Tax Administration Act 28 of 2011 - SAFLII Home · interest on outstanding tax debts; to provide for the refund of excess payments; to ... Remedies with respect to foreign assets

Government Gazette

REPUBLIC OF SOUTH AFRICA

Vol. 565 Cape Town 4 July 2012 No. 35491

STATE PRESIDENT'S OFFICE

No. 591 4 July 2012

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

No. 28 of 2011: Tax Administration Act, 2011.

AIDS HELPLINE: 0800-123-22 Prevention is the cure

2 No. 35491

Act No. 28 of 2011

GOVERNMENT GAZETTE, 4 JULY 2012

Tax Administration Act, 2011

GENERAL EXPLANATORY NOTE:

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

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

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

ACTTo 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 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.

4 No. 35491

Act No. 28 of 2011



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

ARRANGEMENT OF SECTIONS

Sections

CHAPTER 1

DEFINITIONS

5

1. Definitions

CHAPTER 2

GENERALADMINISTRATION PROVISIONS

Part A 10

In general

2. Purpose of Act3. Administration of tax Acts4. Application of Act5. Practice generally prevailing 15

Part B

Powers and duties ofSARS and SARS officials

6. Powers and duties7. Conflict of interest8. Identity cards 209. Decision or notice by SARS

Part C

Delegations

10. Delegations by the Commissioner

Part D 25

Authority to act in legal proceedings

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

Part E

Powers and duties ofMinister 30

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

Part F

Powers and duties ofTax Ombud

15. Office of Tax Ombud 3516. Mandate of Tax Ombud17. Limitations on authority18. Review of complaint19. Reports by Tax Ombud20. Resolution and recommendations 40

Act No. 28 of 2011 Tax Administration Act, 2011

6 No. 35491 GOVERNMENT GAZETTE, 4 JULY 2012

21. Confidentiality

CHAPTER 3

REGISTRATION

22. Registration requirements23. Communication of changes in particulars 524. Taxpayer reference number

CHAPTER 4

RETURNS AND RECORDS

Part A

General 10

25. Submission of return26. Third party returns27. Other returns required28. Statement concerning accounts29. Duty to keep records 1530. Form of records kept or retained31. Inspection of records32. Retention period in case of audit, objection or appeal33. Translation

PartB 20

Reportable arrangements

34. Definitions35. Reportable arrangements36. Excluded arrangements37. Disclosure obligation 2538. Information to be submitted39. Reportable arrangement reference number

CHAPTER 5

INFORMATION GATHERING

Part A 30

General rules for inspection, verification, audit and criminal investigation

4041424344

Selection for inspection, verification or auditAuthorisation for SARS official to conduct audit or criminal investigation Keeping taxpayer informedReferral for criminal investigation 35Conduct of criminal investigation

Part B

Inspection, request for relevant material, audit and criminal investigation

45. Inspection46. Request for relevant material 4047. Production of relevant material in person48. Field audit or criminal investigation49. Assistance during field audit or criminal investigation

8 No. 35491

Act No. 28 of 2011



Part C

Inquiries

50. Authorisation for inquiry51. Inquiry order52. Inquiry proceedings 553. Notice to appear54. Powers of presiding officer55. Witness fees56. Confidentiality of proceedings57. Incriminating evidence 1058. Inquiry not suspended by civil or criminal proceedings

Part D

Search and seizure

59. Application for warrant60. Issuance of warrant 1561. Carrying out search62. Search of premises not identified in warrant63. Search without warrant64. Legal professional privilege65. Person’s right to examine and make copies 2066. Application for return of seized relevant material or costs of damages

CHAPTER 6

CONFIDENTIALITY OF INFORMATION

67. General prohibition of disclosure68. SARS confidential information and disclosure 2569. Secrecy of taxpayer information and general disclosure70. Disclosure to other entities71. Disclosure in criminal, public safety or environmental matters72. Self-incrimination73. Disclosure to taxpayer of own record 3074. Publication of names of offenders

CHAPTER 7

ADVANCE RULINGS

75. Definitions76. Purpose of advance rulings 3577. Scope of advance rulings78. Private rulings and class rulings79. Applications for advance rulings80. Rejection of application for advance ruling81. Fees for advance rulings 4082. Binding effect of advance rulings83. Applicability of advance rulings84. Rulings rendered void85. Subsequent changes in tax law86. Withdrawal or modification of advance rulings 4587. Publication of advance rulings88. Non-binding private opinions89. General rulings90. Procedures and guidelines for advance rulings

10 No. 35491

Act No. 28 of 2011



91.92.93.94.95.96.97.98.99. 100

101.102.103.

104.105.106. 107.

108.109.110. 111. 112.113.114.115.

116.117.118.119.120. 121. 122.123.124.125.

CHAPTER 8

ASSESSMENTS

Original assessments Additional assessmentsReduced assessments 5Jeopardy assessmentsEstimation of assessmentsNotice of assessmentRecording of assessmentsWithdrawal of assessments 10Period of limitations for issuance of assessments Finality of assessment or decision

CHAPTER 9

DISPUTE RESOLUTION

Part A 15

General

DefinitionsBurden of proofRules for dispute resolution

PartB 20

Objection and appeal

Objection against assessment or decision Forum for dispute of assessment or decision Decision on objectionAppeal against assessment or decision 25

Part C

Tax board

Establishment of tax board Jurisdiction of tax boardConstitution of tax board 30Appointment of chairpersonsClerk of tax boardTax board procedureDecision of tax boardReferral of appeal to tax court 35

Part D

Tax court

Establishment of tax court Jurisdiction of tax courtConstitution of tax court 40Nomination of president of tax courtAppointment of panel of tax court membersAppointment of registrar of tax courtConflict of interest of tax court membersDeath, retirement or incapability of judge or member 45Sitting of tax court not public Appearance at hearing of tax court

12 No. 35491

Act No. 28 of 2011



126. Subpoena of witness to tax court127. Non-attendance by witness or failure to give evidence128. Contempt of tax court129. Decision by tax court130. Order for costs by tax court 5131. Registrar to notify parties of judgment of tax court132. Publication of judgment of tax court

Part E

Appeal against tax court decision

133. Appeal against decision of tax court 10134. Notice of intention to appeal tax court decision135. Leave to appeal to Supreme Court of Appeal against tax court decision136. Failure to lodge notice of intention to appeal tax court decision137. Notice by registrar of period for appeal of tax court decision138. Notice of appeal to Supreme Court of Appeal against tax court decision 15139. Notice of cross-appeal of tax court decision140. Record of appeal of tax court decision141. Abandonment of judgment

Part F

Settlement ofdispute 20

142. Definitions143. Purpose of Part144. Initiation of settlement procedure145. Circumstances where settlement is inappropriate146. Circumstances where settlement is appropriate 25147. Procedure for settlement148. Finality of settlement agreement149. Register of settlements and reporting150. Alteration of assessment or decision on settlement

CHAPTER 10 30

TAX LIABILITY AND PAYMENT

Part A

Taxpayers

151. Taxpayer152. Person chargeable to tax 35153. Representative taxpayer154. Liability of representative taxpayer155. Personal liability of representative taxpayer156. Withholding agent157. Personal liability of withholding agent 40158. Responsible third party159. Personal liability of responsible third party160. Right to recovery of taxpayer161. Security by taxpayer

14 No. 35491

Act No. 28 of 2011



Part B

Payment o f tax

162. Determination of time and manner of payment of tax163. Preservation order164. Payment of tax pending objection or appeal 5

Part C

Taxpayer account and allocation ofpayments

165. Taxpayer account166. Allocation of payments

Part D 10

Deferral ofpayment

167. Instalment payment agreement168. Criteria for instalment payment agreement

CHAPTER 11

RECOVERY OF TAX 15

Part A

General

169. Debt due to SARS170. Evidence as to assessment171. Period of limitation on collection of tax 20

Part B

Judgment procedure

172. Application for civil judgment for recovery of tax173. Jurisdiction of Magistrates’ Court in judgment procedure174. Effect of statement filed with clerk or registrar 25175. Amendment of statement filed with clerk or registrar176. Withdrawal of statement and reinstitution of proceedings

Part C

Sequestration, liquidation and winding-up proceedings

177. Institution of sequestration, liquidation or winding-up proceedings 30178. Jurisdiction of court in sequestration, liquidation or winding-up proceedings

Part D

Collection o f tax debt from third parties

179. Liability of third party appointed to satisfy tax debts180. Liability of financial management for tax debts 35181. Liability of shareholders for tax debts182. Liability of transferee for tax debts183. Liability of person assisting in dissipation of assets184. Recovery of tax debts from responsible third parties

16 No. 35491

Act No. 28 of 2011



185.

186.

187.188. 189.

190.191.

192.193.194.

195.196.

197.198.199.

200.201.202.203.204.205.

Part E

Assisting foreign governments

Tax recovery on behalf of foreign governments

Part F

Remedies with respect to foreign assets 5

Compulsory repatriation of foreign assets of taxpayer

CHAPTER 12

INTEREST

General interest rulesPeriod over which interest accrues 10Rate at which interest is charged

CHAPTER 13

REFUNDS

Refunds of excess paymentsRefunds subject to set-off and deferral 15

CHAPTER 14

W RITE OFF OR COMPROMISE OF TAX DEBTS

Part A

General provisions

Definitions 20Purpose of Chapter Application of Chapter

Part B

Temporary write off o f tax debt

Temporary write off of tax debt 25Tax debt uneconomical to pursue

Part C

Permanent write off o f tax debt

Permanent write off of tax debtTax debt irrecoverable at law 30Procedure for writing off tax debt

Part D

Compromise o f tax debt

Compromise of tax debtRequest by debtor for compromise of tax debt 35Consideration of request to compromise tax debtCircumstances where not appropriate to compromise tax debtProcedure for compromise of tax debtSARS not bound by compromise of tax debt

18 No. 35491

Act No. 28 of 2011



206.207.

208.209.

210.211.212.

213.

214.215.

216.217.218.219.220.

221.222.223.224.

Part E

Records and reporting

Register of tax debts written off or compromisedReporting by Commissioner of tax debts written off or compromised

CHAPTER 15 5

ADMINISTRATIVE NON-COMPLIANCE PENALTIES

Part A

General

DefinitionsPurpose of Chapter 10

Part B

Fixed amount penalties

Non-compliance subject to penalty Fixed amount penalty tableReportable arrangement penalty 15

Part C

Percentage based penalty

Imposition of percentage based penalty

Part D

Procedure 20

Procedures for imposing penalty Procedure to request remittance of penalty

Part E

Remedies

Remittance of penalty for failure to register 25Remittance of penalty for nominal or first incidence of non-compliance Remittance of penalty in exceptional circumstances Penalty incorrectly assessedObjection and appeal against decision not to remit penalty

CHAPTER 16 30

UNDERSTATEMENT PENALTY

Part A

Imposition ofunderstatement penalty

DefinitionsUnderstatement penalty 35Understatement penalty percentage tableObjection and appeal against decision not to remit understatement penalty

20 No. 35491

Act No. 28 of 2011



Part B

Voluntary disclosure programme

225. Definitions226. Qualifying person for voluntary disclosure227. Requirements for valid voluntary disclosure 5228. No-name voluntary disclosure229. Voluntary disclosure relief230. Voluntary disclosure agreement231. Withdrawal of voluntary disclosure relief232. Assessment or determination to give effect to agreement 10233. Reporting of voluntary disclosure agreements

CHAPTER 17

CRIMINAL OFFENCES

234. Criminal offences relating to non-compliance with tax Acts235. Criminal offences relating to evasion of tax 15236. Criminal offences relating to secrecy provisions237. Criminal offences relating to filing return without authority238. Jurisdiction of courts in criminal matters

CHAPTER 18

REPORTING OF UNPROFESSIONAL CONDUCT 20

239. Definitions240. Registration of tax practitioners241. Complaint to controlling body of tax practitioner242. Disclosure of information regarding complaint and remedies of taxpayer243. Complaint considered by controlling body 25

CHAPTER 19

GENERAL PROVISIONS

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

tax 30246. Public officers of companies247. Company address for notices and documents248. Public officer in event of liquidation or winding-up249. Default in appointing public officer or address for notices or documents250. Authentication of documents 35251. Delivery of documents to persons other than companies252. Delivery of documents to companies253. Documents delivered deemed to have been received254. Defect does not affect validity255. Rules for electronic communication 40256. Tax clearance certificate257. Regulations by Minister

CHAPTER 20

TRANSITIONAL PROVISIONS

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

45

22 No. 35491

Act No. 28 of 2011



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

CHAPTER 1

DEFINITIONS

Definitions

1. 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;‘‘biometric information’’ means biological data used to authenticate the identity of a natural person by means of—(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 under section 257;‘‘business day’’ means a day which is not a Saturday, Sunday or public holiday, and for purposes of determining the days or a period allowed for complying 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 of section 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’’ means the Customs and Excise Act, 1964 (ActNo. 91 of 1964);‘‘date of assessment’’ means—(a) in the case of an assessment by SARS, the date of the issue of the notice of

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

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

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

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

sequestration is granted by a court;‘‘Diamond Export Levy Act’’ means the Diamond Export Levy Act, 2007 (Act No. 15 of 2007);

5

10

15

20

25

30

35

40

45

50

55

24 No. 35491

Act No. 28 of 2011



‘‘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);‘‘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;‘‘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 an agreement entered into with the government of another country in accordance with a tax Act;‘‘jeopardy assessment’’ is an assessment referred to in section 94;‘‘judge’’ means a judge of the High Court of South Africa, whether in chambers 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);‘‘M inister’’ 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;‘‘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);‘‘reduced assessment’’ is an assessment referred to in section 93;‘‘relevant m aterial’’ means any information, document or thing that is forseeably relevant for tax risk assessment, assessing tax, collecting tax, showing noncompliance with an obligation under a tax Act or showing that a tax offence was committed;‘‘reportable arrangem ent’’ 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 or is the basis on which an assessment is to be made by SARS;‘ 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 by SARS for purposes of the administration of a tax Act

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

‘‘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—

5

10

15

20

25

30

35

40

45

50

55

60

26 No. 35491

Act No. 28 of 2011



(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 5 a fine or to a fine exceeding the equivalent amount of a fine under the Adjustmentof Fines Act, 1991 (Act No. 101 of 1991);‘‘shareholder’’ means a person who holds a beneficial interest in a share in a company as defined in the Income Tax Act;‘‘Skills Development Levies Act’’ means the Skills Development Levies Act, 10 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;‘‘taxable event’’ means an occurrence which affects or may affect the liability of 15 a person to tax;‘‘tax Act’’ means this Act or an Act, or portion of an Act, referred to in section 4 of the SARS Act, excluding the Customs and Excise Act;‘‘tax board’’ means a tax board established under section 108;‘‘tax court’’ means a court established under section 116; 20‘‘tax debt’’ means an amount of tax due by a person in terms of a tax Act;‘‘tax offence’’ means an offence in terms of a tax Act or any other offence involving fraud on SARS or on a SARS official relating to the administration of a tax Act;‘‘Tax Ombud’’ is the person appointed by the Minister under section 14;‘‘tax period’’ means, in relation to— 25(a) income tax, a year of assessment as defined in section 1 of the Income Tax Act;(b) provisional tax or employees’ tax, skills development levies as determined in

section 3 of the Skills Development Levies Act, and contributions 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 30 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 35 assessment as defined in section 1 of the Mineral and Petroleum Resources Royalty (Administration) Act;

(e) the levy on diamond exports as determined under section 2 of the Diamond Export Levy Act, the assessment period referred to in section 1 of the Diamond Export Levy (Administration) Act; 40

(!) securities transfer tax, the period referred to in section 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; 45 ‘‘taxpayer’’ has the meaning assigned under section 151;

28 No. 35491

Act No. 28 of 2011



‘‘taxpayer information’’ has the meaning assigned under section 67(1)(b); ‘‘taxpayer reference num ber’’ 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); 5 ‘‘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 of 2002);‘‘Value-Added Tax Act’’ means the Value-Added Tax Act, 1991 (Act No. 89 of 101991);‘‘withholding agent’’ has the meaning assigned under section 156.

CHAPTER 2

GENERAL ADMINISTRATION PROVISIONS

Part A 15

In general

Purpose of Act

2. The purpose of this Act is to ensure the effective and efficient collection of tax by—(a) aligning the administration of the tax Acts to the extent practically possible;(b) prescribing the rights and obligations of taxpayers and other persons to whom 20

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

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

Administration of tax Acts 25

3. (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 30 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 35

or documents in compliance with the provisions of a tax Act;(c) establish the identity of a person for purposes of determining liability for tax;(d) determine the liability of a person for tax;(e) collect tax and refund tax overpaid;(!) investigate whether an offence has been committed in terms of a tax Act, and, 40

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

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

(g) enforce SARS’ powers and duties under a tax Act to ensure that an obligation 45 imposed by or under a tax Act is complied with;

30 No. 35491

Act No. 28 of 2011



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

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

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

(a) information, SARS may obtain the information requested 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 if it were taxpayer information;

(b) 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

(c) 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.

Application of Act

4. (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.

Practice generally prevailing

5. (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 was obiter 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.

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

Part B

Powers and duties ofSARS and SARS officials

Powers and duties

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

5

10

15

20

25

30

35

40

45

50



(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 for this

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

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

senior SARS official.(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 employed or contracted to exercise or perform powers or duties for purposes of the administration of a tax Act.

(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.

Conflict of interest

7. 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— 25

(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, 30 that will reasonably be regarded as giving rise to bias.

Identity cards

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

(2) When a SARS official exercises a power or duty for purposes of the administration 35 of a tax Act in person, the official must produce the identity card upon request by a member of the public.

(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.

Decision or notice by SARS 40

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

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

(b) may in the discretion of a SARS official described in subparagraphs (i) to (iii) 45 or at the request of the relevant person, be withdrawn or amended by—(i) the SARS official;

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

(2) If all the material facts were known to the SARS official at the time the decision 50 was made, a decision or notice referred to in subsection (1) may not be withdrawn or

5

10

15

20

34 No. 35491

Act No. 28 of 2011



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

applicable).

Part C 5

Delegations

Delegations by the Commissioner

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

made;(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 15(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 20

Authority to act in legal proceedings

Legal proceedings on behalf of Commissioner

11. (1) No SARS official other than the Commissioner or a SARS official duly authorised by the Commissioner may institute or defend civil proceedings on behalf of the Commissioner. 25

(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) A senior SARS official may lay a criminal charge relating to a tax offence described in section 235. 30

Right of appearance in proceedings

12. (1) Despite any lawto 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.

(2) A senior SARS official may appear in the tax court or a High Court only if the 35 person—

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

(ii) a law providing for the admission of advocates in an area in the Republic which remained in force by virtue of paragraph 2 of Schedule 6 to the 40 Constitution of the Republic of South Africa, 1996; or

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

(ii) a law providing for the admission of attorneys in an area in the Republic which remained in force by virtue of paragraph 2 of Schedule 6 to the 45 Constitution of the Republic of South Africa, 1996.

36 No. 35491

Act No. 28 of 2011



Part E

Powers and duties ofMinister

Powers and duties of Minister

13. (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.

Power of Minister to appoint Tax Ombud

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

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

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

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

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

(a) is accountable to the Minister;(b) must have a good background in customer service as well as tax law; and(c) may not at any time during the preceding 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 o f Tax Ombud

Office of Tax Ombud

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

(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 out of the funds of SARS.

5

10

15

20

25

30

35

40

45

38 No. 35491

Act No. 28 of 2011



Mandate of Tax Ombud

16. (1) The mandate of the Tax Ombud is to 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.

(2) In discharging his or her mandate, the Tax Ombud must— 5(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 10

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

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

the application of the provisions of this Act or procedural or administrative 15 provisions of a tax Act that impact negatively on taxpayers.

Limitations on authority

17. The Tax Ombud may not review—(a) legislation or tax policy;(b) SARS policy or practice generally prevailing, other than to the extent that it 20

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. 25

Review of complaint

18. (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 30(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 35

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 40 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; 45(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.

40 No. 35491

Act No. 28 of 2011



(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.

Reports by Tax Ombud

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

Resolution and recommendations

20. (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 taxpayers or SARS.

Confidentiality

21. (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

Registration requirements

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

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

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

5

10

15

20

25

30

35

40

45

42 No. 35491

Act No. 28 of 2011



(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 in the prescribed form and manner; and 5

(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.

(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— 10

(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 appliedfor registration until all the particulars and documents have been provided to SARS. 15

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

Communication of changes in particulars

23. A person who has been registered under section 22 must communicate to SARS 20 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; 25(e) electronic address used for communication with SARS; or(!) such other details as the Commissioner may require by public notice.

Taxpayer reference number

24. (1) SARS may allocate a taxpayer reference number in respect of one or more taxes to each person registered under a tax Act or this Chapter. 30

(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. 35

(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 40

Part A

General

Submission of return

25. (1) A person required under a tax Act to submit or who voluntarily submits a return must do so— 45

(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.

Third party returns

26. The Commissioner may by public notice require a person who employs, pays amounts to, receives amounts on behalf of or otherwise transacts with another person, or 20 has control over assets of another person, to submit a return with the required information in the prescribed form and manner and by the date specified in the notice.

Other returns required

27. SARS may require a person to submit further or more detailed returns regarding any matter for which a return is required or prescribed by a tax Act. 25

Statement concerning accounts

28. (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 30 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, 35 at the request of that other person, submit to that other person a copy of the certificate or statement referred to in subsection (1).

Duty to keep records

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

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

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

40

45

5

10

15

46 No. 35491

Act No. 28 of 2011



(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 thatis subject to tax or would be subject to tax but for the application of a threshold 5 or exemption.

(3) Records need not be retained by the person described in—(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 10

period.

Form of records kept or retained

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

(a) in their original form in an orderly fashion and in a safe place; 15(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 20

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.

Inspection of records

31. The records, books of account and documents referred to in section 29 whether in the form referred to in section 30(1) or in a form authorised under section 30(2), must at 25 all reasonable times during the required periods under section 29, be open for inspectionby a SARS official in the Republic for the purpose of—

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

Retention period in case of audit, objection or appeal 30

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

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

(b) a person lodges an objection or appeal against an assessment or decision under 35 section 104(2),

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

Translation

33. (1) In the case of information that is not in one of the official languages of the 40 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 45(b) if required by SARS, be prepared and certified by a sworn and accredited

translator or another person approved by the senior SARS official.

48 No. 35491

Act No. 28 of 2011



Part B


Definitions

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

‘arrangem ent’ 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 case, the Generally Accepted Accounting Practice or appropriate financial reporting standards that provide a fair presentation of the financial results and position of the taxpayer;‘participant’, in relation to an ‘arrangement’, means—(a) a ‘promoter’; or(b) a company or trust which directly or indirectly derives or assumes that it

derives a ‘tax benefit’ or ‘financial benefit’ by virtue of an ‘arrangement’;‘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’;‘prom oter’, in relation to an ‘arrangement’, means a person who is principally responsible for organising, designing, selling, financing or managing the reportable arrangement;‘tax benefit’ includes avoidance, postponement or reduction of a liability for tax.


35. (1) An ‘arrangement’ is a reportable arrangement if it is listed in terms of subsection (2) or if a ‘tax benefit’ is or will be derived or is assumed to be derived by any ‘participant’ by virtue of the ‘arrangement’ and the ‘arrangement’—

(a) contains provisions in terms of which the calculation of interest as defined in section 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 in section 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

5

10

15

20

25

30

35

40

45

50

50 No. 35491

Act No. 28 of 2011



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’.

(2) The Commissioner may list an ‘arrangement’ by public notice, if satisfied that the ‘arrangement’ may lead to an undue ‘tax benefit’.

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

Excluded arrangements

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

(i) the borrower receives or will receive an amount of cash and agrees 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

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

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

(a) is undertaken on a stand-alone basis and is not directly or indirectly 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, if satisfied that the ‘arrangement’ is not likely to lead to an undue ‘tax benefit’.

Disclosure obligation

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

(2) If there is no ‘promoter’ in relation to the ‘arrangement’ or if the ‘promoter’ is not a resident, all other ‘participants’ must disclose the information.

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

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

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

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

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

5

10

15

20

25

30

35

40

45

50

52 No. 35491

Act No. 28 of 2011



Information to be submitted

38. The ‘promoter’ or ‘participant’ must submit, in relation to a reportable arrangement, in the prescribed form and manner and by the date specified—

(a) a detailed description of all its steps and key features, including, in the case ofan ‘arrangement’ that is a step or part of a larger ‘arrangement’, all the steps 5 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 10(e) any financial model that embodies its projected tax treatment.

Reportable arrangement reference number

39. SARS must, after receipt of the information contemplated in section 38, issue a reportable arrangement reference number to each ‘participant’ for administrative purposes only. 15

CHAPTER 5

INFORMATION GATHERING

Part A

General rules for inspection, verification, audit and criminal investigation

Selection for inspection, verification or audit 20

40. 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.

Authorisation for SARS official to conduct audit or criminal investigation

41. (1) A senior SARS official may grant a SARS official written authorisation to 25 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 entitledto assume that the official is not a SARS official so authorised. 30

Keeping taxpayer informed

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

(2) Upon conclusion of the audit or a criminal investigation, and where— 35(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 40 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, 45 respond in writing to the facts and conclusions set out in the document.

54 No. 35491

Act No. 28 of 2011



(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 5 assessment or make the decision referred to in section 104(2) resulting from the audit and the grounds of the assessment must be provided to the taxpayer within 21 business days of the assessment or the decision referred to in section 104(2), or the further period that may be required based on the complexities of the audit.

Referral for criminal investigation 10

43. (1) If at any time before or during the course of an audit it appears that a person 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.

(2) Relevant material gathered during an audit after the referral, must be kept separate 15 from the criminal investigation and may not be used in criminal proceedings institutedin respect of the offence.

(3) If an investigation is referred under subsection (1) the relevant material and 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; 20(b) it is decided to terminate the investigation; or(c) after referral of the case for prosecution, a decision is made not to prosecute.

Conduct of criminal investigation

44. (1) During a criminal investigation, SARS must apply the information gathering powers in terms of this Chapter with due recognition of the taxpayer’s constitutional 25 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 information obtained during a criminal investigation may be used for 30 purposes of audit as well as in subsequent civil and criminal proceedings.

Part B

Inspection, request for relevant material, audit and criminal investigation

Inspection

45. (1) A SARS official may, for the purposes of the administration of a tax Act and 35 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 40(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.

Request for relevant material 45

46. (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) in respect of taxpayers in an objectively identifiable class of taxpayers.

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

(4) A person receiving from SARS a request for relevant material under this section must submit the relevant material to SARS at the place and within the time specified in the request.

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

(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 be provided under oath or solemn declaration.

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

Production of relevant material in person

47. (1) A senior SARS official may, by notice, require a person, whether or not chargeable to tax, 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 20 person, if the interview—

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

(b) is not for purposes of a criminal investigation.(2) The senior SARS official issuing the notice may require the person interviewed to 25

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 30 exceeds the distance prescribed by the Commissioner by public notice.

Field audit or criminal investigation

48. (1) A SARS official named in an authorisation referred to in section 41 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 35 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 40(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, 45 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. 50

Assistance during field audit or criminal investigation

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

5

10

15



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

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

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

(3) The person may recover from SARS after completion of the audit (or, at 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.

Part C

Inquiries

Authorisation for inquiry

50. (1) A judge may, on application made ex parte by a senior SARS official grant an 15 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.

(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. 20

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

Inquiry order

51. (1) A judge may grant the order referred to in section 50(2) 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; or

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

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

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

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

Inquiry proceedings

52. (1) The presiding officer determines the conduct of the inquiry as the presiding 40 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 45 as a witness before the presiding officer.

Notice to appear

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

25

30

35

5

10

60 No. 35491

Act No. 28 of 2011



(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. 5

Powers of presiding officer

54. 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.

Witness fees

55. The presiding officer may direct that a person receive witness fees to attend an 10 inquiry in accordance with the tariffs prescribed in terms of section 51 bis of the Magistrates’ Courts Act, 1944 (Act No. 32 of 1944).

Confidentiality of proceedings

56. (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 15

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 20 another person.

Incriminating evidence

57. (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 25 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;

(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 30

satisfactorily.

Inquiry not suspended by civil or criminal proceedings

58. Unless a court orders otherwise, an inquiry relating to a person referred to in section 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 35 in the inquiry, or another person whose affairs may be investigated in the course of the inquiry.

Part D

Search and seizure

Application for w arrant 40

59. (1) A senior SARS official may, if necessary or relevant to administer a tax Act, authorise an application for a warrant under which SARS may enter a premises 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 45 supported by information supplied under oath or solemn declaration, establishing the facts on which the application is based.

62 No. 35491

Act No. 28 of 2011



(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).

Issuance of w arrant

60. (1) A judge or magistrate may issue the warrant referred to in section 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.

Carrying out search

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

(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 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 under section 60(1) (a); or

5

10

15

20

25

30

35

40

45

50

64 No. 35491

Act No. 28 of 2011



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

Search of premises not identified in warrant

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

is at premises not 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.

Search without w arrant

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

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

(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.

Legal professional privilege

64. (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 an attorney from the panel appointed under section 111 to be present during the execution of the warrant.

(2) An attorney with whom SARS has made an arrangement in terms of subsection (1) may appoint a substitute attorney to be present on the appointing attorney’s 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 an attorney is not present under subsection (1) or (2), SARS must seal the material, make arrangements with an attorney 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 attorney.

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

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

5

10

15

20

25

30

35

40

45

50

55

66 No. 35491

Act No. 28 of 2011



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

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

(5) The attorney 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 attorney 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 attorney must retain the relevant material pending final resolution of the dispute by the parties or an order of court.

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

Person’s right to examine and make copies

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

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

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

Application for return of seized relevant material or costs of damages

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

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

of the seized material or payment of compensation for physical damage caused 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 of section 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

General prohibition of disclosure

67. (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

5

10

15

20

25

30

35

40

45

50

68 No. 35491

Act No. 28 of 2011



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 other manner.

SARS confidential information and disclosure

68. (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 in section 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;

(!) 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;

(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; and

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

(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

5

10

15

20

25

30

35

40

45

50

55

70 No. 35491

Act No. 28 of 2011



(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.

Secrecy of taxpayer information and general disclosure

69. (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, including—(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 circumstancesapply :

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

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

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

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

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

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

5

10

15

20

25

30

35

40

45

50

72 No. 35491

Act No. 28 of 2011



Disclosure to other entities

70. (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; and

(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.

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

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

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

(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); and

(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).

(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;(c) physical and postal address and other contact details;

5

10

15

20

25

30

35

40

45

50

74 No. 35491

Act No. 28 of 2011



(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 (2) or (3) may only be disclosed by

SARS or the persons or entities referred to in subsection (2) or (3) to the extent that 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 (2) or (3); and

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

(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.

Disclosure in criminal, public safety or environmental matters

71. (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 in section 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 in section 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 critical to the prosecution of the offence or

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

tax investigation,make an ex parte application to a judge in chambers for an order authorising SARS 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,

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.

Self-incrimination

72. (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 an offence under a tax Act, unless a competent court directs otherwise.

5

10

15

20

25

30

35

40

45

50

55

76 No. 35491

Act No. 28 of 2011



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

Disclosure to taxpayer of own record

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

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

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

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

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

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

Publication of names of offenders

74. (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

ADVANCE RULINGS

Definitions

75. 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—

5

10

15

20

25

30

35

40

45

50

78 No. 35491

Act No. 28 of 2011



(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 m ember’ and ‘class members’ means a member or members of the ‘class’ to which a ‘binding class ruling’ applies; 5‘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 10 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.

Purpose of advance rulings 15

76. 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’.

Scope of advance rulings

77. SARS may make an ‘advance ruling’ on any provision of a tax Act. 20

Private rulings and class rulings

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

(2) SARS may issue a ‘binding class ruling’ upon ‘application’ by a person in accordance with section 79. 25

(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. 30

(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; 35

(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; 40(e) a description of the ‘proposed transaction’;(!) 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. 45

(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.

80 No. 35491

Act No. 28 of 2011



Applications for advance rulings

79. (1) An ‘application’ must be made in the prescribed form and manner.(2) An ‘application’ for a ‘binding private ruling’ may be made by one person who is

a party to a ‘proposed transaction’, or by two or more parties to a ‘proposed transaction’ as co-applicants, and if there is more than one ‘applicant’, each ‘applicant’ must join 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’;

(!) the proposed ruling being sought, including a draft of the ruling;(g) the relevant statutory provisions or legal issues;(h) the reasons why the ‘applicant’ believes that the proposed ruling should be

granted;(i) a statement of the ‘applicant’s’ interpretation of the relevant statutory

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

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

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

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

(m) in the case of an ‘application’ for a ‘binding class ruling’—(i) a description of the ‘class members’; and

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

(5) SARS may request additional information from an ‘applicant’ at any time.(6) An ‘application’ must be accompanied by the ‘application’ fee prescribed under

section 81.(7) SARS must provide an ‘applicant’ with a reasonable opportunity to make

representations if, based upon the ‘ application’ and any additional information received, it appears that the content of the ruling to be made would differ materially from the proposed ruling sought by the ‘applicant’.

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

withdraw from an ‘application’ at any time.(10) A withdrawal does not affect the liability to pay fees under section 81.

5

10

15

20

25

30

35

40

45

50

55

82 No. 35491

Act No. 28 of 2011



Rejection of application for advance ruling

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

regarding—(i) the market value of an asset; 5

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

person in relation to the ‘applicant’ or a ‘class member’;(iv) the constitutionality of a tax Act;(v) a ‘proposed transaction’ that is hypothetical or not seriously contem- 10

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

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

service provider; or 15(viii) a matter which is submitted for academic purposes;

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

(ii) an alternative course of action by the ‘applicant’ or a ‘class member’ thatis not seriously contemplated; or 20

(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 25 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— 30

(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 35 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; 40

(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 45 resource intensive; or

(!) 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 considerationsin respect of which the Commissioner may reject an ‘application’. 50

(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.

84 No. 35491

Act No. 28 of 2011



Fees for advance rulings

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

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

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

(3) The fees imposed under this section constitute fees imposed by SARS within the meaning of section 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’.

Binding effect of advance rulings

82. (1) If an ‘advance ruling’ applies to a person in accordance with section 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’.

Applicability of advance rulings

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

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

facts or ‘transaction’ 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(!) in the case of a ‘binding class ruling’, the person is a ‘class member’ identified

in the ruling.

Rulings rendered void

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

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

5

10

15

20

25

30

35

40

45

50

86 No. 35491

Act No. 28 of 2011



Subsequent changes in tax law

85. (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.

Withdrawal or modification of advance rulings

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

must first provide the ‘applicant’ with notice of the proposed withdrawal or modification and a reasonable opportunity to object to the decision.

(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.

Publication of advance rulings

87. (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.

5

10

15

20

25

30

35

40

45

50



(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.

Non-binding private opinions

88. (1) A ‘non-binding private opinion’ does not have ‘binding effect’ upon SARS.(2) A ‘non-binding private opinion’ may not be cited in any proceedings including 20

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

Binding general rulings

89. (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).

