of or any
interest in any property included in the
estate, shall submit to the
Commissioner a return [in a form,
prescribed by him,] disclosing the
amount claimed by the person
submitting the return to represent the
dutiable amount of the estate together
with full particulars regarding-”; and

(b) by the deletion of subsection (2).

Repeal of sections 8, 8A, 8B, 8C, 8D and 8E
15. Sections 8, 8A, 8B, 8C, 8D and 8E of the
Estate Duty Act, 1955, are hereby repealed.
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 128 of 224
 Amendment of section 9
16. Section 9 of the Estate Duty Act, 1955, is
hereby amended-

(a) by the insertion after subsection (1) of

the following subsection:

“ (1A) If the Commissioner, prior to the

issue of a notice of assessment in
terms of subsection (1)-

(a) is dissatisfied with any value

at which any property is
shown in any return; or

(b) is of the opinion that the

amount claimed to represent
the dutiable amount as
disclosed in any return, does
not represent the correct
dutiable amount,

the Commissioner shall adjust such

value or amount and
determine the dutiable
amount upon which such
assessment shall be raised
accordingly.”;

(b) by the deletion of subsection (2); and

(c) by the insertion of a new subsection (5)

after subsection (4):

“ (5) An assessment contemplated in

subsection (4)(a) and (b) is
deemed to be an assessment by
way of self-assessment.”.

Repeal of sections 9A and 9B

17. Sections 9A and 9B of the Estate Duty Act,
1955, are hereby repealed.
Amendment of section 10

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 129 of 224
 18. Section 10 of the Estate Duty Act, 1955, is
hereby amended by the substitution for
subsection (1) of the following subsection;

“(1) If [any duty remains unpaid at the

expiration of a period of thirty days
from the date of payment notified in
accordance with subsection (2) of
section nine, there shall be payable,
in addition to the unpaid duty,
interest at the rate of six per cent per
annum on the amount of unpaid duty
calculated from the date of the
expiration of the said period to the
date of payment: Provided that,
where] the assessment of duty is
delayed beyond a period of twelve
months from the date of death, interest
at the prescribed rate [of six per cent
per annum] shall be payable as from a
date twelve months after the date of
death on the difference (if any) between
the duty assessed and any deposit (if
any) made on account of the duty
payable within the said period of twelve
months.”.
Substitution of section 12
19. The Estate Duty Act, 1955, is hereby
amended by the substitution for section 12 of
the following section:

'Duty payable by executor

12. Notwithstanding anything to the

contrary contained in section [eleven]
11, any duty payable under this Act shall
be payable by and recoverable from the
executor of the estate subject to the
duty, to the extent contemplated in
Chapters 10 and 11 of the Tax
Administration Act [: Provided that the
liability under this section of any
executor shall be a liability in his or
her capacity as executor only and for
an amount not exceeding the
available assets in the estate, unless
the liability is due to fraud].”.
Repeal of sections 12A, 12B, 23, 23bis, 24, 25,
25A and 27
20. Sections 12A, 12B, 23, 23bis, 24, 25, 25A
and 27 the Estate Duty Act, 1955, are hereby
repealed.
Amendment of section 28

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 130 of 224
 21. Section 28 of the Estate Duty Act, 1955, is
hereby amended-

(a) by the substitution for the heading of the

following heading:

“[PENALTIES] OFFENCES”;

(b) by the deletion of subsection (1); and

(c) by the deletion in subsection (2) of

paragraphs (b) and (b)bis.
Repeal of sections 28A and 30
22. Sections 28A and 30 of the Estate Duty Act,
1955, are hereby repealed.

Act No. 58 of 1962 Income Tax Act, 1962 Amendment of section 1

23. Section 1 of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution for the definition of

“assessment” of the following definition:

“ 'assessment' [means the] has the

meaning assigned under section 1 of the
Tax Administration Act, and includes a
determination by the Commissioner-[,
by way of a notice of assessment
(including a notice of assessment in
electronic form) served in a manner
contemplated in section 106(2)-

(a) of an amount upon which any

tax leviable under this Act is
chargeable; or

(b) of the amount of any such tax;

or]

(c) of any loss ranking for set-off;

[or]

(d) of any assessed capital loss

determined in terms of paragraph 9
of the Eighth Schedule[,];or

(e) of any amounts to be taken into

account in the determination of tax
payable on income in future years

[and for the purposes of Part III of

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 131 of 224
 Chapter III includes any
determination by the Commissioner
in respect of any of the
rebatesreferredtoinsection6 and any
decision of the Commissioner which
is in terms of this Act subject to
objection and appeal];”;

(b) by the deletion of the definition of

“business day”;

(c) by the substitution for the definition of

“Commissioner” of the following
definition:

“ 'Commissioner' means the

Commissioner for the South African
Revenue Service appointed in terms of
section 6 of the South African Revenue
Service Act, 1997 (Act No. 34 of 1997),
or the Acting Commissioner designated
in terms of section 7 of that Act;”;

(d) by the deletion of the definition of “date

of assessment”;

(e) by the insertion after the definition of

“normal retirement age” of the
following definitions:

“ 'normal tax' means income tax

referred to in section 5(1);

'officer' means, where used in the

context of a person who is engaged by
the Commissioner in carrying out the
provisions of this Act, a SARS official as
defined in section 1 of the Tax
Administration Act;”;

(f) by the substitution for the definition of

“prescribed rate” of the following
definition:

“ 'prescribed rate' means the rate

contemplated in section 189(3) of the
Tax Administration Act;”;

(g) by the substitution of the words in the

definition of “representative tax-payer”
preceding paragraph (a) of the following
words:

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 132 of 224
 “ 'representative taxpayer' means a
natural person who resides in the
Republic and-”;

(h) by the substitution for paragraph (b) of

the definition of “representative taxpayer”
of the following paragraph:

“(b) in respect of the income under his

or her management, disposition or
control, the agent of any person[,
including an agent appointed as
such under the provisions of
section ninety-nine, and for the
purposes of this paragraph the
term “agent” includes every
person in the Republic having
the receipt, management or
control of income on behalf of
any person permanently or
temporarily absent from the
Republic or remitting or paying
income to or receiving moneys
for such person];”;

(i) by the deletion of the words in the

definition of “representative taxpayer”
following paragraph (f) but preceding the
proviso;

(j) by the insertion after the definition of

“retirement interest” of the following
definition:

“ 'return' means a return as de- fined in

section 1 of the Tax Administration Act;”;

(k) by the substitution for the definition of

“tax” of the following definition:

“ 'tax' means tax or a penalty imposed in

terms of this Act;”;

(l) by the insertion after the definition of

“tax” of the following definition:

“ 'Tax Administration Act' means the

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 133 of 224
 Tax Administration Act, 2011;”;

(m) by the substitution for the definition of

“taxpayer” of the following definition:

“ 'taxpayer' means any person

chargeable with any tax leviable under
this Act [and includes every person
required by this Act to furnish any
return]”;

(n) by the renumbering of section 1 to

section 1(1); and

(o) by the insertion after subsection (1) of

the following subsection:

“ (2) Unless the context indicates

otherwise, a word or expression to
which a meaning has been
assigned in the Tax Administration
Act bears that meaning for
purposes of this Act.”.
Amendment of section 2
24. The Income Tax Act, 1962, is hereby
amended by the substitution for section 2 of
the following section:

“[Act to be administered by
Commissioner] Administration of Act

2. (1) The Commissioner [shall be] is

responsible for carrying out the
provisions of this Act.

(2) Administrative requirements and

procedures for purposes of the
performance of any duty, power or
obligation or the exercise of any
right in terms of this Act are, to the
extent not regulated in this Act,
regulated by the Tax Administration
Act.”.
Amendment of section 3
25. Section 3 of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 134 of 224
 “(1) The powers conferred and the
duties imposed upon the
Commissioner by or under the
provisions of this Act may be
exercised or performed by the
Commissioner [personally,] or by
any officer [or person engaged in
carrying out the said provisions]
under the control, direction or
supervision of the Commissioner.”;

(b) by the deletion of subsections (2) and

(3);

(c) by the substitution for subsection (4) of

the following subsection:

“(4) Any decision of the Commissioner

under the following provisions of
this Act [shall be]is subject to
objection and appeal in accordance
with Chapter 9 of the Tax
Administration Act, namely-

(a) the definitions of “benefit

fund”, “pension fund”,
“pension preservation fund”,
“provident fund”, “provident
preservation fund”,
“retirement annuity fund” and
“spouse” in section 1;

(b) [section 6, section 8(4)(b),

(c), (d) and (e),] section 8(5)
(b) and (bA), [section 9D,]
section 10(1)(cA), [(e)](e)(i)
(cc), [(iA)], (j) and (nB),
section 10A(8), section 11(e),
(f), (g), (gA), (j)[,] and (l), [(t),
(u) and (w),] section 12B(6),
section 12C, section 12E,
section 12G, section 12J(6),
(6A), and (7), section 13,
section 14, section 15,
section 22(1)[,] and (3) [and
(5)], section 23H(2), section
23K, section 24(2), section
24A(6), section 24C, section
24D, section 24I(1) and (7),
section 24J(9), section 25A
[section 25D], section 27,
section [28(2)(cA)]28(9),
section 30, section 30A,
section 30B, section 31,
section 35(2), section 37A,
section 37H, section
[38(4)]38(2)(a) and (b) and
(4), section 44(13)(a), section
47(6)(c)(i), section 57(2),

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 135 of 224
 section 62(1)(c)(iii) and (d)
and (2)(a) and (4), [section
76A,] section 80B and section
[80S] 103(2);

(c) paragraphs 6, 7, 9, 13, 13A,

14, 19 and 20 of the First
Schedule;

(d) paragraph 4 of the Second

Schedule;

(e) paragraphs 14(6), 18, [19(1),]

20(1)(a) and (2), 20A(1) and
(2), 21, 24 and 27 of the
Fourth Schedule;

(f) paragraphs 10(3) and (4),

11(2) and (7), 12(1) and 13 of
the Sixth Schedule;

(g) paragraphs 2(h), 3, 6(4)(b),

7(6), (7) and (8), [9 and] 11
and 12A(3) of the Seventh
Schedule; and

(h) paragraphs 12(5)(c)(i),

29(2A), 29(7), 31(2), 65(1)(d)
and 66(1)(e) of the Eighth
Schedule.”; and

(d) by the substitution for subsection (6) of

the following section:

“(6) Any person aggrieved by a

decision of the executive officer to
approve or to withdraw an approval
of a fund in terms of subsection (5)
must, notwithstanding section 26(2)
of the Financial Services Board
Act, 1990, lodge his or her
objection with the Commissioner
[in the manner contemplated in
Part III of Chapter III of this Act]
in accordance with the provisions
of Chapter 9 of the Tax
Administration Act.”.
Repeal of section 4
26. Section 4 of the Income Tax Act, 1962, is
hereby repealed.
Amendment of section 4A

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 136 of 224
 27. The Income Tax Act, 1962, is hereby
amended by the substitution for section 4A of
the following section:

“Exercise of powers and performance of

duties by Minister

4A. The powers conferred and the duties

imposed upon the Minister by or under
the provisions of this Act may be
exercised or performed by the Minister
personally or, except for the power to
issue notices or regulations, delegated
by the Minister to the Director-General of
the National Treasury and the Director-
General may in turn delegate the powers
and duties so delegated to him or her to
any officer or person under his or her
control, direction or supervision.”.
Amendment of section 5
28. Section 5 of the Income Tax Act, 1962, is
hereby amended by the substitution for
subsection (7) of the following subsection:

“(7) Subject to the provisions of [sections 79

and 102 and the provisions of] the
Fourth Schedule, where a taxpayer has
been assessed for normal tax in respect
of any year of assessment and the rate
of the tax payable by [him] the taxpayer
has been subsequently fixed or varied,
[his] the taxpayer's assessment for such
year shall be adjusted, any amounts paid
in excess being refundable to [him] the
taxpayer and amounts shortpaid being
recoverable from [him] the taxpayer.”.
Amendment of section 6quat
29. Section 6quat of the Income Tax Act, 1962, is
hereby amended by the substitution for
subsection (5) of the following subsection:

“(5) Notwithstanding [sections 79 and

81(5)] section 93, 99 or 100 of the Tax
Administration Act, an additional or
reduced assessment in respect of a year
of assessment to give effect to
subsections (1) and (1A) may be made
within six years from the date of the
original assessment in respect of that
year.”.

Amendment of section 8

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 137 of 224
 30. Section 8 of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution in subsection (5) for

paragraph (bC) of the following
paragraph:

(bC) Any person who, as a former

lessor of property referred to in
paragraph (bA) or as the owner
thereof, has after the termination of
the lease of such property
consented to the former lessee
thereof using, enjoying or dealing
with such property as contemplated
in the said paragraph, or is deemed
to have so consented under the
provisions of paragraph (bB)(ii),
shall not later than 14 days after
the end of three months after the
termination of the relevant lease
advise the former lessee of the fair
market value of such property as
determined in accordance with
paragraph (bA)[, and shall furnish
the Commissioner with a copy of
such advice].”; and

(b) by the deletion in subsection (5) of

paragraph (c).
Amendment of section 10
31. Section 10 of the Income Tax Act, 1962, is
hereby amended by the deletion in the further
proviso to subsection (1)(cA) of paragraph (c).
Amendment of section 10A

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 138 of 224
 32. Section 10A of the Income Tax Act, 1962, is
hereby amended-

(a) by the deletion of subsection (9); and

(b) by the substitution for subsection (10) of

the following subsection:

“(10) Subject to the provisions of section

[79] 99 of the Tax Administration
Act, the final calculation or
recalculation of the capital element
as made in relation to the year of
assessment referred to in
subsection (8) shall, subject to the
provisions of subsection (6)(b),be
final and conclusive and shall apply
in respect of all relevant annuity
amounts which become due to any
person under the annuity contract
in question in any succeeding
years of assessment.”.
Amendment of section 11
33. Section 11 of the Income Tax Act, 1962, is
hereby amended by the deletion in paragraph
(l) of paragraph (vi) of the proviso.
Amendment of section 11D

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 139 of 224
 34. Section 11D of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution for subsection (14) of

the following subsection:

“(14) Notwithstanding [section 4]

Chapter 6 of the Tax Administration
Act, the Commissioner may
disclose to the Minister of Science
and Technology information in
relation to research and
development as may be required
by that Minister for purposes of
submitting a report to Parliament in
terms of subsection (17).”; and

(b) by the addition after subsection (18) of

the following subsection:

“ (19) For the purposes of sub-section

(1), the Commissioner may,
notwithstanding the provisions of
sections 99 and 100 of the Tax
Administration Act, raise an
additional assessment for any year
of assessment with respect to a
deduction in respect of research
and development which has been
allowed, where approval has been
withdrawn in terms of subsection
(10).”.
Amendment of section 12G
35. Section 12G of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution for subsection (11) of

the following subsection:

“(11) For purposes of subsections (9)

and (10), the Commissioner may,
notwithstanding the provisions of
sections [79, 81(5) and 83(18)] 99
and 100 of the Tax Administration
Act, raise an additional assessment
for any year of assessment where
an additional industrial investment
allowance which has been allowed
in any previous year must be
disallowed in terms of subsection
(9) or (10).”; and

(b) by the deletion of subsection (12).