Procedures and guidelines for advance rulings

90. 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 45

Original assessments

91. (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

25

30

35

40

5

10

15

90 No. 35491

Act No. 28 of 2011



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

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

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

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

Additional assessments

92. 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.

Reduced assessments

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

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

undisputed error by—(i) SARS; or

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

lodged or appeal noted.

Jeopardy assessments

94. (1) SARS may make a jeopardy assessment in advance of the date on which 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.

Estimation of assessments

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

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

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

5

10

15

20

25

30

35

40

45

50

92 No. 35491

Act No. 28 of 2011



(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.

Notice of assessment

96. (1) SARS must issue to the taxpayer assessed a notice of the assessment made by 5 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; 10(d) the amount of the assessment;(e) the tax period in relation to which the assessment is made;(!) 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 15 the person assessed—

(a) in the case of an assessment described in section 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 20 would otherwise be in jeopardy.

Recording of assessments

97. (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 25 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, whether in electronic format or otherwise, may be

destroyed by SARS after five years from the date of assessment or the expiration of a further period that may be required by the Auditor-General. 30

Withdrawal of assessments

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

(a) was issued to the incorrect taxpayer;(b) was issued in respect of the incorrect tax period; or 35(c) was issued as a result of an incorrect payment allocation.

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

Period of limitations for issuance of assessments

99. (1) SARS may not make an assessment in terms of this Chapter—(a) three years after the date of assessment of an original assessment by SARS; 40(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 45

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;

94 No. 35491

Act No. 28 of 2011



(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 assessment, not assessed to tax; or

(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

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

(a) in the case of assessment by SARS, the fact that the full amount of 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;(iii) intentional or negligent non-disclosure of material facts; or(iv) the failure to submit a return or, if no return is required, the failure to

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

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

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

no right of further appeal.

Finality of assessment or decision

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

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

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

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

tax court under section 115;(!) 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 ( ) SARS may only make an additional assessment under the circumstances referred to in section 99(2) (a) and (b); and

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

5

10

15

20

25

30

35

40

45

50

55

Act No. 28 of 2011

96 No. 35491



CHAPTER 9

DISPUTE RESOLUTION

Part A

General

Definitions 5


‘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); 10‘registrar’ means the registrar of the tax court; and ‘rules’ mean the rules made under section 103.

Burden of proof

102. (1) A taxpayer bears the burden of proving—(a) that an amount, transaction, event or item is exempt or otherwise not taxable; 15(b) that an amount or item is deductible or may be set-off;(c) the rate of tax applicable to a transaction, event, item or class of taxpayer;(d) that an amount qualifies as a reduction of tax payable;(e) that a valuation is correct; or(!) whether a ‘decision’ that is subject to objection and appeal under a tax Act, is 20

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

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

Rules for dispute resolution 25

103. (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 30 SARS and the person aggrieved by an assessment or ‘decision’ may resolve a dispute.

Part B

Objection and appeal

Objection against assessment or decision

104. (1) A taxpayer who is aggrieved by an assessment made in respect of the 35 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; 40

(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

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

satisfied that exceptional circumstances exist which gave rise to the delay in lodging the objection;

(b) if more than three years have lapsed from the date of assessment or the 10 ‘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’.

Forum for dispute of assessment or decision 15

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

Decision on objection

106. (1) SARS must consider a valid objection in the manner and within the period 20 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 25

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’.

(5) The notice must state the basis for the decision and a summary of the proceduresfor appeal. 30

(6) If a senior SARS official considers that the determination of the objection or an appeal referred to in section 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 35(b) stay the other objections or appeals by reason of the taking of a test case on a

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

Appeal against assessment or decision

107. (1) After delivery of the notice of the decision referred to in section 106(4), a 40 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— 45

(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. 50(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.

lodging the objection. 5



(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. 5

Part C

Tax board

Establishment of tax board

108. (1) The Minister may by public notice—(a) establish a tax board or boards for areas that the Minister thinks fit; and 10(b) abolish an existing tax board or establish an additional tax board as

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

section 107 in the manner provided in this Part.

Jurisdiction of tax board 15

109. (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

(b) a senior SARS official and the ‘appellant’ so agree. 20(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 25 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 30 appeal be set down for hearing de novo before the tax court.

Constitution of tax board

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

appointed under section 111; and 35(b) if the chairperson, a senior SARS official, or the taxpayer considers it

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

and(ii) a representative of the commercial community who is a member of the 40

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

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

Appointment of chairpersons

111. (1) The Minister must, in consultation with the Judge-President of the Division 45 of the High Court with jurisdiction in the area where the tax board is to sit, by public notice appoint advocates and attorneys to a panel from which a chairperson of the tax board must be nominated from time to time.

(2) The persons appointed under subsection (1)—(a) hold office for five years from the date the notice of appointment is published 50

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

102 No. 35491

Act No. 28 of 2011



(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.

(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’.

Clerk of tax board

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

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

Tax board procedure

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

tax board.(10) If the tax board 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

5

10

15

20

25

30

35

40

45

50

55

104 No. 35491

Act No. 28 of 2011



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

Decision of tax board

114. (1) The tax board, after hearing the ‘appellant’s’ appeal against an assessment or ‘decision’, must decide the matter in accordance with this Chapter. 5

(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’. 10

Referral of appeal to tax court

115. (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 15 notice referred to in section 114(3) or the expiry of the period referred to in section 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).

PartD 20

Tax court

Establishment of tax court

116. (1) The President of the Republic may by proclamation in the Gazette 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. 25

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

Jurisdiction of tax court

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

(2) The place where an appeal is heard is determined by the ‘rules’. 30(3) The court may hear an interlocutory application relating to an objection or appeal

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

Constitution of tax court

118. (1) A tax court established under this Act consists of—(a) a judge or an acting judge of the High Court, who is the president of the tax 35

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

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

members appointed in terms of section 120. 40(2) If the president of the tax court, a senior SARS official or the ‘appellant’ so

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

(a) if the appeal relates to the business of mining, be a registered mining engineer;or 45

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



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

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

(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

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

Nomination of president of tax court

119. (1) The Judge-President of the Division of the High Court with jurisdiction in the area for which a tax court has been constituted must nominate and second a judge or an 15 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 20 may be called upon to adjudicate.

Appointment of panel of tax court members

120. (1) The President of the Republic by proclamation in the Gazette must appoint the panel of members of a tax court for purposes of section 118(1) (b) and (c) for a termof office of five years from the date of the relevant proclamation. 25

(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 30 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 under section 116(1).

(6) A member of the tax court must perform the member’s functions independently, impartially and without fear, favour or prejudice. 35

Appointment of registrar of tax court

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

are SARS employees.(3) The ‘registrar’ and other persons referred to in subsection (2) must perform their 40

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

Conflict of interest of tax court members

122. (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 45 member may experience with the case concerned or other 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 50 regarded as having a personal interest or a conflict of interest in the case.

matter of fact or a matter of law. 5

necessary, if 10

108 No. 35491

Act No. 28 of 2011



Death, retirement or incapability of judge or member

123. (1) If at any stage during the hearing of an appeal, or after hearing of the 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.

Sitting of tax court not public

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

Appearance at hearing of tax court

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

Subpoena of witness to tax court

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

Non-attendance by witness or failure to give evidence

127. (1) A person subpoenaed under section 126 is liable to the 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(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.

5

10

15

20

25

30

35

40

45

50

110 No. 35491

Act No. 28 of 2011



(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). 5

(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).

Contempt of tax court

128. (1) If, during the sitting of a tax court, a person— 10(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. 15

(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).

Decision by tax court 20

129. (1) The tax court, after hearing the ‘appellant’s’ appeal lodged under section 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, the tax court may—(a) confirm the assessment o r ‘decision’; 25(b) order the assessment or ‘decision’ to be altered; or(c) refer the assessment back to SARS for further examination and assessment.

(3) In the case of an appeal against an understatement penalty imposed by SARS under a tax Act, the tax court must decide the matter on the basis that the burden of proofis upon SARS and may reduce, confirm or increase the understatement penalty so 30 imposed.

(4) If SARS alters an assessment as a result of a referral under subsection (2 )0 , the assessment is subject to objection and appeal.

Order for costs by tax court

130. (1) The tax court may, in dealing with an appeal under this Chapter and on 35 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 40(e) the appeal is withdrawn or conceded by the other party after the ‘registrar’

allocates a date of hearing.(2) The costs referred to in subsection (1) must be determined in accordance with the

fees prescribed by the rules of the High Court.(3) A cost order in favour of SARS constitutes funds of SARS within the meaning of 45

section 24 of the SARS Act.

Registrar to notify parties of judgment of tax court

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

112 No. 35491

Act No. 28 of 2011



Publication of judgment of tax court

132. 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

Appeal against decision of tax court

133. (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—(i) the president of the tax court has granted leave under the ‘rules’; or

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

Notice of intention to appeal tax court decision

134. (1) A party who intends to lodge an appeal against a decision of the tax court (hereinafter in this Part referred to as the appellant) must, within 21 business days 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 attorney or agent, a notice of intention to appeal against the decision.

(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 of section 24 of the SARS Act.

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

135. (1) If an intending appellant wishes to appeal against a decision of the tax court, the ‘registrar’ must submit the notice of intention to appeal lodged under section 134(1)

5

10

15

20

25

30

35

40

45

114 No. 35491

Act No. 28 of 2011



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.

(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 5 acting judge to act as president of the tax court for that purpose.

(3) Subject to the right to petition the Chief Justice for leave to appeal to the Supreme Court of Appeal in terms of section 21 of the Supreme Court Act, 1959 (Act No. 59 of 1959), an order made by the president of the tax court under subsection (1) is final.

Failure to lodge notice of intention to appeal tax court decision 10

136. (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 15 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.

Notice by registrar of period for appeal of tax court decision

137. (1) After the expiry of the time allowed under section 134(1) for the lodging ofa notice of intention to appeal, the ‘registrar’ must— 20

(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 25 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 under section 135; or 30

(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 referredto in subsection (1) (a) and (b). 35

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

138. (1) If a person has—(a) appealed to the Supreme Court of Appeal from a court established under

section 118(5);(b) been granted leave to appeal to the Supreme Court of Appeal under 40

section 135; or(c) successfully petitioned to the Supreme Court of Appeal for leave to appeal,

the appeal which a party must note against a decision given in the relevant case must be noted to that Court.

(2) If the notice of intention to appeal was noted to the High Court or leave to appeal 45 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.

116 No. 35491

Act No. 28 of 2011



(3) The notice of appeal must be lodged within the period referred to in section 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. 5

Notice of cross-appeal of tax court decision

139. (1) A cross-appeal against a decision of the tax court in a case in which an appeal has been lodged under section 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 attorney and lodging it with the registrar of the court to which the cross-appeal 10 is noted.

(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— 15(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 20

which the cross-appeal is noted.

Record of appeal of tax court decision

140. (1) The record lodged with a court to which an appeal against a decision of a tax court is noted, includes all documents placed before the tax court under the ‘rules’.

(2) Documents submitted in the tax court which do not relate to the matters in dispute 25 in the appeal may be excluded from the record with the consent of the parties.

Abandonment of judgment

141. (1) Aparty may by notice in writing lodged with the ‘registrar’ and the opposite party or the opposite party’s attorney or agent, abandon the whole or a part of a judgmentin the party’s favour. 30

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

Part F

Settlement o f dispute

Definitions

142. In this Part, unless the context indicates otherwise, the following terms, if in 35 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, after the lodging of an appeal under this Chapter, to resolve a 40 ‘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.

Purpose of P art 45

143. (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.

118 No. 35491

Act No. 28 of 2011



(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’.

Initiation of settlement procedure

144. (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.

Circumstances where settlement is inappropriate

145. It is inappropriate and not to the best advantage of the State to ‘settle’ a ‘dispute’ if in the opinion of SARS—

(a) no circumstances envisaged in section 146 exist and—(i) the action by the person concerned that relates to the ‘dispute’ constitutes

intentional tax evasion or fraud;(ii) the ‘settlement’ would be contrary to the law or a practice generally

prevailing and no exceptional circumstances exist to justify a 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

(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.

Circumstances where settlement is appropriate

146. The Commissioner may, if it is to the best advantage of the state, ‘settle’ a ‘dispute’, in whole or in part, on a basis that is fair and equitable to both the 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—(i) the prospects of success in court;

(ii) the prospects of the collection of the amounts due; and(iii) the costs associated with collection;

(c) whether there are any—(i) complex factual issues in contention; or

(ii) evidentiary difficulties,which are sufficient to make the case problematic in outcome or unsuitable 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.

Procedure for settlement

147. (1) A person participating in a ‘settlement’ procedure must disclose all relevant facts during the discussion phase of the process of ‘settling’ a ‘dispute’.

5

10

15

20

25

30

35

40

45

50



(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.

Finality of settlement agreement

148. (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.

(2) SARS must adhere to the terms of the agreement, unless material facts were not 20 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 25 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’.

Register of settlements and reporting

149. (1) SARS must—(a) maintain a register of all ‘disputes’ that are ‘settled’ under this Part; and(b) document the process under which each ‘dispute’ is ‘settled’.

(2) The Commissioner must provide an annual summary of ‘settlements’ to 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 to section 70(5), does not disclose the identity of the person concerned; and

(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.

Alteration of assessment or decision on settlement

150. (1) If a ‘dispute’ between SARS and the person aggrieved by an assessment or ‘decision’ is ‘settled’ under this Part, SARS may, despite anything to the contrary 45 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.

30

35

40

5

10

15

122 No. 35491

Act No. 28 of 2011



CHAPTER 10

TAX LIABILITY AND PAYMENT

Part A

Taxpayers

Taxpayer 5

151. In this Act, taxpayer means—(a) a person chargeable to tax;(b) a representative taxpayer;(c) a withholding agent;(d) a responsible third party; or 10(e) a person who is the subject of a request to provide assistance under an

international tax agreement.

Person chargeable to tax

152. A person chargeable to tax is a person upon whom the liability for tax due undera tax Act is imposed and who is personally liable for the tax. 15

Representative taxpayer

153. (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; 20(b) is a representative employer in terms of the Fourth Schedule to the Income

Tax Act; or(c) is a representative vendor in terms of section 46 of the Value-Added Tax Act.

(2) Every person who becomes or ceases to be a representative taxpayer (except a public officer of a company) under a tax Act, must notify SARS accordingly in such 25 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 30(b) is liable for the tax payable by the taxpayer.

Liability of representative taxpayer

154. (1) A representative taxpayer is, as regards—(a) the income to which the representative taxpayer is entitled;(b) moneys to which the representative taxpayer is entitled or has the manage- 35

ment or control;(c) transactions concluded by the representative taxpayer; and(d) anything else done by the representative taxpayer,

in such capacity—(i) subject to the duties, responsibilities and liabilities of the taxpayer repre- 40

sented;(ii) entitled to any abatement, deduction, exemption, right to set off a loss, and

other items that could be claimed by the person represented; and(iii) liable for the amount of tax 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.

Personal liability of representative taxpayer

155. A representative taxpayer is personally liable for tax payable in the representa- 5 tive 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 10 taxpayer after the tax is payable, if the tax could legally have been paid fromor out of the funds or moneys.

Withholding agent

156. In this Act, withholding agent means a person who must under a tax Act withhold an amount of tax and pay it to SARS. 15

Personal liability of withholding agent

157. (1) A withholding agent is personally liable for an amount of tax—(a) withheld and not paid to SARS; or(b) which should have been withheld under a tax Act but was not so withheld.

(2) An amount paid or recovered from a withholding agent in terms of subsection (1) 20 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.

Responsible third party

158. In this Act, responsible third party means a person who becomes otherwise liablefor the tax liability of another person, other than as a representative taxpayer or as a 25 withholding agent, whether in a personal or representative capacity.

Personal liability of responsible third party

159. A responsible third party is personally liable to the extent described in Part D of Chapter 11.

Right to recovery of taxpayer 30

160. (1) A representative taxpayer, withholding agent or responsible third party who, as such, pays a tax is entitled—

(a) to recover the amount so paid from the person on whose behalf it is paid; or(b) to retain out of money or assets in that person’s possession or that may come

to that person in that representative capacity, an amount equal to the amount 35 so paid.

(2) Unless otherwise provided for in a tax Act, a taxpayer on whose behalf an amount deducted or withheld has been paid to SARS by a withholding agent is not entitled to recover from the withholding agent the amount so deducted or withheld.

Security by taxpayer 40

161. (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 5

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, 10 security for the payment of any tax which has or may become payable by the taxpayerin terms of a tax Act.

(3) The security must be of the nature, amount and form that the senior SARS official directs.

(4) If the security is in the form of cash deposit and the taxpayer fails to make such 15 deposit, it may—

(a) be collected as if it were a tax debt of the taxpayer recoverable under this Act; or

(b) be set-off against any refund due to the taxpayer.(5) A senior SARS official may, in the case of a taxpayer which is not a natural person 20

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 25

Payment o f tax

Determination of time and m anner of payment of tax

162. (1) Tax must be paid by the day and at the place notified by SARS 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.

(2) SARS may prescribe the method of payment of tax, including electronically.(3) Despite sections 96(1) (f) and 167, a senior SARS official may, if there are

reasonable grounds to believe that—(a) a taxpayer will not pay the full amount of tax;(b) a taxpayer will dissipate the taxpayer’s assets; or(c) that recovery may become difficult in the future,

require the taxpayer to—(i) pay the full amount immediately upon receipt of the notice of assessment or a

notice described in section 167(6) or within the period as the official deems appropriate under the circumstances; or

(ii) provide such security as the official deems necessary.

Preservation order

163. (1) A senior SARS official may authorise an ex parte application to the 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 45 the preservation order, from dealing in any manner with the assets to which the order relates.

(2) (a) SARS may, in anticipation of the application and in order to prevent any realisable assets from being disposed of or removed which may frustrate the collection of the full amount of tax due, seize the assets pending the outcome of an application for 50 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.

30

35

40

128 No. 35491

Act No. 28 of 2011



(b) Until a preservation order is made in respect of the seized assets, SARS must take reasonable steps to preserve and safeguard the assets.

(3) A preservation order may be made if required to secure the collection of tax and in respect of—

(a) realisable assets seized by SARS under subsection (2); 5(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 10

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 15 preservation order should not be made final; and

(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.

(5) A preservation order must provide for notice to be given to the taxpayer and a 20 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 willbe sufficient service of that notice or rule if a copy thereof is affixed to or near the outer 25 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; 30(b) appointing a curator bonis in whom the assets of that taxpayer or another

person liable for tax vest;(c) realising the assets in satisfaction of the tax debt;(d) making provision as the court may think fit for the reasonable living expenses

of a person against whom the preservation order is being made and his or her 35 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 40 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 45 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—

(a) the operation of the order concerned will cause the applicant undue hardship; 50 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— 55(a) pending the setting aside thereof on appeal, if any, against the preservation

order; or(b) until the assets subject to the preservation order are no longer required for

purposes of the satisfaction of the tax debt.(11) In order to prevent any realisable assets that were not seized under subsection (2) 60

from being disposed of or removed contrary to a preservation order under this section,

130 No. 35491

Act No. 28 of 2011



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.

Payment of tax pending objection or appeal

164. (1) Unless a senior SARS official otherwise directs in terms of subsection (3)—(a) the obligation to pay tax; and(b) the right of SARS to receive and recover tax,

will not be suspended by an objection or appeal or pending the decision of a court of 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 having regard to—

(a) the compliance history of the taxpayer;(b) the amount of tax involved;(c) the risk of dissipation of assets by the taxpayer concerned during the period of

suspension;(d) whether the taxpayer is able to provide adequate security for the payment of

the amount involved;(e) whether payment of the amount involved would result in irreparable financial

hardship to the taxpayer;(!) whether sequestration or liquidation proceedings are imminent;(g) whether fraud is involved in the origin of the dispute; or(h) whether the taxpayer has failed to furnish information requested under this

Act for purposes of a decision under this section.(4) If the payment of tax which the taxpayer intended to dispute was suspended under

subsection (3) and subsequently—(a) no objection is lodged;(b) an objection is disallowed and no appeal is lodged; or(c) an appeal to the tax board or court is unsuccessful and no further appeal is

noted,the suspension is revoked with immediate effect from the date of the expiry of 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 terms of that subsection with immediate effect if satisfied that—

(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 the amount involved was based.

(6) During the period commencing on the day that—(a) SARS receives a request for suspension under subsection (2); or(b) a suspension is revoked under subsection (5),

and ending 10 business days after notice of SARS’ decision or revocation has 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 in section 104(2) is altered in accordance with—

(a) an objection or appeal;

5

10

15

20

25

30

35

40

45

50

55



(b) a decision of a court of law pursuant to an appeal under section 133; or(c) a decision by SARS to concede the appeal to the tax board or the tax court or

other court of law,a due adjustment must be made, amounts paid in excess refunded with interest at the prescribed rate, the interest being calculated from the date that excess was received by 5 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 10

Taxpayer account and allocation of payments

Taxpayer account

165. (1) SARS must maintain one or more taxpayer accounts for each taxpayer.(2) The taxpayer account must reflect the tax due in respect of each tax type included

in the account.(3) The taxpayer account must record details for all tax periods of—

(a) the tax owed;(b) any penalty imposed;(c) the interest payable on outstanding amounts due;(d) any other amount owed;(e) tax payments made by or on behalf of the taxpayer; and (!) 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.

Allocation of payments

166. (1) Despite anything to the contrary contained in a tax Act, SARS may allocate any payment made in terms of a tax Act against the oldest amount of tax outstanding at the time of the payment, other than amounts—

(a) for which payment has been suspended under this Act; or(b) that are payable in terms of an instalment payment agreement under section

167.(2) SARS may apply the 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 o f Payment

Instalment payment agreement

167. (1) A senior SARS official may enter into an agreement with a taxpayer in the 45 prescribed form under which the taxpayer is allowed to pay a tax debt in one sum or in

30

35

40

15

20

25



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 5 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 payan instalment or to otherwise comply with its terms and a payment prior to the 10 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 15

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 modification sent to the taxpayer; and 20(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.

Criteria for instalment payment agreement

168. A senior SARS official may enter into an instalment payment agreement only if— 25

(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 30 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 35

RECOVERY OF TAX

Part A

General

Debt due to SARS

169. (1) An amount of tax due or payable in terms of a tax Act is a tax debt due to 40 SARS for the benefit of the National Revenue Fund.

(2) A tax debt due to SARS is recoverable by SARS under this Chapter, and is recoverable from—

(a) in the case of a representative taxpayer who is not personally liable under section 155, any assets belonging to the person represented which are in the 45 representative taxpayer’s possession or under his or her management or control; or

(b) in any other case, any assets of the taxpayer.

136 No. 35491

Act No. 28 of 2011



(3) SARS is regarded as the creditor for the purposes of an amount referred to in subsection (1) as well as any other amount if SARS has entered into an agreement under section 4(1) (a)(ii) of the SARS Act in terms of which SARS is the creditor for the State or the organ of state or institution concerned.

(4) SARS need not recover an amount under this Chapter if the amount is less than 5 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.

Evidence as to assessment

170. The production of a document issued by SARS purporting to be a copy of or an extract from an assessment is conclusive evidence— 10

(a) of the making of the assessment; and(b) except in the case of proceedings on appeal against the assessment, that all the

particulars of the assessment are correct.

Period of limitation on collection of tax

171. Proceedings for recovery of a tax debt may not be initiated after the expiration 15 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

Application for civil judgment for recovery of tax 20

172. (1) If a person fails to pay tax when it is payable, 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.

(2) SARS may file the statement irrespective of whether or not the amount of tax is 25 subject to an objection or appeal under Chapter 9, unless the obligation to pay the amount has been suspended under section 164.

(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.

Jurisdiction of M agistrates’ Court in judgment procedure 30

173. 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.

Effect of statement filed with clerk or registrar

174. A certified statement filed under section 172 must be treated as a civil judgment 35 lawfully given in the relevant court in favour of SARS for a liquid debt for the amount specified in the statement.

Amendment of statement filed with clerk or registrar

175. (1) SARS may amend the amount of the tax due specified in the statement filed under section 172 if, in the opinion of SARS, the amount in the statement is incorrect. 40

(2) The amendment of the statement is not effective until it is initialled by the clerk or the registrar of the court concerned.

138 No. 35491

Act No. 28 of 2011



Withdrawal of statement and reinstitution of proceedings

176. (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 tax included in a 5 withdrawn statement.

Part C

Sequestration, liquidation and winding-up proceedings

Institution of sequestration, liquidation or winding-up proceedings

177. (1) SARS may institute proceedings for the sequestration, liquidation or 10 winding-up of a person for a tax debt.

(2) SARS may institute the proceedings whether or not the person—(a) is present in the Republic; or(b) has assets in the Republic.

(3) If the tax debt is subject to an objection or appeal under Chapter 9 or a further 15 appeal against a decision by the tax court under section 129, the proceedings may onlybe instituted with leave of the court before which the proceedings are brought.

Jurisdiction of court in sequestration, liquidation or winding-up proceedings

178. Despite any law to the contrary, a proceeding referred to in section 177 may be instituted in any competent court and that court may grant an order that SARS requests, 20 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 o f tax debt from third parties

Liability of third party appointed to satisfy tax debts 25

179. (1) A senior SARS official may by 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, require the person to pay the money to SARS in satisfaction of the taxpayer’s tax debt.

(2) A person that is unable to comply with a requirement of the notice, must advise the 30 senior SARS official of the reasons for the inability to comply within the period specifiedin 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 35 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.

Liability of financial management for tax debts 40

180. A person is personally liable for any 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—

(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 45 fraudulent in respect of the payment of the tax debts of the taxpayer.



Liability of shareholders for tax debts

181. (1) This section applies where a company is wound up other than by means of an involuntary liquidation without having satisfied its tax debt, including its liability as a responsible third party, withholding agent, or a representative taxpayer, employer or vendor. 5

(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 unpaid tax to the extent that—

(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 10 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 tax of a company under this section may avail

themselves of any rights against SARS as would have been available to the company.(5) This section does not apply— 15

(a) in respect of a ‘‘listed company’’ within the meaning of the Income Tax Act; or

(b) in respect of a shareholder of a company referred to in paragraph (a).

Liability of transferee for tax debts

182. (1) A person (referred to as a transferee) who receives an asset from a taxpayer 20 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 tax debt of the taxpayer.

(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 25

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 30 before SARS notifies the transferee of liability under this section.

Liability of person assisting in dissipation of assets

183. If a person knowingly assists in dissipating a taxpayer’s assets in order 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 35 the assets available to pay the taxpayer’s tax debt.

Recovery of tax debts from responsible third parties

184. (1) SARS has the same powers of recovery against the assets of a person referred to in 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 responsible third party with an opportunity to make representations—

(a) before the responsible third party is held liable for the tax debt of the taxpayer in terms of section 180, 181,182 or 183, if this will not place the collection of tax in jeopardy; or

(b) as soon as practical after the responsible third party is held liable for the tax debt of the taxpayer in terms of section 180, 181, 182 or 183.

40

45

142 No. 35491

Act No. 28 of 2011



Part E

Assisting foreign governments

Tax recovery on behalf of foreign governments

185. (1) If SARS has, in accordance with an international tax agreement, received—(a) a request for conservancy of an amount alleged to be due by a person under the

tax laws of the other country where there is a risk of dissipation or concealment of assets by the person, a senior SARS official may apply for a preservation order under section 163 as if the amount were a tax payable by the person under a tax Act; or

(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—(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.

5

10

15

20

25

30

35

40

45

50

144 No. 35491

Act No. 28 of 2011



Part F

Remedies with respect to foreign assets

Compulsory repatriation of foreign assets of taxpayer

186. (1) To collect a tax debt, a senior SARS official may apply for an order referred to in subsection (2), if—

(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

General interest rules

187. (1) If a tax debt or refund payable by SARS is not paid in full by the effective date, interest accrues on the amount of the outstanding balance of the tax debt or refund—

(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.

(3) The effective date for purposes of the calculation of interest in relation to—(a) tax other than income tax or estate duty for any tax period, is the date by which

tax for the tax period is due and payable under a tax Act;(b) income tax for any year of assessment, is the date falling seven months after

the last day of that year in the case of a taxpayer that has a year of assessment ending on the last day of February, and six months in any other case;

(c) estate duty for any period, is the earlier of the date of assessment or 12 months after the date of death;

(d) a fixed amount penalty referred to in section 210, is the date for payment specified in the notice of assessment of the penalty, and in relation to an increment of the penalty under section 211(2), the date of the increment;

(e) a percentage based penalty referred to in section 213, is the date by which tax for the tax period should have been paid; and

(!) an understatement penalty, is the effective date for the tax understated.(4) The effective date in relation to an additional assessment or reduced assessment is

the effective date in relation to the tax payable under the original assessment.

5

10

15

20

25

30

35

40

45

50

146 No. 35491

Act No. 28 of 2011



(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 5 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. 10

Period over which interest accrues

188. (1) Unless otherwise provided in a tax Act, interest payable under section 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 15

payment of provisional tax until the earlier of the date on which the paymentis made or the effective date for the second payment of provisional tax; and

(b) second payment of provisional tax, is imposed from the effective date for 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 20 assessment.

(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 25

(b) for this purpose, if a refund is offset against a liability of the taxpayer under section 191, the date on which the offset is effected is considered to be the date of payment of the refund.

Rate at which interest is charged

189. (1) The rate at which interest is payable under section 187 is the prescribed rate. 30(2) In the case of interest payable with respect to refunds on assessment of provisional

tax and employees’ tax paid for the relevant year of assessment, the rate payable by SARS is four percentage points below the prescribed rate.

(3) The prescribed rate is the interest rate that the Minister may from time to time fixby notice in the Gazette under section 80(1) (b) of the Public Finance Management Act, 35 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. 40

(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 tax period or portion thereof which commenced before the said date, the interest to be determined in respect of—

(a) the tax period or portion thereof which ended immediately before the said 45 date; or

(b) the portion of the tax period which was completed before the said date, must be calculated as if the rate had not been altered.

148 No. 35491

Act No. 28 of 2011



CHAPTER 13

REFUNDS

Refunds of excess payments

190. (1) A person is entitled to a refund of—(a) an amount properly refundable under a tax Act and if so reflected in an 5

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 or audit of the refund in accordance with Chapter 5 has 10 been finalised.

(3) SARS must authorise the payment of a refund before the finalisation of the verification, inspection or audit if security in a form acceptable to a senior SARS official is provided by the taxpayer.

(4) A person is entitled to a refund under subsection (1) (b) only if the refund is 15 claimed by the person within three years, in the case of an assessment by SARS, or five years, in the case of self-assessment, from the date of the assessment.

(5) If SARS pays to a person by way of a refund any amount which is not properly payable to the person under a tax Act, the amount is regarded as tax that is payable by the person to SARS from the date on which it is paid to the person. 20

(6) A decision not to authorise a refund under this section is subject to objection and appeal.

Refunds subject to set-off and deferral

191. (1) If a taxpayer has an outstanding tax debt, an amount that is refundable under section 190, including interest thereon under section 188(3) (a), must be treated as a 25 payment by the taxpayer that is recorded in the taxpayer’s account under section 165, to the extent of the amount outstanding, and any remaining amount must be set off against any outstanding debt under the Customs and Excise Act.

(2) Subsection (1) does not apply to a tax debt—(a) that is disputed under Chapter 9 and for which suspension of payment under 30

section 164 exists; or(b) in respect of which an instalment payment agreement under section 167 or a

compromise agreement under section 204 applies.(3) An amount is not refundable if the amount is less than R100 or any other amount

that the Commissioner may determine by public notice, but the amount must be carried 35 forward in the taxpayer account.

CHAPTER 14

WRITE OFF OR COMPROMISE OF TAX DEBTS

Part A

General provisions 40

Definitions


‘asset’ includes—(a) property of whatever nature, whether movable or immovable, corporeal or 45

incorporeal; and(b) a right or interest of whatever nature to or in the property;

150 No. 35491

Act No. 28 of 2011



‘Companies Act’ means the Companies Act, 2008 (Act No. 71 of 2008);‘compromise’ means an agreement entered into between SARS and a ‘debtor’ interms of which—(a) the ‘debtor’ undertakes to pay an amount which is less than the full amount of

the tax debt due by that ‘debtor’ in full satisfaction of the tax debt; and 5(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 an outstanding tax debt; and‘write off’ means to reverse a tax debt either in whole or in part. 10

Purpose of Chapter

193. (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 15 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.

20Application of Chapter

194. This Chapter applies only in respect of a tax debt owed by a ‘debtor’ if the liability to pay the tax debt is not disputed by the ‘debtor’.

Part B

Temporary write off o f tax debt25

Temporary write off of tax debt

195. (1) A senior SARS official may decide to temporarily ‘write off’ an amount of tax debt if satisfied that the tax debt is uneconomical to pursue as described in section 196 at that time.

(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. 30

(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.

35Tax debt uneconomical to pursue

196. (1) Atax 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 40 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’; 45

152 No. 35491

Act No. 28 of 2011



(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 5

(f) any other information available with regard to the recoverability of the tax debt.

Part C

Permanent write off o f tax debt

Permanent write off of tax debt 10

197. (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 in section 198; or

(b) if the debt is ‘compromised’ in terms of Part D. 15 (2) SARS must notify the ‘debtor’ in writing of the amount of tax debt ‘written off’.

Tax debt irrecoverable at law

198. (1) A tax debt is irrecoverable at law if—(a) it cannot be recovered by action and judgment of a court; or(b) it is owed by a ‘debtor’ that is in liquidation or sequestration and it represents 20

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 creditorsof the estate; or

(c) it is owed by a ‘debtor’ that is subject to a business rescue plan referred to in Part D of Chapter 6 of the ‘Companies Act’, to the extent that it is not 25 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.

Procedure for writing off tax debt 30

199. (1) Before deciding to ‘write off’ a tax debt, a senior SARS official must—(a) determine whether there are any other tax debts owing to SARS by the

‘debtor’;(b) reconcile amounts owed by and to the ‘debtor’, including penalties, interest

and costs; 35(c) obtain a breakdown of the tax debt and the periods to which the outstanding

amounts relate; and(d) document the history of the recovery process and the reasons for deciding to

‘write off’ the tax debt.(2) In deciding whether to support a business rescue plan referred to in Part D of 40

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. 45



Part D

Compromise o f tax debt

Compromise of tax debt

200. 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— 5

(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.

Request by debtor for compromise of tax debt 10

201. (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;

(!) 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.(4) A senior SARS official may require that the application be supplemented by such

further information as may be required.

Consideration of request to compromise tax debt

202. (1) In considering a request for a ‘compromise’, a senior SARS official must have regard to the extent that the ‘compromise’ may result in— 40

(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 45

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—

15

20

25

30

35



(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’; 5

(c) past transactions of the ‘debtor’; and(d) the position of any connected person in relation to the ‘debtor’.

Circumstances where not appropriate to compromise tax debt

203. A senior SARS official may not ‘compromise’ any amount of a tax debt under section 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(!) 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.

Procedure for compromise of tax debt 25

204. (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(c) give up specified existing or future tax benefits, such as carryovers of losses,

deductions, credits and rebates.

SARS not bound by compromise of tax debt

205. SARS is not bound by a ‘compromise’ if—(a) the ‘debtor’ fails to disclose a material fact to which the ‘compromise’ relates; 40(b) the ‘debtor’ supplies materially incorrect information to which the ‘compro

mise’ relates;(c) the ‘debtor’ fails to comply with a provision or condition contained in the

agreement referred to in section 204; or(d) the ‘debtor’ is liquidated or the ‘debtor’s’ estate is sequestrated before the 45

‘debtor’ has fully complied with the conditions contained in the agreement referred to in section 204.

30

35

10

15

20

158 No. 35491

Act No. 28 of 2011



Part E

Records and reporting

Register of tax debts written off or compromised

206. (1) SARS must maintain a register of the tax debts ‘written off’ or ‘compromised’ in terms of this Chapter. 5

(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 10(c) the reason for ‘writing off’ or ‘compromising’ the tax debt.

Reporting by Commissioner of tax debts written off or compromised

207. (1) The amount of tax debts ‘written off’ or ‘compromised’ during a financial year must be disclosed in the annual financial statements of SARS relating to administered revenue for that year. 15

(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 to section 70(5), does not disclose the identity of the ‘debtor’ concerned; 20

(b) be submitted by the end of the month following the end of the fiscal year; and(c) contain details of the number of tax debts ‘written off’ or ‘compromised’, the

amount of revenue forgone, and the estimated amount of savings in costs of recovery, which must be reflected in respect of main classes of taxpayers or sections of the public. 25

CHAPTER 15

ADMINISTRATIVE NON-COMPLIANCE PENALTIES

Part A

General

Definitions 30


‘administrative non-compliance penalty’ or ‘penalty’ means a ‘‘penalty’’ imposed by SARS in accordance with this Chapter, and excludes an understatement penalty referred to in Chapter 16; 35 ‘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; 40 ‘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; 45‘remittance request’ means a request for remittance of a ‘penalty’ submitted in accordance with section 215.

160 .Si JJ49!

A ft .Vo. : s or io n

GOVLELMMkNT CiA/t'E'J i 4 JULY JOtJ

T.nc AitmLmttraCtnn ^ rt 'fill

Purpose o f C ini pier

209. The putyuse uf tins Cliflplcr to a u i i e —( a ) the w idesi possib le com pliance w ith the p rov isio n s o f a Tax A ct and the

e [Tec live ndqiiniiimtin iff l;i\ A c h i b raid

r b I That an 'a k im i s t i a t t t re n on-com pliance p finally’ is im posed im partially . 5

co n sisten cy , and p ro p o rtio n a te ly to [he seriousness and du ra tio n b t the i l on -c o n t pi i u n cc.

Fart B

Fixed firm*it nt pitnaltiri

>Jon-coLiiplinnce subject to penalty 10

2 1 0. i I ) f T S - A R S I t. H-;iJ’-f 1 ljjI tluit umi-LHiirijiiirLEi^c b y :i p A ^ o u l e t u n e d ii) in ijgbuxlHii)

exists. excluding Tlie non-com pliance refetred lo in section 213, tV R S musl impose iIn' apprup tiak ‘penalty in aeeordwuje VtiQi lliu Tnl>le in section 211.

C21 ’NTon-t oj'iip]tAlice is failure to comply with an obligation ilia! is imposed by or under a Tax Act and is listed in a public noiice issued by the CanurutsiaMT, other than— 15

(a) itiv I'liiluic to jjhj tax subject m ;i pei^cutHEc bttied penidty midci Part C. or t b > non-compliance subject to [in understaten«a t penally under i_’hapTer 16,

L’ixod Ainoant penally ruble

i l l . 1 ] i E-or lbe non-compliance referred fo in section 2]0 . 3ARS must impose ,i 'penally’ ill fttctimlaTice wjth lbe fi dlnw ii i£ Tililc: 20

l':tblr: Anmutil o f AiiiftimsilrattVe \ [ | ] i-C'i>iii]>L:iiht Penally

IItem

1A v fy 'fd lo « or tnxalile incom e for ■ preceding year"

A'P enally1

A ssessed loss R250

m R0-R2.^0 000 R2S0

(iii> r : ? u U01-R500 ooo R500(tv) R50110O1-R1 ODOOflO kl 000

( 0 R l 000 001-KS 000 000 R2 000fvi) R5 00Q OOl-RlCf 000 000 RJ 000(vu) R10 000 001-R50 000 000 RS 000(viii) Above KM] 000 000 Rl A 000

2*5

30

(2) The amount rtf 1 lie j|r:iihI|v’ in CCltuiJUJ 5 '.v j 11 m c fiV : M sm tlio tliy by IjlC h.h111u 3-S amount lor eacb iBoutk, or pail iheieof, [hat [lie per w it fails to remedy tlie non-compliance wilhin one 111011 tli alter—

(a) Hit Jibiu of ilie delivery o f (lit ‘peiniliy assenmiiuu'. if SARS in possession o f the cturent address o f lbe person anti is able to deliver die assessment, bin tin ii led lu 3? muullix allei [lie dale o f iletiv'ciy: Crr 40

(in tlie dare of Tlie non-compliance if SAIiS is not in possession of the current addie*n of the person in id h unable lit deli v a lIiu Jpeiiii!l> assessineHt'-, but limited to 4 “ months a tier the date o f non-compliance.

( !!) I he following; persons, except Those falling under iiem (\ iti) of ihe table or those Hint did noi (inde dm hi a I tie yeurofHise-isiueitl. w e Lieu led <i> ialhuji aider item fvii) o f 45 The Ltible:

I t i I :i D t H M m y , li-reil (III hi tccjdRttisLÎ iitoek exe!iiiib;!e hi-, rtfentfi Id in

paragraph I o f the Eighth Schedule to the Income Tax Act: lb) a company ivlmse tross receipt* or accrual* for (lie ‘preceding year7 exceed

R500 million. 50f f ) a company that forms part o f a "^ronp o f companies" as defined in section I

o f ibe Income Tax Act. which group include?- a company described hi item m) or tb); or

162 No. 35491

Act No. 28 of 2011



(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).

Reportable arrangement penalty

212. (1) A ‘participant’ who fails to disclose the information in respect of a reportable arrangement as required by section 37 is liable to a ‘penalty’, for each month that the failure continues (up to 12 months), in the amount of—

(a) R50 000, in the case of a ‘participant’ other than the ‘promoter’; or(b) R100 000, in the case of the ‘promoter’.

(2) The amount of ‘penalty’ determined under subsection (1) is doubled if the amount of anticipated ‘tax benefit’ for the ‘participant’ by reason of the arrangement (within the meaning of section 35) exceeds R5 000 000, and is tripled if the benefit exceeds R10 000 000.

Part C

Percentage based penalty

Imposition of percentage based penalty

213. (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 under this Chapter, impose a ‘penalty’ equal to the percentage of the amount of unpaid tax as prescribed in the tax Act.

(2) In the event of a change to the amount of tax in respect of which a ‘penalty’ 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

Procedures for imposing penalty

214. (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

5

10

15

20

25

30

35

40

45

50

164 No. 35491

Act No. 28 of 2011



(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 with section 211(2) or 213(2).

Procedure to request remittance of penalty

215. (1) Aperson 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

(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 in

section 216 or 217, and that reasonable grounds exist for the late receipt of the ‘remittance request’; or

(b) a circumstance referred to in section 218(2) rendered the person incapable of submitting a timely request.

Part E

Remedies

Remittance of penalty for failure to register

216. If a ‘penalty’ is imposed on a person for a failure to register as and when 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.

Remittance of penalty for nominal or first incidence of non-compliance

217. (1) If a ‘penalty’ has been imposed in respect of—(a) a ‘first incidence’ of the non-compliance described in section 210, 212 or 213;

or(b) an incidence of non-compliance described in section 210 if the duration of the

non-compliance is less than 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 under section 212, the R2 000 limit referred to in subsection (1) is changed to R100 000.

(3) In the case of a penalty imposed under section 213, SARS may remit the ‘penalty’, or a portion thereof, if SARS is satisfied that—

5

10

15

20

25

30

35

40

45

50



(a) the ‘penalty’ has been imposed in respect of a ‘first incidence’ of the non-compliance described in section 210, 212 or 213, 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. 5

Remittance of penalty in exceptional circumstances

218. (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;(!) 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.

Penalty incorrectly assessed 30

219. 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.

Objection and appeal against decision not to remit penalty

220. A decision by SARS not to remit a ‘penalty’ in whole or in part is subject to 35 objection and appeal under Chapter 9.

CHAPTER 16

UNDERSTATEMENT PENALTY

Part A

Imposition ofunderstatement penalty 40

Definitions


‘repeat case’ means a second or further case of any of the behaviours listed under items (i) to (v) of the understatement penalty percentage table reflected in section 45 223 within five years of the previous case;‘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;

10

15

20

25

SfiS .Ni J.'49!


GOVLELMMkNT Q A lfc T ji 4 JULY JOtJ

T.nc AitmLmttraCtnn ^ rt ' 1115

>liiv* m eans ijix an defined in section I . ex clu d in g a p e n a lty and interest:‘fnx position* iiietiny imELifStLmpiiuii underlying o ik o r mure u sp ectsof a la x rcltim , including whether ot Jiotfa) .in amoum. transaction. event or hem is taxable:ti>t iiu uiiiuuiil ih item i.i deduelible or uiuy Ik Ssct-olT; ?( c l a low er rate o f rax than the m axim um applicable to [hat class o f taxpayer.

I mu M illion. tfVtnil or imisi app lies; nr f i l i an amount qualifier a1, a reduction o f tax payable: and >mtilt, rslJtl'>nieuC mean* any pr*judicfl to SAKS or the f i t c m in r e flec t o f a tax period as u result o f— 10(<7.i a default in rtiiderint, a return;[h) an omission from a remm:(c) an incorrect Jtatciuem ni a m um : orh1i if no rennn i\ required. the failure to pay the co llect amount o f ‘tax'

U n d ersta tem en t penalty 15

2 2 2 . 11 !■ L j the e v e ill o f an "undei J a le jn e jti' b y a taxpayer, the taxpayer m ust pay. in acldillm i If] llie 'InM1 p a y a b le for ihe le lcvarll tas p er io d , the im ilrr ilK ttin tllt pfltisjly d eterm in ed under su b sectio n (2 ).

(2) I he understatement penalty is rhe amount resulting fmm applying rise higliesr ap p lied Le uudeislLUeineni penally pci'eeniirjje in HceurJiniec with I lie mbL in i eel ion 2022.i to the shortfall determined under subset LiOJtS | and (4).

(3) The shortfall is the sum o f —(a) the dill'civiicc betw een dm iunouui o f ' t a x ' properly ehtujiciible for the tax

period and ilie amount of ‘tax' that w ould have been cliargeable if theLiuulrjnilalL-iiiefn’ wen: Jitciqi I lli) : 25

t b i The difference belween tlie amount property refundable for tlie tax period and the amount that would liave heen retiuidahle if the ‘understatement* were accepted; and

t o tlie difference between tlie amomit o f an assessed toss or any other benefit tollie laxp ayer jiropcH y tarried fi?Tuaid tVnm d ie 1;ik p eriod to a hi ikiceedn tax .10 period and the amount thal would have been carried forward i f the Ûnderstatement' were accepted, multiplied by the lax lale determined under subsec I ion (51).

c 4!l I f an 'understatement' results in a difference under both paragraphs ( ah and t h ) o f su hw enon I I) the nhonfalL nmsl he reduced hy the amount rtf any duplication between 35 tJlC piilifJiiapllV

(S'j r k'_L !:is (U e is (In: m ax im u m Ian mlG :i|hplualhit: In tin.' ignoirjiiH ailassessed loss ot any other benefit brought forward from a preceding tax period to (lie tax period.

LiiKieretsitement penalty p ercen tage tab le 40

2 2 3 .11) Tlie undcrsIe\Lenient pci ni Ely pereeiitajie table t> us follows:

1Itt'lll

2Behaviour

3St&id&rd

case

4If obstructive, or if it is a 'repeal case'

5Vphmtan disclosure after not i- hralinn of

audit

GVoluntary disclosure

before nnttftw- limi uf audit

u Substantial under- aaicm eaf

25% 50% 5% 0%

<»■> R«i<.onab]it caie nor (akjit in cumpltfiag rertun

50% 75% 25% n%

m No ftasonabk ground's tor ‘rnx position" E keti

75% 100% 35% 0%

45

50fid

I fl) .Si JJ49!


GOVLELMMkNT Q A lfc T ji 4 JULY JOIJ

T.nc AitmLmttraEtnn ^ rt ' 1115

1ItOJH

2Behaviour

3Standard

case

4If obstructive, or if it is ;t 'repent rase’

5Vohmiarj1 disclosure after iioti- lii’jiliflii of

itutlit

6Voluntarydisclosure

beforenotification of audit

(H) Groi', negligence 100% 12?% S0% 5%

■' lLitenTn>!ial tux evasion 150% 2(10% 75% 10%

19s

20

f t ) A.l Lmdei^Lbltiiieiil bfiuilly I:-: \iliid:i ijiuvinDP is Tiuifle bimJer ills'- {"luiplei nlnQ chargeable in caseiv where

(a\ an assessment hased on an estimation under secbnn 95 is made: tB 2*iffrj 4iii aîcssmeiLi uj&ccd upon wiH| the la x p iy a nudcr scuiun 95(3) is issued,

(.i) SARS mns.1 remit a "penalty" impeded for a ‘substantial understatement" i f SARS is satisfied thal the laxpayer—

I a i made lull diaclavun: o f ilm antîuEintmi, aa defined in 34. Chat jiavcrise to rlie prejudice to SARS or the fisctis by no later than (he date drat the j0 rL'IcvaiH rclrmi Wlh WJt; ibiul

tbi w as in possession o f an opinion by a registered tnx practitioner, as defined in section 2.W, tiiat—ii) Wes m u ed by no later ituiu lIjc [lute ilml the relevant return was dm;

(ii) rook account or tlie specific facts and circumstances of the arrangement: .*? ami

{iii) confirm ed that [lie taxpayer's position is more likely than not to be upheld if the inaner pniceeds to cm til

CJhji'i'iiim :111cL :111{ib1:11 :il>:hsisL iteri:-iehhii mil lo m n it undf'nitntt'iiirnt pm: illy

-2 4 . A decision by -4Aii.fi not to remit rm under Miii'emem pcimify Li subject to 40 (■bjuulimi ami MjipL'ul nmiei Chapler 9.

Part B

Voluntary disclosure program m e

Definitions

.2 5 . In lJii>L Pnrl. ita lics iIli; cdAi^xt iju4)Ca!^ tilliui\ i L-lt:, iliu 1'nI mi r iltili, {f hj single quotation marks. Lis. the loliovviiit meaning

•iltftmlL" means the submission of inaccurate nr incomplete information to SARS,Di lIl-c failure to submit iufonnutiuiiui tlic adoption of a *tax position*, where stidi submission, uou-submission. Ot adoption resulted in|« ) I lie I«x|hvcv not 11 uf 111 lt L‘U£yK(l fiw rile LtnitLl n)lmii)l nf ItUh ‘'fttb i the eojieet am ount o f la s not bem? paid by the iixp iyer. or (ri an incorrect refund he mg made hy SAKS.

Q ualify ing [htxihi for voluntary itist'losnri1

220, (1) A person may apply, vvhelhei in a personal, representative, wirliholding. oitillbL'i uajiHuilv. foi vcilniblmy dcseluHi bn: rolik."f. ■ lti1 l1 i- 11 ml pel soil is i'wsrc of— 55

(a J a pending audit or investigation into the aifairs o f tlie person seeking rehef: or (hf an audir or investigation thaT has commenced, hut lias noi yei been concluded.

12.i A senior SARS official may direct iIill! ll pL'issu urn v apply fur volunNiiy disclosure relief, despite (lie provisions o f subsection (1), inhere the official i'j o f the view, bavins regard to ilie circumstances and ambit o f ilie andil or investiaatiou, ThaT— (50

172 No. 35491

Act No. 28 of 2011



(a) the ‘default’ in respect of which the person wishes to apply for voluntary disclosure relief would not otherwise have been detected during the audit or investigation; and

(b) 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 be aware of a pending audit or investigation, or that the audit or investigation has commenced, if—

(a) a representative of the person;(b) an officer, shareholder or member of the person, if the person is a company;(c) a partner in partnership with the person;(d) a trustee or 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 become aware of a pending audit or investigation, or that the audit or investigation has commenced.

Requirements for valid voluntary disclosure

227. The requirements for a valid voluntary disclosure are that the disclosure must—(a) be voluntary;(b) involve a ‘default’ which has not previously been disclosed by the applicant or

a person referred to in section 226(3);(c) be full and complete in all material respects;(d) involve the potential imposition of an understatement penalty in respect of the

‘default’;(e) not result in a refund due by SARS; and(f) be made in the prescribed form and manner.

name voluntary disclosure

228. A senior SARS official may issue a non-binding private opinion, as defined in section 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’.

Voluntary disclosure relief

229. Despite the provisions of a tax Act, SARS must, pursuant to the making of a valid voluntary disclosure by the applicant and the conclusions of the voluntary disclosure agreement under section 230—

(a) not pursue criminal prosecution for a statutory offence under a tax Act arising from the ‘default’ or a related common law offence;

(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 or a late payment of tax.

Voluntary disclosure agreement

230. The approval by a senior SARS official of a voluntary disclosure application and relief granted under section 229, must be evidenced by a written agreement between SARS and the qualifying person who is liable for the outstanding tax in the prescribed format and must include details on—

(a) the material facts of the ‘default’ on which the voluntary disclosure relief is based;

(b) the amount payable by the person, which amount must separately reflect the understatement penalty payable;

5

10

15

20

25

30

35

40

45

50

174 No. 35491

Act No. 28 of 2011



(c) the arrangements and dates for payment; and(d) relevant undertakings by the parties.

Withdrawal of voluntary disclosure relief

231. (1) In the event that, subsequent to the conclusion of a voluntary disclosure agreement under section 230, it is established that the applicant failed to disclose a 5 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 in respect of the 10 relevant ‘default’; and

(c) pursue criminal prosecution for a statutory offence under a tax Act or a related common law offence.

(2) Any decision by the senior SARS official under subsection (1) is subject to objection and appeal. 15

Assessment or determination to give effect to agreement

232. (1) If a voluntary disclosure agreement has been concluded under section 230, SARS may, despite anything to the contrary contained in a tax Act, issue an 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 under 20 section 230 is not subject to objection and appeal.

Reporting of voluntary disclosure agreements

233. (1) The Commissioner must annually provide to the Auditor-General and to the Minister a summary of all voluntary disclosure agreements concluded in respect of applications received during the period. 25

(2) The summary must—(a) subject to section 70(5), not disclose the identity of the applicant, and must be

submitted at such time as may be agreed between the Commissioner and the Auditor-General or Minister, as the case may be; and

(b) contain details of the number of voluntary disclosure agreements and the 30 amount of tax assessed, which must be reflected in respect of main classes of taxpayers or sections of the public.

CHAPTER 17

CRIMINAL OFFENCES

Criminal offences relating to non-compliance with tax Acts 35

234. A person who wilfully and without just cause—(a) fails or neglects to register or notify SARS of a change in registered

particulars as required in Chapter 3;(b) fails or neglects to appoint a representative taxpayer or notify SARS of the

appointment or change of a representative taxpayer as required under 40 section 153 or 249;

(c) fails or neglects to register as a tax practitioner as required under section 240;(d) fails or neglects to submit a return or document to SARS or issue a document

to a person as required under a tax Act;(e) fails or neglects to retain records as required under this Act; 45(!) submits a false certificate or statement under Chapter 4;(g) issues an erroneous, incomplete or false document required under a tax Act to

be issued to another person;(h) refuses or neglects to—

176 No. 35491

Act No. 28 of 2011



(i) furnish, produce or make available any information, document or thing, excluding information requested under section 46(8);

(ii) reply to or answer truly and fully any questions put to the person by a SARS official;

(iii) take an oath or make a solemn declaration; or(iv) attend and give evidence,as and when required in terms of this Act;

(i) fails to comply with a directive or instruction issued by SARS to the person under a tax Act;

j ) fails or neglects to disclose to SARS any material facts which should have been disclosed under this Act or to notify SARS of anything which the person is required to so notify SARS under a tax Act;

(k) obstructs or hinders a SARS official in the discharge of the official’s duties;(l) refuses to give assistance required under section 49(1);(m) holds himself or herself out as a SARS official engaged in carrying out the

provisions of this Act;(n) fails or neglects to comply with the provisions of sections 179 to 182, if that

person was given notice by SARS to transfer the assets or pay the amounts to SARS as referred to in those sections; or

(o) 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, upon conviction, is subject to a fine or to imprisonment for a period not exceeding two years.

Criminal offences relating to evasion of tax

235. (1) Aperson 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,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) must, 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 guilty of the offence referred to subsection (1).

(3) A senior SARS official may lay a complaint with the South African Police Service or the National Prosecuting Authority regarding an offence contemplated in subsection (1).

Criminal offences relating to secrecy provisions

236. Aperson who contravenes the provisions of section 67(2) or (3), 68(2), 69(1) or(6) or 70(5) is guilty of an offence and, upon conviction, is subject to a fine or to imprisonment for a period not exceeding two years.

5

10

15

20

25

30

35

40

45

50

178 No. 35491

Act No. 28 of 2011



Criminal offences relating to filing return without authority

237. A person who—(a) submits a return or other document to SARS under a forged signature;(b) uses an electronic or digital signature of another person in an electronic

communication to SARS; or 5(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.

Jurisdiction of courts in criminal matters

238. A person charged with a tax offence may be tried in respect of that offence by a 10 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

REPORTING OF UNPROFESSIONAL CONDUCT

Definitions 15

239. 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; 20 and‘registered tax practitioner’ means a practitioner registered under section 240.

Registration of tax practitioners

240. (1) Every natural person who—(a) provides advice to another person with respect to the application of a tax Act; 25

or(b) completes or assists in completing a document to be submitted to SARS by

another person in terms of a tax Act,must register with SARS as a tax practitioner, in such form as the Commissioner may determine, within 30 days after the date on which that person for the first time provides 30 advice or completes or assists in completing any such document.

(2) The provisions of this section do not apply in respect of a person who—(a) provides the advice or completes or assists in completing a document solely

for no consideration to that person or his or her employer or a connected person in relation to that employer or that person; 35

(b) provides the advice solely 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 solely as an incidental or subordinate part of providing goods or other services to another person; 40

(d) provides the advice or completes or assists in completing a document solely—(i) to or in respect of the employer by whom that person is employed on a

full-time basis or to or in respect of that employer and connected persons in relation to that employer; or

(ii) under the direct supervision of a person who is registered as a tax 45 practitioner in terms of subsection (1).

180 No. 35491

Act No. 28 of 2011



(3) A person may not register as a tax practitioner under subsection (1) if the person—(a) during the preceding five years has been removed from a related profession;

and(b) during the preceding five years has been convicted (whether in the Republic or

elsewhere) of— 5(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 10 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).

Complaint to controlling body of tax practitioner

241. A senior SARS official may lodge a complaint with a ‘controlling body’ if a 15 ‘registered tax practitioner’ or person who carries on a profession governed by the ‘controlling body’, did or omitted to do anything with respect to the affairs of a taxpayer, including that person’s affairs, that in the opinion of the official—

(a) was intended to assist the taxpayer to avoid or unduly postpone the performance of an obligation imposed on the taxpayer under a tax Act; 20

(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; or

(c) constitutes a contravention of a rule or code of conduct for the profession which may result in disciplinary action being taken against the ‘registered tax 25 practitioner’ or person by the body.

Disclosure of information regarding complaint and remedies of taxpayer

242. (1) Despite section 69, the senior SARS official lodging a complaint under section 241 may disclose the information relating to the person’s tax affairs as in the opinion of the official is necessary to lay before the ‘controlling body’ to which the 30 complaint is made.

(2) Before a complaint is lodged or information is disclosed, SARS must deliver to the taxpayer and the person against whom the complaint is to be made notification of the intended complaint and information to be disclosed.

(3) The taxpayer or that person may, within 21 business days after the date of the 35 notification, lodge with SARS an objection to the lodging of the complaint or disclosureof the information.

(4) If on the expiry of that period of 21 business days no objection has been lodged or, if an objection has been lodged and SARS is not satisfied that the objection should be sustained, a senior SARS official may thereupon lodge the complaint as referred to in 40 section 241.

Complaint considered by controlling body

243. (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, 45 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 50 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.

182 No. 35491

Act No. 28 of 2011



CHAPTER 19

GENERAL PROVISIONS

Deadlines

244. (1)If—(a) a day notified by SARS or specified in a tax Act for payment, submission or 5

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. 10

(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— 15

(a) reasonable grounds exist for the delay and the application is submitted within21 days of the deadline; or

(b) the delay is due to a circumstance referred to in section 218(2) (a) to (e) or any other circumstance of analogous seriousness and the application is submitted within three years of the deadline. 20

Power of Minister to determine date for submission of returns and payment of tax

245. (1) Despite any other provision of a tax Act, if the date for the submission of 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 prior 25 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.

Public officers of companies

246. (1) Every company carrying on business or having an office in the Republic must 30 at all times be represented by an individual residing in the Republic.

(2) The individual representative under subsection (1) must be—(a) a person who is a senior official of the company and is approved by SARS;(b) appointed by the company or by an agent or attorney who has authority to

appoint such a representative for the purposes of a tax Act; 35(c) called the public officer of the company; and(d) appointed within one month after the company begins to carry on business or

acquires an office in the Republic.(3) If a public officer is not appointed as required under this section, the public officer

is the managing director, director, secretary or other officer of the company that SARS 40 designates for that purpose.

(4) A company covered by this section that has not appointed a public officer is subject to a tax Act, the same as if a tax Act did not require the public officer to be appointed.

(5) Apublic 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 45 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).

247. (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, 10 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.

Public officer in event of liquidation or winding-up 15

248. In the event of a company referred to in section 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.

Default in appointing public officer or address for notices or documents 20

249. (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 25

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.

Authentication of documents 30

250. (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 35 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.

Delivery of documents to persons other than companies 40

251. If a tax Act requires or authorises SARS to issue, give, send, or serve a notice, document or other communication to a person (other than a company), SARS is regarded as having issued, given, sent or served the communication to the person if—

(a) handed to the person;

Company address for notices and documents 5

186 No. 35491

Act No. 28 of 2011



(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; or

(ii) the person’s last known telefax number.

Delivery of documents to companies

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

(a) delivered to the public officer of the company;(b) left with a person older than 16 years apparently residing or employed at—

(i) the place appointed by the company under section 247; or(ii) where no such place has been appointed by the company, the last known

office or place of business of the company;(c) sent by post addressed to the company or its public officer at the company or

public officer’s last known address, which includes—(i) an office or place referred to in paragraph (b); or

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

(ii) last known telefax number.

Documents delivered deemed to have been received

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

(2) Subsection (1) does not apply if—(a) SARS is satisfied that the notice, document or other communication was not

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

received or was received at some other time.(3) If SARS is satisfied that—

(a) a notice, document or other communication (other than a notice of assessment) issued, given, sent or served in a manner referred to in section 251 or 252 (excluding paragraphs (a) and (b) thereof)—(i) has not been received by the addressee; or

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

(b) the person has in consequence been placed at a material disadvantage,the notice, document or other communication must be withdrawn and be issued, given, sent or served anew.

Defect does not affect validity

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

5

10

15

20

25

30

35

40

45

50

188 No. 35491

Act No. 28 of 2011



(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.

Rules for electronic communication

255. (1) The Commissioner may by public notice make rules prescribing—(a) the procedures for submitting a return in electronic format, and for other

electronic communications between SARS and other persons; and(b) requirements for an electronic or digital signature of a return or communica

tion.(2) SARS may, in the case of a return or other document submitted in electronic

format, accept an electronic or digital signature as a valid signature for purposes of a tax Act if a signature is required.

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

Tax clearance certificate

256. (1) A taxpayer may apply to SARS for a tax clearance certificate in the prescribed form and manner.

(2) SARS must issue or decline to issue the certificate within 21 business days from the date the application is duly filed.

(3) A senior SARS official may provide a taxpayer with a tax clearance certificate only if satisfied that the taxpayer is registered for tax and does not have any—

(a) tax debt outstanding, excluding a tax debt contemplated in section 167 or 204 or a tax debt that has been suspended under section 164 or does not exceed the amount referred to in section 169(4); or

(b) outstanding return unless an arrangement acceptable to SARS has been made for the submission of the return.

(4) A tax clearance certificate must be in the prescribed form and include at least—(a) the tax clearance certificate reference number assigned to the certificate and

reflected in the records of SARS;(b) the name, taxpayer reference number, address and identity number or

company registration number of the taxpayer;(c) the date of the application for a certificate;(d) a statement that the taxpayer has no outstanding tax debts as at the date of the

certificate; and(e) the expiry date of the certificate.

(5) Despite the provisions of Chapter 6, SARS may confirm the validity and expiry date of the certificate upon request by a sphere of government or parastatal.

(6) SARS may withdraw a certificate with effect from the date of the issue thereof if the certificate—

(a) was issued in error; or(b) was obtained on the basis of fraud, misrepresentation or non-disclosure of

material facts.

Regulations by Minister

257. (1) The Minister may make regulations regarding—(a) any ancillary or incidental administrative or procedural matter that it is

necessary to prescribe for the proper implementation or administration of this Act; and

5

10

15

20

25

30

35

40

45

50

190 No. 35491

Act No. 28 of 2011



(b) any matter which under this Act is required or permitted to be prescribed.(2) The Minister may, after consultation with the Tax Ombud, make regulations

regarding—(a) the proceedings of the Tax Ombud; and(b) the limitations on the jurisdiction of the Tax Ombud, having regard to— 5

(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 10 SARS.

(3) For purposes of the regulations referred to in paragraph (e) of the definition of ‘‘biometric information’’ in section 1, the Minister must publish the draft regulations in the Gazette for public comment and submit the draft regulations to Parliament for parliamentary scrutiny at least 30 days before the draft regulations are published. 15

CHAPTER 20

TRANSITIONAL PROVISIONS

New taxpayer reference number

258. 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 20 until the time that SARS allocates a taxpayer reference number to the person under section 24 for purposes of the relevant tax type.

Appointment of Tax Ombud

259. (1) The Minister must appoint a person as Tax Ombud under section 14 within one year of the commencement date of this Act. 25

(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.

Provisions relating to secrecy

260. A person who took and subscribed to an oath or solemn declaration of secrecy 30 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).

Public officer previously appointed

261. 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 35 officer appointed under this Act.

Appointment of chairpersons of tax board

262. An attorney or advocate 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 40 section 111 until the earlier of—

(a) the expiry of the attorney or advocate’s appointment under the provisions previously in force; or

(b) termination of the attorney or advocate’s appointment under section 111(3).

Act No. 28 of 2011

192 No. 35491



Appointment of members of tax court

263. 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 5 section 120(4) is terminated or lapses.

Continuation of tax board, tax court and court rules

264. (1) A tax board or tax court that was established under a tax Act and exists immediately before the commencement date of this Act, is regarded as established under section 108 or 116, respectively, of this Act. 10

(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.

Continuation of appointment to a post or office or delegation by Commissioner

265. (1) A person appointed to a post or office or delegated by the Commissioner 15 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. 20

Continuation of authority to audit

266. 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.

Conduct of inquiries and execution of search and seizure warrants 25

267. (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 30 executed before the commencement date of this Act, the warrant is regarded as issued under section 60.

Application of Chapter 15

268. 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 35 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.

Continuation of authority, rights and obligations

269. (1) Rules 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 40 in force as if they were issued under section 103 or 257, respectively, to the extent consistent with this Act.

(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 45 consistent with this Act.

Act No. 28 of 2011

194 No. 35491



(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.

Application of Act to prior or continuing action

270. (1) Subject to this Chapter, this Act applies to an act, omission or proceeding taken, occurring or instituted before 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;(!) 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

5

10

15

20

25

30

35

40

45

50

196 No. 35491

Act No. 28 of 2011



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 which but for the repeal of the legislation in Schedule 1 would have been capable of being imposed, levied, assessed or recovered by the commencement date of this Act, and which has not been imposed, levied, assessed 5 or recovered by the commencement date of this Act, may be—

(a) imposed or levied as if the repeal had not been effected; and(b) assessed and recovered under this Act.

(7) Interest arising before the commencement date of this Act must be—(a) calculated in accordance with the relevant tax Act until the commencement 10

date; and(b) regarded as interest due under this Act from the commencement date of the

comparable provisions of this Act.(8) Interest arising on or after the commencement date of this Act but before the date

prescribed by the Commissioner under section 187(2) must be— 15(a) calculated in accordance with the relevant tax Act until the date prescribed by

the Commissioner; and(b) regarded as interest due under this Act.

Amendment of legislation

271. The Acts listed in Schedule 1 are amended to the extent set out in that Schedule. 20

Short title and commencement

272. (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. 25

(3) Subparagraphs (g), (h), (i) and (j) of paragraph 60 of Schedule 1 come into operation on the date on which Part VIII of Chapter II of the Income Tax Act, 1962, comes into operation.

(4) Paragraph 78 of Schedule 1 is deemed to have come into operation on 1 January 2011 and applies in respect of premiums incurred on or after that date. 30

(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.