Amendment of section 12I
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 140 of 224
 36. Section 12I of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution for the words

preceding paragraph (a) in subsection
(13) of the following words:

“(13) The Commissioner may,

notwithstanding the provisions of
[section 4] Chapter 6 of the Tax
Administration Act-”;

(b) by the substitution for subsection (14) of

the following subsection:

(14) The Commissioner may,

notwithstanding the provisions of
[section 79, 81(5) and 83(18)]
sections 99 and 100 of the Tax
Administration Act, raise an
additional assessment for any year
of assessment where an additional
investment allowance which has
been allowed in any previous year
must be disallowed in terms of
subsection (12) or (13).”;

(c) by the deletion of subsection (15); and

(d) by the substitution for subsection (21) of

the following subsection:

“(21) Notwithstanding the provisions of

[section 4] Chapter 6 of the Tax
Administration Act, the
Commissioner must disclose to the
Minister of Trade and Industry and
the adjudication committee,
including any person whose
assistance has been obtained by
that committee, such information
relating to the affairs of any
company carrying on an industrial
policy project as is necessary to
enable the Minister of Trade and
Industry and the adjudication
committee to perform their
functions in terms of this section.”.
Amendment of section 12J
37. Section 12J of the Income Tax Act, 1962, is
hereby amended by the deletion of subsection
(9).
Amendment of section 23

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 141 of 224
 38. Section 23 of the Income Tax Act, 1962, is
hereby amended by the substitution for
paragraph (d) of the following paragraph:

“(d) any tax [, duty, levy, interest or

penalty] imposed under this Act [, any
additional tax imposed under section
60 of the Value-Added Tax Act, 1991
(Act No. 89 of 1991) and] or any
interest or penalty [payable in
consequence of the late payment of
any tax, duty, levy or contribution
payable] imposed under any other Act
administered by the Commissioner [, the
Regional Services Councils Act, 1985
(Act No. 109 of 1985), the KwaZulu
and Natal Joint Services Act, 1990
(Act No. 84 of 1990), the Skills
Development Levies Act, 1999 (Act
No. 9 of 1999), and the Unemployment
Insurance Contributions Act, 2002
(Act No. 4 of 2002)];”.
Amendment of section 23H
39. Section 23H of the Income Tax Act, 1962, is
hereby amended by the deletion of subsection
(4).
Amendment of section 24J
40. Section 24J of the Income Tax Act, 1962, is
hereby amended by the deletion of subsection
(11).
Amendment of section 25A
41. Section 25A of the Income Tax Act, 1962, is
hereby amended by the deletion of subsection
(2).
Amendment of section 35

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 142 of 224
 42. Section 35 of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution in subsection (2)(a)

for the words preceding the proviso of
the following words:

“Any person who incurs a liability to pay

to any other person who is not a resident
any amount referred to in subsection (1),
or who receives payment of any such
amount on behalf of such other person,
shall within 14 days after the end of the
month during which the said liability is
incurred or the said payment is
received, as the case may be, or within
such further period as the
Commissioner may approve, make a
payment (which shall be a final payment
made on behalf of such other person) to
the Commissioner in respect of such
other person's liability for tax in terms of
subsection (1), and shall submit to the
Commissioner at the time of such tax
payment a [declaration in such form
as the Commissioner may prescribe]
return;”;

(b) by the substitution in subsection (2) for

paragraph (b) of the following
paragraph:

“(b) Any person making a payment to

the Commissioner in terms of
paragraph (a) shall,
notwithstanding any agreement to
the contrary, be entitled to deduct
or withhold the amount of such
payment from the amount which
[he] that person is liable to pay to
the aforesaid other person [, or to
recover the amount so paid from
such other person or to retain
out of any money that may be in
his possession or may come to
him as the agent of such other
person an amount equal to the
amount of such payment].”;

(c) by the deletion in subsection (2) of

paragraphs (d) and (e);and

(d) by the deletion of subsection (3).

Amendment of section 35A
43. Section 35A of the Income Tax Act, 1962, is

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 143 of 224
 hereby amended-

(a) by the substitution for subsection (6) of

the following subsection:

(6) The purchaser must, together with

the payment contemplated in
subsection (4), submit to the
Commissioner a [declaration in
the form and containing the
information as the
Commissioner may prescribe]
return.”;

(b) by the substitution for subsection (7) of

the following subsection:

“(7) [If a] A purchaser is person ally

liable under the circumstances
contemplated in section 157 of the
Tax Administration Act, for the
amount that must be withheld
under subsection (1) only if the
purchaser knows or should
reasonably have known that the
seller is not a resident and [fails to
withhold any amount as required
by subsection (1), that
purchaser-

(a) is personally liable for the

payment of the amount
which he or she failed to
withhold; and

(b) ] must pay that amount to the

Commissioner not later than
the date on which payment
should have been made if the
amount had in fact been
withheld.”;

(c) by the substitution for subsection (9) of

the following subsection:

(9) If a purchaser fails to pay any

amount contemplated in subsection
(1) to the Commissioner within the
period allowed for payment in
terms of subsection (4), that
purchaser[-
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 144 of 224
 (a) is liable for interest at the
prescribed rate on any
amount outstanding
calculated from the day
following the last date for
payment to the date that the
amount is received by the
Commissioner; and

(b)] must pay a penalty equal to

ten percent of [that] the
amount, in addition to any
other penalty or charge for
which he or she may be liable
under this Act.”;

(d) by the deletion of subsection (10); and

(e) the substitution for subsection (13) of

the following subsection:

“(13) The [purchaser,] estate agent or

conveyancer [, as the case may
be, may recover any amount paid
in terms of subsection (7) or (12)
from the seller] who paid an
amount in terms of subsection (12)
is deemed to be a withholding
agent for purposes of the Tax
Administration Act.”.
Amendment of section 37H
44. Section 37H of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution in subsection (21) for

the words following paragraph (b) of the
following words:

“the Commissioner may,

notwithstanding the provisions of section
[79] 99 of the Tax Administration Act,
raise assessments in respect of the
company as if such company were not a
qualifying company.”; and

(b) by the deletion of subsection (22).

Repeal of section 40
45. Section 40 of the Income Tax Act, 1962, is
hereby repealed.
Amendment of section 47C

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 145 of 224
 46. Section 47C of the Income Tax Act, 1962, is
hereby amended by the substitution for
subsection (2) of the following subsection:

“(2) This section does not apply to any

amounts received by or accrued to the
taxpayer-

(a) from which the full amount of tax

has been withheld by a resident in
terms of section
47D; or

(b)[in respect of which the tax has]

which have been recovered from a
resident [in his or her personal
capacity] who is personally liable
for the amount in terms of section
47G(1).”.
Amendment of section 47F
47. Section 47F of the Income Tax Act, 1962, is
hereby amended by the substitution for
subsections (1) and (2) of the following
subsections:

“(1) A taxpayer must, together with the

payment contemplated in section
47C(1), submit to the Commissioner a
return [in the manner and form and
containing the information as may be
prescribed by the Commissioner].

(2)
A resident who pays to the
Commissioner any amount in terms of
section 47E, must together with that
payment submit to the Commissioner a
return [in the manner and form and
containing the information as may be
prescribed by the Commissioner].”.
Amendment of section 47G

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 146 of 224
 48. Section 47G of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution in subsection (1) for

the words following paragraph (b) of the
following words:

“is personally liable for payment of that

amount of tax [, which may be
recovered from that resident in terms
of this Act as if it is a tax due by that
resident] in accordance with Part A of
Chapter 10 of the Tax Administration
Act.”; and

(b) by the deletion of subsection (2).

Repeal of sections 47H and 47I
49. Sections 47H and 47I of the Income Tax Act,
1962, are hereby repealed.
Amendment of section 60
50. Section 60 of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) Donations tax shall be paid to the

Commissioner [within three
months] by the end of the month
following the month during which a
donation takes effect or such
longer period as the Commissioner
may allow from the date upon
which the donation in question
takes effect.”; and

(b) by the substitution for subsection (4) of

the following subsection:

(4)
The payment of the tax in terms of
subsection (1) shall be
accompanied by a return [in such
form as may be prescribed by
the Commissioner].”.
Amendment of section 61

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 147 of 224
 51. Section 61 of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution for paragraph (a) of

the following paragraph:

(a) any reference in [subsection (1)

or (2) of section seventy-four,
paragraph (c) or (d) of
subsection (1) of section
seventy-five or] paragraph (a) or
(e) of the definition of
representative taxpayer' in section
[one] 1 to the income of any
person or to the gross income
received by or accrued to or in
favour of any person shall be
deemed to include a reference to
property disposed of by any person
under a donation or to the value of
such property, as the context may
require;”; and

(b) by the deletion of paragraphs (b), (c),

(e), (f) and (h).

Amendment of section 62
52. Section 62 of the Income Tax Act, 1962, is
hereby amended by the substitution for
subsection (4) of the following subsection:

“(4) If the Commissioner is of the opinion

that the amount shown in any return as
the fair market value of any property is
less than the fair market value of that
property, he or she may fix the fair
market value of that property, and the
value so fixed is[, subject to the
provisions of section 63,] deemed for
the purposes of this Part to be the fair
market value of such property.”.
Repeal of section 63
53. Section 63 of the Income Tax Act, 1962, is
hereby repealed.
Amendment of section 64B
54. Section 64B of the Income Tax Act, 1962, is
hereby amended by the deletion of
subsections (9) and (11).
Amendment of section 64K
55. Section 64K of the Income Tax Act, 1962, is
hereby amended by the deletion of
subsections (3), (5), (6), (7) and (8).
Amendment of section 64L

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 148 of 224
 56. Section 64L of the Income Tax Act, 1962, is
hereby amended by the substitution for the
words preceding paragraph (a) of the
following words:

“ [If] Notwithstanding the provisions of

Chapter 13 of the Tax Administration Act, if-”.
Amendment of section 64M
57. Section 64M of the Income Tax Act, 1962, is
hereby amended by the substitution for the
words preceding paragraph(a) of the following
words:

“ [If] Notwithstanding the provisions of

Chapter 13 of the Tax Administration Act, if-”.
Amendment of section 64R
58. Section 64R of the Income Tax Act, 1962, is
hereby amended by the deletion of
subsections (3), (4) and (5).
Repeal of section 65
59. Section 65 of the Income Tax Act, 1962, is
hereby repealed.
Amendment of section 66
60. Section 66 of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution for the heading of the

following heading:

“Notice by Commissioner requiring

returns for assessment of [taxes]
normal tax under this Act [and
manner of furnishing re turns and
interim returns]”;

(b) by the substitution for subsection (1) of

the following subsection:

“(1) The Commissioner must annually

give public notice [that all] of the
persons who [are personally or in
a representative capacity liable
to taxation under this Act or
who] are required by the
Commissioner to furnish returns for
the assessment of normal tax[,
must furnish returns] within the
period prescribed in that notice[, or
such longer period as the
Commissioner may allow, for the
purposes of assessments in
respect of the years of
assessment specified in that
notice].”;
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 149 of 224
 (c) by the deletion of subsections (1A), (2),
(3) and (5);

(d) by the substitution for subsection (5A) of

the following subsection:

“(5A) Any person who is not in terms of

this section required to furnish a
return in respect of any year of
assessment may for the purpose of
having [his] that person's liability
for [taxation] normal tax
determined on assessment furnish
such a return within three years
after the end of such year of
assessment.”;

(e) by the deletion of subsections (6), (7),

(7A), (7B), (7C), (7D), (7E), (8), (9), (10)
and (11);

(f) by the substitution in subsection (13) for

the words preceding paragraph (a) of the
following words:

“(13) The return [of income] for normal

tax to be made by any person in
respect of any year of assessment
shall be a [full and true] return-”;

(g) by the deletion in the proviso to

subsection (13)(a) of the word “or” at the
end of paragraph (b)(ii);

(h) by the addition to the proviso to

subsection (13)(a) of the following
paragraph:

“ (c) a person ceases to be a resident, a

return shall be made for the period
commencing on the first day of that
year of assessment and ending on
the day preceding the date that the
person ceases to be a resident; or”;

(i) by the addition of the following proviso

to subsection (13)(b):

“: Provided that where a company

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 150 of 224
 ceases to be a resident, a return shall be
made for the period commencing on the
first day of that financial year and ending
on the day preceding the date that the
company ceases to be a resident”.

(j) by the substitution for subsection (13B)

of the following subsection:

“(13B) For the purposes of subsections

[(13),] (13A)[,] and (13C) [and
(14)], the word 'income' must be
construed as including any
aggregate capital gain or
aggregate capital loss.”; and

(k) by the deletion of subsections (14) and

(15).