HH !i-MArt JVfl. It otlnll

GOVbELNMkN! OAjSETTE, i JLLV J0[.’T.io: AdubhnuErjtlKin i r I 1 n 1 1

.SCHF.fJl LF 1

I ION 271

No, mill year Short tille Exltm of aiuendmt'iH or repealArt No. JO of i w ItUHftr W t j Aft,

1949Amend mem of section 1

1- Section f of die Transfer Duly Act, 1949. ii hereby amended— tti> by ihe nbdjtntion for ihe definition

of '‘Commissioner'" of ihe followiiii; deiiinlioiu

" ‘C onufsdeoef' iiicm.*, ihr t'oiumi sootier for The South African Revenue Scm cc appoiiileJ ijllornt of u!clinp 6 uf Ui_' Si millAfiic au Re \ liiuc Sem ue A d . 1 ', J ~h Aci No. >1 of 1 Vy ) or the Acting Commissiaiier -iesiEnaled ill terms of section 7 of jml Act;”;

tk) by (he insertion after rhe delinuion of " spoil ve" of (Jie follow mt (itfiniliou

“ lux AiLiiiiiistmli'Hi Af 1' tneuturhe Tax Aftminisn'atinu Ad. 2011 ■ :

<fj by die renumbering of sedion 1 to section 1(1): and

fih U\ (hi: ineuirtim ulia huIkiiIHIII (1) oi the tollnii'in^ suiter I incv

"(21 Unless [lie context indicatesotherwise, ji rtartl oi ejturewioii luwhich a meanini has !*een a snined in [lie Tax AdnwnstiiJNon Act bear1.liiiit iiieiLiiiiik far ontnoseii of tluAct

Amendment of section 32. Seciion .t of ihe Transfer Dmy At!,

1949, is hereby amended lu} b.r ibn ddjstilulAi lor ttfccctim (1A)

of the following mbwctiCtv"i 1A) ^Vbeie a persou \iho ac-

quire» auv |HW|*.Tly wul emptied iu paragraph (di. i n nr tg) of ihe defuniioa of "'property" fails !o pay the duly mtlun lbe pctiod conlcni- ]ilalk.tt ::: liiMXliini ( 1 i llh: ruMiiofficer- (as defined in 4*1 ion 101 of die Income TaiArt, H*62 (Act No. 58 of 1062 i.l of liutE eunqmuy iuu) ihe person fmrn whom tlie Oiaies or member's mteresl are acquired shall Ik; jointly jiiut ^cvoally luble toa such duty: Piwided (hat the public officer or person from wlioni the

2(K) .Si JJ49I (^VERNMEN’l CiAZtTl t 4 J ULY LLU12

Act .vd. : s or 2011 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir S h ort title E xten t o f li ri ki'i 11] 11 e l' i) i o r 1’i-jicfil

shnics pr ojctuber's interest wra flciillinxl, m ay recnVntf Mty n [] till eii 1 o f d w y paid [by Jiiiii o r her} in terms o f this subsection [from — i u ) th e p erson w h o so nrqnired

tli ;il properly; q f ( b ) In tlie c a « o f n p u b lic officer,

from rlint coiujjruty] in sn.-- iinrdance with section I6D o f ilie Tax jVdministrstion Ac?.,L:

{ b ) Liy ilie substitLlioii Iwi subsection (I B ) o f the fa 1 low in £ subsection:

"1 ] tJ) W here a person who acquires any property contemplaiud in paragraph i f ) o f the definition o f “UttfBwty" fails In f f f f lilt duly withm rJie peiiod contemplated in subsection UK the tinst mid [the trustees] repie-iei native taxpayei o f tliai trust shall he jo in tly and severally liable for such duty: Provided diiit tlie liu sl or [tru stee] representative taxpayer m ay recover any amount o f duty paid in terms o f tb it su b set lion by Lhe trust or rtrtLhlepl representative tw -pn>*!■, o i tli <ii5t uifiy be. [from —( a ) t lit p erson w ho so acquired

llifil ]>m perly; or l h ) in Hit1 ta sp o f flit' Irustee,

from that trust | in accordance with leeliou 160 o f llie Ta,\ Admiuistraiiots Act ": and

ic'i by The deletion o f subjection tit).

A m en d m en t o f section 4

Section 4 o f the Transfer D u ly Act. 1949. is liuruby am ended— in , i by the substitution far the heading o f

the fo llow in g heading■ P eiw lly [m id in terest] on lute [KiMiirnl nf du ly

t i h i (toVERMMtivi GAzt r r t ■* j L LV ju i;Act ft*. Tax Admmutralicn Art. T013

No. niifl y rn r S h o rt iti If IvMi-ul o f am en th nr lit ni' repfiil

(b) by the iubsiiuiticn fur kub^cciiou H i(if itld follow III" 'liif'CvUt'll

■ LU i I f any duty m re Spec t o f any transaction entered into before L Miirch 2 0 0 '. rmubins wi|niid af- ler rhe cure o f the «ptm T ion of the period referred 14 in ve^Tion [there shall. subject to the p ro v ision* of subvert in ii (3 |, in fiilcli- tioii to tlie uii|>iii{L duty . tw p a y able] (he C tn ian i^ id o c i m u l an accordance w iih t 'h ap te r 1* of the I<ix Adm inistration Aci impose n po iahy . a! die rrfls: o f 10 pci M il per annum cm lbc Amount o f iheimpa.ii! ilulv. l:h!i i l!:i1UiI in I l.-]^lIo f each com pleted monlh in (he period from iki! dale lo [lie dale ot puy incut J: P rovided tlia i if in any rasp the [ttrim l r e f r r m l In In section J encted before 1 Ju ly l'>32 and the snid penally is diuryiMlhib' o r is in [i:ir( rhii r o uble hi respect o f any com pleted m on th connncucing before1 J Ju ly I9R2 th e penally pa]iahh ' in t r - ip r t l u f such cu iii|ik lr( l ukuiIIi

iukI any cn rlic r com ptctffi innnlli flr m nn lhs slmH h r ihe am nuiil uf penalty « hit'll to'uulri havp b w u payable In te rm s o f th is i n s e r tion befo re its am en d m en t hy the R eieuup Ijiw n ^ m eiid iiiru l k r l. 19S2. if iiif1 u n p a id .innmnL of such du ty lu t l been paid on th? day a fter th e end of tlie only or latest o f such rm njileteil m on ths] and

tct b j the deletion of subjection 1 LA1A m endm en t o f section Hi

4. Section 10 o f the transfer Duty Act. 1 9-19. is hereby amended ni l by th.- substitution for iub^ttL iou (2)

o f ihe fbllm vtne subsection1" (2 ) Fhe powers conferred and

the duties im posed upon The Cottt- MiiTnumui by lliih. Act finy be f'iLT' cised or perform ed by (he (.’oninus- siouer [p e rso n a lly ] o r by any f officer acting u n d e r a delega tion from o r] SAKS oftici.ii under (he control. |orF Jiietiicm oi supei v i sion of the C om m iss tone i" . and

204 .Si JJ49I (^VERNMEN’l CiAZt n t 4 J ULY LLU12Act .Yd. ’S or 1U1I T.tk AftuunitfraCtnn Art, Til 1

\f>. find yrfir S h o rt title Exfienl o f li [i ki'i 11] 11 e l' i) 1 o r repeal

< b ) by the insertion after * Libs>LLi: Lioi i (2 ) oi [lie tiillowiim siibnectioii:

**(.3) Adminictrative requirem e n t -ukl procedures toi purposes u f lilt pcdnniiiiK C '.>2 any duly, pow er o r obligation ojf rlie p re c is e o f any i i^lir in lerms o f this Act are. Lo the c\luul no! i cmtialed in llit> Acr. regulated bv the Ian Adn'inis- traTion A ct."

A i ii ei till! iei 11 o f .sE't'linu 11

5, Seelioti 11 o f ilie Tiiinsi'er Duly Ael. 19-19. 1! hereby am ended by Tlie substitution in subsection for paragraph ten o f the following paragraph;

"(cO W hen: in ten us ol [SUbSfttiuD l i t ii! s m iiu i rh ri'f ] section .i(2) a deposit ot) account o f die duty payable by iiny person is m ade pending lheLleltnuiiifLllmi by Hit t'tin 11 a 11—h Lt>i ii r o fthe fair value of die property concerned. o f an amount equal 10 The duly uiduLilLUed on ilie comiduntbQlt pnid or payable iti respect o f tlie acquisition of the properly or on lhe declared value ibcTsof, as the c u e may be. and Lbetcis given fn The t ’onsiuissioner ■secm'ity In Liis o r lier satisfaction Jor lhe paym ent o f ajiy balanee o f transfer duly [or si am p ihily] w hich m ay trill be payable. the C om m issioner m ay in his or her discretion issue to [he person liable to pay tilt [Inly ll k.'i:r 1 ifitHlt LIlmI hUcI i lltjHlsil lull Ikttll ULmllJ ill 111 d»Ll SI LL 11« cu rirv has been niven.” .

l iq ie a l n f sections 11 A, H R , tlC * IID :iiiti 11E

h. Socliqfc) 11 A. U R . L 1C, I I D hiieI 11L o f the Transfer Ditty Act. 1949, are hereby repealed.Auieiiiluiei.il o f section IJ

7. SctiEoii (3 o f cl ll.- T m f a Dmy A ti 1949. is hereby am ended—(o.) by rlie substitution for siibsectjon ( 1)

o f die follow mg subsection;"'11) W henever file C om m is

sioner is satisfied Thai the duty payable under this A ct ill respect o f Tlie acquisition o f any property or the remmc ial ion o f any interest in o r res hie [ion upon the Lise o r d isposal o f any ptBpittty has noi been

106 Ni JJ49I (^VERNMEN’l CiAZt n t 4 J ULY LLU12Act .vd. : s or 2011 T.tx AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short liflt' E x ten t o f am endm ent oi' 1’i-jicfil

JJELilt ill I'llll. lilt CoiIUlli:?;il'Jll'.‘T TiUall. Ad1witb>laii(lii!| ih.'i! llie >S> qLitsition lias aL'eady beeti registered in a desds registry, txcover Tlie ctiflL'i'L:iil:l: huLuuiai 1 III mummr rA Tiie duly payable and the flinnniiT paid ili accoidance with Chapter 11 iff the Tli,\ AdotmijtiaLioii A':!.", anti

ibl by The deletion o f subjection (2).R q ie n liif^ c li iL iis 13A, l3R:ni<l M l"

8, Sections 13A, 13B and l iC o f (lie Iransfer flniy Act. im y , are hereby repealedA m endm ent of section 14

51, Section M o f the Transfer Duty Act. 1949. i i liereby iimen Jed— j iii biy tlie Mibntiurtion for %iibf.ecTinn (!)

o f (he following subjection." (1) [DecJamUflJiS] A re imi l ap-

projti'iaTe to Tlie m anner o f rhe acquisition of property in any particular case ihall be submitted [rle rtrnn ica lly , in rlic form and m anner will conl niiiinu: such in - form ation as n a y he iiFKtribed by llic C onm ii^ knu rl by the parties ro the transaction w herehy rhe property has been acquired and. it Lliu Ctuiuiii'isioijcr Hi direeli. llIh' by rlie a§ent, nnctioneei-. broker or oilier person who acted for or on behalf o f eiiher party ro ihe Transaction or, iJ the property lias beeti acquired othetivise than by w ay o f a transaction. by the person who acquired The property.", iind

iin b j ihu (lulL.'liuiHSSalJi.'iLtlltttL ' 1' (6) (7) nad (S),

Ami-nihnent o f s^clinn 15

10. Section 15 of the Transfer Dufy Act. I1? ) 9, ih h t j tb y am ended—‘fi) by The substitution for subsection ( 11

ot ihe following subsection:“ (1) lE v trv l Eii addition (o ilie

I'efiniretiient.i utwfi n Taâver con- Tamed in sections 29. 10. J2 and 53 ol lIlu Tax Adiniuii trillion Act. evaiv niLctiiMieei1 nr other person

JUB .Si JJ49I (^VERNMEN’l CiAZtn t 4 JULY JO [2Act .vd. :s or 2011 T.tx AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short liflt' Extent o f aiuciidm cui or I’l-jical

wlio lias effected :i sale ot pKjpdty on btb.df (if miiiue: nliici' ]itrMni shall, for a period o f live years from die d.ile on winch i!ie sale vftsuITlljIu l1 _ L'jirji h nci ird o f ihe snleind inline a description o f The property Sold, [he person by whom am! die person tu v. Ii'jiij the property has heen sold and the price paid for die p r o p e r ty a n d

{b ) by the deletion o f subset lions (2) mtd Q ) .

Rt |>t ;il o f sections 17, 17A. 17B. IS. 20. 20A, 2 0 r nuil 20T>

11, Sections 17i 17A, 17B, 18, 20, '0 A r 20C tuid 20D o f the Tnutafer Dnly AeL l ll 19, are hereby repeated

A ct ô . 4.' o f 1!>>5 iistnlc Duly Act, 1955

Amendment or scctlon 1

12, Section 1 ol' die EsLule Duly Act. I9^.s. if, hereby amended—

|ii i by ihe substimtion for die definition of "Commissioner'' o f tlie following definition:

" '('urmuissioner' means the Comnnssioner for the South African Revenue Service amniiited in Tenns o f section ft o f [he Honili African Revenue Service Act, 199“ < Ac! No. 34 o f L997). or ihe Action t ’omnnss inner de.itsmated in Terms o f section 7 o f that Ac n":

( i / i by llic n ib-urlioji alter the definition ol “slocks or slim vs" ol' llic following daflmdon.

■■ lTaS Ailniinislration A d ', means the Tax Administration Act. 2011.";

( r l by llkL." i cm mil leiiu^ [if McCtiou 1 u> section 1(1): and

). t i l by tlie inoertion after subsec lion (11 o f [lie fulluwitiv aubsectiflfl:

,L(£) I Jnless rhe contact indicaies otherwise, a word cu exoiession lo which u meaning 1ms been iissiioied in [he lint Adminisft'anon Acr l>ear* lliat meaning loi nuj poses of tliis A ct,” .

2!U .Si iJ49l (^VERNMEN’l CiAZtn t 4 JULY 2012Act .vd. :s or 2 0 1 1 T.tx AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short title Extent or : ■ li ki'] 11] 11 e l' i) I or repeal

Aniertdracnl or seclion 6

13< Section G o f tlie b state Duty Act, 1955. is hureby amended—(a ) by i i: SubiliUlliqn itn MihtKlion (2)

o f the following subjection:“ (2) Tlie powers conienud .uni

ijil duties iinju'i^d ii|H)ii rhu Com' ntisAioner by rhis Acl may he exercised or performed by Use Conunis- nioiiei [personally] or by any [officer ;ictiiig limit1 r a delt'galiou from or] SARS official under lhe ton ii'ol. fori diicclictt oi supctyi- sjofl nf the Commifisiojier.” : and

• hi by rhe subtrmirion for subjection t-i) o f die following subsection

“{3} Administrative reqiliic-1E LL!Jll** Etlld pHKotlll L'I fill |lUip(IHCSo f tlie performance of any duty, power or obligation or rhe exercise ofunv ii>dit in Let ms ut’ iliis Act me. to die exient noi repiilated in this Act. regulated by the Tax Administration Act.".

Amendment of section 714. Section 7 o f the i'Xraie Duty Acl.

195?. i i hereby amended Uii by the Hubstihitiou in subscctioti (1)

fni' the words preceding paragraph i ni o f die following words.

“Eêrv o n l l lu i or. it lie ur *he if. called upon hy the Cninink- sioner to do so, any person having the control o f or any interest in any property included in die estate, - b . i l l i lL13l]i 1 (d tile Commission Of 11

rewm [in a form , prescribed by hi tit. J disclosing tlie amount claimed by thu person submit linp the renini to represent the dutiable amount o f lhe estate together wills full pHTliculai's rcjfLitdina— and

(b) by ttie deletinn o f siihsecrion (Z).

R epeal o f sections 8 .8 A. SB. 8C. 3D nntlBE

15. Sections S. £?A. &B. SC . SD iiml SE o f rhe F-.staie Duty Act. 1B55, are hereby repealedAmendment of sec lion 9

16. Section 9 o f the Estate Duty Ael. 1955, is hereby amended— nn hy the in serf ion after subjection (I i of

the following subsection

1 1 2 . S i J J 4 9 I (^VERNMEN’l CiAZt n t 4 J ULY 2012Act .vd. :s or 2 0 1 1 T . t k A f tu u n it f r a C t n n A r t , T i l 1

Mo, find yrfir Short title Fxteiil o f n w iid i iin il or I’l-jical

"i I A) If (Iil; Conn ui t id ie r . piior tol i l t i s s u e e ] f a n n t i a <hJ- n s s e % \ iu e E i l i n

terms o f subsection (1) f t j j i is di\-satisfied with any value at

u r h i c l l f f n V p r o ) M r t y I s lilinwn i l l a m

remm: or( b ) is o f slie opinion that the amount

clniiucd Lu represent [Ilu dutiable amount ss disclosed in any rentm. doe^ not repiesent tLe correct dutiable : l u l u l u i I .

[he C’oinniissiniier shall adiu^L such value or amounl and determine ihe dutiable iimoiuit upon which such fcs- icssmcnt shall be r iiu d accordingly.".

ih) by iI;lj iLIuIhhi <i f hiibscttl e u ■ (2): ainl (c) by the insertion of a new subsection

(5) after subsection (4):L,f5j An assdwiuLilt contem-

pjafed in sulip.eenon ( I J f r T j and ( b ) is deemed to be an assessment by way o f self-assessment.".

Repeal o f sections 9 .\ and17. Secs ions 9A and y E l of the l-STate

Duty Ac;. 19??, are hereby tepealedAmendment of Hertlon 10

J8. Section 10 o f llic Estate Duty Act, hereby amended by tlie substitu

tion for subsection (1 I ol the following subset liuu;

“( 1 > It' [ a n y d iH \ r e m a i n s iiii[>:iitl fit Hie e v ir a t io n of a period of thirty days from the date or paym ent n otified in nceorrinnce wjih subset don (2) o f Neriipq u im \ tlifi'H- .dinll lie p i n a b l e , i n nildition l u l l i e u n p a i d

duly. Interest j i t the rate of six per « n l p e r A i m uni n u t h e am oim l or unpaid duly eairuhited from llie diite of I h f expiration o rtlie^ ild period to tlie dale o f payment: Provided Thai, where! the isse^ tnem of duty is delayed beyoud a period o f twelve monihs fiam tlie dutc o f death. idkiexl at tlie prescribed nre for six | i e r eeul per m i l l in I I J <iliall be payable a s from a dale twelve m oallu alter llic date ol' deaih on the difference (if any) berween the duty assessed and any deposit (if any) made on account o f the dutypayable V i t l l i m ihe h h i l I [mnni u frwelve months.".

J]4 .Ni i.'49!Art .Vo. :s or ion

GOVLKNMtNT CiA/t'f'J i 4 JULY JOIJT.nc AitmLmtlraltnn ^ rt 1 f] ] 1

\f>. find yrfir Short tiTle E x ten t o f aiiifiK lnifiii o r 1’i-jictil

S u bstitu tion oir section 1219. l i e Hstate U uty Act, X S i;, is

hcivby iuncnded l»y ihe lu lisuiutiw i lu isection 12 oi'flie (ill Jim m y sentioii:

"D u ly payable b y exevil lo r12. HoTwithsTaiidmii anything to

rltLr cnulnny 4_m.ii i tnii it^d in S tilton[eleven] J_l_. any duty payahle under ttu& Act shall be payable by and recoverable from the fltuctiLor o f iLll cijLHte Mibjecl io [lie dnry. t o Am ejaetiT con-templaTed in Chapters 10 and 11 o f theTmi Ailminiijlriiiiuii Aei I: Provided ill.H ilte liah ilil) u n d e r ttd s srtliqU O f any p \e rtK 0 f sha ll lie a tLiliililv in IiIh u r h e r (u p acK t jis e ip rtllq lf only ami tor mi m ii on nt nol rxceedlnp I h r avatl.'tidc asscTs in the esta te , unless 11 if liability is due to f ra u d ] ." .

R epeal o f sec linns i2A , 12B, 23, S.Vi/jt, 24, 25, 25A au d 27

20. S eam us 1ZA. 12R 23. 23(to, 21 2?. 2?A ,ind 3" (he LsiaTe D uty A ct, 19??, are hereby repealedA m endm en t o f s r rlio u 28

21. S^^diail 2S of 11 £ h ( a I i i ntm j Acl.19?5. i i liereby am ended—(a) by Tiie siibsTiftition for the heading o f

lire following hetiiJinH; “ [PliN A LTllLS] O lT IiN C E S

\ b ) by ihe deletion of subsection (! i: and ft’J by Tlie deletion in snbsecTion (2) ol

paratâphs i In and (b ibis,R epeal uf sections 2$A an d 30

22. S lhhit* 2SA jiiiil .tO ill' lhk.L Fslrili: UuxyAct. 19??. are hereby repealed.

l i t Mo. 35491 GO\ tfLMMtiM U A Z tl'lt 4 J L'LV JO [ :A rt Kn. 28 or I flll Tk Adiiim.irîiDn Art. '0 ]]

Vo. nmi vrar Sborl ill If F \lc ii l o f aniiiidini'UL nr rf |icn l

Acl No. 5» uf I1* ’ fnco iiir Jax A ft, 1 « 2

A ibiiiiU iicm of section 1

Soeiiou 1 u f die Iiicoiilu T.vv Act.1962, is l im b j amended— frti bv she subsunm on for ihe definition

o f "assessmenT" o f The follou-iu£(Lfmilkni:

“ ' i i s . ' ie s s in p i i l ' [ i l i t ;m - I h r J h a t

die meaning aissiened tinder secTion J o f [he Taut A ImiiU'U^non .A',?.and m clndesa deTetminaTion hy iheCommissioner__1. by wav of auoticc of asKssnrnl ■ in< lmlinu a n n litr i jf in rlwrlrrinirftim u served in ;i iiiiuiiitT run* [fjnjiI.iUfl in stuiion HXiiî— lai of nil amount upon which

any lav It-via hlr under rhi<i Act is dmrgpabln; ur

i in of ihe amount or any vurh ta\: orl

(c) of any loss ranking for ■iet-nff:lor]

ftlJ o f any assessed (faîDl loai deTennined in renm oi' pnm- giuph 9 o f Tlie Eighth S thed- mfit.l: or

i '; o f any aniouiiTS ro lie Taken into accoi:lit jii the dj^ggnm ition ■ ' Tax pjynblc on income ill futmc

[lijiiI for the purposes of Purl HI of Chapter HE In c lu d e any rte* term ination by rhe C om m issioner in rrspret uf am of (he i r h a l r s re fe r m l lo in w ctim i it and any decision of the C o n n ie siu m r wluch is in t n u s of iliis A rt subject lo objet'liim am i a p peal]: ‘:

ib) b> die dcEeUui! u f the Jeliu iliun uJ "hnsinets d ay " :

(Cf by ihe substinrtion fox The defim nou o f “ C om m issioner" o f die follow inu delin niuii:

“ 'C o m m iss io n e r ' means the C om m issioner foi llie Soullj African Revenue Service apjHumed in Terms of secTion G o f The SouthA fiicm Re\ euue Sen iee Acl. I :.>,Ji'A ci \ o . .vl o f ] W7>. or ihe A cling Comm issionei dgsjgj tied ■! ; o f section ~ o f dial A ct: ''.

Ni sin i GCFVLSLNMKNI GAZETTE* ■* JL LV 30 L!A rt Nr, ;* rtf 2LI) I

Vrt. m id ip n r S t» n ill If F .flm l of :imrii[lineill or repealfrfj by llic dclLL[iuu oi lhe dofiiutkni oi

"iLtri: o f fls*itshmein". rijj by the lm en ien after the definition of

■■normal rerlretiieitt aqe~ oi The

“ '110 n il ill [.1X~ Ljie.n;- tKiOnsc t.iy reteirtfd n? iii k x Ikxi M L).Nittu'rr' 'in', v' here 11^ iti theionlext o i a person w ho is e ii^ iacd

out rhe wovision-. o f thu Act, aSAKS .:;^j..: ■.! ■.■, defij e . ___■ ■1 o: I In; Tj \ AiiHiiinjii«mtni Aci..".

iji hv (lie Miljr-.l11111i[iii fur lilt ilefiinluiii of ‘"prescribed rare" of the following definition:

“ 'lu e sc rib c d r a le ' m ewi: liic imi- cruuenij-i^red m ên o ri ^ :'> j ol rhe Tax AJn.iiin^ti^ticrn A^t.“ .

(g ) by I lie Mjbvtrtutkm o f (lit word* in liiu rlffininoii o f ‘'fejHWrntarrve mx- j.’myei "preceding pnrati;iph h u i o i I lie fallow tup \v o i4 ;

■ rrp m en ia th e tnxpayrr* means a nntimi person who icsitk iJr_ih£_^Ljii[|)1l£jHTi(l—

j /i i hy tin* qjlwtilnfiAn far pnn rtmpli (h i o f the defimlEon ot '‘representative taxpayer" ufLhe folknvinu pnisiumph:

"fiiy m respect oi rhe income under his ur her uianajienn.'nl. disjw- sitinn or control, the aiient o f any penonl, including mi jijifin iipiJCniLrtl as sitrb under clic provisions or seCthM nsnFlj-Tonr, :nnl for I lie pnr- |Hnn or ttii> |w .i«r;iph 1 1 he tomi -njtfiir" in c lu d e erttjr Iti-rsim in the R<|UibHr linking tlie rtrHpt. niMiiHEiMiifiH or coiirnrt of Income ou b e lie f of an.i person pfjumm'jiiJt or ib-nnmr.mh ;ib4-ni fnmi the Republic or remitting or pa.i - ini> income to or rcrefring umitfV' for Mir 11 prrwm}:':

tolld'tuiu rWrDifiam

bv the Commissioner m iaiivni.it

220 .S i J J4 9 I tXJ VtfLVlMtM CiAZtnt 4 J U LY JO t JAct .vd. :s or 2 0 1 1 T.tx AftuunitfraCtnn A rt , T i l 1

Mo, find yrfir Short liflt' E x t e n t o f n in c n d in c T i i or I ’l - jic a l

(i) by the deletion or die words in die deriuilKHj nl “ jcpieênlalr. e l:i\-payer" folloivniE paragraph (fi bin preceding die proviso:

( j ) by the i[ivj[iinil ;-i fil‘[ i]u dcfm iiicn nf ''retirement nitarwt” o f tba following definition.

" ' I f t u I ' L l ' menus :i return si- die- lined in secnon 1 o f [he !'ax Ad- iniuisl ration Acl'V

(k) by the substitution foi die definition o f "ffly" o f llie following definition:

“ ‘ t a x ' meaui tax oi a penalty imposed in teimv o f lb b A c!:":

ft) by the insertion after tlie definition of i if die I <h! liming definition:

" ‘TaOt A dmi Hi sir: m oil Ac 1*means The T a\ Administration AjcT. 2011:” :

{ i n i by rke substitution for tke definition o f " Taxpayer" of tlie following definition:

" 'hivpnyer' means any person chargeable with any Tax lei'i able under this A d [aml includes tv r iy [itTSHm neijuiri'd by ill is Art to fu m iili ini' rrh in i)7’:

ini by the leniunberiup o f aceliou 1 to sAClimi 1(]); mid

f ft j by the insertion sifter - ubiection ( 1} o f Tlie following subsection'

""f 2> LTnlui’ die context indicates otherwise, ji word o f expression io w h ic h 3 m e A ilin '! l ia s been a s s ig n e d

in The Tax Administration Act b e a rs

l l i a l mcHiiiuii fo r purposes o f t i i i s

A ct" ,

22Z .Si iJ49!Art .Vo. :s or ion

GOVLELMMkNT CiA/t'f'J i 4 JULY J0[JT.nc AitmLmttraEtnn Jl rt 1 f] ] 1

\ o . find yrfir Short title Extent of nniendiiic til or I’l-jicalAmendment or sec I ion 2

24. I lie Income Tax Act, 1Wj2. is hereby iuuended by ihe luliSUlUtiwl lu i section 2 o f lilt; ["(illtw,iim StCtiot

“ [Art hi In LHiiniiiisltTfiJ by f!am- mlsiicmerl Artintnistrnflon or Aft

2. (1 j The Cuim nissiouei [shall bc-Jis rUsponwble for an ty ing out theprovbjoUS ofthisAct.

12 "i AdmirasUitiivti requirem ents siud(HiKbiuKfi fbr tmuiinuih thf ihe Dtrfbr-mance o f any chitv. newer or obhearionOf] tlie exercise of any rieht m Terms oi thi4 Art are. to the extent not rejjjllfltedin iliii Ael, iceutiHcd bv the Xkx Ad-mitiislrATinn Acj.” ,

Amendment of section 325. Section 3 o f die Income Tax Act.

1962. id Lurch y u n a id e d —1 i'j j by r)i± uihstimrion for subsection (I j

o f ibe folio w in i subvert ion:1 > th e powers conferred and

tlie duties imposed upon tlie Commit a toner by o r lkkIlt ihe provisions o f I his Act m ay he exerciser! o r petibm ied by ihe Commissioner [pm oiLidly,] or by suiy ollieer [or p m o n hii[Visit'll in £& rryhlg mil llie siirf provisions] under the control. direction or supervision ol il ic Cun))ojs.ijmtr.'';

{b) by i1ill c [u-1l_-[ c[i3 b p f ju b H x ljn H ( _h juul

(3);i d by the ^nbititiitioii For subsection (4)

o f the following subsection:■‘(■l) Any decision of the t ’oni-

mis'jionei' under ihe following prov is io n of lliii Act [shnll Ih'JU subject to objection and appeal in accordance wuh ChnpTftt 9 o f itieTux Administration Ael, namely—

i n No J >491 (K)VbK.NMtNT QAjtETTE, 4 JLLV J01.’Art fin 19 a i m I

Vrt. mid icfir S t o l l title Fvti iil o f niutndtnenl or repeal

(a ) [he (fefinitious ul “birneliifund", “ g rau im lurid LJ| tension preservation hind", “ provident fund". "provident

tiieti! Annuity fund" and “ spouse" in u c lio ii 1;

i h [s tt tic ii tf, s n t io a Si 4 * ftj, f t ) ,(4 } a»wt (e )^ se c tio n

an d ffrA > . [ s f f t l o n 9 D J s e c t io n IQ dVcA), [ f r ) ]< rtfn JfT > . [ftAjf. ( j t and lnHj. section IPAjSJ, seclion l l j r l . i f I, f*>. ( g A i . (jflJau d r/j. I d t . i u ) mid (w jj section 12B(6), --.utiica l lC , section IIP, Euidimi 12(1. section 12J(61. (6AJ. and (7), section 13. section 14. sec lion 15. sectiun 22 (J )U and (31 jnuil )5l], sectmn Z.-i l[Z) section 2 _ K. section 24( 2 1. section 24A(G). stdiun 24 C. Sseditm Z4D. section Z lit 1) and (7 k section 24J('9j. seel ion 2? A Lscction 25D]. tucIioii 2 t , tinn T 2 3 f 2 W < ? A section .! t>. s e c t io n JM A . i c t t i o n .'L iL l .

^ccticii 31, see lion 35(2), sce-linn 37A wet inti[JSU)~Ui>iZ>f:tj and ift; and f4). section 44(t.?ifrf». secs ion 47ff>iu'i(i>. sL'diou ?~i 21. non 6Zi. I Vji’Jfuil anrl h i t and (ZVlTj utii ■■ I:. fw t im i 7 ( i \ l | section SOB and section l JOSJ

t r - parasraphi fi. 7. 13, \ 3 A \ I 19 and 20 of [he Fn si Schedule,

i d l puurajirapli 4 o f llhj Second Schedule:

(r i paragraphs 1-1(6), IS.2 0 ;i xa j and (2). 2QA(t ) and(2). 21. 2-1 mid 2’ u f llit: Fum ill Schedule!

I f i paragraphs 1 Oi. 3 ) and (**, 11(2) and (7 ) , 11(1) mid 13 o f llic S irrh Schedule:

i $> paragraphs 2{Jn, 5. ^4iffrJ. 7(6). (7} iuid (S), [9 and] 11 and 12A(3) of lhe Sevenlh Schedule; and

i h i pinajaiiphs 12(?Vcj(i)v29(2 A >. 29(7). 31(2). « S (1 M mid fiftfrifrj n f I he r.iuhlli Schedu le / ': and

10312J.

126 .Si i.MS!Art .Vo. :s or ion

GOV LELMMkNT GA/fE'J i 4 JULY JOt JT.nc AitmLmttraEtnn ^ rt ' 1115

\f>. find yrnr Short titte Extern or LI [1 kl'] 11'] 1 Lt L' 111 OK* I’l-jlCfll

fr/y by lIlu sutatituiiou for subset: tiuu ((5} Ilf ihe J'l>H[tv, ihlj MLLilimi:

"'Ifcl jVjiv aem eved fcy n decision o f tlie executive officer 1 0

tpjimVE [in I d uilhdiîu ;-i11 H|)-pmval o f a fjiflft in ia m s o f uibsec- rion (5) inujjt, notwithstanding section 2-6( 2 1 o f lbe FinLiiieial Serv ice* Hoard Act, 1990. ind«e Inn cm1 Iter objection with the Commissions! [in tlif n ianocr tantem plated in Pnrl m nf d in g ie r m o f this A ctl in accordance with the provisions o f ChuiMci 3 o f ihe Ta,\Administration A ct," .

Kt'ju-al uf Seel inn 426. Section 1 o f ihe Income Tbs Act.

19G2. is hereby repealed.Ann'iiilinent nf sri'linn JA

27. Tbc Incom e Tux A ct, 1562. ii herein1 amended by the substitution for seo ion 4A o f the folio w ins section:

"Exercise o f powers nurf peifor- m iuur of dnLies by M inister

4 A. J he powers confeiTed and the duties imposed upon tlie \iim',Tei by or tinder Ihe provisions of tins Acl may be exencised or performed Iw tho Minister personally or. except for tlie power lo issue nclices or regulations. delegated bv llte Minister lo the D in^lO Ôîitil nf tli- NhIhiiihI TiciLMiiy :iud ihe Dinslur- G o n o l may 111 turn deleeare (lie powers and duties so delegated io him or her to tiny oiiieer or peisun under Ini or iiet control. direction or supervision ”

Aniciidinc-iil o f sccliou 52S, Sec lion 5 o f the Income Til\ Ael.

1962, is lieiehy amended hy the suhstint- tiou for subsec lion (7) o f the followmg snbseelioii;

"(7} Subject to ihe provisions o f [sections 79 nnd 102 and liic provisions iif| the Founh Schedule. where a taspoyer has been assessed for normal tiis in respect o f any yew o f assessment : 111; I I lie mle nf ihe hix |?jjyjil>le by [llilll]

.12K .Si i.MS!Aft .Vo. :s or ion

GOVLKNMtNT QAlfcTji 4 JULY JOtJT.nc AitmLnitlraEtnn rt ' 1115

MO, find vrfir Short title ExttM of niiifndm ftil ar n-jicfil

[he taâycr h<is been subsequently JLxu<.l (]r \ nritd. [ 1 tisj lhe t^’ifiayer*? ^sûttioltl for such year shall be adjusted, any ,nuountt paid Lb exee1- t'smu refundable tu [lmtl| tlie tSXpHVff ,iii'1 ^Dauntll 'hnnpaid being recoverable from [him] [lie taxpavei.".A iii ei iilii tei 11 of j&tfiQfl t iq iif tt

29. Seulitm fitjsifii o f llic Intq!uie Thm Acr. 1962. ifi hereby Amended by the subsiiiution for subsection (51 o f rhe folium iu c siitaeeliou;

"i5> Ncifrrtthstauduig, [sections 79 and 81(5)1 seeliou 93. 99 or 100 uf the Ikx Admiiiiitraded Act. an addilioiml or reduced assessment iti respect o f a year of assessment to give effect to subice tious \ I > n i l■> 1 f 1 A) may be made within six Vl'hik from lhe hLlIc ul’ ilie original assewment in reaped of that year".

Amendment of section B30. Siiirliori ft [if die IihirmiiLi Tas Ac!.

1962. is hereby am ended— ta> by the dtibstfrution in subsection (5)

fur iHuuiuuph ( K ) u f lhe following paragraph:

Any p a w n who, it's ii fonner le MH* of property referred to ot paragraph or as ‘he owner tbeicuf, hii-r a ti li Ilie leiijiinttuon o f rhe lease o f n id i property consented ro die fonner lessee thereof using, enjoying or dealing with such property as tonremplatcd in the saidp:ir?iLCTipli. [ii is duel lien! In have !Ui

consented tinder die provisions of paragraph fbBj(ii>. shaU not latei ilian 14 Jays after [lie end o f Jim: months after the termination of the [elevaiii lease advise the former Leslie uf the lair uwrkei value o f Mich property as determined in accordance with paragraph i i>Ajl, .tnct shall furnish Uic L’oiinnissLoiKT wiili ;i copy o f sni-h advice],": and

fb) by lhe r idd ion in subjection (.5) of paiîgraph (c)-

:.fu .S i j j 4 s i (^ V E R N M E N ’l C iA Z t n t 4 J U L Y LLU12A c t .vd . : s or 2011 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir S h o r t Title E x te n t o r : ■ L i ki'] 11'] 11 e L' 111 o f 1’i- jiC fil

A n ie r td r a c n l o r s e c t io n 10

31. Section 10 or she Income Tax Act, 19G2. is ]Luilby itniciidcd by the deletion [ib ( l ie l iu l l ie i | i r » v i s u In

<1 ) ( c A f o i parasi'apli fe}.

A m e n d m e n t! o r s e n io n ID A

32. Section lO A of ihe Incurne Tax A cl,i% liEi eliy am en d ed —

i d ) by ihe deletion of su ssed ion (9): pod ‘ t>i by The iubiiituticru tbi aubsection (10)

n l ' l l i- 1 Ji: i [ 11.t.bl lir hi l i i ie r : ! io n :

'■(10) Subject to the pttoivfnons Of wction |7^ | 99 o f l lie Tax Admim.* Liu Lion Act. llic final calcu- tiiiiiuii at iccaleuhiLiuu o f die capitid eiemetiT as made in reLinoo ro the year ot assessment referred to ill sul>sceinjn t?) shall, subjcct lo i!jc provisions of subset!inn be final and conclusive and sliall apply in rcspceT o f all relevant annui t y ;11j i [ ] i l i i 1 h u l i r id i b t tD im j :I1.il.1 In

any person under the annuity contract in question in any succeedin'; years o f assessment.".

A n f o d u e n t o r s e c t io n 11

3 J. Section 11 o f the Income i'ss Act. 19G2. is hereby Lunended by the deletion in pitMsmph i l l o f p H tn p iip l i Lvii o f Ac proviso.

A m c m h i e i i i o f s e c t io n 1 ID

34. Section 11D of the [ncotneTax Act, 19G2. is hereby anrended (a ) by llic subsl i Luliui j for subsection (141

o f the following suh sec riot) ■“ { H j N o tw ith s ta n d in g I s r c l l o i i

41 Chauler 6 of ihu Tsx Administration Act. tlie Coitttjnissionir may disclose to the Minister of Science and Teelmoioay iu ib m u i l io n in retailor to research and development as aiay be i eqmred by tliar Xiiihsrei for piuposcs o f . i i ib n i im u p a repostIn P ? i i l imii i-uiil i l l Tb ttiia Lit frtlliH tc-

tion (IT).” : and

HI N o J J 4 9 I (^VERNMEN’l CiAZt n t 4 J ULY LLU12Act .vd. : s or 2011 T.tk A ftu u n itfraC tn n Art, Til 1

Mo, find yrfir Short title Extern or l i [i ki'i 11] 11 e l' i) i qi* I'cjr cil

(b) by the Hi.kliLiun iifia b-ubb-c-u 1 io:i (IS) (if fbc IdLlimiiii: sdtrridiqii:

“ (19) FoC rlii [jurposes of sub- ^ ctiou { lj , ihe C o r n e l l loner may. u t iL u ' i 1 E is 1 n i u I i t i v t h e |nr< j v i s i o n a i >J

sections yy and it)(> nr the l^x Administration Ac!, raise an -iddi- tioiiul M y n U 7 r-[] lUill Loi ilJIV VC Ml' o f assessment with rested ro a deduction m respect o f research and

1 whieh inis been allowed. where uppmvtn lias been withdrawn in terms o f su bsec lion {10).".

A inm iliueiit o f section 12ft

35. Section L2G ol'llic lucuuic Tux A cl. 1962, i.i herehy am ended— hi) by The substitutionfo r su b n otion (1 !)

o f the following subsection;IJ(Jl l Fur purposed Kiihsei;-

tions (9) and ( 10). rhe Conunis- oionej may. notwithtttanding ihe j.'ii>\isiuiii o f sections [79. Sl(5h :ui<l iStl yy and 100 i>f the l ay Administration Ac!, raise an additional HssciMiienl lot iiuy your ol assessment where an additional industrial investment allowance which hits been allowed in any previous year must he disallowed in Terms o f subsec lion (9) oi [101.": and

iiri by the ilvlu&m o f m tbsed i( H] (12)Aineiiihnrut o f svi'lion 121

36. Section 121 o f rlie Income Tax Act. 19G2. is hereby amended 4 a) by rhe uibrtitiition for [lie words

precucUii ; [jaijiuriijili {n> in dilbymitinu (U J of the follow iiip words'

“ (133 Commissionei may. piotwilliitMidmg llie prtfvisioid o f [strlion -1] Chapter fi o f t[ie lax Administration A c! ":

(bl by the subst i lul ion for subsce lion ( 1J j o f file following subjection:

"(14) Tlie Commissioner may. nolwillis landing llie provisions of [serlimi 79, Sl i ? i :tnd S3( 1 S>1 seciious yy and 100 or the Lax Administration Ac!, raise an addi- l im i a l a .'k SL iiSE ]li^ tiI t i n f t n y y e a r ih f

assessment where an additional investment allowance which has been allowed in any previous year inns I be disallowed in Uaxus ol' snhuetian ( 12) or 11..!

Jj4 .Si iJ49!Aft -Vo. :s or ion

GOVLKNMtNT Q A lfc T ji 4 JULY J0[ J

T.nc Aitminittralfcnn ^ rt ' 1115

MO, find yrfir Short title Extent o f iiiiH 'in liiiL 'iiE or 1’i-jicfil

( c ) by the delebun ol >ub:>ed iuu ( 15): Hud{<>! 1 >v lhe Mibslilin !mi ibr Mib1- ec I im i (21)

o f rhe following subsection1“ (21) Notwithstanding lhe pro

o f [section -t| C'lbHplLT l)frhe ta \ Administration Atf. tlie Comnii lio n e t must disclose to the Minister uf Trade and Industry aiul the adjndicaiion committee. incltiid- iug any person whose asstsnauce lira bceti wblaiuett b> tli:i[ commit** tee. such information relating to 1 lie affairs o f any company carrying on an nidus nitd policy pru[eci as is aeccis&ry 1 0 enable the Minister of Ti stile lc h t [oduilry mid thi; jidjmli- canon coninntree to perforin then functions in remis o f this section.’'

Ai lie ndi lien 1 of sei'lion 12,J» 7. Section 1 21 h' l' lilt.- Income Tfi\ Ael.

1962. is hereby amended by the deletion o f subsection <9).Amendment of section 23

» 8. Sect ini i 2 } n f 11 ic Tuemtic Tax Ael. 1962. is hereby amended by die substitution for paragraph ( d \ o f the following psiiapHph;

" i d ) any tax f, duty, levy, inlerest cir penally] imposed under this Act L, any adriirioiiiil i;ix lm posed under siTliuu 6ft nf the Viilm*- Addtd T iu A c l , 1 » 1 (Art N o. 89 uf lW l i and] or tu> interest or penally [pnynbk- lit conscqucnce nf Uih bile ji:miif,til o f a ir lav, duty, levy or runlriliidiuii [i:iy- nblcl imposed under any olliei Acl : uh ni ni Mered tiv llic (, 'h »i i iini s-e Loner [. tlie Region iii Services C om kils Art, 1S«S (Act No. ]0S> of 10S5>. tlit E w aZ uhi and Nn- t:d Joint Services Art, 1990 tArl No. 84 o f l^Wtj. the .Skills Itevel- opafctrt Levies Acr, 1 W (Art No. 9 (if 1999S, .mil llnj ITnetti- ploynieut Insurance to m r lb illions Act. 2002 [Act > o ,4 o r 20ft’ il:'.

2J6 .Ni i.'49!Art .Vo. :s or ion

GOV LELMMkNT OA/fE'J i 4 JULY JO [2T.nc AitmLnitlraEtnn ^ rt ’fill

\ o . find yrfir Short title Extent o f amending m or I’l-jical

A m endm ent of sec I ion 131!39. Section 2.iH of lLie Income lax Act,

1962. is hereby amended by the deletion o f Mihxeclion (1).Amendment oT section -4.J

JO. Setlnm 2-1J nf lbe TuCOtQc Tas Acl. 1962. is hereby amended by die deletion o f s u b I o n (11).

Am endm ent of sec I ion ISA-(1. Section IS A of ihe Income Tax Act.

1962, is 1 lltll1j\ .-iiiillenIlllI by clilt dcfebono f subsection (J).Amendment of sw lion 35

42. Med ion .i nf ihe Income Tax Act. 1962, is hereby amended—Id,' by [he substitution in subsection

(2'tffU foi the wonts preceding tile proviso o f ihe folio wins! words:

"Any j’ej'ion who nseitrs a liability to pay to any otliur peiôu v, lio is nnt a residem any amnunr rafeueft to in subsection (I). or who receives payment o f any such amount on I'L'hntr of such oilier jfciôti, slmll within 1-1 day* after tlie end of the month during which the said liability is muunev! or the saidpiiynicul is received, as tlie case may be, or witliin such fuitliei penod as rhe Connnissionur nuiy approve, make a payment (which shall be a firu) paymenr made on behalf o f such other person) to Ihe Commissioner in inspect o f suuli other person's liability for ta_v in terms of snh*ec- lion^L). and slmll siibmn to the Commissioner nt [lie time o f sudi Lh\ piHyniuiir jh [drclni'arion in <uiLh fun ii ,is II iv CoUURuai<ii]&- limy lirestrlhej return:''.

fbj by ill j su ti minion in sutaeelion (2) Lot jiai'a^raph >h> o f ihe following jiara- £iaph:

L'j'6l Any |Mnon mating a puylnvul to ilie ConimssM finer m tenns nf |iara- traph tilt sli.ill. uoEwilhstandnii any ajnveuient to the eontiiuy. be entitled to (Eerinct or withhold [he animuii of such payment from the amoiuii winch tlie I lliiit person is liable to pay to the al’[sri,saut (illifr prnqn[i or lo DMOftr

I X Nfl I INI (toVERMMtiVl OA£kr r t 4 JULY ÛllAct Nt. Tax Admmutralicn Art. T013

No. niifl vrflr Short itile of iimonilniL’nl ni' repeal

ihe amouur so paid rrom such o th e r person o r Co re la iu oul of an y money llml may In* in Ids poss«»ioii or m ay f ome to him as llic ag en t o f such o lh r r p r r a m mi mm mill e fp u l in Ihe am oun t of such paym ent].",

f t > by ibc J-.*’ i in mbiHxliDU r2) o f paragraphs (d) slid (r ): and

id) by ihe deletion o f sflfcsetiioo i 3)\iiit iiMiijfiil of A5A

43. ^L\;Lioii 35A o f iIlc lutm ne Tas A cl. 1M2, is hereby amended— ta) by the substmmon for subsection (6^

of llie lollowmg sublet Lou"(<j) The must, lt»-

gelher wiili tlie payment contemplated m subsection i-li. subiuii lo tlie Commissioner <% [dcr In ration in the frjim find rou mil ling llie information sis Ihe 1'tiiiinils- sioaer m ay prescribe I fetam

iL’i by llic lu ln iltu ioa for lobicuiiyii i 7 ' n f (he fotlmvine subsection1

“ ( 7 ) t lf a ]A ptirclinsifL is p-cj -.lui- ;i L] v Imbii: unJci the d im m it-m c o coiiteniiitared in section l^-? o f the Tax Admiuistraiiot] Au;. ftu die auujuni liiuL m ust be withheld uii- der MibsecTinn 1 \ w ilv if the purchaser knows or should reasonably have known that the seller is nor a

mid [fails to withhold nn> amount iK required by subsection i l ) . ihm purchaser— ta> is personally liable for thf

pa mii tut of the amount whirh he nr 'lie failed In withhold; and

ibt\ must pay that dincmit lo the Cnfinniuinnn nnt laiertli.m the date on which paymenl should ba'h c t . \ n uaik' if [he iuui'iml !iad in fact bern withheld '

( a by ihe subsuiution for subsection f of th'.- following iubiKilOD,

iLf9) If a ]Tiirtlia:sLT frails !i> ]i*y am amount contemplated in Hibsecfion {1> to the Commissioner wilhin [he p o o d allotted for payment iu Lemu of subsection (4), ilial purchaser!—

J40 .Si iJ49!Aft -Vo. :s or ion

GOVLKNMtNT QAlfcTji 4 JULY JOtJT.nc AitmLmttraEtnn ^ ft ' 1115

MO, find vrfir Short title Extent o f : i L i ki'] 11'] 11 e L' 111 OI' repeal

u n Is ilnhir fo r Interest at tlie pir.sm herl rate oil any iiiiiumil < n r L-j [; 11: r 1 ii i y rakii- la ted from [|u- (Ja\ fo llow ing

Tin? Inst date fu r jiiiym o iil To

lFie1 i):i[e Ihal the iiiikiliiH is re ce ived b y i l ie C o m m is

sioner: nm l

f l/ f ] mn.st |>ay a penally equal to ten pel' cetit of | thill J the nmcimil, in addition lu any utlici pcunlty a charte lV>r which lie or ilie n » y be liable UodtK tiiis Act."":

(d ) by ilie deletion oi' Q ib iu lio n (10); and

f c J iiti.1 :-:il!jh 1 i 1 mil>]i Sir hubscc[i[iii (13 o f [he follow ing subsection:

“ (13) The [purchaser,] estate Agent or com cyanixx j . as Ilie ease iiim\ b f, B ihi neciivhr any mimimi paid hi term s of subsection i7i nr (12) from tilt seller] Vvtiu paid on amouni iii reims o f Hihsecrinu h 12)is deemed to be a withhold hipapcnt i"oi iiiiiiK)SLL> o f lhe Thx A dministration Act. "

^m em iineni or section 37HJ4. Sec Sion O f the Income Tax Act.

1962 . is be itb y amended—

i f j ) by the substitution in subsection i2 t j for ihe words following paragraph i b> o f lhe following words;

" lilt : C 151li! [5i s i l 51ll_-v limy, n o lu ilh -

-i 1 :i: i i di i iLr rlie provisions o f section[79 ] 99 o f ilie la x Administration Act, mise assessments in respect oi lIlhj L'uinpiuiy u? ii' slicL company were noi a qualifying company."; and

(b ) by ilie dcictiun o f >nbsccl.io[i (22).kejieat o f section 40

4 5 . .Section -UN o f ihe Income '['as A ct,

19 (52 . is he ieby repealed.

.Si iJ49!Art .Vo. :s or ion

GOV LELMMkNT GA/El'E'J i 4 JULY JOL JT.nc AitmLnitlraEtnn ^ rt ’fill

\f>. find yrfir Short title Extent or amendm ent or

A m endm ent or sec I ion 47C*16. Section 4 “f.' o f the Income Jnx AjCtj

19G2. i j hureby ameotfcd by lire subsuiu- ritm fin n td iu x t io o (2) <»r rhe following subsection:

"(2) Tint seed on does, aot apply to n u y iiinom ilji juurjii. u d 1 jy y r D to l i s d In

the taxpayer—

tat from which tfue fiili amount oi lax lisrs U-Tal WltliLcld by a resident in te n m nf section -1711: or

(b) [Ln respect o r which Ihe tax has] u liitlj have been recovered from a reside in fin lii.s or Ijlt personal m p m 'in 1 w ho is personally li.ibie for the am ount in terms of section 4 “G 0 ) .“ -

Amendment of iecllon 47FJ7. Section I T of rhe Income Tax Act,

1962, i i hereby amended by the subsntu- [ion for subsections (1.) and (2) o f The J ol 1 l™ ii ii! si lIihccI if t m :

“U } A taxpayer must, together with [lie payment contemplated lu section ■17C1L), submit it) liie C'onnuissiotier Ji reuuii [in tin1 mmtnrr mill form :mtl Containing Ute int'ormjitici! as m ay h i p rcstiibed h> U h Conimissioiuir].

(2) A icsideuL who puys lu liie Commissioner any Amount in terms o f section J “ fc'. must together with that puyiiiein submit lo die CcratomiOB/i a n lt m [in tlie m anner nnrl form and roniahiing the inform ation os may lie prescribed l>j die C onninssioueri"

A m endm ent o l srriion 47G

48. Seetion 4 “G o f tlie Iueome Tax Acl. 19(52. i.% h e re b y .inieiLileil—

ini by rhe substitution in iubseciiou (1) for Lite words following paragraph : Ino f lh'_: luU n’.vimi wtirds'

“ is personally Linhle for pay men f o f that amount o f tax 1, wli Ech may be tcT ovem l from I lint resident in [b'nus i>F 111 is Art as if it fa :i tn \ due hv ilinl resident! in accordance illi Pin L A o S’ C hapttt 10 of rhe I'm Administration Acr.” : and

ibl by tlie deletion o f subsection (2J.

H i N i J J4 9 I (^VERNMEN’l CiAZt n t 4 J ULY LLU12Act .vd. : s or 2011 T.tk AftuunitfraCtnn A rt , Til 1

Mo, f in d yrfir Short title Extent o f li [i ki'i 11] 11 e l' i) I or rrpral

K fjinii or sceUQiis -J7H and 471J9 . Sections 4 and 471 o f the Income

Tax A cl, 1961. mv heivby i t ^ u MAm endm ent of w ctlon 60

50. Section 60 nf llie Income Tax Acl, 19G2. ir, hereby amended fii) by llic uituiililliait lur lubseeliuit 1. 1)

n l ' lb e 1 ( iT11 iw in s ’ ?ii l i n e d i<nr

, 11 D onations tax shall be paid to the Com m issioner [ulthiii three li ion til by the* jjticI dJ llie ei ken ill i foLlowine tlie m onth dui'ins* w hich ,i donalion takes effect or such tonne t period a? the C om uiijsiu titi m ay tillow 110111 Llic dale upun which rhe don ai ion in quest ton talies effect and

(b) by Lite *tibt>tutsi 1011 fur subsection (4) o f the following subsection:

"<4.1 Ihe paym ent o f tlie tax ill term s o f subsection 0 ) shall bejiDtim:i]u n i by :h rutiun [ l i t Slirhform lii iu:iy be jjrescrilwd by Hie C onuM festorurj "

Am ei til li tent o f srt'liou 6151. SuHidiI fit uf [1t T tll-'u :Ts** A<St

l^SH. i i hereby am ended—<ei'l by ihe substitution for paraerj]sfi ( a )

ol’ ibe fo l i tm u s paraunipti;~'iaJ any inference in [suhv trtion

< 1 i or 12j o f section sc ivttfy- four, pniiigraph (c) GTfit/ of $nbw ciioii ( l i o f section s f v m ty - j i v c or] jioiograpli itTj ot (cl o f ihe definition o f ‘reptuaeuiabye m xpityei' hi a c tio n foui?l I to the income of any peison o r to tlie inoss ineomc rceeived by or ac- cm ed m o r lh f^voiu' o f »uy person alia II be deemed lo include a reference lo propel ly d isputed o f by any person under n donation or to the Vnilne of stich properly, as The cunicxt uiii> requ ire ;'': titid

•>n by ihe delerion nfpanipxaphK (hr. (c.) (r). ( f i and (h).

Aft .Vo. : s or io n

GOVLELMMkNT QAlfcTti 4 JULY JOt JT.nc AitmLmttraEtnn ^ rt ' 1115

MO, find yrfir Short title E xten t o f : i li ki1 ] i r] 11 e l 11) 1 o i1 repeal

A m endm ent o l see lion 6252. Section (32 or she Income lax Act,

19G2. ij hereby amended by dm subslilu-ritm fin till hhtu linn ( 1j o f rhe liiliimiiiL- snbsection:

"(4) 11 the CommisltOjW is o f the ijpmiiiiL 1L i: Ll llic iiiijoiiTil kIkhvii in :liiv

return as rhe fair market value o f any property is !ess than the lair market vnltoe o f dial property, lie or she may fix rhe fair maiirei v.ilue o f that pioperty and the value so lived is[, siibjert to lhe provM & tt o f scctiou 0 \ ] dcenrud for rhe pm poês ihis Han to be lhe fair market value o f Kirch pr^nrty^’

Keprnl or section 6353. Seclion G.i o f lhe Income Tax Act.

19(52. i* hureby repeated.A m endm ent of sec Mon CUl.t

54. Section 61M nf rhe income lax Act, 19r32. is her eby amended by the deletion <kTsub-iecnon j (9) iuid i l l ) .Amendment of seclion 64K

55. Secrron fi-IFv o f the Income lav Act. 19(3!!. is hereby amended by the deletion ol sub jccnons (31, (5>. (tit. (7) audAmendment of seclion t4L

5ft. Section 641. of the !ncnme l ax A d . 19(32. is hereby amended by the substitution for tlie wonts preceding pmugfiiph ( a )

o f tlie following wcjjjs:TIT! N'onviihstandin® the provisions

o f Chapter 1 j o f tlie lax Administration A c t it— '’.

A ineiid ineiil o f sec lion fc4M

57. Section 6-1M or'ihe Income Tax Act, 1962. i i hereby amended by the substitution for the WOrdt preceding paraarnpli f n J u f iEil; fbUuwtUR w or^:

"[If] MotwitEutsmlini! the provisions of Chapter 13 of the Tax Adininislration Acl. if— ",

A m endm ent of sec Mon fi-lli5B„ Sec non 61R of ill* Income tax .Acl.

19(32. is hereby amended by the deletion u f subsections (3L (41 and (5 ).

’■W Nfl W f l l ( to V E R M M tiv i G A z t r r t ■* j u _ v j « i ;A c t N t. W a t l n d T ax A d m m u tra licn Art. T013

No. niifl year S b o n illle F.Hi'id of imifiiriihL'iJi ni' i'v-]n-:it

Repeal or settion 0559, Section 65 o f the Income fax Ac!.

1962. i* beixfcy repealed.Am endm ent of section 66

641, Section 66 at the Income I'jiv Act 1962, is hereby amended ii. b> tin: jitbvlilusion Lo: the heading u[

ihe fntluu Ihe lnuifiiiff"N olire lij C 'om m rînitr rr- (jLiiniii: retum*- for h r b d h i I of fLsi\rs,l mirmal l;j\ uutlerlhK Acl jand iim nnir or funiKhin^ returns and im erini returns]":

(bi l>j. ihe d k titu lio u fix sdtn.'cliou (1) of ihe luUou uju subsection.

L,( 1) liie ('’omnium oner nmsi annually g ive public notice ilhal jilt | {if the p a w n s who |srv jKr- son;dh nr in n re]iri* E,iil:illve

liable to tiiXXtton under IhLs Acl or w lioj arc uquircd bylilt Ii) Smm-h tu- mnis for the a&êssment o f noaut] taxL, must furnish returns] within tlie period prescribed in tlksiL no- ricef, ursneh tourer |ii‘riw l Its the Com m issioner may a How, for I he purposes of assessm ents in rc- <i|>i*rl of Ihe yeai> o f Hî^smi'iil specified hi that notice]

f f j by The delciiuu o f subieetujm c J A :■.(i> *n d (5);

frfj by the substitution for subsec Hon f of the following subsection'

1L(5A ) .Any person who i i uol in tenn^ o f ihi* seel ion n:i[iiTiwl Ii) fiim iih a return in respect o f any year o f assessment may for The purpose of !ij-,ii:j [his] llial person'* liability for jtavU um i no:- :ili] tax dfteimined on assess-menl fiimi^li such 3 ien;m wiiiiiu three years. a her ihe end o f such year of assessm ent":

f n b> die deletion of subsections ' 6). i 7 t. (TA), r a j . m . (7D), ( t o . fS). (9f. (10) and (II):

Ni i.'49!Art .Vo. :s or ion

GOVLELMMkNT CiA/t'f'J i 4 JULY JOtJT.nc AitmLmttraEtnn Jt rt 1 f] ] 1

No. and vrfir Short lifts' Fvtenl o f flMCndnnW or ■’('pr-fit

( f ) by llie sllbarituiion i n m bseclion ( 1 3 )

fur 11 m iA tmLL, jincciediiiE n u t ^ n p t i (nl o f die folio wing words-

“ (1 3 ) T h e r e tu rn l o f ln f o m e ] f o rp n m m l U X I n l i u h i h i . I lj l i y u n y

p e r f O a i n r e s ; | i e c i o f a n y y e a r o f

a s s e s s m e n t s l i a l l a I Full a n d

irne] relum—' \<%i b y th e d e l e r i n n i n t h e p r o y i s 0 lo

s u b s e c t i o n ( ! 3 ) f f t J o f t h e w o r d " o j "

t i t l ] l l l e n d o f p t t i i t ^ i t j ] ; l t f i ? j ( i i ) ,

{ h i by the addition to tlie proTTSO lo snh section (lJNiiJ Of die following ptuujnaph:

“ f r - l a p e r s o n c c a s e s i o b e , i

i u ticknlt. a r a lu m 15 r 111 lit: hkkIu ft hitlie nertod commgncnm oil the til's t Hay o f llial veav of assessment and uitdiiiij on cl tc d;i) pteecdiny llic d.iie tliflt the pererm ceases ro he a resident; or‘L:

(ij by i!ju tuidiiion o f the fo llow in g p to - vi<a> io subsection (l.i)fA)r

“ Provided that where a com-gacy eeast;* to be H Te>it!ei)l.r e n tin nh.il] tie m a d e fm 1 the tie i'ind■. 1. 'i li I: ■- Qt i. ;■_ ■■' ' In: :'i. ■■; ' I', g f j f c j '

tiiuineiiii year and ending on the dayjii£££i!iiu£jh£_thMej!mMli££(>in2^m^ceageg to be -i re&idenj'

U) by the subs! tttiti nil tor subseclionI l?B> of tin: follow inn m illed ion;

“ (1UB) I'or the purposes of subsections [l 13},] (l.iA )[,] and fl3C> [anti ilJt.|. ihe word 'in- Lonie' must be txmstnled as iucl tiding any aggregate capital gain or aêregale capital loss ": and

((■) bj Ihe deluiuit o f aubrcctkwui U4.) and fi

.Si JJ49I (^VERNMEN’l CiAZt n t 4 J ULY LLU12Act .vd. :s or 2 0 1 1 T.tk AftuunitfraCtnn Art, Til 1

Mo, mid yrfir Short title Extent o r : i li ki'i 11] 11 e l' i) i or 1’i-jicfil

Aniendractil or section 6761. Section 67 of she Income Tax Act,

1962. is hereby Amended— m ) by i i: substitution ;j.n Mibtvcrion ( l l

o f the following subjection:" f l) Every person who at any

tiw cb w iD ii!! linbL- for Miiy nonAg]tax or who becomes Itahle to submit any return contemplated in □eel ion 66 linn! [. Within 60 days aflfT so b erim in g 9 E:t\|i:iyer.| apply to the Commissioner to be registered a* li tuxpaver in neeuid- anee trith t ’hafiter -t o f the lax Administration Act.'1; and

<2>j by tire deletion o f r,ubsectsons f 1 A) and (1 ).

Repi-iti uf sections 67A, 69. 70, 70A. 7f)B and 71

62. Sections G7A. <W, 70, ?UA, 70B and 71 o f the Income Tax AjcL 1962, arcliOI' lrV HC|H.LJ!l [.‘{I.

AnicndmeiU o f section 72 A63. Seciion 72A of [he Income lint Act,

1 9 6 2 .1? hereby amended by rhe subjtitu-1 l l> i i J■:n n l b c ^ t u n ] {J} i h j t l i L L f r t l 1 ( T V ^ j r ;£ i

subjection:J‘( l ) Every resident wlio on the last

day o f the Ibreiun tax yetu o f a COO* trolled foteign company or immediately before a foreign company ceases to be d controlled foreign ti>iupiniy directly or indirectly, together with any connected person in relation to that resident, holds at leas! 10 per cent o f the paitictpatiqa lights in any cuutrolk'd foreign company (otherwise than indirectly through a company winch is a resident), must submit to the Conunis- no iio r [suoli | m return [us may he prescribed by the t'u ium i^ iouer] "

Repfiil o f sections 73 to SO

64. Sections 73. 73A. 73B. 73C. 74. 7-1A 7-1R. 74C. 7 ID, 75. 7VA. 7.SB, 76, 76U. 76C. 76D.. 76B, 761', 760, 7611. 761. 76J. 76K. 76L. 76M. 76N. 7GO. "6 P 76Q. 76R. 76S. 77. 73. 75. 79A, 79S and SO o f the Income Tax Acr, 1962. are hereby repealed

J54 .S i J J4 9 I (^ V E R N M E N ’l C iA Z t n t 4 J U L Y LLU12

A c t .vd . : s or 2011 T.tx AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short title E xten t o r : i L i ki'] 11'] 11 e L' 111 f l l ' 1’i- jiC fil

A m endm ent ol' section SOU65. Sec (ion SOB o f the incom e la x AjCtj

19G2. i j hereby amended by lire subsll inrun i I'lh ntd iuxtioo (2 ) <if rhe Eli 121 i11lt subsection:

"(2) Subject (o the time limits im- ptwjtd bv J sir lion 7^, And S i i 2 If b )} sections y 9 . 1OQ anti 104-; 5 1/ o f rhe Tax Admimstfgtjtyfl Ac), die CoiiuhiaaiatiEd: musl tittikc compelisqtiag nûstmsQts ili.n lie or ■ilie is salfafied .lie necessaiy and appro- pnaieiu ensure [he consistent n eminent o f all parties in die itit|>eii]U'wthle avnidanee amtJlgtment-”

Krprnl or sttfjftnS SOk nod tflJM to S9.w/i/

<i6. S ections SOK. SOM. SON". SCO. BOR 80Q, KDR. SOS. SOT. SI. S2. S.V fi.iA, S I. B5. SGA, 37 . SH. SKA, SSB. 3SC , S*D . SSE. 88F. S8G , 3 S R S9, 69£>rj. SSftr, S Q q iin t, S Q q u in , S .Tr.i iiiiil % 9 ic p t a f ihn Income lax A ct, 1962. are hereby re pealedAinei nil! tfi.it or srt'liou *J0

l i7 . 9 0 11 f l l i c Tn co m o T it x A c l .

1962. i i hereby am ended by the substitution in subsection ( ! ) for tlie words preceding lliu proviso o f the fulluwiiist words:

“ Subject to ihe provisions o f tliis A ct and die Tax AdtniniSttalimi A d .Horn ml nix [EOtbcr tliftn donations Lux) jlikI buy interest payable In term s of sertlon 2 1 or S 9 q u t i r , shall bej i^ payiiblet—{&) tn im y reprPM'rilalivi1 tH.tpaJW,

liable lo assessm ent or for Die pn>niiciit or surb tnx or I n tn t it under Mils Act or unrlrr nny previous liirom e Tax Acl;

<o Iti respect or nny oilier Income and in nil oilier fnscs.l by die r>ei,!i«n bv w hom [Ihel any taxable income k received Or to whcuu oi in w hose hi’, hjui ii accrues or w ho ii lecalty esirided In die receipt thereof” .

.Si JJ49I (^VERNMEN’l CiAZt n t 4 J ULY LLU12Act .vd. : s or 2011 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir S h o r t tide E x ten t o r : ■ L i ki'] 11'] 11 e L' 111 O l ' 1’i-jiCfil

Aniendracnl or section 9 168. Section yi ol she Incom e Tax Act,

19G2. is hurdjy Amended—(a) 1>y [lit ileletimi o f &ubu:ttiDt^ ( 1 ) and

(2): andby rhe subs! tuition tor iubseilio ji (5)ol lli'_ follDU mu ui1isr[-lini|

Ll(^j So much o f a n y in r e r e ^ T

payable l i i terms o f J.SPClion cixhtf-nini ] C h a p t e r 1 2 o f i b s T a x

Adm inistration Act a s relates t o

s u c l i p o r t i o n o f a n y l a x a s i ^ i n

ten tid o f subsection (4) tcco l enible from ihe asseTS re felted to l ii dtar iiihsecTion m ay also be recovered from such assess.1’.

Rejie:il (if sections 91A lo 10169. S e c t i o o a S M , 9 2 .9 3 . 94, 95. 96.91.

9ff. 99, 1 f>0 and 101 o f The Incom e Tax A ct. 1961, are hereby repealed.Amendment of kit!inn 102

7 0 . S e c t U m 1 0 2 o f [111 I n c o m e T a x A c l ,

I9fi2, i% h e r e b y a m e n d e d —

tai b y i l i e d e l e t i o n o f s u b j e c t i o n ( !); ib> b y T h e j n b i T J t n t i o n f o i s u b s e t l i o n

\ 1 A j lj( iiilj fallowing ^L.U.L^bo,,.L,( 1A) The (.'onuuissiotier m ay

reluse lo authorise a refund tm d e L

rsiibwcrioii \ 1 ll section 190 uf (lie I.i x A dnun tsT i iiT so ii Act. i f [lli:il person]f a ) ib i i l v e r s o n liiL!> failed ! o fur

nish a ilUlth [for any ycnt1 of :i'isevsiiif,u ll a.% required [hyl lii rejms o f Eliis A ct, iinTil TliaT p a w n tu s luLunhtd such ie- Tluti as required; or

lb) (h as failed lo fu rn ish llie CftamLsslourr lit ivrfdii^ w ith p a rtic u la rs tif th a l |h t - to n ’s b n ii tin y Licruuul o r iireonnl w ith a sim ilar b utt, uni''hi to enable tlif Coim nls- sim icr It) transfer a rrlm ifl, if any, lo Hint account | ihe refund is claim ed b v lIllil peiauu after a period o f three vears after The end o f the vear o f asaetrtucut. in i h e l 'l i . i c where

JiK .Si JJ49I (^VERNMEN’l tiAjCL'E'J t 4 J ULY LLU12Act .vd. :s or iuii T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short title Extent o f n w iid i iin ii or rrpral

'.ll.lt fKRtOll WHS HO! !Vt|tliied b-\'any ttnviKion o f i Ii Lh Act in furnish .7 return of iticonie for that year o f assessment and did[ml iL'inln MUtJi m lelum [liningilie period of iliiee yeais liuce I lie end of [liar veai o f assess- niuul.": mid

i n by the deletion of subsections (-). i i) and (4).

Repent D f w l j w 101-V

71. Section 102A o f lhe Income Tax Act. is hereby repealed.

Amendment of seclion JOJ72. Ned ion 1(M o f rite Income lax Act

19(52, i i hereby amended in) by ihv substitution fur subjcetidb iJ>

o f the foil owing subsection:“ (4) | Any decision of tbe f.’ont-

nnssionrr under subsection (2) sh:il 1 he xuhjerl tn uhjeuim i nml mHje.it. ;ind w bajevtrj If in any objection and appeal proceedings i ljilinE’ ftlirrrlol In n dcniiHin under subsection (2 i it is proved that the agreement or change in shiirelioklui^ or members' intmcifts nr rmsrees or lieneIs!ciaries o f ttie tmsl in question would result in the iivuidiiuee or lhe puslpoiiciiicul o i liability for payment of any rax. duty or Levy imposed by this Act or any. previous b iconic Tax AeJ ui <1113' 01 her law administered by tlie Commissioner, or in rhe reduction o f the .tuiouni thereof, tl skill be pie- sumed. until the contrary n proved in the turn: (hl'jinv klicIi h tn-uui] 11:111 «r change in sliaieholding or members' interests ot trustees or benefi- etaiie? o f SUttl liusl, 1 In it il h o been enteied into or effected solely or mainly ibr tlte purpose o f utilising the assessed loss, balance o f assessed loss, capital loss nr assessed capital loss in question ui order lo ttvuid ur postpone such liability or ro reduce the amount thereof.” : and

( b l by lhe deletion of subsection (G).