Amendment of section 67
61. Section 67 of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) Every person who at any time

becomes liable for any normal tax
or who becomes liable to submit
any return contemplated in section
66 must[, within 60 days after so
becoming a taxpayer,] apply to
the Commissioner to be registered
as a taxpayer in accordance with
Chapter 3 of the Tax Administration
Act.”; and

(b) by the deletion of subsections (1A) and

(2).
Repeal of sections 67A, 69, 70, 70A, 70B and 71
62. Sections 67A, 69, 70, 70A, 70B and 71 of the
Income Tax Act, 1962, are hereby repealed.
Amendment of section 72A

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 151 of 224
 63. Section 72A of the Income Tax Act, 1962, is
hereby amended by the substitution for
subsection (1) of the following subsection:

“(1) Every resident who on the last day of the

foreign tax year of a controlled foreign
company or immediately before a foreign
company ceases to be a controlled
foreign company directly or indirectly,
together with any connected person in
relation to that resident, holds at least 10
per cent of the participation rights in any
controlled foreign company (otherwise
than indirectly through a company which
is a resident), must submit to the
Commissioner [such] a return [as may
be prescribed by the
Commissioner].”.
Repeal of sections 73 to 80
64. Sections 73, 73A, 73B, 73C, 74, 74A, 74B,
74C, 74D, 75, 75A, 75B, 76, 76B, 76C, 76D,
76E, 76F, 76G, 76H. 76I, 76J, 76K, 76L, 76M,
76N, 76O, 76P, 76Q, 76R, 76S, 77, 78, 79,
79A, 79B and 80 of the Income Tax Act, 1962,
are hereby repealed.
Amendment of section 80B
65. Section 80B of the Income Tax Act, 1962, is
hereby amended by the substitution for
subsection (2) of the following subsection:

“(2) Subject to the time limits imposed by

[section 79, 79A(2)(a) and 81(2)(b)]
sections 99, 100 and 104(5)(b) of the
Tax Administration Act, the
Commissioner must make compensating
adjustments that he or she is satisfied
are necessary and appropriate to ensure
the consistent treatment of all parties to
the impermissible avoidance
arrangement.”.
Repeal of sections 80K and 80M to 89sept
66. Sections 80K, 80M, 80N, 80O, 80P, 80Q,
80R, 80S, 80T, 81, 82, 83, 83A, 84, 85, 86A,
87, 88, 88A, 88B, 88C, 88D, 88E, 88F, 88G,
88H, 89, 89bis, 89ter, 89quat, 89quin, 89sex
and 89sept of the Income Tax Act, 1962, are
hereby repealed.
Amendment of section 90

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 152 of 224
 67. Section 90 of the Income Tax Act, 1962, is
hereby amended by the substitution in
subsection (1) for the words preceding the
proviso of the following words:

“Subject to the provisions of this Act and the

Tax Administration Act, any normal tax
[(other than donations tax) and any
interest payable in terms of section 89(2)
or 89quat,shall be] is payable[-

(a) by any representative taxpayer, liable

to assessment or for the payment of
such tax or interest under this Act or
under any previous Income Tax Act;

(c) in respect of any other income and in

all other cases,] by the person by whom
[the] any taxable income is received or
to whom or in whose favour it accrues or
who is legally entitled to the receipt
thereof”.
Amendment of section 91
68. Section 91 of the Income Tax Act, 1962, is
hereby amended-

(a) by the deletion of subsections (1) and

(2); and

(b) by the substitution for subsection (5) of

the following subsection:

“(5) So much of any interest payable in

terms of [section eighty-nine]
Chapter 12 of the Tax
Administration Act as relates to
such portion of any tax as is in
terms of subsection (4) recoverable
from the assets referred to in that
subsection may also be recovered
from such assets.”.

Repeal of sections 91A to 101

69. Sections 91A, 92, 93, 94, 95, 96, 97, 98, 99,
100 and 101 of the Income Tax Act, 1962, are
hereby repealed.
Amendment of section 102

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 153 of 224
 70. Section 102 of the Income Tax Act, 1962, is
hereby amended-

(a) by the deletion of subsection (1);

(b) by the substitution for subsection (1A) of

the following subsection:

“(1A) The Commissioner may refuse to

authorise a refund under
[subsection (1)] section 190 of the
Tax Administration Act, if [that
person]-

(a) that person has failed to

furnish a return [for any year
of assessment] as required
[by] in terms of this Act, until
that person has furnished
such re turn as required; or

(b) [has failed to furnish the

Commissioner in writing
with particulars of that
person's banking account
or account with a similar
institution to enable the
Commissioner to transfer a
refund, if any, to that
account] the refund is
claimed by that person after a
period of three years after the
end of the year of
assessment, in the case
where that person was not
required by any provision of
this Act to furnish a return of
income for that year of
assessment and did not
render such a return during
the period of three years
since the end of that year of
assessment.”; and

(c) by the deletion of subsections (2), (3)

and (4).
Repeal of section 102A
71. Section 102A of the Income Tax Act, 1962, is
hereby repealed.
Amendment of section 103

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 154 of 224
 72. Section 103 of the Income Tax Act, 1962, is
hereby amended-

(a) by the substitution for subsection (4) of

the following subsection:

“(4) [Any decision of the

Commissioner under subsection
(2) shall be subject to objection
and appeal, and whenever] If in
any objection and appeal
proceedings relating [thereto] to a
decision under subsection (2) it is
proved that the agreement or
change in shareholding or
members' interests or trustees or
beneficiaries of the trust in
question would result in the
avoidance or the postponement of
liability for payment of any tax, duty
or levy imposed by this Act or any
previous Income Tax Act or any
other law administered by the
Commissioner, or in the reduction
of the amount thereof, it shall be
presumed, until the contrary is
proved in the case of any such
agreement or change in
shareholding or members' interests
or trustees or beneficiaries of such
trust, that it has been entered into
or effected solely or mainly for the
purpose of utilising the assessed
loss, balance of assessed loss,
capital loss or assessed capital
loss in question in order to avoid or
postpone such liability or to reduce
the amount thereof.”; and

(b) by the deletion of subsection (6).

Repeal of sections 104, 105, 105A, 106, 107A

and 110
73. Sections 104, 105, 105A, 106, 107A and 110
of the Income Tax Act, 1962, are hereby
repealed.
Amendment of paragraph 13 of First Schedule

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 155 of 224
 74. Paragraph 13 of the First Schedule to the
Income Tax Act, 1962, is hereby amended by
the substitution for subparagraph (3) of the
following subparagraph:

“(3) Every farmer who desires to claim a

deduction in terms of subparagraph (1),
shall [with his return of income] for the
year of assessment in which he or she
sold livestock on account of conditions of
drought or stock disease or by reason of
his or her participation in a livestock
reduction scheme organized by the
Government[, or within such period as
the Commissioner may allow,] notify
the Commissioner accordingly and
[furnish] obtain and retain full particulars
in regard to the livestock so sold.”.
Amendment of paragraph 19 of First Schedule
75. Paragraph 19 of the First Schedule to the
Income Tax Act, 1962, is hereby amended by
the substitution for subparagraph (3) of the
following subparagraph:

“(3) Where the taxpayer's assessment for a

relevant period has in terms of section
[81(5) of this Act] 100 of the Tax
Administration Act, become final and
conclusive, the Commissioner shall not,
merely by reason of the fact that the
amount determined under subparagraph
(2)(a), as the taxpayer's annual average
taxable income from farming in relation
to such period is incorrect, be required to
make a further assessment upon the
taxpayer for such period in terms of
section [79 of this Act] 99 of that Act or
to authorize a refund under section [102
of this Act] 190 of that Act of any tax
overpaid in respect of such period,
unless it appears that such annual
average taxable income from farming
should be increased or reduced by at
least six hundred rand.”.

Amendment of paragraph 20 of First Schedule

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 156 of 224
 76. Paragraph 20 of the First Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the substitution in subparagraph (1)

for the words preceding item (a) of the
following words:

“If [any] a taxpayer (other than a

company) who derives income from
farming operations [submits an
application to the Commissioner]
makes an election as provided in
subparagraph (6) and if so required
proves to the satisfaction of the
Commissioner-”;

(b) by the substitution in subparagraph (6)

for item (a) of the following item:

“(a) Any taxpayer (other than a

company) may[, at his option,
make written application to the
Commissioner] elect for the
normal tax payable by [him] the
taxpayer to be determined under
this paragraph.”; and

(c) by the substitution in subparagraph

(6)(b) for the words preceding
subitem (i) of the following words:

“ [Any] For purposes of such

[application shall be submitted
to the Commissioner and shall
be accompanied by] election the
following records must be obtained
and retained[-]:”.
Amendment of paragraph 1 of Fourth Schedule

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 157 of 224
 77. Paragraph 1 of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the substitution in the definition of

“representative employer” for item (b) of
the following item:

“(b) in the case of any [divisional

council, municipal council,
village management board or
like authority] municipality or any
body corporate or unincorporated
(other than a company or a
partnership), any manager,
secretary, officer or other person
responsible for paying
remuneration on behalf of such
[council, board, authority]
municipality or body;”; and

(b) by the substitution in the definition of

“representative employer” for the words
following paragraph (d) of the following
words:

“who [is a resident] resides in the

Republic, but nothing in this definition
shall be construed as relieving any
person from any liability, responsibility or
duty imposed upon him or her by this
Schedule; and”.
Amendment of paragraph 2 of Fourth Schedule
78. Paragraph 2 of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended by
the insertion in subparagraph (4) of the
following item after item (c):

……….
[Para 78 of Schedule 1 deleted by s. 92 of Act 21/2012 w.e.f. 1
October 2012]
Amendment of paragraph 5 of Fourth Schedule

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 158 of 224
 79. Paragraph 5 of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended by
the substitution for subparagraph (1) of the
following subparagraph:

“(1) Subject to the provisions of

subparagraph (6) [any], if an employer
[who fails to deduct or withhold the
full amount of employees' tax as
provided in paragraph 2 shall be] is
personally liable for the payment [to the
Commissioner of the amount] of
employees' tax under Chapter 10 of the
Tax Administration Act, [which he or
she fails to deduct or withhold, and]
the employer shall [, subject to the
provisions of sub- paragraph (2),] pay
that amount to the Commissioner not
later than the date on which payment
should have been made if the
employees' tax had in fact been
deducted or withheld in terms of
paragraph 2.”.
Amendment of paragraph 6 of Fourth Schedule
80. Paragraph 6 of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the substitution for subparagraph (1)

of the following subparagraph:

“(1) If an employer fails to pay any

amount of employees' tax for which
he or her is liable within the period
allowable for payment thereof in
terms of paragraph 2 [he shall, in
addition to any other penalty or
charge for which he may be
liable under this Act, pay] SARS
must in accordance with Chapter
15 of the Tax Administration Act,
impose a penalty equal to ten per
cent[.] of such amount.”; and

(b) by the deletion of subparagraphs (2),

(2A), (2B), (3)
Repeal of paragraph and
8 of (4). Schedule
Fourth
81. The Fourth Schedule to the Income Tax Act,
1962, is hereby amended by the repeal of
paragraph 8.
Amendment of paragraph 11B of Fourth
Schedule
82. Paragraph 11B of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended by
the deletion of subparagraph (4A).
Amendment of paragraph 11C of Fourth
Schedule

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 159 of 224
 83. Paragraph 11C of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended by
the substitution for subparagraph (2) of the
following subparagraph:

“(2) Subject to subparagraph (6), every

private company shall on a monthly
basis, in respect of every director of that
company, pay to the Commissioner an
amount determined in accordance with
subparagraph (3), which shall for the
purposes of [sections 79, 89bis, 89ter,
89quat,] section 90 [, 102 and 102A] of
the Act, [and] paragraphs 1, 4, 6,
11[,12],13 and 14 and Parts III and IV of
this Schedule[,] and Chapters 8, 12 and
13 of the Tax Administration Act, be
deemed to be an amount of employees'
tax which was required to be deducted
or withheld by the company as an
employer in terms of paragraph 2 of this
Schedule.”.

Repeal of paragraph 12 of Fourth Schedule

84. The Fourth Schedule to the Income Tax Act,
1962, is hereby amended by the repeal of
paragraph 12.
Amendment of paragraph 14 of Fourth
Schedule
85. Paragraph 14 of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the substitution in subparagraph (1)

for the words preceding item (a) of the
following words:

“[Every] In addition to the records

required in accordance with Part A of
Chapter 4 of the Tax Administration Act,
every employer shall in respect of each
employee maintain a record showing-”;

(b) by the substitution for subparagraph (2)

of the following subparagraph:

“(2) Every employer shall when making

any payment of employees' tax
submit to the Commissioner [such
declaration containing such
information as the
Commissioner may prescribe] a
return.”;

(c) by the substitution in subparagraph (3)

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 160 of 224
 for the words following item (b) of the
following words:

“or within such longer time as the

Commissioner may approve, render to
the Commissioner [such] a return [as
the Commissioner may prescribe].”;

(d) by the deletion of subparagraph (4); and

(e) by the substitution for subparagraph (6)

of the following subparagraph:

“(6) If an employer fails to render to the

Commissioner a return referred to
in subparagraph (3) within the
period prescribed in that
subparagraph, the Commissioner
may impose under Chapter 15 of
the Tax Administration Act on that
employer [shall be required to
pay] a percentage based penalty
[equal to] for each month that the
employer fails to submit a complete
return which in total may not
exceed 10 per cent of the total
amount of employees' tax deducted
or withheld or which should have
been deducted or withheld by the
employer from the remuneration of
employees for the period [relating
to the return required in terms
of] described in that subparagraph
[: Provided that the
Commissioner may remit that
penalty or portion thereof if he or
she is satisfied that the
Amendment of circumstances
paragraph 15 ofwarrant
Fourthit].”.
Schedule

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 161 of 224
 86. Paragraph 15 of the Fourth Schedule to the
Income Tax Act,1962, is hereby amended-

(a) by the substitution for subparagraph (1)

of the following subparagraph:

“(1) Every person who is an employer

shall apply to the Commissioner [in
such form as the Commissioner
may prescribe] in accordance with
Chapter 3 of the Tax Administration
Act for registration [as an
employer within 14 days after
becoming an employer, or within
such further period as the
Commissioner may approve]:
Provided that where no one of such
employer's employees is liable for
normal tax, the provisions of this
paragraph shall not apply to such
employer.”;

(b) by the deletion of subparagraph (2);

(c) by the substitution for subparagraph (3)

of the following subparagraph:

“(3) Every person who [has applied or

is deemed to have applied for
registration under subparagraph
(1)] is registered as an employer
shall within [fourteen] 14 days
after [changing his address or]
ceasing to be an employer, notify
the Commissioner in writing of [his
new address or of] the fact of
[his] the employer having ceased
to be an employer[, as the case
may be].”; and

(d) by the deletion of subparagraph (4).

Repeal of paragraph 16 of Fourth Schedule
87. Paragraph 16 of the Fourth Schedule to the
Income Tax Act, 1962, is hereby repealed.
Amendment of paragraph 17 of Fourth
Schedule

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 162 of 224
 88. Paragraph 17 of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the substitution for subparagraph (5)

of the following subparagraph:

“(5) The Commissioner may from time

to time, having regard to the rates
of normal tax as fixed by
Parliament or foreshadowed by the
Minister in his or her budget
statement or as varied by the
Minister under section 5(3) of this
Act, to the rebates applicable in
terms of section 6(2) and (3)(a) and
section 6quat of this Act and to any
other factors having a bearing upon
the probable liability of taxpayers
for normal tax, prescribe tables for
optional use by provisional
taxpayers falling within any
category specified by the
Commissioner, or by provisional
taxpayers generally, for the
purpose of estimating the liability of
such taxpayers for normal tax, and
the Commissioner may prescribe
the manner in which such tables
shall be applied together with the
period for which such tables shall
remain in force.”;

(b) by the deletion of subparagraph (6); and

(c) by the substitution for subparagraph (8)

of the following subparagraph:

“(8) Every person who is a provisional

taxpayer shall [within 30 days
after the date upon which he
becomes a provisional taxpayer,]
apply to the Commissioner for
registration as a provisional
taxpayer in accordance with
Chapter 3 of the Tax Administration
Act.”.
Amendment of paragraph 18 of Fourth
Schedule

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 163 of 224
 89. Paragraph 18 of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended by
the substitution in subparagraph (1)(d) for the
words preceding subitem (i) of the following
words:

“any natural person [(other than a director

of a private company)] who on the last day
of the year of assessment will be [over the
age of] 65 years or older, if the
Commissioner is satisfied that such person's
taxable income for that year-”.
Amendment of paragraph 19 of Fourth
Schedule
90. Paragraph 19 of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the substitution in subparagraph (1)

for item (a) of the following item:

“(a) Every provisional taxpayer (other

than a company) [or a person
contemplated in paragraph 18)]
shall, during every period within
which provisional tax is or may be
payable by [him] that provisional
taxpayer as provided in this Part,
[or any extension of such period
granted in terms of paragraph
25(2),] submit to the Commissioner
[, in such form as the
Commissioner may prescribe,]
(should the Commissioner so
require) a return of an estimate of
the total taxable income which will
be derived by the taxpayer in
respect of the year of assessment
in respect of which provisional tax
is or may be payable by [him] the
taxpayer.”;

(b) by the substitution in subparagraph (1)

for item (b) of the following item:

“(b) Every company which is a

provisional taxpayer shall, during
every period within which
provisional tax is or may be
payable by it as provided in this
Part [or any extension of such
period granted in terms of
paragraph 25(2),] submit to the
Commissioner [, in such form as
the Commissioner may
prescribe,] (should the
Commissioner so require) a return
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 164 of 224
 of an estimate of the total taxable
income which will be derived by the
company in respect of the year of
assessment in respect of which
provisional tax is or may be
payable by the company.”;

(c) by the substitution in subparagraph (1)

for item (c) of the following item:

“(c) The amount of any estimate so

submitted by a provisional tax-
payer (other than a company)
during the period referred to in
paragraph 21(1)(a) [or any
extension of such period
granted in terms of paragraph
25(2)],or by a company (as a
provisional taxpayer) during the
period referred to in paragraph
23(a) [or any extension of such
period granted in terms of
paragraph 25(2)], shall, unless the
Commissioner, having regard to
the circumstances of the case,
agrees to accept an estimate of a
lower amount, not be less than the
basic amount applicable to the
estimate in question, as
contemplated in item (d).”;

(d) by the substitution in subparagraph (1)

for subsubitem (bb) of item (d)(i) of the
following subsubitem:

“(bb) [the taxable portion of any lump

sum] any amount contemplated in
[section 7A(4A) and] paragraph
(d) of the definition of 'gross
income' in section 1; and”;

(e) by the substitution in subparagraph (1)

for the proviso to item (d) of the
following proviso:

“Provided that, if an estimate under item

(a) or (b) must be made-

(a) more than 18 months; and

(b) in respect of a period that ends

more than one year,

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 165 of 224
 after the end of the latest preceding
year of assessment in relation to such
estimate, the basic amount determined
in terms of subitem (i) and (ii) shall be
increased by an amount equal to eight
per cent per annum of that amount, from
the end of such year to the end of the
year of assessment in respect of which
the estimate is made.”;

(f) by the substitution in subparagraph (1)

for subitem (ii) of item (e) of the following
subitem:

“(ii) in respect of which a notice of

assessment relevant to the
estimate has been issued by the
Commissioner not less than [60]14
days before the date on which the
estimate is submitted to the
Commissioner: Provided that
where the Commissioner has in
respect of any estimate required to
be made by a provisional taxpayer
issued to the taxpayer a return for
the payment of provisional tax
upon which the Commissioner has
indicated the taxpayer's taxable
income for the latest preceding
year of assessment, in respect of
which a notice of assessment was
issued prior to the issue of such
return, such [taxable income] year
of assessment shall at the option of
the taxpayer be deemed to be [the
basic amount applicable to such
estimate] that latest preceding
year of assessment.”;

(g) by the substitution for subparagraph

(2) of the following subparagraph:

(2) If any provisional taxpayer

fails to submit any estimate as
required by subparagraph (1),
the Commissioner may
estimate the taxable income
which is required to be
estimated [, and such
estimate shall be final and
conclusive].”; and

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 166 of 224
 (h) by the substitution for subparagraph

(3) of the following subparagraph:

“(3) The Commissioner may call

upon any provisional taxpayer
to justify any estimate made
by him or her in terms of
subparagraph (1), or to
furnish particulars of his or
her income and expenditure
or any other particulars that
may be required, and, if the
Commissioner is dissatisfied
with the said estimate, he or
she may increase the amount
thereof to such amount as he
or she considers reasonable [,
and the estimate as
increased shall be final and
conclusive].”.
Amendment of paragraph 20 of Fourth
Schedule
91. Paragraph 20 of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the substitution for the heading of the

following heading:

“ [ADDITIONAL TAX] PENALTY IN THE

EVENT OF TAXABLE INCOME BEING
UN DERESTIMATED “;

(b) by the substitution in subparagraph (1)

for items (a) and (b) of the following
items:

“(a) more than R1 million and such

estimate is less than 80 per cent of
the amount of the actual taxable
income the Commissioner may, if
he or she is not satisfied that the
amount of such estimate was
seriously calculated with due
regard to the factors having a
bearing thereon or was not
deliberately or negligently
understated, subject to the
provisions of subparagraph (3),
impose, in addition to the normal
tax chargeable in respect of the
taxpayer's taxable income for such
year of assessment, a [an amount
by way of additional tax] penalty

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 167 of 224
 [up] equal to 20 per cent of the
difference between the amount of
normal tax as calculated in respect
of such estimate and the amount of
normal tax calculated, at the rates
applicable in respect of such year
of assessment, in respect of a
taxable income equal to 80 per
cent of such actual taxable income;
and

(b) in any other case, less than 90 per

cent of the amount of such actual
taxable income and is also less
than the basic amount applicable to
the estimate in question, as
contemplated in paragraph 19(1)
(d), the taxpayer shall, subject to
the provisions of subparagraphs (2)
and (3), be liable to pay to the
Commissioner, in addition to the
normal tax chargeable in respect of
his or her taxable income for such
year of assessment, a [an amount
by way of additional tax] penalty
equal to 20 per cent of the
difference between the amount of
normal tax as calculated in respect
of such estimate and the lesser of
the following amounts, namely-

(i) the amount of normal tax

calculated, at the rates
applicable in respect of such
year of assessment, in
respect of a taxable income
equal to 90 per cent of such
actual taxable income; and

(ii) the amount of normal tax

calculated in respect of a
taxable income equal to such
basic amount, at the rates
applicable in respect of such
year of assessment.”;

(c) by the substitution for subparagraph (2)

of the following subparagraph:

“(2) Where the Commissioner is

satisfied that the amount of any
estimate referred to in
subparagraph (1)(b) was seriously
calculated with due regard to the
factors having a bearing thereon
and was not deliberately or
negligently understated, or if the
Commissioner is partly so satisfied,
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 168 of 224
 the Commissioner may in his or
her discretion remit the [additional
tax] penalty or a part thereof.”; and

(d) byof
Amendment theparagraph
deletion of20A
subparagraph
of Fourth (4).
Schedule
92. Paragraph 20A of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the substitution for the heading of the

following heading:

“ [ADDITIONAL TAX] PENALTY IN THE

EVENT OF FAILURE TO SUBMIT AN
ESTIMATE OF TAXABLE INCOME
TIMEOUSLY”;

(b) by the substitution for subparagraph (1)

of the following subparagraph:

“(1) Subject to the provisions of

subparagraphs (2) and (3), where
any provisional taxpayer is liable
for the payment of normal tax in
respect of any amount of taxable
income derived by that provisional
taxpayer during any year of
assessment and the estimate of his
or her taxable income for that year
required to be submitted by him or
her under paragraph 19(1) during
the period contemplated in
paragraph 21(1)(b), 22(1) or
23(b),as the case may be, was not
submitted by him or her on or
before the last day of that year[or,
if the period for the payment of
provisional tax due by him or her
in respect of such period has
under paragraph 25(2) been
extended to a date later than the
end of such year, on or before
such date,] the taxpayer shall,
unless the Commissioner has
estimated the said taxable income
under paragraph 19(2) or has
increased the amount thereof
under paragraph 19(3), be required
to pay to the Commissioner, in
addition to the normal tax
chargeable in respect of such
taxable income, [an amount by
way of additional tax] a penalty
equal to 20 per cent of the amount
by which the normal tax payable by
him or her in respect of such
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 169 of 224
 taxable income exceeds the sum of
any amounts of provisional tax paid
by him or her in respect of such
taxable income within any period
allowed for the payment of such
provisional tax under this Part [or
within any extension of such
period under paragraph 25(2)]
and any amounts of employees' tax
deducted or withheld from his or
her remuneration by his or her
employer during such year.”;

(c) by the substitution for subparagraph (2)

of the following subparagraph:

“(2) The Commissioner may, if he or

she is satisfied that the provisional
taxpayer's failure to submit such an
estimate timeously was not due to
an intent to evade or postpone the
payment of provisional tax or
normal tax, remit the whole or any
part of the [additional tax] penalty
imposed under subparagraph (1).”;
and

(d) by the deletion of subparagraph (3).

Amendment of paragraph 23A of Fourth
Schedule
93. Paragraph 23Aof the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the substitution for subparagraph (1)

of the following subparagraph:

“(1) Any provisional taxpayer may for

the purpose of avoiding or reducing
his or her liability for any interest
which may become payable by him
or her in respect of any year of
assessment under [section
89quat] Chapter 12 of the Tax
Administration Act, elect to make
an additional payment of
provisional tax in respect of such
year.”; and

(b) by the deletion of subparagraph (2).

Amendment of paragraph 25 of Fourth
Schedule

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 170 of 224
 94. Paragraph 25 of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the substitution for subparagraph (1)

of the following subparagraph:

“(1) If after the end of any period within

which provisional tax is payable in
terms of this Schedule the
Commissioner has under the
provisions of subparagraph (3) of
paragraph 19 increased the
amount of any estimate of taxable
income submitted by any
provisional taxpayer during such
period, any additional provisional
tax payable as a result of the
Commissioner having made such
increase shall, notwithstanding the
provisions of paragraphs 21 [, 22]
and 23, be payable within such
period as the Commissioner may
determine.”; and

(b) by the deletion of subparagraph (2).

Amendment of paragraph 27 of Fourth
Schedule
95. Paragraph 27 of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the substitution for subparagraph (1)

of the following subparagraph:

“(1) If any provisional taxpayer fails to

pay any amount of provisional tax
for which he or she is liable within
the period allowed for payment
thereof in terms of paragraph 21 or
23, or paragraph 25(1), [or within
such extended period as the
Commissioner may allow in
terms of paragraph 25(2), he or
she must, in addition to any
other penalty or charge incurred
by him or her under this Act, pay
to the Commissioner] the
Commissioner must, under Chapter
15 of the Tax Administration Act,
impose a penalty equal to ten per
cent of the amount not paid.”; and

(b) by the deletion of subparagraph (2).

Insertion of paragraph 28A of Fourth Schedule

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 171 of 224
 96. The Fourth Schedule to the Income Tax Act,
1962, is hereby amended by the insertion of
the following paragraph after paragraph 28:

“28A. Payments by way of employees' tax

and provisional tax must, for the
purposes of this Act and subject to the
provisions of paragraph 28, be regarded
as having been made in respect of the
taxpayer's liability for tax whether or not
the liability has been ascertained or
determined at the date of any payment.”.
Amendment of paragraph 30 of Fourth
Schedule
97. Paragraph 30 of the Fourth Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the substitution in subsection (1) for

the words preceding subparagraph (a) of
the following words:

“Any person who wilfully and without just

cause-”;

(b) by the deletion in subparagraph (1) of

items (c), (d), (e) and (i);

(c) by the substitution for item (j) in sub-

paragraph (1) of the following item:

“(j) [fails or neglects to apply to the

Commissioner for registration as
an employer as required by
subparagraph (1) of] being a
registered employer under
paragraph 15(1), [or having so
applied] fails or neglects to notify
the Commissioner of [any change
of his address or the fact of his]
having ceased to be an employer
as required by [sub-paragraph (3)
of that paragraph] paragraph
15(3); or”; and

(d) by the deletion of item (k) in

subparagraph (1).
Repeal of paragraphs 31 and 32 of Fourth
Schedule
98. Paragraphs 31 and 32 of the Fourth Schedule
to the Income Tax Act, 1962, are hereby
repealed.
Amendment of paragraph 11 of Sixth Schedule

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 172 of 224
 99. Paragraph 11 of the Sixth Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the deletion of subparagraph (3);

(b) by the substitution for subparagraph (6)

of the following subparagraph:

“(6) Where the estimate described in

subparagraph 4(a) is less than 80
per cent of the taxable turnover for
the year of assessment,
[additional tax] a penalty equal to
20 per cent of the difference
between the tax payable on 80 per
cent of the taxable turnover for the
year of assessment and the tax
payable on that estimate must be
charged.”; and

(c) by the substitution for subparagraph (8)

of the following subparagraph:

“ (8) Where the Commissioner has

issued an assessment in respect of
the payment required in terms of
subparagraph (4), a penalty must
not be imposed in terms of
subparagraph (6).”.
Repeal of paragraph 12 of Sixth Schedule
100. Paragraph 12 of the Sixth Schedule to the
Income Tax Act, 1962, is hereby repealed.
Amendment of paragraph 14 of Sixth Schedule
101. Paragraph 14 of the Sixth Schedule to the
Income Tax Act, 1962, is hereby amended by
the substitution for the words preceding
subparagraph (a) of the following words:

“ [A]Notwithstanding the provisions of Part A

of Chapter 4 of the Tax Administration Act, a
registered micro business must only retain a
record of-”.
Repeal of paragraph 15 of Sixth Schedule
102. Paragraph 15 of the Sixth Schedule to the
Income Tax Act, 1962, is hereby repealed.
Amendment of paragraph 12A of Seventh
Schedule
103. Paragraph 12A of the Seventh Schedule to
the Income Tax Act, 1962, is hereby amended
by the deletion of sub-paragraph (4).
Amendment of paragraph 17 of Seventh
Schedule

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 173 of 224
 104. Paragraph 17 of the Seventh Schedule to the
Income Tax Act, 1962, is hereby amended-

(a) by the deletion of the proviso in

subparagraph (4); and

(b) by the deletion of subparagraph (5).