J60 .Si iJ49!Aft .Vo. :s or ion

GOVtfLMMhN'l' QAlfcTji 4 JULY JOtJT.nc AitmLnittraltnn ^ ft ' 1115

MO, find yrfir Short title Extent or li [i ki'] 11] 11 e l' i) i oi' i’i-|icfil

Repeal o f seel ions 104. 105. 105 A, 100. 107A and lilt

73. Sections 104, 105. 105 A, 106. 107 A and 110 o f ihe Income Tax Acl. 1962. LU'e hereby repealed.Amendment of paragraph 13 of Flr.si Schedule

74. LrT7ijhii 1 3 nf llie FiJ il Schedule io the Income lax Act, 1962. ii hereby amended by the substitution ior subpara- m'jiph (3) t>i [111- follou iun snbpjuu triibp 11.

“ (J) Bvwy fanner who desiret tn claim a deduction in terms. o f subpara- iuaph (1). sIluII fwidi ]ii> fcturu of income] for lbe year o f assessment in which lie or she sold livestock on account oi conditions of draught or slock disease or bv reason ol' Ins ur Lift particijKiiinn in a livestock reduction schejne organized by tlie (jovennnent[, or ultliin such period ns the Commls- siontr may allow,] nulify t b Ciiimmt- sioner accordingly and [furnish] obiain and retain full particulars in regard lo the livestock so sold,'1.

Amendment of uaraxmpfa IP of First Schedule

75. Paragraph 1 9 o f lbe Firs! Schedule to lire Income Tm Act. 1962. is hereby amended hy ihe substinttion for sub|tara- sraph ( } ) o f the following subparagraph:

■‘(3) Where lbe taxpHyer’s Nssessment fur a rcleviuil puiud Inis in [eons o f iecnon fN!i5) iil'llns.AcI; HIM of the lax Administration Act, become tina! and conclusive. [tie CQttiUussiuucr shall nut. merely hy reason o f the fact that the amount determined under subparagraph 1.21f(?,L as ihe taxpayer's annual averagetn\nbli: (TICKJIU Ivliili 1!m111 n l1 ill rehilionto such period is incoirect. be required to make a iiiitbet assessment upon rhe taxpayer fin stub peiiud in lenrn o f ieclion [79 nf ill is Actl y9 o f that Aci or to authorize a refund Under lection [102 of lliis Act] 190 o f tlmi Ael o f any tux overpaid in lespect o f such period. unless il appears tti.it such annual average taxable iueonie from limning should be increased or induced hy aT teasr nix hundred rand.".

Art N*. 19 ol WIIGCFVLSLNMKNI OAjSETTE, ■* JLLV JO!.’

T.io: A<i»hnii[rAlKin i r I 1 n 1 ]

Nn. niifl ir itr Short iti If F \U ii l o f u n to l I i i i l ’ in o f iv](i-Lit

A n e a d u ie i if or p aragraph 20 or t ir s i Schedu le

76. Pdniur<iph 20 o l the Fiisi i k l i e i l u kIn ihe t f f A q c Tar's Act L9fL2 i i hereby

a m e n d e d —

r<u by the substitution lit subpAF3ar,aphi 11 fiH [lie utji;L- [nvL'Liimu Hem mlo f The to llm an s words1

“If [anyj a Taxpayer toihei ibait3 COIUpjlity 1 \\llU d tW C i lULUlDL' f ro m fa rn iin i; o p e ra tio n s j s u b m i t s

an app lica tion to the (.'onm ilt-sio iU 'T } m a l e s mi e le c tio n a t r t inv ad ed til su b p a raG rap h : f i ) m d i f s<*

required proves lo ibe satisfaction o f the Commissioner

(b } by the substitution in -ul’pfli.iw.ii’li 1 A n iluii i ( a ) i>r ibe IuIIuh i ri iz ilufli

L7flj .Aov Taxpayer (other fJiati a company! may[, al Ills o p t ln u .

uuiki- w ritU n applicallon lo the PtmimlssioniTl olecr for the normal tax payable by [hi!H| tlie !ax- yuyei Lo I t deLeimiued uudet tliis paragraph.” ; and

(cl by the su b sta tion i[i subparagraph fur iLie Wtrtds pivcvdiuu

n i h S t m (i) o f The fo l lo w in g w o rd s ;

“fA nvl J-or purposes o f such [application shall be subinttlcd lo the rDTunihelniKf nnrl s h a l l he n c c o m iK in ie d byl elecTion the Sol- lowuia records must be obtained auif reliiiuedl— !: ".

A iu eu d m eu l o f |i:ir:iytn[ih 1 o f Fourth Schedu le

77. Paragraph 1 o f the 1-ourth Schedule to rhe Income T j i Act. 1962. is hereby amended—nTj h y rhe snhsT iru iton m The d e liiim o i! o f

" r e p r e s e n ta t iv e e m p lo y e r “ ten item <b) o f t l ie fo llon in s ile tu .

L'(i>l tn rhe case o f any [divisional co u n c il. m u n ic ip a l co u n c il, v illa g e lu an agrin cn l board or like- au ilior iti'l municipal iry or jury body corporate or umncorpoijrted (other than a company or a partHCx- -.liijij. anv munfiHt]. stttch ry (if*- ficer or other person responsible foi paying remuueianoji on behalf o f w id i [co in i d 1. b oard , nu tlicr- ityl m u u ie ip u liiy or Luxty; ". <tnd

JM .Si i.MS!Art .Vo. :s or ion

GOV LELMMkNT G A /fE 'J i 4 JU L V J0IJ

t .1^ Aiin'.i nuh . r; r-n \ r I ' 1115

\f>. find yrnr Short title Extern o f li [i ki'i 1 1] 1 1 e l' 1 1 1 o i1 rrpral

(b ) by the subsiimtiun in ilie dclinirion oi '']ieprese!]lM lL\i; e n i^ lo y c r '1 fo r ilie

words following paragraph n i l c f ihe lollowuifi. words,

"whn [Is n resident! Tesiile!, in the Kepiihlic. hut no thins in this definition shat] be construed as lelievirni any p en on Jioui hil> liability. responsibility nr duly imposed upon him oi her by Tills

SdieOrrk. m id ’',

Amendment of p a in graph 2 of FourMi Srltrduti-

78. Paragraph 2 of lhe Fouith Schedule to the Income Tax Act. ]^m2. is hereby HiuLiKkil by Ilie insertion m subparagraph (.1J o f The following ileni after item frj:

‘’frAI any piemiimi paid by an employer o f the taxpayer directly uv iqdinetly fin [Ilu lu n e f i l or

on behalf o f ihe taxpayer to lhe extern rhnr rhe p o lic y of insurance in retped u f which tlie premium is paid cover!; the taxpayer against rhe loss o f income as ii result o f illnesss, iuiurv, disabrlitv or unemployment and*'.

Amendment uf pragr>i[iii 5 o f Fnrtrih Schedule

7^. Paragraph 5 o f lhe ! o u n l i Schedule to th e In c o m e T ax A c t, is h e re b y a m e n d e d b y lh e su b s ti tu t io n for su b p a ra -

>nnph ' I i o f tlie CollowiuLr subpiiiagiirph. “ i l i S u h je c r lo lh e p ro v is io n s o f

su b p a ra g ra p h (6 ) [ a n y ] , i f an e m p lo y e r

I w h o fails to d e d u c t o r w ld ih o id th e full anioiiiil o f employees* tax ns pm- * id « l in p a r c |> r a p l i 2 sh a ll In'] is p e i'so n a lly l ia b le for the p a y m e n t [to t lie

C o m iii is s io ii iT of I lie finiQUiilJ o f rau- p lf ly e e s ' rax u n d e r C h a p te r I 0 o f (he la x

A d m in is tr a t io n A c t. | iv liic li lie or sh e

fails lo dcduft nr w iililio ld and] jhe em pU rver ■ihail F, suhjtri to Ilie p r o v i

sions of s t ib - |M r a g m p h i l \ , \ pay that

u u o u n l to the C u iu n n ^ iu n u ' no t hrter rhan the rlaie o n w h ic h p a y m e n t -1 soul, 5 liave been made if the employees’ tax

had in Liti been deducted or withheld in ICIlll.-i I l f pbllUUJrtpIl 2 .”

26* .Si JJ49I (^V ER N M EN ’l C iA Z tn t 4 JULY JO[2

Act .Yd. ’S or 1U1I T.tx AftuunitfraCtnn Art, T il 1

\ o . find yrfir Short title Extent o f iiiiH 'inliiiL 'ii! or 1’i-jicfil

A oiciK luenl o f imragrnpli G nf Fourth Srherhitr

SO. Pmujuiiph 6 o f Che Foiutli Schedule Up ihe I iK d iih T » \ A ct, 19(52. is hereby amended( t i l by the substimtiou for subparagraph

(1) <if ihe foHimmu si ibpHrH jiaph: “U ) If an employer fail* 1 0 pay

any amount o f employees' tax for which lie or her is liable within the period allowable for payment thereof in terms Of paragraph 2 [he shnlL, in nth! it ion lo nny other penally ur chnrye for which he m ay be liable tmrter this Act, pay) SAKS must in accordance wirh Chapicr 15 o f tfac Tiist Admiiiisira- limi Aut. impose ,i. p t i iu l ty erjmd r■ ■

ten per ceut[.j o f such amounr.” : and

(in by lire deicliou o f subparagraphs (2), (2 A j (211). (J!) ntsrf { l>.

Repeal o f pnragrnpli S of Four ill Schedule

S I. The Fourth Schedule lu the Income i'ax .Act. 1962. jn hereby amended by rhe repeal o f paragraph 3A m endm ent o f paragraph HR of Fourth Schedule

S i. Paragraph ! lit o f [he Fourth Schedule to tiie Income Tax Act. 1962. i i hereby amended by lbe deletion o f subparaymph (4A ),

A m endm ent or paragraph U C of Fourth Schfdule

83. Paragraph 11C of the Fourth Schedule to tlie Income Tax Acl. 1962. ishereb) amended hy rhe snfcstituiiori for subparagraph (2) ol [he following subparagraph;

“ (2) Subject lo ûirparumitpli (6), every private company ^hall on a monthly basis. in respeci o f every direcfor o f that company, pay to tlie C(ji i ii ii i HHi [ii lu t ;in flmLrtinl di'tciT! i mud in accordance with subparagraph (JL|. which shah for the purposes o f [perilous 79. 89Jjiy. 89/cr. seel ion 90 [, 102 ami 10J.A] o f tho A ct, [mid] paragraphs t. 4. t5, 11[, 12f, J-1 and 14 and Parts 111 ;ind IV o f ibis Schedule^] and ( ’liapters fc !2 nod 1.! o f tjia Tax A dm m kiratinn Act, be deemed ro tie an mncnmt of employees' tax wliicJi ivas

l a Nd )>wi (toVERMMtiVl OA£krrt 4 JULY ÛllArt ><s. W itln d Tax Admmutralicn Art. T013

No. niifl vrflr Short illlr of Amendment ni' rt ]>i-;it

rnjiiitn i <u be deducted or ^lUdidd by A* cmquuBy 2 1 a4 tnflliijK i IQ tD int <1 f paragraph 2 ol ihiv Schedule "

lii'[ie:il o f paragraph 12 of Fourth Schedule

8-1. The Finirtti S cl leihil c In (lie [iKinnt Tax Act. 1962. is hereby amended by- the repeal o f paragraph 12.AiiiM idiutiil of par:tiir4]i]i 14 of Fourth Scbcdolr

85, Pamfiaph 14 o f ihe Fourth Sehed- 1 Lie 1 0 iJj-i lu co u tT a x A ct, 19G2. is hereby Amended—Hrtn by the substitution in subparagraph

1I } for rhe words preceding item i/ii o f ihe following wards

"fEvffivl hi addition lo llie records required in accordance with Pan: A o f Chapter 4 o f r]ie Tax AdimuutruUdU Act, c v u ) un- ployer shall in leupect o f each employee maintain a record show*inp— "]

fh ) by l]iu -.1 ] ! t - 1 ililliih: 1 fill -.til;|hjii'jiurapl 1 (2) o f the following subparagraph:

"(2) Every employer shall when li Li 1k.11 l'j fiuy payment of employees' tax suhniit ro the {'ouimi ssioner [such declaration con mining such information as the Conmiiv>ioiuT (MXV presrribrl a renini ":

(cl by the substitution in subparatraph 1 .' 1

fof Uie words following nem tbl o f [he folluvnnu nurds.

“ or within such lousei tune as the Commissioner may Approve. R ad a lo !hu l"<'[i[■ lii- - i('i:•.■[ fsurlif li TtHini [as llie CoimiiUskmer 11 1 lis nn*. scrfbef.":

id) by (lie deletion of subparaui^plL {41: and

let by ihe substitution for subporacjaph tti.i o f the follouin^ lubpfuninapli.

L‘(6) If an employer fails 1 0 reiv der lo the Comnussiouer a renmi referred [ 0 m subpîiiurjpli (31 wnhin ihe jieriod prescribed in that subparagraph. (he Conmussionej may impose under Chautcr 1 of ilij T Adiiiini>trAliun Acl on lluii employer [shull be m in i red 10 pmv] a percema.ne liased penalty

1710 Nd I iNI ( to V E R M M tiv i G A z t r r t 4 j u l y ^ u i i

Tax A dm m utralicn Art. T0 1 3

No. niifl vrflr Sborl itile F u lfill o f im i f iu l ih L ’ i i t ni' repeal

leqm il io] lor each inuuth liuii theq n p lp y a lo w lm ul .1 ôriiptelf return which m torn! m ay not exceed 10 per cent o f the [01 al uiifOiuiT oitn ip lo v ^ -/ L:i\ (li'dutt^d [if wilhlu?]d of which vhould have been deducted or withheld In.- the employer from rhe reimmcrittiun of fur tlx period [itLi Imil!, lit Ihe rr(uru required In term s oF| de^ nbed tn duii iLibyaiuiErapb [: tlir CoiJHnissHHiFr rn:i> tY tn i l Lii;it

Ittualry cr portion 1 hereof tf lie or sbo Is sim tlk d Itaal tlie c lm u i - 'itanne'. irarranl ilj ’

Amendment of pjiriigmpli 15 ni Fourth SrliKtulr

S6. Paragraph 15 of (he Foiuth Stbed* 111 u [0 1)11: InLiiiiii: Th\ Acl 1562. is luii'by amended—

( tt) by tliu substitution fLu ;ub[Jiinii:[:L[i|: < 1 1 of die f o l l o w i n g subparagraph'

‘L( 11 E veiy person who is an employer shall tiyply lo thu Commissioner [in such form as Hit1 Col 11- n b slo D H inav prescribe | in nt- eoidunce wittr Chitpicr 5 t>l tile T it Administration Act tor ree hint f ion [as an em ployer v,ilhm U dnys of i tr becoming an em ployer, or vnrhin sui'h further prriod as the Comjuissitiuer n a y iipprote]' Provided that where no one oi Mich employer s d lq jb y cc i ii bablt tor normal lax. [lie provisions o f [In’! paragraph shall nor apply to inch em ployer":

l b i b> [lie iklcliim o f l u b v m p i ^ C ■ --1 by the substitution for subparagraph

(j> o f the following subpara 2j,iph LJt i ) Every pctHU who llias

jtpptird nr Li dttnn-d lo h:nr applied for registration niKlrr ûbpaniam pfi t i l l b fcfeutcredfrt jui Liitiilnvi.1 si mil vil li iu Jfonr- leen] days after [rliituûi^ bis ilddrtss or] ceasing 10 btf au em- plover. iiL'iify [Ll* Coiim uîuim ui ivrinng o f [l'i* new address or uf| the fad o f [lllsl the employer L av*

mil eensed [0 be mu em p loyed us lhe ta w mi:i\ In1; .vnd

n i t b y the deletion o f subparagraph I 11

in . No j j 4 s i GOV tfLVlMtM CiAZtn t 4 JULY J0[ JAct .vd. : s or 2011 T.tx AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short title Extent o f li [i ki'i 11] 11 e l' i) I oi' I'rpra!

Kepeni o f prmi.mnpti 16 oi Fourth Srherlntr

87. Faiimiipli 1(5 oi lln; FotBlh Sdttd- nle lo llie TiiL'tmie Ta\ Act< 1 962. is hereby repealed.Ainrnrhnent o f paragraph 17 Af Fourth Schedule

8S. Paraai.ipli t“ o f The Fourth Schedule lo tlliJ InW iH Tux Am. 19(12, i ~ hereby amended—(ai by tlie viibitimtion for subparagraph

(S'h o f (lie folloVUidg subpmuaiaph;“(S’) The Coinniii'iiuiK'iinuy Hum

time to Mine, bavins regard to [lie rates o f normal rax as fixed by Parliament Or foreshadowed by [he Minister ill in'; or h t i buJjiel sialu:- menr or as varied hy ihe Nf inkier under section 5(3) o f tins Act. to [lie rebates applicable in terms of section 6(2) nml in u 1 sucdm (upint [In? Act and lo any odier factor* having a bearing upon die probable Liability o f taxpsyets for uoniutl [sis. prescribe lahles for optional usf by provisional taxpayers failing within iuiy category specified by lbe Cum- niiswinuei. w by provisional laxpav- ers generally, for ihe purpose o f EatiiiLfllTiig [he liability o f Mieb taxpayers for normal lax. and ihe Oom- miKioner may prescribe (he manner in wliich nich tables shall be applied together with the period for whichtud l M i l l -Kn 11 rtiHMin In fciifL1."'.

ib) by (he deletion of subparagraph (6K and

> by litL' substitution fur inbpurjiîaph H Si of (he following snhparagrapli:

"(H) J Every person who is a provi- sjonal taxpayer shall [within 3(J days nfler llit dole upi>n Miicli lie be- titraejt li prm M nunl bnjh iyer,] ,np- phy to ihe Coniuiissioner for registr.i- liyii iM a provisional hixpayei in .nidiKLtiiLf wiili CjvnDFT .' o f ilit TaÂdministration A c t".

i n Ni iJ49!Art .Vo. :s or ion

GOVLKNMtNT CiA/t'f'1 i 4 JULY JOIJT.nc AitmLmttraEtnn JL rt 1 f] ] 1

\ o . find yrfir Short title Extent o f niufiidnifu i or ivjical

Amendment ol paragraph 1 IS di Fourth Srherlntr

S*>. IS ol lilt: FomMi Sclied- ule Kt llie Tiiiftiine T;i\ Act< 1 962. is hereby amended by rhe substinmon in mtparn- jiiapli l 13( tfJ for Mii words precedina lulqtHA ( i 1 [>r iIjj- U'Hthv. iijlj wiirds;

".my taninJ person [(oilier ih:m a director of a private com pany )J who ati llie lus.1 i.![iy uf llie year o f dascssuKtit will lie [over Hie1 age of] 65 years or oldei, i f the Coniaiiisioaer is satisfied Ml:i1 such persuu'd Liixtible ineomu for [ha! year—

Aiu^ndment of paragraph 19 of Fourth Schedule

90. Paragraph t9 o f the Fourth ScEied- nle lo lire Income T aiA ct, 1962. is himiby amended—

f(j i by ihe substitution in subparagraph ( 1 ) foriEcmfiT,) of the following Hem;

“ t/:> Every pinvi ii hifhI I4)qinyer (other than a company} [or a |h t - son contem plated In pan*graph 1SH -slmlt. dm ine every period with in which |M'nvisional tax r or may be payable by [IlhllJ flint provtsiuniil taxpayer provided in tliis Pari, [nr any e\tension of sitd i period granted in term s of paragraph 25(2},] submit io tlie Commissioner [, in such form as llie Com m issioner may p rest1 ribe,] (should tlie (-'onutiis-iionet so require) a return o f an estimate o f itu Hi1:d Iklx;iIiL- InLitW w hidl trill be derived by tlie taxpayer in respect o f tfie year of assessment in inspect ol" wliieli pru\moruil LitX is or may he payable by [hinij the taxpayer.”;

1 W i i h iArt >"-a. 2B ot ;n«l

flOVkfcNMEM GAZETTE, 4 JULY JOL!Tax Ajfimmiitral»cn Art. T013

Vrt. nml vrflr Short itile E n ro l of aim'll dini'ijL nr repeal

\b> by million lii nibpm numph( I I fur He]] i (b j n f [lie lollim mi: Hem

"i b i E very com pany which is -i provisional uxpayei shall. dunnu n n y g ra iu l u ilh in n liu li p u n i- E ionajtm is nr nu y he payable hy if as provided id th is Part [or any t‘\tv iision o f svcli periud arn u led in 111 n o s uf p a n tg n ip h siibmil lo the C om m issioner 1. Ill such fortu as lhe C om m issioner m at presrrilH*,] KlifiiiJil die ( mil- m issioner so reqiiile j a i m in i o f an citamKe o f lhe lotul i;uw t'k iiittniK- w llk l v. :1) be derrvetl by 1 lie a m * jihiiv in ] £sp*:cl o f llic )em uf avseiiiiienr m respect o f winch provisional tax is or m ay be pay* able by [hu com pany.",

(ri hy the subsitfutiou in subparagraph i 1) for item (c) Qf [lie following Jleni'

" f c j The amount o f tuiy istiiiuilt: submitted hy a provisional tax

payer i other than a company) during Llic period icfcncd lo to fwungrapli 2 l( I if ft i fn r a in ts ln ix k ili of su rh perioil "nulled in trrn i'i ularnph 25i 2iJ. o r by n company ( i l lprn\ i.-iiiiiuil Ihi{VW ) durbi^ |]hl ]lc* riod referred lo ui paragraph Z/trrj [or any i^Kten- ion of ■inch perio<l lii anted hi Icm is of jMingrnph2512)]. shall, unless t!ie C’oniiut'- sioner. Living regard to the cuciun- stances o f lhe case, agrees to accept ;ui csdm Hc o f a lo v .n iuiiwdiI. not he levs rhan tlie basic ainouni applicable K> die estimate in question, as coutcxuplalcd III ILCIIL I iii,".

! iii by ihe suhsiinuion in suh|uira2rAph 1 I) foe snbsubitem (bbl o i item ®f I h i foUowiup wjbiubiTtm

“ / hb) Jtlu- intnble portion of nny lum p sinn} anv junoi^r oou- templated in Iswtlon7AI4A) itiid] pare^nipli t<ho f ihe definition of 1 gross incom e' in section 1: and'";

DV Nfl JJ44IA ft >--0. 2B o t ;n«l

GOVbELNMkN! OAjSETTE, ■* JLLV J0[.’T.io: A<i»hnii[rAlKin i r I 1 n 1 ]

Vo. niid vrflr .Short title Fvteiil o f OwiutnuMil di' rfpcnl

f c ) b; I lie >ubsiiiu[iun in nibp:u:iuiii]>li ( I ) for (lie [ in i\iso Ll> H en iv!) o f tlie fo llow in g proviso:

‘'Provided dial. ii' an estimate iui- &.1 item in i nr i t l iiiiL r lie iii.i-.Il— fat more than months: and tbi in respect o f a period that enJ1*

mute than one year, after ihe end o f ihe JalesT lireceduic year o f assessment in relaliou to jLIlL estimate, [lie bunt auxJUUi ,leteiTTiiiied m terms o f subitem i 1 1 and H ii 1 shall be increased by an Hiuouul equal lu eiuh! pci CCUJt pel annum o f thal amount. tiom ihe eml (if su d l y&HT tn llie cm I ut llie year o f assessment tn respect of winch die estimate is made ":

if) by tlie subsdM iou iti ûliparituiapli i for subitem (ii) o f item (r) o f ihe

following subitem:“ n i l U K s p c d o f w Liielk n iio itee ui

nssessmem relevant to I lie es- l in ia le l a s b e e n issu e d by llie

C o n m ii iu o n e r uu l le w lliun diys hefni'e the rlnte

oil w ine In th e e i t iu u ite s u b

m itte d to the Coiunihsioner- Prauilti! dim w hdttbu fiptn- missiotser has ui respect o f any estimate re q u ire d to be made bv a proviyioual i h . v

payer 1- sued to the ta x p a y e r ji return for the payment o f provisional tax upon *iliich tli-.- Coeieilu"Ioiii:[ bus uidi- c^terl rhe taxp.iyer> taxable in c o m e for the latest precedin g year o f U c sm ia iL ju respect o f which a notice o f assessment was is su e d p rio r to the im u c of such le tiu u , su c h [ ta x a b le in ro iiie ] w »

o f assessment shah at ihe o p tio n o f ihe laxpayer be d e e m e d to b e [thr b a s ic am mi ii I applied ilf lu 'tich estimate] thai l. ie',.!- r if i just veai o f a^ e^ m cm .

*'W)__ Nio J >491Art Pffl. 2Sot ;n«l

150VbELNMkM'!' GAZETTE* ■* JLLV J01T.io: AdubhnuErjilKin i r I 1 i'i 1 1

No. niifl vrflr S t » n iti If F \t i i i l o f niutiidttrO l nr repfal

(g) by [III; iiib'Cmiioii Iut ûbp:u Humphi'2) al'liie fnltn» iiiE uIijkietiui

■ ■■! 2 > If any pro v ision.il taxpayer fadv to submit any estimate .v,r ijmTvid kv \iibp^rniiia|i!) (I ) ill. C'flftimtiîoner may estimate the la u b le income which is required lo U.L estimated [, and such fit i- liuIp 'IkiII l>c tim.il .nul rimrlu- stvej ": and

til- try lli : lubalilulipu Coe >ub]ja(;iui~4j’!t (3) o f the following uihpara?raph

The Commissioner may tall ujxwj an; provisional mspayu 1 [> j llM i fy shy KliitmK iiinite I■ v 111■ 11 nr rjL-1 in liîns nf Kubjiuibu»4i]ih ( 1 1 or to furnish particulars of Ins or her income and expenditure or Any oilier puinculais ili<n limy be required. and. if the t'onu in i'i toner is dissatisiied wtih the said estimate, lie or slit: innv ifiCrctuc llie lkilluujI thereof to hicIi amount as lie or lie con-iiders teasouable [t ail<! I!IP csl in in le ns Increased shall b f IiilliI :i ml ctTOrlmlVf]

A jucudiurui or piirngrnpu jo o r to u r tu Schedule

H I Purijmipli 20 ol' die Fourth Schedule to tlie Income Tax Act. 1962. it herebv amended(at by the substitution ioi [lie heading ol

the Itilliiuiim licfuliiii;A D D ITIO N A L T A \j P F \ -

a l t y i n t h e e v e n t OF TAX ABLE IN C O M E BEING I V DERESTIM ATED .

fbi by the ituh&tinmon m sitbparaarnph (I ) for items ta t and tbi o f the foticw n ii items:

l<a) more thin HI million and such estunale is less lhau SO p a coin ol lii: aiuounl ol Hi: actual lavable income ihe Commissioner may. i f he or she is not satisfied ilia! !lr; MTiLmml nf mil:1i CiUiii.iIl' wthl seriously calculated with due regard to ibe b c io n having a beaim^ iJlltl-uii or Wav nul deliheiarely or itenlieently understated, subject lo ihe provisions o f subparatraph ( i) , impose, in addition lo (he normal rax ehavaeahle in

Aft >--0 . 2B «r m uGo v l k « m £N1 u A / t m . ■* jl lv j o i :

T.tc A<i»hnii[rAlKin i r I 1 i'i 1 1

No. nm l vrflr Short itile F v liii l o f n m n iilin i 'iil n r ropt-al

rcipcct oi die taxpayer* l*X- ■ il'lc iiiniiiEue Ifir mllIl y e n ul a ise« m en t. a [tin ituiijunt l>> w ar o f addlllonal t^x| tîi-al l\ [up] 'Jl|'.'ui1 lo Hi l jjct ccuto f the difference between the amount of normal tan as caH-cillaicj ill TfjpCCl o f T-Hsill estimate and the amount of nomi.i! lax calculated. Al the A t a applicable in r a y e d o| ■-iii! h year of asMsunetil. in respect o f a taxable income ctpial lo £0 jm ca ll oJ vuch actual taxable income. And

(b) in EuiVotha uiku. lo x rlum L|i-' per cent o f lhe amount o f inch actual taxable income and is also llutn the ; ii IK mu i applicable to lhe eitmlate in question, as. contemplated in p;tni>aHti;h WDfiJJ. I lie taxpayer shall. nihjeci 1 0 I lie provisions o f subparaeraphs (2) and l3j. be liable lo p*y Ui lhe Commissioner. in addition fo the iiorQuil i‘H l. Itiii cflL'lc mrcipcct a t hi^ or her taxableuiufmiu fin -null y<H T iLS- ie s s m e n t. ji (p u a n io n ill by way o f additional tax] yen- a l^ ci|Uiii Lo 20 jvji c-eni u l [lie d iffe ren ce b e tw een ihe .m ionnr o f t irm n a l r.ix a s ca Icul.ved in

re sp ec t o f su c h e s tim a te and

llic l o s e r o f (lie fo lio u uni am cum ts. n a m e ly — ii) lhe ;finouii! o i ik h iu iiI i ;n

ca lcu la ted , ai ihe ra te s ap

p lic a b le in re sp ec t o f su c h

y e a r o l dM csuncn it. in ic -^x.tl of ii ljLVj'hlc niuiniiL'equal to 530 per cent of such actual taxable income. and

t U Nfl Wfll (toVERMMtiVl O A£krrt 4 JULY JU12A n S o W*t !□ 11 Tax Admmutralicn Art. T013

No. niifl vrflr Short ill If F \U 'iil o f iim fiidihi’nl ni' rt ]>i-;it(ii) [he .trnuimt ul' rum nil l b

calculated in reaped o f a taxable income equ.il idk!u:li I n c EuiQUdl, ill iSicraici applicable in reij*clo f aicb year of nssess- uiinit.";

fcf by the substitution for stibpuagraph i 2 i o f lbe i'filo v ::, nibpftiajaapli;

"i2J Where lbe CtopimissiODei !■■ iiilislied lliul the imwmil vl auy(d in p t t refm cil lii in vu1 iji.u ,i-£iv:ph ( \ )<b i was seriously calculated with due regard To ihe factors liHviusi h li.'.irHitr iheicuTi :uut U n not deliberiitely ai D t ^ n i l l ) mi- derstaied. nr if ihe Chmnituianer in partly 10 -jaltsfied. [lie Commi'.- 'io:n;i may in his 01 Iilt ducKticHi reimr llie [iidililifimil t;i\) penalty or a pflrt [hereof ". and

‘ <ii b} Hit [klcLiuin-'i ■'iibp:i:.înij|i <4).A mem intent o f pnragm iih 20 A of lomi lL S d iid B lf

Y2. Paragraph'OAofThe Fourth Schedule lo [lie Iueumc Tim Act, 1962. is lieitrbyhi lie illicit—fflj by The suhstrtotioa for die heading of

the following beading.“ [ADDITIO NAL T A \J PENALTY IN TH E EVENT OF FAILURE TO SL13MT1 AN ESTIM ATE OF TAXABLE IS- T O M F TJM FOI SIA

i ht hy ihe uibtriTutiou for subparagraph 1 1) o f the following subparagraph

“ i i f Subject [o [he pHiviunhil ul îtâraoraphs (,2i and (.>). where any provisional taxpayer is liable for [he pj}iiieiil o f nomml Iju ui respect o f any amoiinT o f taxable income derived by that provisional taxpayer dtu m i any ycai ot a i i t i v mcitl b i iA llie eJbnatc o f hi - or hu Taxable iiicome for Tliat year required Eo be submitted by' hirn or hei tuiiier p<u<tum]jli 19(1 J diniiiu rhe period contemplared m paragraph 21(1 )^J. 32(1) or :_Vbi. a . die case nmy be. uusuol >uLauitlud by him or her on or before The last day o f ilia! year [or. If Til? period

,’S* Nfl ! ''h |A rt ,V«. 28 orZdl l

ftaVkfeNMENl QAjtETTE, ■* JLLV J01.’T.io: AtiibhnuErAlKin i r I 1 n 1 ]

Vo. nnd vriir Short iljlc Fvtciil o f amcndim'iil or repeal

lor Uie payam t of provisional i r t s ( t i i e b y h i m o r t i r r i n r f w p r r t

o f s u c h p e r i o d l in ^ u n d e r p a n -

f i n ] i l l 2 5 ( 2 ) b e e n e x t e n d e d lo a

i l n l f I n f e r t h n n l l i c c u d n f s u c h

} n r . o n o r I r t - l e r v s n r b iL h ii- .] t h e

t a x p a y e r s h a i L u n l e s s t h e C o m *

[ u i u k u e r h n > c n i i n i a i c d tliu v j i d

T .i 'i a b ie i n c o m e u n d e r p a r a g r a p h

1 * 2 ) o f h a s i n c r e a s e d d u e a m o u n t

i l i u i i w f i i u d c : p y iw a i i i j j h 1 9 ( 3 ) , K

r e q u i r e d t o p a y t o i h e f o t i u i m -

s i o n e r , i n a d d i t i o n lo t h e u o m i a l

l » c h i n a r a b l e n i r c s p c d o l H k &

t a x a b l e i n c o m c . j f t i i < in io u ] i t b y

w a y n f n d d h i n m d i n \ l a ;k .h j i ] |y

e q u a l t o 2 0 p e r c e n l o f t h e a m o u n t

b y w h i c h t h e n o r m a l l a s p a y a b l e

b y l i im o r h e r i n r c s p d C t o f s i t d i

l a x a b l e i n c o m e e x c e e d s ; rh e s u m

o l a n y a m o u n t s o l p r o v i s i o n a l l a x

[.'■ml b y h i m u i I k i h i r & q x a d o l

j n t h T A x ah le i n c o m e w i t h i n a n y

p e r i o d a l l o w e d lio r [ l i e p a y m e n l o l

i u d i p n t v u f c t t t l lu x u n d o t td v

P a r r [ t i t n i i l i i n L iny n t r t i s d m i o f

s u c h [K rio il u n d f r |j i i rn -

g r i r p l i 2 5 1 2 1 1 a n d a n y a m o u n t s o l

e m p l o y e e s ' ta x d e d u c t e d u r w i l l i -

l i e ld f r o m h i s o r l i e r r e m u n e r a t i o n

b y h i s o r h e r e m p l o y e r d u n n t s u c h

y e a r . " ;

i,-i by The suhsiimrion for ftih|iaraaraph ( ’ ) o f ihe tfillowina unbpansraph

L‘(2l The Commi lio n e t may. it he ur ibc is sa u c e d dial (lie provisional raxpayer'n failuw to submit such an estimate huueously was nol due iv an intent lo c v a c k or jv-t- pone ihe payment o f provisional tax or normal lax. resins the svliole or any part o f the In (trillion a I tax] j v i u i I k i! i ] ]K i- i:d ie ih L t

saaph (I)." : and l i f t by ihe deletion of subparagraph 13 i

:sn Nfl ! ''h |Aft >--0. 2B or inn

ftaV kfeN M EN l QAjtETTE, ■* JL LV J01.’

T.io: AdubhnnErjtlKin i r I 1 n 1 ]

No. niifl vrflr S h o rt ill If F \U ii l o f iinii iiilini'iiL of i'vjn-:it

A n e o d u ie ia o r p n m ^ rn p li 2 3 A of F m in li Schedule

9& Parainuph 23At>fUn: Fourth S d ia l- il[c In the Tmcdiiic T;i \ A t t 1961. i i licreliy amended —t a i by die sufetitutieri tor Vstbparaai^ph

i 1) o f flu: fnlluu in s iiibpu hut *tjtI i'"(1) Any provisional taxpayer

m ay for tlie purpow of avoiding ot rcdui'ing Iii: o r La: liability for <ui> interest w hich m ay become payable by him or her iii reaped ot aiiv year o f a is e ^ m a il muk'i [s fflio il S'Ji-frdjjjl C hapter 12 o f tlie ]kx AdministratiOB Act. elevl lo make an additional pay m eat o f provisional lax ui it s p c d o f tu ch year.*; tn d

Jin by The deletion o f subpara c n p h (Z'iAinriirhiLrnl o f jm rngrnpli 25 uf F m irth S ihedu le

04. Pjhjilti ■ i[■ 11 2S n f ihu Fourth Rdmil- ule to the Income lax Act. 1962, is hereby amended( a ) by l!ill fubsliluttbu iur iiiibpaiiigniph

(1} o f die following ^nbparaei'aph' “ (1) I f a tier lhe end ot any

peiitul vniiliiiL w hieh proMsiui m t fax i* payable in ten rn of tins Schedule ihe C M uuisiionei has u n d o die pru\i-jiuu> ul nubiJHre- craph ( j ) o f paragraph 19 increased rhe amount o f any estimale o f taxable income subm itted by any provisional taxpayer dm mahiicli p ^n n l. toiy ;i;lih;um.Ll i-iion.il tax payable a* a result o f the C o m n fis iH ie i ha vide mad# such increase >tial), notwiiJi»[KJi:lmii ihe [iro\:s!ons oi paracrapli^ 21 j. 22] and 23, be payable m itim such peiiod as lhe C uuuim siunei may determine and

■ t>> by die deletion of subparagraph r ' .Aiii?iHiiiiriil o f p;irLiur:if)l! 27 of F ou rth S chedu le

95. Paragraph 2" o f the 1 otirtli Schedule to tlie Income Tax Acl. 1 9 6 '. is hereby imiendetl—i f i i hy the siih.slinition fnr ^ ilijia i.icn |th

U ) o f die following subparagraph M{1) I f any p im s io iis l tflxpnyci

fails to pay any anicnuit o f provi- vi ill Ui! 1m\ Jill Iiith lit in -In: i- liable w ithin tlie pen nd a Mowed for

290 .Si JJ49I (^VERNMEN’l CiAZt n t 4 J ULY 2U12Act .vd. :s or 2011 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short title Extent of amend i urn 1 or I’l-jicalpayment thereof in terms of ptra- UT.ipli 21 or 23, nr [i;i]"iLi:i)rli !5(t j, for uitliiii auch extended period 35 the Commissioner inny allow in term a of pnrngrnfih 2. 12). he or slit1 iiulvI, in ;l<Il]i[iuu In any other penalty or charge incurred by him oi' her under iliK Acl. pay [» llie CiiunnisshirifT] the Cony missioner misst. tinder Chapter I? oi lire Tux Administration Acfc ta t lirne a penalty equal to ten per cent of (lie amounl not paid.": and

•hi by the deletion of iubjjiuu jii'upli (2),Inserlimi of piirnurnjih 2&A of Finirlh Schedule

9(i. The Fourth Schedule tl> the Income fax Act, L9G2. is hereby amended by (lie insertion of the following paragraph afterp;ii;iLr[H[i1t 2fi

■'2SA. Payments by way of ernpJdy- eei" lax and provisional lax mult for lire puriwjses of liais Aci anil subiucl lo rhe provisions of paraerajili 2 S. he regarded as having been made in re- spcct ut’ the EMXiJavtf liability. for lux whether or not the liahilirv lias lieen ascertained Of determined at the date oi any payment.".

Amendment of paragraph JO of Fourth Schedule

SI7. Paragraph 30 of ihe Fourth Schedule to the income tax Act. 1962, i$ hereby amended—(/t) hy rhe inlnt tuition in ‘.ubsectinii t i ,i

lor the words pieced ism subparagraph (nj of the folio wina words;

"Am pmvnn u 1 u p shiLliiIEvi hij lI without just canse— "l

\b> by the deleliou iu subparagraph ( I (of tlunis ii:). ftl). (ft) and f i J;

frj by the substitution for item fjf in subparagraph 11 "> of ihe following item:

‘"(j) (fails a t ncglects to apply lo tilt* CnmiFii siinLiT for rejyy- tratlou as an empfoyw as required by subparagmph 11 > ofl beiinj a registered employer under paragraph 15(H.

2!*2 N i J J49I (^V ER N M EN ’l OAZfcTl t 4 JULY 2012

Act .vd. : s or 2011 T.tx AftuunitfraCtnn Art, T il 1

M o, find y r f i r Short title E x te n t of li [i ki'i 11] 11 e l' 111 oi' 1’i-jical

[o r h a v in g so a p p l ie d J M L .<n In ciolify d ie Q m ) -

liiL^îcnieL1 o f l im y i- lu m g e o f

his address or llie i'nct or hl&Jluaving CchjunJ In lie jlci l_-:il-

p la y e r as re q u ire d b y [s iilt- ;u i r : i ^ in p l i i? ) o l' I h it) p n r n -

Ri’iipii) psapttiph 15(3); o i ' \ a n d

n i / b y tb e d e le t io n o f i te m ( J;J In s tib p a t* ^

>n sipli (1).Repeal o f pnrfigrapiLS 31 and 32 of Four ill Schedule

P a ra g ra p h s i 1 a n d 32 o f th e F o u r th S c h e d u le to (lie In c o m e T ax A c t, 19 62 . a re

h e re b y re p e a le d .

Amendment of pnrfigrnpli 11 of S}\tli Sciicdulr

^ 9 . P a ra g ra p h 11 o f th e S ix th S c h e d u le

to Llie In c o m e T ux A c t. 19 (j2 . is k if iib y a m e n d e d —

\ j by ih e d e le tio n o f subparagraph (4 );

>bt b y th e u ib s i i iu t io n to r iu b p r a a t r a p l i i(>! n f llie f[>tlnui]hsi i l1 11fm■ hLTiijhf]:

11 ( 6} W h e re th e e s iim a te d e

s c r ib e d in su b p a ra g ra p h 4<a J is less, tliiin SO p e r Cuul u f d ie ta x a b le tu ru o v e r fo r ih e y e a r o f asse .ism en i l a r id l l lo n a l ta x ] a p e n a l tv eq u g ] to

2 0 p e l c a l l u f llie d i fl'ereitee b e - h v e e n tlie tax p a y a b le o n Ktl p e r

c e n t o f th e ta x a b le tu rn o v e r fo r th e

y e a r o f a s s e s s m e n t la id d ie la it p a y a b le o u tlial esliintue inu-il be e h a r e e d ." : an d

t o b j tb e s u b s t i tu t io n fo r su b p o ra g m p b

(6 ) o f th e fo llo w in g m b p a ra g ra p h ." (£ > W lu n n 1 he C in [ ii ii ish i til ier

lias is s u e d a il a 5s e g m e n t in le ^ p e c t

o f th e p a v m e n l re q u ire d n i te rm s oi subtm rm iiapLi J4 h n p c u aJ lv ttm st

tsoi l*e im p o se d in te rm s o f siibpaF a- e ra p li (G }.".

Rrpra! o f p:irnur:iph ! 2 u f Si v lii S r l ie d *

td t100 , P a ra g ra p h 11 nf ih e S ix th S c h e d

u le to th e In c o m e Tax A c t, 19 62 , js h e ie b y

r e p e a le d .

Ni JJ49I (^VERNMEN’l CiAZtTl t 4 J ULY LLU12Act .vd. :s or 2011 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short liflr Extent of niuciidiiif til or rcptiilAiiifli Intent of parnRrnph 14 ol' Sixth Srherlntr

101. PanijnaijLi 14 ui' lhe Sixth Sciicd- nle l<i lhe Tiiftiine T;i\ Act< 1 962. is hereby amended by rhe substitution tor Tli-e words pieced ma subparagraph ( n / of lhe follow- ;nu WOnlx:

" [ A 1N orwith.staiidnii! rhe two vis i p u s

of Pail A ot Chapter 4 of the Tax Administration Act, ;» registered micro hiwiness must onLv retain n record Of ” -

Repeal of paragraph 15 of Sivlli H rill'd- ule

102, Pffl&grtipb 15 of die Sixth Setitd- llie in the Income Tax Act, 1962, i< hereby repealedAmendment nf p;ira<j;r:ipLj 12-V of Seventh Schedule

103. graph 1ZA of tlie Sevetitli Schedule1 to The Income Tax Acl, 1962. is heicbv amended by Lbc delcliuit uf subparagraph (4).Aniriuliiirnt ol pa in graph 17 oi Seventh Schedule

J(J4 . Puinjaupli I? o t ihe Scvaub Schedule tp ihe Income Tax Acr. I9f>2. is hereby ametided(a/ by lhe deletion of llic proviso iti

svUinni^niptl l l 1- : i [ii L litj by the deletion of subp$nt£rapb (5).Amendment or pariisirnph lfi of Seventh Schedule

JOJ, Pin n^rftp! i 18 of ilie Seventh Sciliciidlt In ill'-’ thCmnt Ikjt Act, I94S2. is hereby amended by ilie substitution for subparagraph U) of Hie following sub- jjamjinipli:

“ ( 1) i very employe f skill on the relum referred lo in paragraph 14 of lhe Fourth Schedule dtfclan: itiul nil luxubte benefits enjoyed hy employees of ûch employer dtiriii£ the period in lespect Of wfiich siieSi lelum \v as funiisHd. Bj* declared oil ilie familW eral employees ’ tax certificates delivered to such employees or on |the] airy other return [to lie fiirnislird in trnn.s nf section 691 as may be required by the Commissioner.".

J96 .No i.'49!A rt .Vo. : s or io n

GOVLELMMkNT CiA/t'E'J i 4 JULY JOEJT.nc AitmLmttraEtnn rt 1 f] ] 1

N o . f in d yrfir S h o r t t i t le E x te n t o f m n t u d in f i l l o r rrpral

K f j in i l o l' p n r n g r n p l i 19 o f S e v e n th S c h e d u le

Hf(>. Paragraph 19 ur ihe Seven ill Schedule to llie Inttmie TftX Act. |9f>2, js hereby re|>ealed.

A c t N o . 89 o f l 991 V a lw - A d d e d T a x

A i l , i m

A m e n d m e n t o f A c t 8 9 o f 1991

107. Tl le Va! 1 IE-Added Tax A t 1,1 99 E L in hereby amended by the substitution for the Eerm 'officer', where lu the context of :j [k.'raiin taLio iw uiiuiiiJLi! bj llie t'tsicmiis- sjoner nt carrying out the provisions of that A c t, o f th e teM ‘S A K S official'.A m e n d m e n t o f s e r l io n 1

lO if. Section 1 of the Value-Added Tax A d . J991. is hereby amended—(a) hy rite delerion of the definition of

"business dayf\(b) by llit: uitalitutioii for llie iL'fiiiitioitof

■'Commissioner" of the following definition:

“ ’t oimnissioiiCL' meann ihe C:oiiuiusf,ion£r tor the South African Kevenne Service appointed in Ecmis o f see E ion 6 o f [he SoulhAfllUIJSL I"-’. lJ 1IL L J S qVViU Afi(. ! 90 ■'( Act No. >1 of 1997). or the ActingCommissioner deif pasted in tenns o f stciio ii 7 o f that A ct" :

(e) by ihe siihsiiriiioti for rlie definition of "ptescribed late"' o f ihe following definitions

' 'DlYSriibfd rate’ m e a n s [lie ra lecontemplated in section 1S9( oftlie Tax Administration Act:v ;

id) by llie insertion iil'ler tin: definition ttf Lt.is" of the folio wine definition:

" "Tax Adinink E n i 1 io n A t I' means the Tax Administration Act.2 0 11

(e) by the delelioti o f the definition of “ lax pefiod": and

1W Ni i.'49!A rt No. : s or io n

GOVLKNMtNT CiA/t'f'J i 4 JULY JO [2T.nc AitmLmttraEtnn ^ rt 1 f] ] 1

\ o . find yrfir S hort title Extent or am end mcni a r rr |ira l(fi by [Eii: substitution ibr ihe dc Quit ion

o f “VAT i e i'!.*i I r:i1 inti nUffiber" ol’ llie following definition-

“ ‘VAT refli.^lriUioii num ber'. inT lnlirHi Id any vuiilor, itil hiin lilt: nuinher allocated to Thar vendor by llie Commissioner Ifor llif purpose;; of itiis ArlT lli lenm of seetioti 7A o f tlie l ax Adiraiiittratifiii \ c t : :':

tgf by the lennmberiiie; oi' :eetion 1 to aeeliou 1( J >: mul

{hi by the inceiTion after subsection ( 1) of tlse following sublet tion:

,lf2) Unless tlie context itidiealcsolherwke. a IhthtI ni e\jne*M(iii In111i-L‘L i ;h tAnulinfl 11 h huun Ln ilmI

in the lax AdniinistraTion Act bears;that meanin? for iJtirposes o f diisA ct*’.

Substitution of scdkw -J1U9. The Value-Added l o t Act. 1991. is

lieteby amended by ihe subsiilution foi faction \ of rhe following section:

"[Act lo be udimnhttTL'd by Conuius- slonerl Administration of Act

■lill) TheCoiuiuis-sioneL (sllilJI be] U responsible for carrying om tlie prcruj- stons af this Act.

12) Atlciiiiib\(ialcYe TmnitEiitqih w dprocedures foi1 |}nn»ses of rhe peitbr- mance of any duty, power Or obligationor llic UMjici>d ol' iffiV nvhl l:i tunns oflIlls Acl an:, to llie cxtoit not regulated inthis Act. re ciliated hv The l ax Administration Ai'l.'*.

Amendm ent of section 5110. Set lion 5 of the Value-Added Tax

Aet. 1991. is heruby am oickd— f n i by the qibsritiltion for snb«ciinn (1) of

the following subset tion:“(1) 1 he itower* conferred and

the duties imposed upon the C'om- mwiiuuer by ot in teinis of the |n\jv Ls.iiiTis, ol'lhi'i Acl or any f l t ja u t inent tliereof may be exercised or peiiomied by tlie Commissioner [personally ]. ot liy miy [ofTirci' rn- ynyetl in currying out llir >:iid provisions under the control, d irection o r SDpcrriiioa of tltr Com- inissiiiinrr] SAWS oftici.tl ": and

(b) by the deletion of subseefian (2).

jttK) Ni JJ49I (^VERNMEN’l CiAZt r l t 4 J ULY LLU12Act .vd. :s or 2011 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short title E x ltn l of li ti ki'] 11] 111 l' i) I o r repealRepeal o f section ti

U L Sctuw i 6 o f ihe VshuÂdded TuxAcl. 1 *5 t . i* hereby repealed.Amendm ent of section 13

112, Seciiuu i 3 o i liie Value-Added TyxAcU !99(. is hereby amended by (be substitution in subsection (?) for pai'n- araph rVrJ o f [lie following paragraph;

"(fi) for the colleciuw (in such manner as tlie Conuutssjoner may determine) by ii SARS uflkml. oi liief— til any olHcer (x-rfonnlng life or

her duties tinder i lie ton noi. (hrtrlim i or >ii|>eryisio!i of Qip C ouunisxiiiuec; o r

4 U i J Maiiflîo.a Director of tlie South PijkI O & c Limited oil belialf of tlie Commissioner. of the tax payable in Icrnu o f th:> Act in icspcct o f ihe imjvmanon of any eoods into tlie Re|jublic: and"

Amendment o f seclion 14

113. Section 14 uf lhe Value-Added Ttx Act, 55)91, if. hereby amended hy rlie substitution in stibsftctipn f I tor paragraph (a) u f lIjc following ittujiuraph.

‘■faj bullish rlw Commissioner with a IdtdartittOU (In such form as the Conunissioncr mny i inscribe) nmtirimiiu such mftiruuilioit us niiii be required] return. and".

Amendment of section 15114. Section 15 of the Value-Added Tax

Act. 1991. is hereby .intended by lhe rabstimijon for mihsecjjon (R) o f the following subsection:

"!'S} If. in relation lo any particulate n^qtiiiul Uf lie I'nmi-lied mil.L-i yiiij^Cr- tieti (1)1,1—(n) the aniotmr refetied to m subseclion

(6)tb) exceeds [lie amuunt lefetied to in subsection or

(bi the amount refijired to in sifbsection (TlfiiJ exceeds tlie iumjunt icl'erred to in subsection (7^'c J,

tlie amount oi tlie excels shall be refund- Mble lo ihe VtbdOr by the GcnrnrtiiniulKj in respect o f ihe changeover |ieciod as provided oi 1"■section 44il.)l Chapfei 1 i o f the Tax Administration Act. read with section i<K5j.".

J£3 Nfl !i.h |A ft >--0. 2B or ;n«l

GOVbELNMkN! OAjSETTE, 4 JL LV J01.’

T.io: A<i»hniiErAlKin i r I 1 n 1 1

N o . n iifl v r f lr S h o r t i t i If F \U iil o f amen d i n i'ii I ni' i'v-]n-:it

A m e n d m e n t o f s r r t l o n I t

115. S e c tio n 16 O f th e V a lu e -A d d e d la x

A m . 19 91 . n h e ie b y a i iic u d c d —( a ) b y llie Mibs ri Eiiliun fnr [lie H>

su b s e e u o n (2 ) o f the fo llo w in g p ro -

J' P r ideit llti! nlh.it; a ’,<* iimnL't m ifebu time or eredil no re in relation ro that supply hi-, been provided in accordance w ith :1u - Act or a bill ol" endy or other documeai has been d e ln 'H f d in a c c o rd a n c e w ill: llie t ;uui L x c ise Act. as The case nisy be ih e

C'onunJisiouei tu av deleruune lini no deduction fo r iii]>m ta x u i relation lo lhnt supply oi importation nl lm 11 lie iiihlIl.' imlei!. llml M1, in - voice or debir note or credil note or that bill o f e n try o r O ilier document is r c iHiued in hccoi dance ûli (lie [ii'ovtsiniis o f section and P ari A o f C b a p ie i 4 oi th e T a \

A d m iu u i tn lion AtL. ” : u u d ifn by tlie sn b s rm iiio ii fyt subsection is ;

o f ihe ib l lo w m s s u b s e c tio n" ( ? ) If- in re ltiiio n lu nny lax

p e r io d o f a n y v en d o r, die a e e ie e a te

o f tlie amounts th a t m a y b e d e

d u c te d u n d e r s u b s e c t io c i r j f ro m the sihr ncfim ’d Id in tlml siibsee- t io n . ib e a m o u n t i i f m y ) re fu n d a b le

to th e v e n d o r u n d e r s e c tio n 15(0 ), [(lie lu n o tu i t 1 if Ant) brought f o r w a r d from the lm p m o d irrc - t ' r d m f lilt1 ftr>4 -m e n t io n e d l,iv period as provided In paragraph i ii i o f ih f proviso lo section -Mi 1 1

anil the am ouiil u f a m i c r e d i t e d

under section 4-1 i-f* to tlie vendor's account during Tin- Erst* n ii 'ii Lionet! tu x lie r in d ) a n d an y o th e r a m o u u l r e fu n d a b le u n d er

C h a p le t 13 o f th e T a s A d m u iiM ra -tim i Act. cXfieccLi lb e haiii suttt< llie

M iiotm t o f th e e x c e s s sh a ll, su b je c t

to ih e p ro v is io n s o f d i i s Act. b e

rc fu u d u b lc lu die v en d o r b y d ie Commissioner as p ro v id e d in [-sfir- lion J-ti 1 r 1 Chapter 13 o f d ie T ax

AdiuLiii^Lruiiou A n , " ,

iUi Nfl !1-M

A ft >"-a. 2B or ;n«l

GOVbELNMkN! OAjSETTE, ■* JL LV J01.’

T.io: AdubhnuErjtlKin i r I 1 n 1 ]

No. niifl yrnr Short itile F \ti'n I o f iinieii dnii'in nr repeal

Amenriuiciil o f section ITlift. Sec tion 1“ n f the Value-Added las

Acl. 1991. n Leieb} jiueudcd—f a J ty flic MihMitiilHHi liv llic him U

preceding ihe proviso to subsection (1 ) o | tb# follov uid WOnfc:

“When.' E{kxis nr mti iccs air acquired or imported by a vendor partly for consumption, Use or supply iliereiiiafieT referred Id <t;> tlie inieiiiled nw i m ihe ci>nrw of lusting taxable supplies and partly fw another intended osc. die caIciiL lo which any las which hat become payable in reaped of the Mipply lo ihe vendor or die importation by rhe vendor, as ihe U se may be. ol -us Ii UOLids or BtrvnLVTd nr i» ■ h'spi'rl of inch goods under vecliou 71 LlJ or any amount delejmined iu oecoidance wiiJi p.uaauipli lb) or (C) o f the definition o f ‘input tax’ iti ‘iecn™ 1 is input tuit. shall be an amount which bctais to llic Tull iuuouul of such ism oraniinuit, as the caê may be. the same ratio (as determined by die Coiuimîcuer in Hceordmitc with a inline as cnmemplared in Chapter 7 of tlie iax Adniini-.nationAet or section 141A or| 41B) »s iheIII tLJ] llLl 1 LISLL MIL'El KIHHls (IT iff*vice* in the course o f m.ifcms laxable supplies bears to the loral intended use o f such soods or services", .uid

| b i by ihe snbstftuliou for puntarapli iiii 1 iu uilKecnrm (I ) a f rhe follosviuc p angraph:

“ (iu i ii here h method for detcnuui- in2 the rauo referred to in thu subsection has been approved by ihe Counmîuner. ibiU method may only be chansed niih elfetl from a future t n period, or from sucholher <Aftic sli lk' Cimuni tSioiiit may consider equitable and «nch other date musl fall

/06 .Ni J.'49!A ft .Vo. : s or io n

GOVLKNMtNT Q A lfcT ji 4 JULY JOtJ

T.nc A itm L m ttraE tnn Jl r t ' 1115

MO, find yrfir Short title Extent o f li [i ki'i 11] 11 e l' i) I o r repealr <uu in .lie Cast o f a vendor

\iiio is n taxpayer as defined in section i of the Income Tax Act, u'iliii:i thi' y Hr o f h1.- sessrnenl as defined in tli.il Act: ch

i'£»£>) iu llic caste i>i;i icuJoi who iy hot a taxpayer a;, defined in seftiop 1 oi lhe iucomc Tux Act. wit!) in die [Mi'iod of twelve mouths endina on llic iasl dyv o f Feb- rtiiiru, in i f such vendor dntws 11| ■ tDflUVl financial statements 111 respect oi' a year ending other tliEin on lhe Lilt day o f 1 ohruary. within that vear.

dnrinji which llic application for rhe aforementioned method w as made b v the vuudor.”.

Amendment of section 23117. N ectiou 2 3 nf the Value-Added Tax

A ct, 1991. ii hereby amended Ui) by Llic submit ill iou for subsection (2)

o f (he following subsection"lL(2 ) Every pei'son who i i uoi ,i

resided! of llic Republic, and who in t e w o f subsection ( 1 ? lm actio nShA, litw m c i M l f I4 .bc[tlniLt nut latfcr tiiaii 21 d a js after heroming so liable apply to the Commissioner for reglilrntidi) hi ûcli fonn Us rlie Cmm Mission i t may diner 1 am) provide the (.'om- niitsioiici with Such fui tlier pnf- llrnhirs anti any duciiiiiinitiitiiiii as the Commissioner may requine in such ft 1 mi for Hie purpose or ro isterlni> that b c n im : Pnivltled that where—

JO* Nfl !1-M

Art N*. 19 ot WIItjO V b ELNMkM'!' GAZETTE* ■* JLLV J01.’

T.io: A<i»hnii[rAlKin i r I 1 i'i 1 ]

Vo. nmi vm r Sborl iljlc F v t i iil o f n m i ll dine lit or nr-pi-nl

iki n person who applies Tor registration iunifi tiii-s sabw c- f ion lisi- not provided ;ili |i;ir- tk u la rs m il doe uni eiitatlon ii- rv-cjuimi hy t h r otainiv. -iinihr. Him ihT-nn *li:ill lu- deemed not to liave applied for registration until he I ms proi itied :ill stie| i psirtlrulam and docum entation to tlie Commissioner:

O il l iif1 1 pe r- 'u i is not :i re vh le iil

of the Republic, sorli person] m ttLiitfrjaii'.'c v.illi Ch;n?Lct $

o f th e T ax A Jm iju s trH tio n A c t,kIihII be ilLvmtit mil lo l u w appiied for rean tra tion . in ad dition lo ê«:lio[] 22t-li o l thefjr-. Adnmuj^Hdffli A>' mini

jlif | snch pei'snn I m - appointed a repie- Kealadvc \ ciulot iu contem plated in section |JSlIlj Jt5 in the Republic :nn.l lilf- n k h ed die {"otuink- >ioner with rhe jj;il- ticiilaia ol such rc* UKtictitALivb in.Ini

[ibb)][b± opened a banking ac- eoim t with any bunk, mutual hank or othet similar institution, registered 111 terms o f the Banks A ct J990 (A ct No. 94 « f 19W). for the purposes o f hi', ot liet culcipriiic earned o l in the Republic and furnished the O ju j- n iiu ioncf w ith thejiiirti Lidnu of -nthbanktua account

m ^ si-mArt Pffl. m u

GOVbELNMkN! OAjSETTE, ■* JL LV J01.’

T.io: A<i»hnii[rAlKin i r I 1 n 1 ]

Vo. niid vrflr Short iljlc F.flffll of nmniiliiii'iil nr rf|icnl\b> by din substitution fur iliu m w I-

foil (mine <rh ul Milhseetion (j) of the folio wins words

"may apply to the Conimiîouei/ i *t m j j j d s t r a l i m i f i n M i d i f i H I H f t '

the C on im iv 'fou i'r m:ty d irect an d p rov ide ih e t ’oniinJ'.'.foner u i th such fu r th e r p n r tk u ln rs mil} any ilorm iieuLilioii as the fo n iiiL ta fo n e r dw v r a in in ' in sucii r&iin fo r ih r pu rp o se o l r t 'm 'im n L ' tiuit p e fs m ]-" : and

i a by the substitution in subsection (4 h Uh puruur<fph:> U“ and \b) ol ibe

"hit studied far rejasbfliail in hk- cordance with Chapter J of the Tax Admklistmrinn Afil cns u l ^ u c i i o u ( 2 ' ) 01 f i ] M i ld l l i ^

( 'nninuîoner in mlisfied that that person b eligible io bo rujcisujrud in tenra uf lliis Act, tliat person ihall l>e a vendor for the purposes of this A d with eflsct from nudi date the roitmiissinner ni.iv d c ic m im c . g t

(b) not applied foi' icîftrdtioa in te rm a u f fs u b s e c t io n i ’ t|

Chjgjer j of the ■ « \ ■ I i ■. i ■: ■ - Ktraltoi) Acl and the Com- mii-yiomii is ■jaiisiiod ikn t]mi person it liahle to be reaiv- teied in terms o f tins A cl. that person shah he a vendor for Ihe purposes o f iliis A d unli eifeti from the date on which that person Sis! became liable lo b t r-cjeE-jfuicd in lmn> ot this A ct: Provided tliat the Commissioner may. Iiavmg regard lo ihe cu ttu B *uac« « r l l i c i L ' I c n i i i T i L ' l l i a l

perion to be a vendor t r o tn

snch l3!er dale as the Com- missioua m ^« H iy d n equil- able” .

.MJ Ni JJ49!A ft .Vo. : s or io n

GOVLELMMkNT QAlfcTji 4 JULY J0[ JT.nc AitmLmttraEtnn ^ rt ' 1115

MO, find yrfir Short title Extent o f n w iid i iin ii or rrpral

Aniertdracnl or section ISJ1S, Section 2 ? o f the Value-Added Tax

A cl. 1351. Iitreby amended— la) by llic m:!> i i-.iiium lor rlic

preceding paragraph (tit o f Tlie fo llowing words;

■ fS n h jift ro this Aril in sicltliiioLi ro amr reniui'e merit imrler ilie laxAdmimstratio0 , Act, everv ™ idor *lialJ witMii 21 Jays [and in iurh fu n n :is Ilie CominfcsitoWr may pre-icrJbe] noTitS- tiie Cominis- siouci in wriliiiii of-—

jb) by the siihsriUitinn for paragraph frij o f the following paragraph:

"7(TJ Liny change in ihe [jiinue, address.] constitution or na-Ilijl' n f |]ll.l jn im :i|i;d mlk-T- prise or enterprise i o f that vendor:":

(c) by llic deletion uf pmu^THijli if), i'll hy ihe addiiion after paragraph (g) o f

the following paragraph.L,r' l any ■Jianjies in llic maioiily

ownership o f anv (khupm v” : and

(cl by llic delelion u f liic pruvisu,Substftuflon o f secrlon I t

ISO. ! lie Value-Added I h A a . 1W1 i-. hereby amended by ilie su b s ti tu t io n lor icUiuu 26 o f llic f'ollo%v Lnu scdiou

Li;il>ililit“i iiul affected hy person reining (o l>e vendor

2h. T1:ll obligalitFtlB h in l 1 intii lilie s tinder tins Acr or the Jax Adniiinslra- iion Act o f any person in respect o f anythin;? dune, or uniitled Lo be dune, hy that pet son wbfl* rliat pei'son is a vendor shall no! he affiecred by ilie tactlIlhi dim pertiuu censes lu be a vctidur,of hy rhe faci rJiat. being registered as a vendor, [he Commissioner cantels tliar pCragiru i'cî*li<i1iun as m vendor.” .

.M 4 . S i J J 4 9 I ( ^ V E R N M E N ’l tiA jCL 'L 'J t 4 J U L Y LLU12

A c t .v d . : s o r 2 0 1 1 T.tx A ftu u n itfraC tn n A r t , T i l 1

Mo, find yrfir Short title Extent o f : ■ li ki'i 11] 11 e l' i) i oi' 1’i-jicfilAmendment of sec lion 27

120. Section 21 o f [lie Value-Added Tax A ll. 1991, is hereby <iiLicutlcd Ujr ihes u h ^ l i t l l t i f H ] I 'm n i l f s e c l M i n Hfij o f l b e

f o l l o w i n g s u b s e c t i o n :

“(6) The tax periods applicable 1111- l1_-t lil ts : A c l t n m iy v e n d o r s ilh E l l i e l l i e

tax periods applicable to the ( ’aiecjory within which the vendor f a l l s a s ccrn- tciiipliiLed ill lJli? scclioii: Provided that—

(i} llie first such period sliali com- i lienee o a llie commcuce 11 ie 11 1 date o r , w h e r e a n y percent Iwcomes a

v e n d o r on a l a r e r d a i e . such later date;

( i l ) a n y l a x p e r i o d e n d i n g o j i t h e l a s t

iS: i', c f :i i u o i u I j , b s n p p l [ e n t i l e i l l

r e s p e d o f t h e r e l e v a n t C a t e g o r y ,

m a y . i n s t e a d o f e n d i n g o n s u e t l a s t

d a y , e n d u u a f i x e d d u v a p p r o v e d

b y T h e C n r n m i s l r t n e r , w h i c h d a y

■>hall f a l l w i l h i u 10 d a y s b e f o r e o r

a f t e r a u d i I a s i d a y ; P r o i [ J e d t h a t

[ l i e f u t u r e t h k p e r i o d s o a p p r o v e d

b y t h e C o m m i s s i o n * ? ! m u s t b e

l u e d b y l l i e V f l i d u i f u r li u i l i n i m u n

p e r i o d n t" 12 m o i u h s c o u i i n e u c i u e

f r o m t h e t a x p e r i o d t h e c h a n g e i s

m a d e .

i.i ii 1 l b e filiHl ( J a y O f a n y l u . \ ;: h n 1 d T

i h e vendor subsequent to T h e

v e n d o r ’s first lax p e r i o d s h a l l b e

ihe f i i s l day follow in a __f tU t h e I t ib t d n y u i ' l l i c V e n d o r ^

p r e c e d i n g i a x p e r i o d : o r

f l u T h e f i x e d d a y a : a p p r o v e d

b y t h e C u i u n i i ^ i o n e r i n

l e n n s o f p a r a G r a p h (,ti

Amendment of see lion _S121. Section 28 of the Value-Added

Tux Aet. U hereby amended—

ifi) by the ilelenoii i n subsection ( ! ) of paragraph <'i) o f ihe proviso:

(b) b y i h e substitution i l l s u b s e e t i u u ( 1 )

for p a r a g r a p h l i i i ) o f T h e proviso o f T h e f o l l o w i n g paragraph;

J]6 Ni JJ49!A rt .Vo. : s or io n

GOV LKNMtNT CiA/t'f'J i 4 JULY JOtJT.nc AitmLnitlraEtnn rt ' 1115

\ o . find yrfir Short title Extent o f l i [i ki'] 11] 11 e l' 111 oi' repeal

“ ( i i i ) a V e n d o r r e p i i i t c i ' e d u ' i l l i i h e

r ' L t t ^ n l s s j s n n t o m b i y i i r e

t u r n s [ n n d p a y m e n t s ) e i e c -

t r a u i c a l l y [ ( o t h ^ r t i l A h by m e a n s o f ss d r b i t o r d r r > , lim it h i r n M i t i n 1 r v t i i m ] i s d e f i n e d

t o h a v e m a d e p a v u t e n l w i t h i n

iIjc tm ivd ccnitauplitkd Jn s u b s e c t i o n ■ 1) f u n d n i u k t 1 ] i f

t h e v e n d o r o t o t e s h i l l p a y m e n t

n f l l n ; J i n n n m l u f t u x w i t h i n l l i e

p e r i o d e n d i n g 011 t h e l a s t b u s i

n e s s d a y o : ' t l i e m o n t h d u r i n g :

W l t k h i I i e i i [ W e n t y - f i f t h d a y

lulls:(t j b y 1 ]iL1 delelEiiu ill snlhseclinn (1] o f

paragraphs (£v h and (v) o f the proviso: and

i t )> ty;lhed^clkm o f nulncctiuiis ) . (4),(*>), (6), ( 7 ) , (K)OTd(9).