Amendment of paragraph 18 of Seventh
Schedule
105. Paragraph 18 of the Seventh Schedule to the
Income Tax Act, 1962, is hereby amended by
the substitution for subparagraph (1) of the
following sub-paragraph:

“(1) Every employer shall on the return

referred to in paragraph 14 of the Fourth
Schedule declare that all taxable
benefits enjoyed by employees of such
employer during the period in respect of
which such return was furnished, are
declared on the [employees]
employees' tax certificates delivered to
such employees or on [the] any other
return [to be furnished in terms of
section 69] as may be required by the
Commissioner.”.
Repeal of paragraph 19 of Seventh Schedule
106. Paragraph 19 of the Seventh Schedule to the
Income Tax Act, 1962, is hereby repealed.
Act No. 89 of 1991 Value-Added Tax Act, Amendment of Act 89 of 1991
1991
107. The Value-Added Tax Act, 1991, is hereby
amended by the substitution for the term
officer', where used in the context of a person
who is engaged by the Commissioner in
carrying out the provisions of that Act, of the
term 'SARS official'.
Amendment of section 1
108. Section 1 of the Value-Added Tax Act, 1991,
is hereby amended-

(a) by the deletion of the definition of

business day”;

(b) by the substitution for the definition of

Commissioner” of the following
definition:

“ 'Commissioner' means the

Commissioner for the South African
Revenue Service appointed in terms of
section 6 of the South African Revenue
Service Act, 1997 (Act No. 34 of 1997),
or the Acting Commissioner designated
in terms of section 7 of that Act;”;

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 174 of 224
 (c) by the substitution for the definition of
“prescribed rate” of the following
definition:

“ 'prescribed rate' means the rate

contemplated in section 189(3) of the
Tax Administration Act;”;

(d) by the insertion after the definition of

“tax” of the following definition:

“ 'Tax Administration Act' means the

Tax Administration Act, 2011;”;

(e) by the deletion of the definition of tax

period”; and

(f) by the substitution for the definition of

“VAT registration number” of the
following definition:

“ 'VAT registration number', in relation

to any vendor, means the number
allocated to that vendor by the
Commissioner [for the pur poses of
this Act] in terms of section 24 of the
Tax Administration Act;”;

(g) by the renumbering of section 1 to

section 1(1); and

(h) by the insertion after subsection (1) of

the following subsection:

“(2) Unless the context indicates

otherwise, a word or expression to
which a meaning has been
assigned in the Tax Administration
Act bears that meaning for
purposes of this Act.”.
Substitution of section 4

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 175 of 224
 109. The Value-Added Tax Act, 1991, is hereby
amended by the substitution for section 4 of
the following section:

[Act to be administered by Commis

sioner] Administration of Act

4. (1) The Commissioner [shall be] is

responsible for carrying out the
provisions of this Act.

(2) Administrative requirements and

procedures for purposes of the
performance of any duty, power or
obligation or the exercise of any right in
terms of this Act are, to the extent not
regulated in this Act, regulated by the
Tax Administration Act.”.
Amendment of section 5
110. Section 5 of the Value-Added Tax Act, 1991,
is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) The powers conferred and the

duties imposed upon the
Commissioner by or in terms of the
provisions of this Act or any
amendment thereof may be
exercised or performed by the
Commissioner [personally],or by
any[officer engaged in carrying
out the said provisions under the
control, direction or supervision
of the Commissioner] SARS
official.”; and

(b) by the deletion of subsection (2).

Repeal of section 6
111. Section 6 of the Value-Added Tax Act, 1991,
is hereby repealed.
Amendment of section 13

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 176 of 224
 112. Section 13 of the Value-Added Tax Act, 1991,
is hereby amended by the substitution in
subsection (5) for paragraph (a) of the
following paragraph:

“(a) for the collection (in such manner as the

Commissioner may determine) by a
SARS official, or the[-

(i) any officer performing his or her

duties under the control,
direction or supervision of the
Commissioner; or

(ii)] Managing Director of the South

African Post Office Limited on
behalf of the Commissioner, of the
tax payable in terms of this Act in
respect of the importation of any
goods into the Republic; and”.
Amendment of section 14
113. Section 14 of the Value-Added Tax Act, 1991,
is hereby amended by the substitution in
subsection (1) for paragraph (a) of the
following paragraph:

“(a) furnish the Commissioner with a

[declaration (in such form as the
Commissioner may prescribe)
containing such information as may
be required] return; and”.
Amendment of section 15

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 177 of 224
 114. Section 15 of the Value-Added Tax Act, 1991,
is hereby amended by the substitution for
subsection (8) of the following subsection:

“(8) If, in relation to any particulars required

to be furnished under subsection(4)[,]-

(a) the amount referred to in

subsection (6)(b) exceeds the
amount referred to in subsection
(6)(a); or

(b) the amount referred to in

subsection (7)(b) exceeds the
amount referred to in subsection
(7)(a),

the amount of the excess shall be

refundable to the vendor by the
Commissioner in respect of the
changeover period as provided in
[section 44(1)] Chapter 13 of the Tax
Administration Act, read with section
16(5).”.
Amendment of section 16

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 178 of 224
 115. Section 16 of the Value-Added Tax Act, 1991,
is hereby amended-

(a) by the substitution for the proviso to

subsection (2) of the following proviso:

“Provided that where a tax invoice or

debit note or credit note in relation to
that supply has been provided in
accordance with this Act, or a bill of
entry or other document has been
delivered in accordance with the
Customs and Excise Act, as the case
may be, the Commissioner may
determine that no deduction for input tax
in relation to that supply or importation
shall be made unless that tax in voice or
debit note or credit note or that bill of
entry or other document is retained in
accordance with the provisions of
section 55[(3)] and Part A of Chapter 4
of the Tax Administration Act.”; and

(b) by the substitution for subsection (5) of

the following subsection:

“(5) If, in relation to any tax period of

any vendor, the aggregate of the
amounts that may be deducted
under subsection (3) from the sum
referred to in that subsection, the
amount (if any) refundable to the
vendor under section 15(8), [the
amount (if any) brought forward
from the tax period preceding
the first- mentioned tax period as
provided in paragraph (ii) of the
proviso to section 44(1) and the
amount (if any) credited under
section 44(4) to the vendor's
account during the first-
mentioned tax period] and any
other amount refundable under
Chapter 13 of the Tax
Administration Act, exceeds the
said sum, the amount of the excess
shall, subject to the provisions of
this Act, be refundable to the
vendor by the Commissioner as
provided in [section 44(1)] Chapter
13 of the Tax Administration Act.”.
Amendment of section 17
116. Section 17 of the Value-Added Tax Act, 1991,
is hereby amended-

(a) by the substitution for the words

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 179 of 224
 preceding the proviso to subsection (1)
of the following words:

“Where goods or services are acquired

or imported by a vendor partly for
consumption, use or supply (hereinafter
referred to as the intended use) in the
course of making taxable supplies and
partly for another intended use, the
extent to which any tax which has
become payable in respect of the supply
to the vendor or the importation by the
vendor, as the case may be, of such
goods or services or in respect of such
goods under section 7(3) or any amount
determined in accordance with
paragraph (b) or (c) of the definition of
'input tax' in section 1, is input tax, shall
be an amount which bears to the full
amount of such tax or amount, as the
case may be, the same ratio (as
determined by the Commissioner in
accordance with a ruling as
contemplated in Chapter 7 of the Tax
Administration Act or section [41A or]
41B) as the intended use of such goods
or services in the course of making
taxable supplies bears to the total
intended use of such goods or services”;
and

(b) by the substitution for paragraph (iii) in

subsection (1) of the following
paragraph:

“(iii) where a method for determining the

ratio referred to in this subsection
has been approved by the
Commissioner, that method may
only be changed with effect from a
future tax period, or from such
other date as the Commissioner
may consider equitable and such
other date must fall-

(aa) in the case of a vendor who

is a taxpayer as defined in
section 1 of the Income Tax
Act, within the year of
assessment as defined in that
Act; or

(bb) in the case of a vendor who

is not a taxpayer as defined in
section 1 of the Income Tax
Act, within the period of
twelve months ending on the
last day of February, or if
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 180 of 224
 such vendor draws up annual
financial statements in
respect of a year ending other
than on the last day of
February, within that year,

during which the application for the

aforementioned method was made
by the vendor.”.
Amendment of section 23
117. Section 23 of the Value-Added Tax Act, 1991,
is hereby amended-

(a) by the substitution for subsection (2) of

the following subsection:
“(2) Every person who is not a resident
of the Republic, and who in terms
of subsection (1) or section 50A,
becomes liable to be registered
[shall not later than 21 days after
becoming so liable apply to the
Commissioner for registration in
such form as the Commissioner
may direct and provide the
Commissioner with such further
particulars and any
documentation as the
Commissioner may require in
such form for the purpose of
registering that person:
Provided that where-

(i) a person who applies for

registration under this
subsection has not
provided all particulars and
documentation as required
by the Commissioner that
person shall be deemed not
to have applied for
registration until he has
provided all such
particulars and
documentation to the
Commissioner;

(ii) such person is not a

resident of the Republic,
such person] in accordance
with Chapter 3 of the Tax
Administration Act, shall be
deemed not to have applied
for registration, in addition to
section 22(4) of the Tax
Administration Act, until [he]
such person has-

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 181 of 224
 [(aa)](a) appointed a
representative vendor as
contemplated in section
[48(1)] 46 in the
Republic and furnished
the Commissioner with
the particulars of such
representative vendor;

[(bb)](b) opened a banking

account with any bank,
mutual bank or other
similar institution,
registered in terms of the
Banks Act, 1990 (Act
No. 94 of 1990), for the
purposes of his or her
enterprise carried on in
the Republic and
furnished the
Commissioner with the
particulars of such
banking account.”;

(b) by the substitution for the words

following subparagraph (d) of sub-
section (3) of the following words:

“may apply to the Commissioner for

registration [in such form as the
Commissioner may direct and
provide the Commissioner with such
further particulars and any
documentation as the Commissioner
may require in such form for the
purpose of registering that person].”;
and

(c) by the substitution in subsection (4) for

paragraphs (a) and (b) of the following
paragraphs:

“(a) applied for registration in

accordance with Chapter 3 of the
Tax Administration Act or
subsection (2) or (3) and the
Commissioner is satisfied that that
person is eligible to be registered in
terms of this Act, that person shall
be a vendor for the purposes of this
Act with effect from such date as
the Commissioner may determine;
or

(b) not applied for registration in terms

of [subsection (2)] Chapter 3 of
the Tax Administration Act and the
Commissioner is satisfied that that
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 182 of 224
 person is liable to be registered in
terms of this Act, that person shall
be a vendor for the purposes of this
Act with effect from the date on
which that person first became
liable to be registered in terms of
this Act: Provided that the
Commissioner may, having regard
to the circumstances of the case,
determine that person to be a
vendor from such later date as the
Commissioner may consider
equitable”.

Amendment of section 25
118. Section 25 of the Value-Added Tax Act, 1991,
is hereby amended-

(a) by the substitution for the words

preceding paragraph (a) of the following
words:

“[Subject to this Act] In addition to any

requirement under the Tax
Administration Act, every vendor shall
within 21 days [and in such form as
the Commissioner may prescribe]
notify the Commissioner in writing of-”;

(b) by the substitution for paragraph (a) of

the following paragraph:

“(a) any change in the [name,

address,] constitution or nature of
the principal enter prise or
enterprises of that vendor;”;

(c) by the deletion of paragraph (f);

(d) by the addition after paragraph (g) of the

following paragraph:

“ (h) any changes in the majority

ownership of any company”; and

(e) by the deletion of the proviso.

Substitution of section 26

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 183 of 224
 119. The Value-Added Tax Act, 1991, is hereby
amended by the substitution for section 26 of
the following section:

“Liabilities not affected by person ceasing

to be vendor

26.The obligations and liabilities under this

Act or the Tax Administration Act of any
person in respect of anything done, or
omitted to be done, by that person while
that person is a vendor shall not be
affected by the fact that that person
ceases to be a vendor, or by the fact
that, being registered as a vendor, the
Commissioner cancels that person's
registration as a vendor.”.
Amendment of section 27

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 184 of 224
 120. Section 27 of the Value-Added Tax Act, 1991,
is hereby amended by the substitution for
subsection (6) of the following subsection:

“(6) The tax periods applicable under this Act

to any vendor shall be the tax periods
applicable to the Category within which
the vendor falls as contemplated in this
section: Provided that-

(i) the first such period shall

commence on the commencement
date or, where any person
becomes a vendor on a later date,
such later date;

(ii) any tax period ending on the last

day of a month, as applicable in
respect of the relevant Category,
may, instead of ending on such last
day, end on a fixed day approved
by the Commissioner, which day
shall fall within 10 days before or
after such last day: Provided that
the future tax period so approved
by the Commissioner must be used
by the vendor for a minimum period
of 12 months commencing from the
tax period the change is made;

(iii) the first day of any tax period of the

vendor subsequent to the vendor's
first tax period shall be the first day
following-

(a) the last day of the vendor's

preceding tax period; or

(b)
the fixed day as approved by
the Commissioner in terms of
paragraph (ii).”.
Amendment of section 28

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 185 of 224
 121. Section 28 of the Value-Added Tax Act, 1991,
is hereby amended-

(a) by the deletion in subsection (1) of

paragraph (i) of the proviso;

(b) by the substitution in subsection (1) for

paragraph (iii) of the proviso of the
following paragraph:

“(iii) a vendor registered with the

Commissioner to submit returns
[and payments] electronically
[(other than by means of a debit
order), must furnish the return]
is deemed to have made payment
within the period contemplated in
subsection (1) [and make] if the
vendor makes full payment of the
amount of tax within the period
ending on the last business day of
the month during which that twenty-
fifth day falls;

(c) by the deletion in subsection (1) of

paragraphs (iv) and (v) of the proviso;
and

(d) by the deletion of subsections (3), (4),

(5), (6), (7), (8) and (9).
Amendment of section 29
122. Section 29 of the Value-Added

Tax Act, 1991, is hereby amended by the

substitution in paragraph (a) for the words
preceding subparagraph (i) of the following
words:

“furnish the Commissioner with a return [(in

such form as the Commissioner may
prescribe)] reflecting-”.
Repeal of section 30
123. Section 30 of the Value-Added Tax Act, 1991,
is hereby repealed.
Amendment of section 31
124. Section 31 of the Value-Added Tax Act, 1991,
is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) [Where]The Commissioner may

make an assessment of the
amount of tax payable by-
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 186 of 224
 [(a) any person fails to furnish any
return as required by section 28,
29 or 30 or fails to furnish any
declaration as required by
section 14; or

(b) the Commissioner is not

satisfied with any return or
declaration which any person is
required to furnish under a
section referred to in paragraph
(a);or

(c) the Commissioner has reason to

believe that any person has
become liable for the payment of
any amount of tax but has not
paid such amount; or]

(d) any person, not being a vendor,

that supplies goods or services and
represents that tax is charged on
that supply; or

(e) any vendor that supplies goods or

services and such supply is not a
taxable supply or such supply is a
taxable supply in respect of which
tax is chargeable at a rate of zero
per cent, and in either case that
vendor represents that tax is
charged on such supply at a rate in
excess of zero per cent;

(f) any person who holds himself out

as a person entitled to a refund or
who produces, furnishes,
authorises, or makes use of any
tax invoice or document or debit
note and has obtained any undue
tax benefit or refund under the
provisions of an export incentive
scheme referred to in paragraph (d)
of the definition of “exported” in
section 1, to which such person is
not en-titled[,

the Commissioner may,

notwithstanding the provisions of
section 32 (5) of this Act and section
83 (18) and 83A (12) of the Income
Tax Act, make an assessment of the
amount of tax payable by the person
liable for the payment of such
amount of tax, and the amount of tax
so assessed shall be paid by the
person concerned to the
Commissioner].”;

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 187 of 224
 (b) by the deletion in subsection (2) of
paragraph (a);

(c) by the deletion of subsection (3);

(d) by the substitution for the words that

precede paragraph (a) in subsection (4)
of the following words:

“The Commissioner [shall give the

person concerned a written notice of
such assessment, stating the amount
upon which tax is payable, the
amount of tax payable, the amount of
any additional tax payable in terms
of section 60 and the tax period (if
any) in relation to which the
assessment is made] must give a
notice of assessment, and-”; and

(e) by the deletion of subsections (5) and

(5A).
Repeal of sections 31A and 31B
125. Sections 31A and 31B of the Value-Added
Tax Act, 1991, are hereby repealed.
Amendment of section 32
126. Section 32 of the Value-Added Tax Act, 1991,
is hereby amended-

(a) by the substitution for the heading of the

following heading:

“Objections to certain decisions [or

assessments]”;

(b) by the substitution for subsection (1) of

the following subsection:

“(1) [Any person who is dissatisfied

with-]The following decisions of
the Commissioner are subject to
objection and appeal:

(a) any decision given in writing

by the Commissioner-

(i) in terms of section 23(7)

notifying that person of the
Commissioner's refusal to
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 188 of 224
 register that person in terms
of this Act; [or]

(ii) in terms of section 24(6) or (7)

notifying that person of the
Commissioner's decision to
cancel any registration of that
person in terms of this Act or
of the Com missioner's refusal
to cancel such registration; or

[(iii) in terms of section 44(8) of

the Commissioner's refusal
to make a refund; or]

(iv) refusing to approve a method

for determining the ratio
contemplated in section 17(1);
or

[(v) in terms of section 43(5)

and (6) notifying a member,
shareholder or trustee of a
vendor that he is required
to provide surety in respect
of the vendor's liability for
tax from time to time; or

(vi) refusing to remit, in whole

or in part, any interest or
penalty in terms of section
39(7); or

(b) any assessment made upon him

under the provisions of section
31, 60 or 61; or]

(c) any [direction or supplementary

direction] decision made by the
Commissioner and served on that
person in terms of section 50A(3)
or (4)[,

may lodge an objection thereto

with the Commissioner].”; and

(c) by the deletion of subsections (2), (2A),

(3), (4) and (5).

Repeal of sections 33 to 37
127. Sections 33,33A, 34,35,36 and 37 of the
Value-Added Tax Act, 1991, are hereby
repealed.
Amendment of section 39
128. Section 39 of the Value-Added Tax Act, 1991,
is hereby amended-

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 189 of 224
 (a) by the substitution for the heading of the
following heading:

“Penalty [and interest] for failure to

pay tax when due”;

(b) by the substitution for subsection (1) of

the following subsection:

“(1)[(a)] If any person who is liable for

the payment of tax and is required
to make such payment [in the
manner prescribed in] in
accordance with the provisions of
section 14, 28(1) or 29, fails to pay
any amount of such tax within the
period for the payment of such tax
specified in the said [provision he
shall] provisions, the
Commissioner must, in [addition
to such amount of tax, pay]
accordance with Chapter 15 of the
Tax Administration Act, impose[-

(i) ]a penalty equal to 10 per

cent of the said amount of
tax[; and

(ii) where payment of the said

amount of tax is made on or
after the first day of the
month following the month
during which the period al
lowed for payment of the
tax ended, interest on the
said amount of tax,
calculated at the prescribed
rate (but subject to the
provisions of section 45A)
for each month or part of a
month in the period
reckoned from the said first
day.

(b) Where any amount of tax has in

relation to any tax period of any
vendor been refunded to the
vendor in terms of the
provisions of section 44(1), read
with section 16(5), or has in
relation to that period been set
off against unpaid tax in terms of
the provisions of section 44(6),
and such amount was in whole
or in part not properly
refundable to the vendor under
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 190 of 224
 section 16(5), so much of such
amount as was not properly so
refundable shall for the
purposes of paragraph (a)(i) be
deemed to an amount of tax
required to be paid by the
vendor within the said period
and for the purposes of
paragraph (a)(ii), an amount of
tax required to be paid by the
vendor during the period in
which the refund was made].”;

(c) by the deletion of subsection (2);

(d) by the substitution for subsection (4) of

the following subsection:

“(4) Where any importer of goods

which are required to be entered
under the Customs and Excise Act,
fails to pay any amount of tax
payable in respect of the
importation of the goods on the
date on which the goods are
entered under the said Act for
home consumption in the Republic
or the date on which customs duty
is payable in terms of the said Act
in respect of the importation or, if
such duty is not payable, the date
on which it would be so payable if it
had been payable, whichever date
is later, the Commissioner must, in
accordance with Chapter 15 of the
Tax Administration Act, impose on
that importer [shall, in addition to
such amount of tax pay-
(a)] a penalty equal to 10 per cent
of the said amount of tax[;
and
(b) where payment of the said
amount of tax is made on or
after the first day of the
month following the month
during which the period
allowed for payment of the
tax ended, interest on the
said amount of tax,
calculated at the prescribed
rate (but subject to the
provisions of section 45A)
for each month or part of a
month in the period
reckoned from the said first
day].”;

(e) by the substitution for subsection (5) of

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 191 of 224
 the following subsection:

“(5) Where any person who is liable for

the payment of tax fails to pay any
amount of such tax on the date on
which in terms of the Customs and
Excise Act, liability arises for the
payment of the excise duty or
environmental levy referred to in
section 7(3)(a), the Commissioner
must, in accordance with Chapter
15 of the Tax Administration Act,
impose on that person [shall, in
addition to such amount of tax,
pay-

(a)] a penalty equal to 10 per cent

of the said amount of tax[;
and

(b) where payment of the said

amount of tax is made on or
after the first day of the
month following the month
during which the period al
lowed for payment of the
tax ended, interest on that
amount of tax, calculated at
the prescribed rate (but
subject to the provisions of
section 45A) for each
month or part of a month in
the period reckoned from
the said first day].”; and

(f) by the deletion of subsections (6), (6A),

(7) and (8).
Repeal of section 40
129. Section 40 of the Value-Added Tax Act, 1991,
is hereby repealed.
Repeal of section 41A
130. Section 41A of the Value-Added Tax Act,
1991, is hereby repealed.
Amendment of section 41B

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 192 of 224
 131. Section 41B of the Value-Added Tax Act,
1991, is hereby amended by the substitution
for subsection (1) of the following subsection:

“(1) The Commissioner may issue a VAT

class ruling or a VAT ruling and in
applying the provisions [relating to Part
IA of Chapter III of the Income Tax
Act,] of Chapter 7 of the Tax
Administration Act, a VAT class ruling or
a VAT ruling must be dealt with as if it
were a binding class ruling or a binding
private ruling, respectively: Provided
that-

(i) the provisions of [subsections (2)

(k), (2)(l) and (5) of section 76E
and section 76F of the Income
Tax Act] section 79(4)(f) and (k)
and (6) of the Tax Administration
Act shall not apply to any VAT
class ruling or VAT ruling;

(ii) an application for a VAT class

ruling or a VAT ruling in terms of
this section shall not be accepted
by the Commissioner if the
application-

(aa) is for an advance tax ruling

that qualifies for acceptance
in terms of [section 41A]
Chapter 7 of the Tax
Administration Act; and

(bb) falls within a category of

rulings prescribed by the
Minister by regulation for
which applications for rulings
in terms of this section may
not be accepted.”.
Repeal of sections 42 and 43
132. Sections 42 and 43 of the Value-Added Tax
Act, 1991, are hereby repealed.
Amendment of section 44

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 193 of 224
 133. Section 44 of the Value-Added Tax Act, 1991,
is hereby amended-

(a) by the deletion of subsections (1) and

(2);

(b) by the substitution in subsection (3) for

the words preceding paragraph (a) of the
following words:

“The Commissioner shall not make a

refund under [subsection (2)] Chapter
13 of the Tax Administration Act
unless-”;

(c) by the deletion in subsection (3) of

paragraphs (a) and (b);

(d) by the deletion of subsections (4), (5)

and (6);

(e) by the substitution for subsection (7) of

the following subsection:

“(7) Where the vendor has failed to

furnish a return for any tax period
as required by this Act, the
Commissioner may withhold
payment of any amount refundable
to the vendor under [subsection
(1) or any amount of interest
payable to the vendor in terms
of section 45] section 190 of the
Tax Administration Act until the
vendor has furnished such return
as so required.”;

(f) by the deletion of subsection (8); and

(g) by the addition after subsection (9) of

the following subsection:

“ (10) The amount determined under

section 191(3) of the Tax
Administration Act must be
accounted for as provided in
section 16(5), but any refundable
amount (irrespective of the
quantum thereof) is refundable in
full to a vendor in respect of its final
tax period on the cancellation of its
registration as a vendor.”.
Substitution of section 45

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 194 of 224
 134. The Value-Added Tax Act, 1991, is hereby
amended by the substitution for section 45 of
the following section:

“Interest on delayed refunds

45. (1) Where the Commissioner does not

within the period of 21 business days
after the date on which the vendor's
return in respect of a tax period is
received by a SARS office refund any
amount refundable under the Tax
Administration Act, interest will be paid
on such amount in accordance with
Chapter 12 of that Act.

(2) Despite the provisions of Chapter 12 of

the Tax Administration Act, if a person
fails to-

(a) without just cause submit relevant

material, requested by SARS for
purposes of verification, inspection
or audit of a refund in accordance
with Chapter 5 of the Tax
Administration Act; or

(b) furnish SARS in writing with

particulars of the account required
in terms of section 44(3)(d) to
enable SARS to transfer a refund
to that account,

no interest accrues on the amount

refundable for the period from the date
that-

(i) in respect of subparagraph

(a),the relevant material was
required to be submitted; or

(ii) in respect of subparagraph

(b),the refund is authorised,

until the date that the person submits

the relevant material or bank account
particulars.”.
Repeal of section 45A
135. Section 45A of the Value-Added Tax Act,
1991, is hereby repealed.
Amendment of section 46

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 195 of 224
 136. Section 46 of the Value-Added Tax Act, 1991,
is hereby amended-

(a) by the substitution for the words

preceding paragraph (a) of the following
words:

“The natural person who [is a resident

of] resides in the Republic responsible
for the duties imposed by this Act- “;

(b) by the substitution for paragraph (a) of

the following paragraph:

“(a) on any company shall be the public

officer thereof [contemplated in
section 101 of the Income Tax
Act] or, in the case of any
company which is placed in
liquidation, the liquidator thereof;”;
and

(c) by the deletion of the proviso.

Repeal of sections 47, 48 and 49

137. Sections 47, 48 and 49 of the Value-Added

Tax Act, 1991, are hereby repealed.
Amendment of section 50

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 196 of 224
 138. Section 50 of the Value-Added Tax Act, 1991,
is hereby amended by the substitution for
subsection (6) of the following subsection:

“(6) Notwithstanding the preceding

provisions of this section, any
[direction] decision or determination of
the Commissioner made under section
15 or 27 in respect of the vendor
referred to in subsection (1) of this
section shall, for the purposes of this
Act, apply equally to each separate
enterprise, branch or division of the
vendor which is separately registered
under this section: Provided that where a
[direction] decision or determination is
made by the Commissioner under
subsection (2) of section 27 which
applies in respect of any such separate
enterprise, branch or division, this
subsection shall not be construed as
preventing the Commissioner from
making a separate [direction] decision
or determination under subsection (4) of
the said section in the circumstances
contemplated in that subsection in
respect of any other separate enterprise,
branch or division of the said vendor.”.
Amendment of section 50A
139. Section 50A of the Value-Added Tax Act,
1991, is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) Notwithstanding the provisions of

section 23, if the Commissioner
makes a [direction] decision under
this section, the persons named in
the [direction] decision shall be
deemed to be a single person
carrying on the activities of an
enterprise described in the
[direction] decision and that
person shall be liable to be
registered in terms of section 23
with effect from the date of the
[direction] decision or, if the
[direction] decision so provides,
from such date as may be specified
therein.”;

(b) by the substitution in subsection (2) for

the words preceding paragraph (a) of the
following words:

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 197 of 224
 “The Commissioner shall not make a
[direction] decision under this section
naming any person unless he or she is
satisfied-”;

(c) by the substitution in subsection (2) for

paragraph (b) of the following
paragraph:

“(b) that the activities in the course of

which he or she makes or made
those taxable supplies form only
part of certain activities which
should properly be regarded as
those of the enterprise described in
the [direction] decision, the other
activities of that enterprise being
carried on at that time or previously
by one or more other persons;
and”;

(d) by the substitution for subsection (3) of

the following subsection:

“(3) A [direction] decision made under

this section shall be served on each
of the persons named in it.”;

(e) by the substitution in subsection (4) for

the words preceding paragraph (a) of the
following words:

“Where, after a [direction] decision has

been given under this section specifying
a description of the enterprise, it appears
to the Commissioner that a person who
was not named in that [direction]
decision is making taxable supplies in the
course or furtherance of activities which
should properly be regarded as part of
the activities of that enterprise, the
Commissioner may make and serve on
him or her a supplementary [direction]
decision referring to the earlier
[direction] decision and the description
of the enterprise specified in it and
adding that person's name to those of the
persons named in the earlier [direction]
decision with effect from-”;

(f) by the substitution for subsections (5)

and (6), respectively, of the following
subsections:
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 198 of 224
 “(5) If, immediately before a [direction]
decision (including a
supplementary [direction]
decision) is made under this
section, any person named in the
[direction] decision is registered in
respect of the taxable supplies
made by him or her as
contemplated in subsection (2) or
(4), he or she shall cease to be
liable to be so registered with effect
from-

(a) the date with effect from

which the single person
concerned became liable to
be registered; or

(b) the date of the [direction]

decision,

whichever date is the later.

(6) In relation to an enterprise

specified in a [direction] decision
(including a supplementary
[direction] decision) under this
section, the persons named in such
[direction] decision, who together
are deemed to be the liable person,
are in subsections (7) and (8)
referred to as the members.”;

(g) by the substitution in subsection (7) for

the words preceding paragraph (a) of the
following words:

“For the purposes of this Act, where a

[direction] decision is made under this
section-”; and

(h) by the substitution for paragraph (a) of

subsection (7) of the following
paragraph:

“(a) the person carrying on the

enterprise specified in the
[direction] decision shall be
registrable in such name as the
members may jointly nominate
upon compliance with the
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 199 of 224
 provisions of section 23(2);”.

Amendment of section 55
140. Section 55 of the Value-Added Tax Act, 1991,
is hereby amended-

(a) by the substitution for the words

preceding paragraph (a) of the following
words:

“ [Every vendor shall keep such

books of account (which books of
account, where gener ated by means
of a computer, shall be retained in
the form of a computer print-out) or
other records as may enable him to
observe the requirements of this Act
and enable the Commis sioner to
satisfy himself that the vendor has
observed such requirements, and] In
addition to the records required under
Part A of Chapter 4 of the Tax
Administration Act, every vendor [shall]
must, in particular, keep the following
records and documents[-]:'; and

(b) by the deletion of subsections (2), (3)

and (4).

Repeal of sections 57 to 57D

141. Sections 57, 57A, 57B, 57C and 57D of the
Value-Added Tax Act, 1991, are hereby
repealed.
Amendment of section 58
142. Section 58 of the Value-Added Tax Act, 1991,
is hereby amended-

(a) by the substitution for the words

preceding paragraph (a) of the following
words:

“Any person who wilfully and without

just cause-”;

(b) by the deletion of paragraphs (a), (b)

and (c);

(c) by the substitution for paragraph (d) of

the following paragraph:

“(d) fails to comply with the provisions

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 200 of 224
 of section 14, [or section] 28(1) or
(2) or [section] 29 [or section
30];or”;

(d) by the deletion of paragraphs (f) to (i);

(e) by the substitution in paragraph (j) for

subparagraphs (ii) and (iii) of the
following subparagraphs:

“(ii) [knowingly and without lawful

excuse (the burden of proof of
which shall be upon him)]
includes in or adds to the price or
amount charged to the recipient in
relation to such supply any tax,
where in fact no tax is payable in
terms of this Act; or

(iii) [knowingly and without lawful

excuse (the burden of proof of
which shall be upon him)]
includes in or adds to the price or
amount charged to the recipient in
relation to such supply any tax in
excess of the tax properly leviable
under this Act in respect of the
value of such supply; or”;

(f) by the substitution for paragraph (k) of

the following paragraph:

“(k) [knowingly and without lawful

excuse (the burden of proof of
which shall be upon him)] fails to
comply with the provisions of
paragraph (i) of the proviso to
section 20(1) or paragraph (A) of
the proviso to section 21(3); or”;
and

(g) by the deletion of paragraphs (l), (n), (o),

(p) and (q).

Repeal of sections 59 and 60

143. Sections 59 and 60 of the Value-Added Tax
Act, 1991, are hereby repealed.
Amendment of section 61

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 201 of 224
 144. Section 61 of the Value-Added Tax Act,
1991, is hereby amended- (a) by the
substitution for subsection (1) of the
following subsection:
“(1) Where in respect of any supply
made by a vendor, the vendor has,
in consequence of any fraudulent
action or any misrepresentation by
the recipient of the supply,
incorrectly applied a rate of zero
per cent or treated such supply as
being exempt from tax, the
Commissioner may,
notwithstanding anything to the
contrary contained in this Act, raise
an assessment upon the recipient
for the amount of tax payable,
together with any interest and
penalty [or interest that has
become payable in terms of
section 39] that has become
payable in terms of Chapter 12, 15
or 16 of the Tax Administration Act,
as the case may be, in respect of
such amount[, and, in raising
such assessment, the
Commissioner may estimate the
amount on which the tax is
payable].”; and

(b) by the deletion of subsection (2).

Repeal of sections 62, 63, 70 and 71
145. Sections 62, 63, 70 and 71 of the Value-
Added Tax Act, 1991, are hereby repealed.
Amendment of section 72

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 202 of 224
 146. The Value-Added Tax Act, 1991, is hereby
amended by the substitution for section 72 of
the following section:

“Arrangements and [directions] decisions

to overcome difficulties, anomalies or
incongruities

72. If in any case the Commissioner is

satisfied that in consequence of the
manner in which any vendor or class of
vendors conducts his, her or their
business, trade or occupation,
difficulties, anomalies or incongruities
have arisen or may arise in regard to the
application of any of the provisions of
this Act, the Commissioner may make
an arrangement or [give a direction]
decision as to-

(a) the manner in which such

provisions shall be applied; or

(b) the calculation or payment of tax

or the application of any rate of
zero per cent or any exemption
from tax provided in this Act,

in the case of such vendor or class of

vendors or any person transacting with
such vendor or class of vendors as
appears to overcome such difficulties,
anomalies or incongruities: Provided
that such [direction] decision or
arrangement shall not have the effect of
substantially reducing or increasing the
ultimate liability for tax levied under this
Act.”.
Act No. 34 of 1997 South African Revenue Amendment of section 1
Service Act, 1997
147. Section 1 of the South African Revenue
Service Act, 1997, is hereby amended by the
substitution for the definition of “revenue” of
the following definition:

“ 'revenue' means income derived from

taxes, duties, levies, fees[, charges,
additional tax] and any other moneys
imposed in terms of legislation, including
penalties and interest in connection with such
moneys;”.
Act No. 9 of 1999 Skills Development Amendment of section 1
Levies Act, 1999

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 203 of 224
 148. Section 1 of the Skills Development Levies
Act, 1999, is hereby amended-

(a) by the substitution for the definition of

“Commissioner” of the following
definition:

“ 'Commissioner' means the

Commissioner for the South African
Revenue Service appointed in terms of
section 6 of the South African Revenue
Service Act, 1997 (Act No. 34 of 1997),
or the Acting Commissioner designated
in terms of section 7 of that Act;”;

(b) by the insertion after the definition of

“Skills Development Act” of the following
definition:

“ 'Tax Administration Act' means the

Tax Administration Act, 2011;”;

(c) by the renumbering of section 1 to

section 1(1); and

(d) by the insertion after subsection (1) of

the following subsection:

“(2) Unless the context indicates

otherwise, a word or expression to
which a meaning has been
assigned in the Tax Administration
Act, bears that meaning for
purposes of this Act.”.
Amendment of section 2

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 204 of 224
 149. Section 2 of the Skills Development Levies
Act, 1999, is hereby amended-

(a) by the substitution for subsection (2) of

the following subsection:

“(2) The Commissioner must

administer the provisions of the Act
in so far as it relates to the
collection of the levy payable to the
Commissioner in terms of this Act,
in accordance with the provisions
of the Tax Administration Act.”; and

(b) by the insertion after subsection (2) of

the following subsection:

“(2A) Administrative requirements and

procedures for purposes of the
performance of any duty, power or
obligation or the exercise of any
right in terms of this Act are, to the
extent not regulated in this Act,
regulated by the Tax Administration
Act.”.
Amendment of section 6

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 205 of 224
 150. Section 6 of the Skills Development Levies
Act, 1999, is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) Subject to section 7, every

employer must, not later than
seven days, or such longer period
as the Commissioner determines,
after the end of each month in
respect of which the levy is
payable, pay the levy to the
Commissioner [in the manner
and] within the period determined
in this Act.”; and

(b) by the substitution for subsection (2) of

the following subsection:

“(2) An employer must[, not later than

seven days, or such longer
period as the Commissioner
determines, after the end of each
month in respect of which the
levy is payable, pay the levy to
the Commissioner and] together
with [such] payment of the levy in
terms of subsection (1), submit a
[statement-

(a) in such form as the

Commissioner may require;
and

(b) reflecting the amount of the

levy due by that employer
and containing such other
information as the
Commissioner may require]
return.”.
Repeal of section 7A
151. Section 7A of the Skills Development Levies
Act, 1999, is hereby repealed.
Amendment of section 11

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 206 of 224
 152. Section 11 of the Skills Development Levies
Act, 1999, is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) If an employer fails to pay a levy or

any portion thereof on the last day
for payment thereof, as
contemplated in section 6(2) or
7(4), interest is payable on the
outstanding amount [at the rate
contemplated paragraph (b) of
the definition of 'prescribed rate'
in section 1 of the Income Tax
Act, calculated from the day
following that last day for
payment to the day that payment
is received by the
Commissioner, SETA or
approved body, as the case may
be] in accordance with the
provisions of Chapter 12 of the Tax
Administration Act.”; and

(b) by the deletion of subsection (2).

Amendment of section 12

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 207 of 224
 153. Section 12 of the Skills Development Levies
Act, 1999, is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) Subject to subsection (2), if any

levy remains unpaid after the last
day for payment thereof as
contemplated in section 6 (2) or 7
(4), the Commissioner must, under
Chapter 15 of the Tax
Administration Act, impose a
penalty of 10 per cent of that
unpaid amount [is payable in
addition to the interest
contemplated in section 11].”;

(b) by the substitution for subsection (2) of

the following subsection:

“(2) The Commissioner or the

executive officer of the SETA or
approved body, as the case may
be, may[, having due regard to
the circumstances of the case,]
remit the penalty or any portion
thereof imposed by subsection (1)
in accordance with the provisions
of Chapter 15 of the Tax
Administration Act.”; and

(c) by the deletion of subsections (3), (4)

and (5).
Repeal of section 13
154. Section 13 of the Skills Development Levies
Act, 1999, is hereby repealed.
Amendment of section 15
155. Section 15 of the Skills Development Levies
Act, 1999, is hereby amended by the addition
after subsection (2) of the following
subsection:

“ (3) An inspector has the same powers

afforded to a senior SARS official, a
SARS official or SARS under Chapter 5
of the Tax Administration Act.”.
Repeal of sections 16, 17, 20, 20A and 21
156. Sections 16, 17,20, 20A and 21 of the Skills
Development Levies Act, 1999, are hereby
repealed.
Act No. 4 of 2002 Unemployment Amendment of section 1
Insurance Contributions
Act, 2002
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 208 of 224
 157. Section 1 of the Unemployment Insurance
Contributions Act, 2002, is hereby amended-

(a) by the substitution for the definition of

“Commissioner” of the following
definition:

“ 'Commissioner' means the

Commissioner for the South African
Revenue Service appointed in terms of
section 6 of the South African Revenue
Service Act, 1997 (Act No. 34 of 1997),
or the Acting Commissioner designated
in terms of section 7 of that Act;”;

(b) by the insertion after the definition of

“remuneration” of the following definition:

“ 'Tax Administration Act' means the

Tax Administration Act, 2011;”;

(c) by the renumbering of section 1 to

section 1(1); and

(d) by the insertion of the following

subsection after subsection (1):

“ (2) Unless the context indicates

otherwise, a word or expression to
which a meaning has been
assigned in the Tax Administration
Act bears that meaning for
purposes of this Act.”.

Amendment of section 3

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 209 of 224
 158. Section 3 of the Unemployment Insurance
Contributions Act, 2002, is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) This Act must be administered by

the Commissioner, in accordance
with the provisions of the Tax
Administration Act.”;

(b) by the insertion after subsection (1) of

the following subsection:

“(1A) Administrative requirements and

procedures for purposes of the
performance of any duty, power or
obligation or the exercise of any
right in terms of this Act are, to the
extent not regulated in this Act,
regulated by the Tax Administration
Act.”; and

(c) by the substitution for subsection (2) of

the following subsection:

“(2) [The] In addition to section 9 of the

Tax Administration Act, and in
accordance with section 10 of that
Act, the Commissioner may
delegate any power or assign any
duty which relates to the collection
of-

(a) contributions payable to the

Unemployment Insurance
Commissioner in terms of
section 9; and

(b) any information to be

submitted by employers in
terms of this Act, to the
Unemployment Insurance
Commissioner.”.

Amendment of section 8

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 210 of 224
 159. Section 8 of the Unemployment Insurance
Contributions Act, 2002, is hereby amended-

(a) by the substitution for subsection (2) of

the following subsection:

“(2) An employer must, together with

the payment [contemplated]
referred to in subsection (1), submit
a [statement in such form as the
Commissioner may require and]
return reflecting the amount of the
payment and such other particulars
as the Minister may prescribe [by
regulation].'; and

(b) by the deletion of subsection (3).

Amendment of section 9A

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 211 of 224
 160. Section 9A of the Unemployment Insurance
Contributions Act, 2002, is hereby amended
by the substitution for subsection (1) of the
following subsection:

“(1) Where any employer who is required to

pay the amount of all employees'
contributions and the employer's
contributions in respect of every
employee in the employment of that
employer to [the Commissioner in
terms of section 8 or to] the
Unemployment Insurance Commissioner
in terms of section 9-

(a) has failed to submit a statement as

required in terms of [section 8(2)
or] section 9(2);

(b) has furnished a return as required

in terms of [section 8(2A) or]
section [9(2A)] 9(2) but the
Commissioner is not satisfied with
the return;

(c) has failed to deduct or withhold

employees' contributions; or

(d) has failed to pay over any

contributions deducted or withheld,

and such employer has not been

absolved from his or her liabilities in
terms of the provisions of this Act, the
[Commissioner or the] Unemployment
Insurance Commissioner[, as the case
may be,] may make a reasonable
estimate of the amount of any
contributions due in terms of section 6
and issue to the employer a notice of
assessment for the unpaid amount.”.
Amendment of section 10

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 212 of 224
 161. Section 10 of the Unemployment Insurance
Contributions Act, 2002, is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) An employer to whom this Act

applies must apply for registration
to the Commissioner, in
accordance with Chapter 3 of the
Tax Administration Act, or the
Unemployment Insurance
Commissioner, [whichever is
applicable to such employer in
terms of section 8 or 9,] in such
manner and within such period as
may be prescribed by the
[Commissioner or]
Unemployment Insurance Com-
missioner[, respectively].”; and (b)
by the deletion of subsection (2).
Repeal of section 12
162. Section 12 of the Unemployment Insurance
Contributions Act, 2002, is hereby repealed.
Amendment of section 13
163. Section 13 of the Unemployment Insurance
Contributions Act, 2002, is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) If any contribution remains unpaid

after the last day for payment
thereof as contemplated in section
8(1) or 9(1), the Commissioner
must, under Chapter 15 of the Tax
Administration Act, impose a
penalty of 10 per cent of the unpaid
amount [is payable in addition to
the interest contemplated in
section 12,] but the Commissioner
or the Unemployment Insurance
Commissioner, as the case may
be, may[, having due regard to
the circumstances of the case,]
remit the penalty or any portion
thereof in accordance with the
provisions of Chapter 15 of the Tax
Administration Act.”; and

(b) by the deletion of subsections (2), (3)

and (4).
Repeal of section 14
164. Section 14 of the Unemployment Insurance
Contributions Act, 2002, is hereby repealed.
Amendment of section 15
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 213 of 224
 165. Section 15 of the Unemployment Insurance
Contributions Act, 2002, is hereby amended
by the addition after subsection (1) of the
following subsection:

“ (2) An inspector has the same powers

afforded to a senior SARS official, a
SARS official or SARS under Chapter 5
of the Tax Administration Act.”
Repeal of section 17
166. Section 17 of the Unemployment Insurance
Contributions Act, 2002, is hereby repealed.
Act No. 14 of 2007 Diamond Export Levy Amendment of section 1
(Administration) Act,
2007
167. Section 1 of the Diamond Export Levy
(Administration) Act, 2007, is hereby
amended-

(a) by the substitution for the definition of

“Commissioner” of the following
definition:

“ 'Commissioner' means the

Commissioner for the South African
Revenue Service appointed in terms of
section 6 of the South African Revenue
Service Act, 1997 (Act No. 34 of 1997),
or the Acting Commissioner designated
in terms of section 7 of that Act;”;

(b) by the insertion after the definition of

“registered person” of the following
definition:

“'Tax Administration Act' means the

Tax Administration Act, 2011.”;

(c) by the addition after subsection (2) of

the following subsection:

“(3) Unless the context indicates

otherwise, a word or expression to
which a meaning has been
assigned in the Tax Administration
Act bears that meaning for
purposes of this Act.”.
[Item (c) of para. 167 of Schedule 1 substituted by s. 93 of Act
21/2012 w.e.f. 1 October 2012]

(d) ……….
[Item (d) of para. 167 of Schedule 1 deleted by s. 93 of Act
21/2012 w.e.f. 1 October 2012]

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 214 of 224
 Amendment of section 7
168. Section 7 of the Diamond Export Levy
(Administration) Act, 2007, is hereby
amended-

(a) by the substitution in subsection (1) for

the words preceding paragraph (a) of the
following words:

“[Every] In addition to the records

required under the Tax Administration
Act, every registered person must retain
[records necessary to observe the
require ments of this Act and the
Levy Act, including] the following
records-”; and

(b) by the deletion of subsections (2) and

(3).
Repeal of sections 10 to 15
169. Sections 10, 11, 12, 13, 14 and 15 of the
Diamond Export Levy (Administration) Act,
2007, are hereby repealed.
Amendment of section 16

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 215 of 224
 170. Section 16 of the Diamond Export Levy
(Administration) Act, 2007, is hereby
amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) The Commissioner will be

responsible for administering this
Act and the Levy Act, in
accordance with the provisions of
the Tax Administration Act,
together with the assistance of the
Regulator as described in
subsection (2).”;

(b) by the insertion after subsection (1) of

the following subsection:

“(1A) Administrative requirements and

procedures for purposes of the
performance of any duty, power or
obligation or the exercise of any
right in terms of this Act are, to the
extent not regulated in this Act,
regulated by the Tax Administration
Act.”; and

(c) by the deletion of subsection (3).

Repeal of section 17
171. Section 17 of the Diamond Export Levy
(Administration) Act, 2007, is hereby repealed.
Act No. 26 of 2007 Securities Transfer Tax Amendment of section 1
Administration Act, 2007

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 216 of 224
 172. Section 1 of the Securities Transfer Tax
Administration Act, 2007, is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) The Commissioner must

administer this Act and the
Securities Transfer Tax Act, 2007,
in accordance with the provisions
of the Tax Administration Act,
2011.”;

(b) by the insertion after subsection (1) of

the following subsection:

“(1A) Administrative requirements and

procedures for purposes of the
performance of any duty, power or
obligation or the exercise of any
right in terms of this Act are, to the
extent not regulated in this Act,
regulated by the Tax Administration
Act, 2011.”;

(c) by the substitution for subsection (2) of

the following subsection:

“(2) Unless the context indicates

otherwise, a word or expression to
which a meaning has been
assigned in the Tax Administration
Act, 2011, and any word or
expression to which a meaning has
been assigned in the Securities
Transfer Tax Act, 2007, bears the
meaning so assigned for the
purposes of this Act.”; and

(d) by the deletion of subsection (3).

Amendment of section 3
173. Section 3 of the Securities Transfer Tax
Administration Act, 2007, is hereby amended
by the deletion of subsection (4) thereof.
Amendment of section 4

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 217 of 224
 174. Section 4 of the Securities Transfer Tax
Administration Act, 2007, is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) The Commissioner must refund the

amount of any overpayment of tax
or of any interest or penalty
properly chargeable in respect of
the transfer of any security, [if
application for the refund is
made within two years after the
date of that overpayment] in
accordance with sections 190 and
191 of the Tax Administration Act,
2011.”; and

(b) by the deletion of subsections (2) and

(4).
Repeal of sections 5, 6 and 7
175. Sections 5, 6 and 7 of the Securities Transfer
Tax Administration Act, 2007, are hereby
repealed.
Amendment of section 8

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 218 of 224
 176. The Securities Transfer Tax Administration
Act, 2007, is hereby amended by the
substitution for section 8 of the following
section:

“8. Interest on overdue payments and

penalty on default recoverable from
person to whom security is
transferred
(1)In the case of a listed security, a member
or participant may recover the amount of
[the] interest [referred to in section 5,
penalty on default referred to in
section 6 or the] or penalty [in the case
of evasion referred to in section 7]
payable by that member or participant
[in terms of this Act] under the Tax
Administration Act from the person-

(a) to whom a listed security is

transferred; or

(b) who cancels or redeems a listed

security,

to the extent that the action or inaction

of that person resulted in the interest or
penalty.

(2) In the case of an unlisted security,

the company which issued that
security may recover the amount of
[the] interest [referred to in
section 5, penalty on default
referred to in section 6 or the] or
penalty [in the case of evasion
referred to in section 7] payable
by that company [in terms of this
Act] under the Tax Administration
Act from the person to whom that
security was transferred, to the
extent that the action or inaction of
that person resulted in the interest
or penalty.”.
Repeal of sections 9, 10, 11, 12, 14, 15, 16, 17,
18 and 19
177. Sections 9, 10, 11, 12, 14, 15, 16, 17, 18 and
19 of the Securities Transfer Tax
Administration Act, 2007, are hereby
repealed.
Substitution of section 20

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 219 of 224
 178. The Securities Transfer Tax Ad ministration
Act, 2007, is hereby amended by the
substitution for section 20 of the following
section:

“Offences [and penalties]

20. [Any] In addition to the offences

contained in sections 235 and 236 of the
Tax Administration Act, 2011, any
person who [-

(a) fails or neglects to furnish, file

or submit any declaration or
document as and when required
by or under this Act;

(b) without just cause shown,

refuses or neglects to furnish
any information, document or
thing referred to in section 12;

(c) fails to disclose any material

fact in the declaration referred to
in section 2 or 3;

(d) obstructs or hinders any person

in the performance of his or her
functions under or in terms of
this Act;

(e) submits or furnishes a false

certificate or statement; or

(f) ] acquires an unlisted security and

fails to inform the company of the
transfer within the period referred
to in section 2, is guilty of an
offence and liable on conviction to
a fine or to imprisonment for a
period not exceeding [12 months]
two years.”.
Repeal of section 21
179. Section 21 of the Securities Transfer Tax
Administration Act, 2007, is hereby repealed.
Act No. 36 of 2007 Revenue Laws Second Repeal of sections 33 and 36
Amendment Act, 2007
180. Sections 33 and 36 of the Revenue Laws
Second Amendment Act, 2007, are hereby
repealed.
Act No. 4 of 2008 Taxation Laws Second Repeal of sections 16 and 18
Amendment Act, 2008
181. Sections 16 and 18 of the Taxation Laws
Second Amendment Act, 2008, are hereby
repealed.
Amendment of section 23
182. Section 23 of the Taxation Laws Second
Amendment Act, 2008, is hereby amended by
the deletion of subsection (1).

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 220 of 224
 Act No. 29 of 2008 Mineral and Petroleum Amendment of section 1
Resources Royalty
(Administration) Act,
2008

183. Section 1 of the Mineral and Petroleum

Resources Royalty (Administration) Act, 2008,
is hereby amended-

(a) by the substitution for the definition of

“Commissioner” of the following
definition:

“ 'Commissioner' means the

Commissioner for the South African
Revenue Service appointed in terms of
section 6 of the South African Revenue
Service Act, 1997 (Act No. 34 of 1997),
or the Acting Commissioner designated
in terms of section 7 of that Act;”;

(b) by the deletion of the definition of

“nonbinding private opinion”;

(c) by the substitution for the definition of a

“notice of assessment” of the following
definition:

“ 'notice of assessment' means a

notice of assessment [mentioned in
section 9] as described in section 96 of
the Tax Administration Act;”; and

(d) by the insertion after the definition of

“Royalty Act” of the following definition:

“ 'Tax Administration Act' means the

Tax Administration Act, 2011;”; and

(e) by the insertion after subsection (2) of

the following subsection:

“(3) Unless the context indicates

otherwise, a word or expression to
which a meaning has been
assigned in the Tax Administration
Act, bears that meaning for
purposes of this Act.”.
Amendment of section 4

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 221 of 224
 184. Section 4 of the Mineral and Petroleum
Resources Royalty (Administration) Act, 2008,
is hereby amended by the substitution in
subsection (1) for paragraph (b) of the
following paragraph:

“(b) of which one or more members [of that

unincorporated body] hold a
prospecting right, retention permit,
exploration right, mining right, mining
permit or production right granted
pursuant to the Mineral and Petroleum
Resources Development Act (or a lease
or sublease mentioned in section 11 of
[the Mineral and Petroleum
Resources Development] that Act in
respect of such a right); and”.
Amendment of section 5
185. Section 5 of the Mineral and Petroleum
Resources Royalty (Administration) Act, 2008,
is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) A registered person must submit

an estimate of the royalty payable
in respect of a year of assessment
within six months after the first day
of that year and must make a
payment (together with [such] a
return for that payment[as the
Commissioner may prescribe])
equal to one-half of the amount of
the royalty so estimated.”; and

(b) by the substitution for subsection (2) of

the following subsection:

“(2) A registered person must submit

an estimate of the royalty payable
in respect of a year of assessment
by the last day of that year and
submit a payment (together with
[such] a return for that payment
[as the Commissioner may
prescribe]) equal to the amount of
the royalty so estimated less the
amount paid as mentioned in
subsection (1).”.

Repeal of section 7
186. Section 7 of the Mineral and Petroleum
Resources Royalty (Administration) Act, 2008,
is hereby repealed.
Amendment of section 8

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 222 of 224
 187. Section 8 of the Mineral and Petroleum
Resources Royalty (Administration) Act, 2008,
is hereby amended-

(a) by the substitution in subsection (1) for

the words preceding paragraph (a) of the
following words:

“[A] In addition to the records required

under the Tax Administration Act, a
registered person must retain
[such records as are necessary
to satisfy the requirements of
this Act and the Royalty Act,
including-]the following records:”;
and

(b) by the deletion of subsection (2).

Amendment of section 9
188. Section 9 of the Mineral and Petroleum
Resources Royalty (Administration) Act, 2008,
is hereby amended by the deletion of
subsections (1), (2), (3) and (5).
Repeal of sections 10,11,12 and 13
189. Sections 10, 11, 12 and 13 of the Mineral and
Petroleum Resources Royalty (Administration)
Act, 2008, are hereby repealed.

[Item 189 substituted by s. 65 of Act 16/2016 w.e.f. 19 January 2017]

Amendment of section 17
190. Section 17 of the Mineral and Petroleum
Resources Royalty (Administration) Act, 2008,
is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) The Commissioner is responsible

for administering this Act and the
Royalty Act, in accordance with the
provisions of the Tax
Administration Act.”; and

(b) by the substitution for subsection (2) of

the following subsection:

“ (2) Administrative requirements and

procedures for purposes of the
performance of any duty, power or
obligation or the exercise of any
right in terms of this Act are, to the
extent not regulated in this Act,
regulated by the Tax Administration
Act.”.
Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 223 of 224
 Repeal of section 18
191. Section 18 of the Mineral and Petroleum
Resources Royalty (Administration) Act, 2008,
is hereby repealed.
Amendment of section 18A
192. Section 18A of the Mineral and Petroleum
Resources Royalty (Administration) Act, 2008
is hereby amended-

(a) by the substitution for subsection (1) of

the following subsection:

“(1) [The] For purposes of this Act, the

Commissioner may only issue a
non-binding private opinion [to a
person regarding the tax
treatment of a particular set of
facts and circumstances or a
particular transaction] in terms of
Chapter 7 of the Tax Administration
Act.”; and

(b) by the deletion of subsections (2) and

(3).
Act No. 61 of 2008 Revenue Laws Second Repeal of sections 3, 13 and 14
Amendment Act, 2008
193. Sections 3, 13 and 14 of the Revenue Laws
Second Amendment Act, 2008, are hereby
repealed.
Amendment of section 16
194. Section 16 of the Revenue Laws Second
Amendment Act, 2008, is hereby amended by
the deletion in subsection (1) of paragraph (b).
Repeal of section 20
195. Section 20 of the Revenue Laws Second
Amendment Act, 2008, is hereby repealed.
Act No. 18 of 2009 Taxation Laws Second Repeal of sections 12, 13, 14, 33, 34 and 38
Amendment Act, 2009
196. Sections 12, 13, 14, 33, 34 and 38 of the
Taxation Laws Second Amendment Act,
2009, are hereby repealed.

Tax Administration Act 28 of 2011, PDF generated date: January 13th, 2024 Page 224 of 224