A m endm ent of scciion 29122. Section 29 of the Value-Added

Tax Act, 1991, i* hereby iiuieuiled by llic subsrirution trvparapraph for the woids preceding subparagraph li) o f ihe idllovi- inpi words:

“ furnish the Conirnifisioner with a return liiti such form os Ihe C om m issioner ii my prescribe)] leiiuetinjE— ".

Repeal o f section 30123, Section 1(1 of the Value-Added

Tax Act, 1991, js hereby tepeaied.Ameuihnrut nf sri'tion 31

12J. Section 31 o f tlie Value-Added Tux Aet. 1991. i i hereby im tndiid— m i by the uihsiuution for subsection (!)

o f ibe follow ina snbiseclion:"(1) J^VIifiTjllie Couuiiissiou-

er may make an a s s e s s m e n t o f t l i e

amount o f rax payable by Itaj imy person fnll? lo furnish

any jvtnrii iis required by serlion 28. 29 or AO or fiiiU to furnish any declnrnilon as rcfpiirrd by section 14: or

(It) (he V'umiuissinner is mil s:il- Lslied with any return or declaredou which any person is m ju ired lo furnish under ;i section referred to hi par n graph (»t~ or

m No J344I GOVbELNMkN! OAjSETTE, 4 JL LV J01.’Art fin !* *t 10U

Vo. nud ipnr Sheri title Fvtciil o f am endm ent nr repeal

(rj tiie C onunisdoncr ha^ rca- son ro hetievf that any person Ini', bermne liable for 1 1 1 ? jinyniHi! o f any amount o f Tl[\ but hits not paid such amount: or]

nil any person. not beint a vmdcv. dial >uppiicv x w d t Ot service* and re]nre « iit ‘. rhai Mx H charted dm Thai supply, w

{ft any vendor rhal Mipplieêoods or services and snthSupply tt UUt <1 [iUJlb! v >Hp]']>or iisih supply ■„■> a taxableSL]|)]llv III {U^lL'd Hit ivlnth In*is chartieable at a rate o f zero per cent. Md 111 eitlier cils# tlitit vendor rcp u stn li i|j;n in a is charged on such supply at a rate in excess o f zeio per cent.

(ft iiuy p a w n who huldi IiliuscIJ' out as a person entitled to a refund or who producer, tin- HtfhfiSj autheoji^, m uiilivsi use (if any tax invoice or dofiinicnl or debit note And lias obtained any nnduc TAX l^ncfil «r luNiini Urnlur the provisions of an expon incentive scheme referred lo ill ptua^xuph i i f1 oFlhc definition o f ■‘exported" in Hction I. to which such person is not entitled);,

iht- Commissioner may. not-HMthxL:iudniu LIht pmvi'iiuns ofsection J2i5> of Ihls Act and section S3 1 1 3 1 and 83A (12} of the lim nin' T:i\ A n , liutke :ni niae*ssraeut uf Ilie am oim l uf t;i* I>fiyntslc by the person liable for the paym ent of such nimnm t nf lax. and Ihe ainomit o f lax 'O assessed shall be paid hy dw person concerned la tin C om - inisMiunerl.” :

(b) by the deletion in subsection i ' i erf pntiiaMylj fa),

f d hy tlie deletion o f snbsectjrm (.ii:

j: o .Si jj4si (^VERNMEN’l tiAjCL’E'J t 4 J ULY LLU12Act .vd. :s or 2 0 1 1 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short title Exfienl o f iiiiH'inliiiL'iiE or 1’i-jicfil

ftfy by ilji nibstiluliun Lor llie words lijarprecede jiibi iiijo f ii i inf ill MulKKliw h 4) o f rhe foilowin^ worths:

“Tire Commissions! LslinlL give ■ lie pri'son CdnrrmAd n ntfttM) mitiiT of Hiicji assessment,. *l:il ini’ihe am ount ti|>on which (m is paynbk, die amount o f mx payable, Llif am ount of an) :niili- lional tax payable In d r ills ol' section 00 mid tlit tax ijoriod ■ IT any} in relation lu which ihe assessm ent is mart el must ftivc a Qoticc o f asscsiiuepL and— ", and

{(') bv tlie ileleJldn uf suli.sciilimis I.' i .uhl(5 A).

K qieal o f a c tio n s 31A and 3 IB125. Sections SI A oitet -i[B of the

Va llie-Added Tax Act, 1391, arc hereby tvpcalitd*

Amendment of sec lion 3212b. Section .12 of the Value-Added

Ttix Act. 1951, i i hereby Dmciuicd— in! by llie !iutittiM<ui Jin I lie huntini! o f

the foUowmg heading:‘ O bjections 1 0 certain decisions for assessm ents!” :

i,fn by the substitution for subsection I ) o f the following subset non:

“ ( l) [A n j person who is tUssal- fsfierl wUd —TThe follow me deci- ■iioiii o f tlie Commissi oner aie subject lu obieclion Jiud iippcul:(tt) any {leciiiun given in writing

by rhe Commissioner—(i) ut term; of section 23(7)

nolifyina tliat person of tlie t 'mi 1] ■ 1 LSSItTl iLT's rcfllKHl ill register thai person in terms oftliis Acl: Ltsrj

i ii) in lam s o f section 24(6) or (TJ notifying tliar jietsfm of the Commissioner's decision lo cjincel tmy rvjustni- tion of thai person in terms of tliis Act or o f [he Com- mj&ioiftx'i lel'usal to Cancel such legistrarinn: or

322 No iJ49!A ft .Vo. : s or io n

GOVLKNMtNT QAlfcTti 4 JULY JOtJT.nc AitmLnitLraEtnn rt ' 1115

MO, find yrfir Short title Extent of niucildidpiii or I’l-jical[rilij hi terms oi seet Ion -f4( 8 1

of rlie rninmksioner's refusal lo make a re- tuml: orj

>! in, ) i lJihliis! la EppTOV'c h

method for detanttnung the intio contemplated inscctinu 17(1); br

f|v) in lerms of Section J3(5| and ifth notify Inga mem - her. shareholder or (rustle nf :i lemlur lli.il lie is required to provide surety in respect of the vendor’s liability for tax ftVM time lo linn': or

[vij refusing lo remit, in whole or In part, any in term or penalty in terms of section 39(7}: t>r

<b> any assessment made upon him under rhe provisions of sec lit hi 31, fit) or fll; or]

i d any (direction or supplementary dimtion] tfcdiion made by the Commissioner .uiii ■jfiTed till thsl pervon in (cowof icctiou ?0A{3) Of 14H,

mny lodê an olijei'rion thereto with llie Cuuuiiissiouer] and

n’J tv the deletion of subsections (2). OA). Q \ (4) and (S),

Kepenl of seflions 33 to 37127. ?iix:liti!!s 33, -3.1A. .1-1, .ldiinil.1T

of ihe Value-Added Lax Act. L9yi. are hereby repealed.Ai lie nd i lien [ of serlion 39

128. SclIuiil M (if [111; VaIuw-Added Tan Acl, I!W1. ii hereby amended— fiiy by the substitution for the heading of

(he ibtluveiiiH heading:"Phi Lilly [:iili1 jNlerest) for fill!lire lo pay tax when due” :

__ Nfl Si-MA rt t a . i t m u

(jOV b ELNMtNT GAZETTE* ■* JLLV J01.’T.io: AdubhnuErjtlKin i r I 1 i'i 1 ]

Vo. nnd vrnr S h o r t i t i le F.flffll of ilium ill n fur ni' irpcnl\b> by [he 'UbiiiiuiH’ii fur Mibivcliuji Mi

of the ttrllitu ui:j 'liSi-cvUi'ii“111 (fo il I f any perion who i-.

liable for [lie payment of fas and itr t f f l l l i c d I n l l U l L t ? i l i t 11 p H Y l I I L l H f i l l

t i ie m a n n e r p r a r r i b r d in i in .i>

cofdancc \silh lhe provisions oinjctkm 14.26(1} or 2&. fkil> to vs; any amount o f such ta* within the period for tlie paymenl of such tax ^ptrdfiod id the -nid (pi’o^ sion Ik1 viiall] provisions. tin Cnmmn-sioner musl. in [add ition 10 Sllfll<JIII(AILII Of t a i , pBT]

15 o f the Ta* A ih im i'i^lnlimi A n. imjn>nL[— iii ]a penalty equal lo 10 per ceiu

o f [be said amount oi [ax[: nnd (li* trbcne paym ent of lhe said

:iinntiill uf l:ix is nciih1 on nr a f te r the first d ay of ihe m o n th foliow ins it if m ou th (Inn no; which I lit1 fit1 rim I :il- lowed fo r paym ent o f ttip lax ended, in te rest on ilie sntd:i i ii on ill (if (as , cliEciiI Lilt'd -il Ibc p m d ib n ) rute (bill suh-jee r to rhe provisions of seclion -iFAs for en rh mat)til nr p a rt o f n inoii111 in Ihe perio d reckoned from ih e snld lir^t day.

(b) \V3ieri* any annum I of la s has In relation to any t a \ period o f any vendor heen refunded lo l he vendor in If m s of the |n o ' i- sions o f str lion J~l: 1 t, n :nl " llli section lf t J k or has lit relation to Hut period betn set o il Lipaimt iui[]:ij(! la s in term* nf lhe prow- sion* of section anil suchamount was hi whole or In part not properly refundable to the send or under section 1(x5|, so much of such am ouiil as M as noi property so refundable shall for the purjHJses o f p:ir:iurji|i1i ffljiit be deemed to an amount of lax

JJA NVi Wfll (toVERMMtivi GAztrrt 4 jo ly uiiTax Admmutralicn Art. T013

No. niifl vrflr Short itile F.Hi'id of :i mi'ii lIi in'ijl ni' repealrrguired to be paid by the vendor vrirhin the ‘aid jjeriint and for [be purposes Li J piiriistniph iffriin, :m amount of t.tx required to be paid hy the vendor clurins. tin1 pi'iiml ill uhlch [lie re hi ml tra* rnndej.

le . by the deletion of ûhsevliou (T).{di bj die sdbsiitutiou for lubvitliou ■' i '

ni ihe follim'inc Hihiectimv,-(4) W h eie any importer of

iecoiIs vJuch oii: required <o I'-; emeted under tlie Omoins and txcise .\ct. fails to pay any nmOnii! of IlIl1. payable in rcspeef ol ihi: importation of ihe poods oji ilic itflEe ihi] \iliicb llie uinn!' arc mi- Tered under The said Act for home consumption in the Republic or ihe dam on winch cu-sium* duly is payable in renns (it' The said Act in respect of ihe import! [ion or. il such duly is not payable, ihu tin tv on wliicli iT would be to payable if il had been payab le , whichever dale ia later. ihu Cduimiasiuiia mi ist ill accordance villi C hatiter 15 of die los AdmiilubalioD iVt, impose on tliat importer | shall. lit odd it ion to such am mini of la \pay—irtlj ,i penalty e((tial lo 10 per cent

of thu said .tiuoiuii of luxl: and

tb i whrre piumrul of tlie said ii!not)nr nf lax is marie on or after the lint dny of tlie ii n ii nil fnlltmiriu! tin1 m on III durtno wlileli the period allowed for payment or tlie ?n\ ended, inlervM on llie sniil amount of Ijh, cakukited at the prescribed rate rbnt subject lo (he providoiK of w - riou 45.41 for each nioiilli or pan of a mouth In Ihe period reckoned from the ■'aid ftrsi day].":

J2S No JJ49I (^VERNMEN’l CiAZt r l t 4 J ULY LLU12Act .vd. :s or 2 0 1 1 T.ix AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short title Extent o f am endm eni oi' I'cpciil

(e) by flic ijubijiiiuiiun lor subsection (3) [if 1 lie tnl hnvi rm substt!ion:

“(5) Where any [jei'sou who is liable for lii; payment o f tax tnit to [lay iniy slitililiijI o f aucb Ins on lli-- dale nn which in tenn i o f (he Customs and Excise Acl. Liability arises Joi Ihe payment o f ilk: excise duty nr envii'oiunetstal levy refeired io in sec i ion H' i 'Ma), the Commir,- iio n tf must. in uccurdioljiLt: wiili Chapter ] 5 o f the Uiit Admitiisna- fion Aci, impose on ttmt person (sllflU, ill field IllOii to SILCll i 1 III 0 LI lit nf lax, pay—fa)] h ]'L‘:i:ilr\ lm|ilh! Io LO jier ceiil

of die said amount o f isx{; Ellld

(b> f f h r n payment of the said amount <hi lax is mnde fin nr alter tlie ttrst day o f the moiith following tlie moiith during w lild t the period a llow ed for p an lie lit o f Ihe la.v ended, interest on lliat amount nf Lax, m indm ed aillie [jrc5i riljnl r:tte H but snL>-Ject to the provisions o f serlinn 15 A) for raeli iiinnlh or part of a monlli in Ihe period reckoned from the said first dnyf.": imd

ff) by the deierinn o f subsections (6) (6A>, (7) juid (8>.

Repeal o f seetion 40129. Section 40 of the Value-Added

Tux Aet. 199J, is burubj repealed.Repeal o f section 41A

130. Section 41A o f the VaJue-Added Tax Acl. 19? 1. i i hereby repealedAmendment of sec lion 41B

131. fvettHlll H R o f 11LLL W uu-Adllud l ax A ct, ty‘>l. is hereby amended by the subshftition for subiection (1) o f the following yubscclitni:

“fi t llie Commissioner may issuea VAT clas!> rating or a VAT ruling and in applying llic pvuviiiuiiH [leln ling to

.-UO Ni JJ49!Art No. :s or ion

GOV LELMMkNT OA/fE'J i 4 JULY JOIJT.nc AitmLmttraCtnn Jt rt ' 1115

\ f > . f i n d y r f i r S h o r t t i t l e E x t e n t o f a m e n d m e t i l or i v j i c a l

P o r t J A o l C h a p t e r J J 1 o f t h e I n e o i i t e

Ta\ Ai l,] iii n w rtu 1 o f die Tas Administration Aei, a VAt class nilhic 0 1 a VAT mluie itmsi be deah with as ii il WCrt Ji Eii■ nlitiu clistt mllibu ur n hi lifting private ruling, respeettiraly: Provided [liat(i) the pxoviiiqm ui’ [ s u b s e c t i o n s

(iJj'Jfi, ami (5> of sreUon 76L mid a c t i o n 76]' o r til? I n

c o m e T f i x A f t | sccliou 7 9 U V ' i i i i i l

!'jt J and (6t nf ttie Las .Admitiif.ua- rioii Act shall noi applv [a anv VAi thiii ruling pi VAT ruling;

i i; !■ jiii application for a VAT dnss tulini n r h VAT niliiiL’ in len[i<i {if llits section shall not be acceded by die Commissioner if the application Kia) iii for tin advance t a x nilinu

that qualifies for acceptance in tenivi of I w c l l o n J1AJ Chapter 7 oI'iIlcTmx Aduimistiatiuu Act: and

r bb) falls within a category of ral- itiii? pieseribed by llic Minister by leerlation for which sppli- tiuions for ruling in renn-i of this section m u y noi be ac- ciqiled.’1.

K f i > c f t l o f s e e t J o r i * 4 2 m i d 4 3

132. Sections 42 and 4j of tlie Value- Added Tax Acr. 1951, aie hereby repealed.A n K U d n e i i l d fsn t l D i i - L 4

133. Seel ion 44 of llic Viihic-Added Tn,\ Act, 1991 is he why amended—• tn by ilie deletion of Mibsections (1 1 a n d

Q).iin by i l i e s L i l h - i l i l i i l m n . i n - - i i t i vjkjt i m i ( , 1 ' f f i ' r

tlie wordi preceding paragraph im of tlie followitif; avoids:

“ T i l t ; Conuuissioiiei dtall tiol make a refimri tinder | V i i h s t T l i o u

(2)| Cliapfei 1J ol the Tax Adimiiis- iru lion Acl unless—

ii’j hy ihe deletion in subsection f . - r ) of paragraphs f n) and I b):

id) by llic deletion of subset:l i o n s (4), (?) and (rij;

J)J .Ni i.MS! GOVERNMEKT GAlfcTl i 4 JULY JO[JAft .Vo. 2S or 1011

No. an d v ra r Short lifts' Fvtejil o f MiitBdmMll or rrpral

(cl by llie substitution for subsection {!) ut’ 1 lie fnlLinvirm .11 ilistc I inn:

“(7) Where the vendorhis failed to tum ish a le tm u fttf aa y tax period as TeEjuiied hy this Aet. Ll i-l; fT'rm i- tni.wioTier n a y withhold payment o f any amount refundable To ihe vender under [^nbscciion (1) o r any a i in mill o f in t e n d [i:n ;ihh- to the vmdor hi terms of section 45J -ccliou J 90 ut'iin; Tiix AdntniiMm- rinn Aci luirtJ the vendin' ha.f firr- nished such return a? so required.":

(fiI hy the deletion iif subjection (S). and ‘ ii J b y [hi; addition t f l g r tub«iCtidil (9 ) f lf

llie fi ill nw i! ll; subsCChODL~(IU} Hie amount detemimed

under section 191(3} o l the Tax Administration A d iiiim btf :ie- connied for a* provided in necdon 1615 1, but any rehmdalile amount iiiTesiJeelive o f ihe guru it mil thei'eof) is r-eti mdn hJ ii in till I to a vendor m respect o f ii-s fijiaJ tax period t>n tliu ciHiccllinion of its

______ I'eci-Sti'arion as a vendor."__________siiDsiiimigii or section 4?

1M . Tlie VaLuÂdded Tax Act. 1991, is hereby amended hy llie substitution lor section 45 o f ihe following section:

'‘Interest on delayed refunds

4 5 . { J J W l l C i e l l i e C i H l L H H i i l i i w H i l

does noi witliin the period of 21 business days after the date on wliich theY l ' H l I l i ] ' * IV U U I L i l l 1 L > V L ‘C | o f i l I [ IX

period is received hy a ivAKS office refcnd any amount refundable under the Tax Aiiniinrsirtiliuit Acl. tuleie1-! will be paid mi such amount in accordance wilh Chapter 12 of'thai Act.

12) Despite llie p tw i stons ol' C luster 12 o f the Tas Admintsl ration Acl. if a person fails to

JJ4 No Ji49l (^VERNMEN’l tiAjCL'E'J t 4 J ULY LLU12Act .vd. :s or 2 0 1 1 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short t itle Extent o f amendm ent oi' rrpral

(a} without came submit relevant liinleiial. by SAR?i for liui'poses o fre rif ica n o iL inspection or audit o f ,i refund m accordance willi t" 1 i / l e H5 ol' ibe Tax AlLiiiil- tsTrarirtn Act: «r

'bi furnish SARS in writing i'. lHi Mf- tieu k n o f llie seemim requited in terms of -ecu o n 1 tn enable SARS 1 0 tiansfei ,i refund to that account,

tin interest acc ru es on ihe amnuut refundable for tlie period from the date that—-fi) ifl rtsfrecl o f m i1ftM iH (irA i)hllie

HsleVSnJ iiLMlcnril Was required lii be submitted; or

(ii) in respect of subpas'aîiapli lb). the refund is iiutliurisc:!.

mini rhe dare thaT tlie person submits die rek^’aqt materia! or bank account piirLiuidniis.

Repeal of sectfon 45A135, Section 15A nf tlie Value-Added

Tax A d , 1991, i i hereby repealed.A in el Litii Lei it 1 hi .serLU® Jh

136* Section 46 o f the Value-Added Tax Aci 1991 , S' herehv amende:!— f (Tj by the substitution for die words

preeeditiii punjpaph ( a > o f the fo llowing words:

J‘Tlie natural person who (is Jl resident orj resides in the Republic responsible J'.>j ihe duties nuposcd by th is Act—

by the subsFLtntion for para graph in)

of the following paragraph;“ la 1 Oti Fin v Duniptny si mil be ihe

public officer thereof [c o n templated hi section lt>l of the Income Tin Act] or, iuihe case o f any com pany which vi placed hi liquidation. llie liquidator thereof.", and

fr-J by the deletion ol the pioviso.R e p ea l n f se c tio n s 47 . 4S a m i 49

137. Sec/Saia 41, 4S and 49 o f ihe Value-Added lax Act. 1991. are lienehy rep ea led

Art N*. I t otlnllGOVbELNMkN! OAjSETTE, i JLLV J0[.’

T.io: AliibhniiErAlKin i r I 1 n 1 1

No. niifl vrflr Short iti If F\U 'iil o f ni' i'v-]n-:it

A n eo itu ie iit o f ifftk m 5U1JS. Seclion 50 of the Value-Ad Jed

T:l\ A cl 1991. is lieieb> amiiKkd by ilie*i definition Lin 1 fii o f llic foUowme subsection

"(6) Notwithstanding tlie f>i*:idiJLs |h[<T\isHHi- of lliis tedim . Kin' [dirpr-tiuu] dec toon or determination or the Comnus-sioaer made under vet lion 1 ? or 2" in rop cct o f the Vendor i-cfL.n«l tniii *aibiertiDH i : i ofthi^ section shall, tioi the purposes of ibis Act. apply

to eaeli *.yaia!i; ttniopiivc branch or division of the vendor win; Ii i*! separately remslered under <hi>. section Provided that where a [dirrcluuil decision oi dclctminiilion it nmdc by11 Ll." <7 -191J 19 L li S - .1 1 J9 LUT L m i l c i M i l C 1 i 1.1] 1 ( ! )

o f êciion 2^ winch npplLe v in (tspecl o f any such separate euteipiise. branch oi' divudati. [his subsection iliull uni be construed a ? , preventing 1 lie < 'ointliis- siotier tioni making £ separate | (UrPC- liuiil oi detcrniinmiiin uuda subsection (-1 Jot die said section in the cuuunstances contemplated hi that subseeliun in respect 01' any other separate enteri>rise. branch or division ot the said vendor "

A uifiiiln itiil o f sect Soil 50 A

139. Section 50A u f die Value-Added Tax Act. 1991, is hereby amended—Ml by die substitution for subsection (1 )

of the following subsection'iL( l ) NotwidisEandmp: [he ptovi-

-,hju , ticm 2 1. i f tl ii.' i T t p i [ii n i -

sioner makes a [di ra tio n ] decision under ibis section, tbe persons nauictJ in the [ dircf lion 1 dcuuuni shall he deemed to he a stude person carrying on die activities o! an enterprise described in tin: fdirKTtiuu] decision and that person shali be liable to be reyisteied in lopoB of section 23 with cQvcl ifrom the date o f tlie fdim~li<iti} decision or, i f the Ubrt'vtionj decision so provider, frtun iucb date as Timy K; spcîfieil t] win

A ft >--0. 2B or M il

GOVbELNMkN! OAjSETTE, 4 JLLV J01.’T.io: AdjibhnuErjtlKin i r I 1 n 1 1

Vo. niul vrflr Sborl iljlc F.flffll of miki ii ill ii Ln ■: L of rrpcnl\b> by tltc iiiboCluiiwL sii su b sL tlkn i ' 2 i

fitr llie ’.mulLi |irecetbnir |nuninvi|ill ml oi ihe fo llo w in g w ords-

"Tlie ConmiLwottei ■-liall not iil.lL.-j ji (dirwtifpnl il^ciiiun muki ihis secrion naming .my p f lv n unless be or she is satisfied ":

l a b> tlie subirliiuliuii in tutnoclioii (2) fot pmagrapt) { h t a t the follow)n; paragraph:" i b ' dial tin: ac liv itia m lbe collide

o f which he or she nukes or made those taxable supplies ibrai only part o f colaiD aCtJVt-

u l i id i d m u ld p t i^ id ly lie ■ nuai lied as lln )s t o f |!lu hii 1 lji -prise described m lbe [dlrpr- tionj decision, the orliei activi- lies o f dial cntaprise be in a carried on ar that lime nr previously by one or more oilier pctsoos; iiml .

(iii by the ^lihMimiion for subsection (J) o f the following subseclion'

“ (3 } A [r iiiT d io n J d jjo m iii tiude under this section shall he w n'td oil e:itli cif tlie p tn f f lt named ill i[.'\

fe.i by i t a HilbgtitillTcni in tuliKBCtiaii l-I.ifor (be word i preceding paragraph i r-rj o f the following wonts:

~Wln3c, after n [direction! deci; sion has been given under this sec lion specifying a description ot the enterprise. it appears to tlie C uninuisioner lb a pervuu ^ho was nor named in rh.ir [dirtrtmn] dec rsiou rs making taxable supplie:. in [he cuuric or luilhcTiutcc ol aciiviries which should properly be legarded as part of the activities of that cnlcrprisc. die Conmu-'iouci May iiuLl: :iml im tim him nr lui a supplementary [rlirwtioii] decision refemng lo ihe earlier Idlrtf- rioill dccisiou juid die dnutplion of the enterprise specified 111 it and adding dial person's name to those of Hie persons named in die curlier [ilinrlioitl decision with effect from

uti Nfl !i-N| ftaV kfeN M EN l QAjtETTE, ■* JL LV J01

M t fin 19 a i m I

Vo. m id ip n r S t o l l title F Mi'ii I o f :inii iidini'ijL n r rep rn l

\Ji b} the substitution iui subjections (5), 1 1 n i |6 " j. r e * p c c t i * s i v. i i f I h r f o l h m m j

H i b s e c i i M u :

*■<?> If. i m m e d i a t e l y b e l u i e a

[ d i r e c t i o n ] J m i i n i i ■ m c l i u l m v it

s u p p l e r s e u i a r y [ r h r r r l i o n j d r e t -

w o d j i s m a d e u n d e r i b i s s e t N o i l

t i n y jx tv -M ] t w i n e d in t l i e [ d i m i i o n ]

d e c i s i o n t s r e g i s i e n H t i n r e s p e c t o f

t h e i.isnble s u p p l i e s i n . i d e by l i n n oj l i e i n i c o n t e m p l a t e d in ^ i ib - 'e e t i e 'u

( 2 ) o r { 4 ) . h e o r d i e s h a i l c e a v e t o b e

l i a b l e t o b e s o r e g i s t e r e d w i t h e f f « l

l i o iU —

(at the date with effcti bom whichthe Mimle puThcub M K tiniid became liable to be re tittered: or

(bi die dat e o f the [d Inec H on J decision.

tv lii die ve: ilaTe ts ihe laier(6) 111 relation to ail eiilejprise

specified in a [direction] dgcuiuii (indpdigg a suppltrnentary [direction J decision) under tfii'i section, the persons wiiticd in »licIj Irtlrcr- tinn] decision. who together are deemed to be the liable |)tiw n , tire in subsection* 17 1 mid i &: re tired to s t! i t h e m e m b e r s . ” '

i j l by the tubitituKaii in subsection O for rhe words preceding paragraph <tti o f die fu ller insi wstdfc

“For ihe purposes o f tbit ^ct. vi here a [ilirvrliouj decision is nude under this section ". and

l!il by the substitution fui paiainajjli In) o f subsetiton ( 7 ) o f the follow ms para&raph:

“ la) the person carry mji cu llie enterprise specified in tlie [ direction) decision shall be i-jitiU ib k in such n.mie a* t h e i i i h i i I m : - l i m y j o i n t l y

nominate upon compliance with the provision! of section

Ni JJ49I (^VERNMEN’l OAZt r l t 4 J ULY LLU12Act .vd. :s or 2011 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short tfrlc Extent o f : i li ki'i 11] 11 e l' i) I oi' rrpral

A m endm ent ol' section 5?J-10. Section 55 o f [lie Value-Added

Tax A cl, 1991. is hereby amended—(a) by llic Mih%niiilioii lor the

preceding paragraph ( t i t o f tlie fo llowing words;

J,[Fvrry vrm lnr shall kcrp vinil Itonks nf account hrhicli hook*, o f actoutn . uliene gen^r tiled hy m enus of ft computer, shall lie retained in 1 tiE* form <if n com i)iiler print-out) or otlier records ns tuny enable iiim to oltserve (lit1 reqtilfemt»jiLi ihf lliis Act and enable the Cofltmhs llOuer to satisfy Iii 11 heir lliiil lhe vendor 1ms observed su d i rc-ffllilfHICIlIS, aild] In uddilimi lo(he record Mequired under Part A of Chapter -1 o f the Tax AdniiLiistra- [ion Act, every vendor filial 11 must, in particular, keep tlie fallow ins records and documents!— J:". and

(b) by the deletion o f subsections (2), (J) and (--11.

Repeal o f stations 57 lo 57D141. Sections ?7, 57A, 5 1 % 57C and

57D o f [lie Value-Added Tax Art, 1991. are hereby repealed.

A m endm ent of see lion 5S142. Section 5S of the ValtifcÂifcfed

Tax A ct, 1991. ii hereby amended—(rTj by tfie snbsiimuon for the woids

preceding paragraph in) r>f rhe fo llowing words:

".Any yen>on who willullv and witliout just cause— Mi

tb i by tiie deletion of paragraphs (t>) and (Ch

if! liy fbe hiilifitilutmn Ini p;njigisL|hli tf l ) o f tlie following paragraph-

"fi t } fails lo comply with tlie provisions o f acciton 14. [or sect inn 1 2K(1) or ( 2 1 nr [section J 39 [or section 3DJ; or“ .

344 Ni JJ49!A rt .Vo. : s or io n

GOV LELMMkNT OA/fE'J i 4 JULY JOtJT.nc AitmLmttraEtnn Jt rt ' 1115

\f>. find yrfir Short title Exfienl or : ■ n ki'i 11] 11 e l' i) I oi' 1’i-jicfil

f cl) by the dvkuott oi paiii_:jntph> [fj to \ i}\I'r J |i\ iIil' Miltstiimion in hii |'yj Ini

subparagraphs (in arid (iii) o f tlie following subpaiapiaplis.“ (ij) [fcucnvhigly nnd wftfuitit lnw-

tlll e\llLSH (lln- 'lllll'H It'll of proof or wliicli simll be upon him)] ii id u d o in ur adds Lo die pdcc or amount charged ro die recipient in relation to such supply any lux, wliete in fret no rax is payable in terms of this Act; or

<iii> [knowingly mid whJioul law ful excuse (the tw id iii of proof of svhtdh si mil he upon liim ij includes uj or adds: to die price or ammtffl charged to die recipient in fetation lu such supply any tax in excess o f The tax properly leviable under this Aut in fcppnul o f [1ill valiu: ol' such supply; or":

i j i by the substitution for paragraph :ki o f the follow mu puraurriyh:

“ fk) rknnwiii^y nitil wit humlimTiil ( .\ i u3c (<lir b m d d tor proof of w]ikIt sholl lie upon llillli] l:iik hi u [imply with die provisions o f pat'a- iia|.ih (i) o f tlie proviso to section 201 If oi piinipitpli (A) o f ihe proviso to section 21(1): or ': and

fiJ by the deletion o f paragraphs (I), <u >- {a), (p) uitd tq}>

Repeal or sections aikI 60143. Sections 59 and 6f> o f rhe Value-

Added Tax Act. !9 9 tr are lieteby repealed.Amendment of section 61

l-l-l, Section fil o f the Value-A tided Tax Act. 1991, is hereby amended (a} by lliu substitution fur subsection i 1 i

o f the foil tw in s suhseclion:

.<■» Ni JJ49!A rt .Vo. : s or io n

GOVLKNMtNT CiA/t'f'J i 4 JULY JOtJT.nc AitmLmttraEtnn JL rt 1 f] ] 1

\ f> . f in d y r f i r S h o r t t i t le E x te n t o f n iu c iiilm iT ii or I’l-jical

W l io c in rvspL'ei o l an y suciflly tttfik by )i vatdor, ihe tm tiar h sy in consequence of any fraudulent action or any unirepreûtationliv llie i ijci| hl‘[]I Lil’ lluj n | i ] j h itiCqr-

reclly applied a late nf /em |>ei' cem ol treated such supply a-i beins: ex- -jmpi hum tax, the Canttttn&iona may, notwithstanding anylhmc: fo the cOQiraty contained in this Ant. i m t tui aiswdHiimt upau rite iceipi- eut for the Aiuutiul o f tax payable, in aether with anv interest and penalty [ot1 in td T S t lltrit Lins become [K ivatile in t e im s of se c ftn n 3 0 | ilu ! 1ih£l btuecmu fi^v.thli; in tfltaw nfd’tiapter 12, 15 or 16 o f rhe laxAdtgiflisnation Act, &s she case mayb e. in icypcei ol bnuli iinxmuif. mid.1IL HUMUSf Mil'll JLSWI-iSl Ill'll!, t lie

C o n ro ife s io n e r m a y e s t im a te tlie

n m o n iu o n w h ic h llic t a x is p n y - : ih le ] ."": an d

lb) by the deletion o f subsection (.21.iit'[hL':il of se i’l in u s 6 2 , (v. , 7 0 m ill 71

145, SeL'liun1! 62. 63, 70 hiwJ 71 o f liie Valne-Arlded l ax Act, 1991. ai£ hereby repealed.A iiil 'Ih Ilui' iii o f se t 'l iu u 72

1-16, Tlie Valuu-rAddeti Tax A c t. 1991. is hereby amended by ihe ■iiihsrinirion tor section 72 ol the fallowing section

" A i r a y g c m n i t t iiiitl [ r lliv c tlo iis ] rtecl- d u n s Lo o v e m n u r d iffu 'u tries, mini unlies o r iu t tn ig m j l j e s

72. If in any case the Couinussioner ii iisli>Jioti dial in cuusCqUCUcC ol' the maimer in winch any vendor nr class of Vendors c o n d u c ts his. her or their b u s i

n e s s , tiiide o r ucinipjiiiuiL diflim illics.

i4K Ni JJ49!A rt No. : s or io n

GOVLKNMtNT CiA/t'E'J i 4 JULY JOtJT.nc AitmLmttraCtnn Jt rt 1 f] ] 1

\f>. find yrfir Short title Extent o f amendm ent or rrpral

bnoiuHlics or incoa^rwlicj 3 lh \ c HJiseilm' may aiifte (ttnratl) Ln llic W tllk ^ F fl of any of the provisions o f this Act, the Commissioner may make an arrauae- tnrnl ui fîve ft direction] dL-uEsmii ni to—fflj rhe manner in wliicli such piovi-

sions shall be applied. ot ibl rhe calculation nr payment of tax or

rhe application o f any rare o f zero pci c a ll or any coemption livm lax provided in this Act,

Li tlie case o f such vendor or class of wndors or Liny p e iw n transacting 'Ailii sueli vendor or class o f vendors as npptjii-K lo Overcome -.inj 1 l lli: lli lj 111 [il- . anomalies or incongruiries: Provided that such [(IfrfCtiOLl decision or ar- riinaemenl sk ill not have the ufleci ol' substantially reducing or increasing flie ultimate liability ior tax levied under tliii Acl.".

Act No. 3-1 o f 1997 Son Hi Aft-lcau R evenue Service A cl. 1997

Amendment of Ejection 1

147. Scchoii 1 o f lhe Soniii AJjiuuu Revenue Seivice Act, jyy?. is hereby amended by tlie substitution for lhe deti- uilion o i “rcveirnc” ol' llic following definition:

11 “revenue" means income derived from taxes, duties, levies, tecs^, cbarges, additional lav] unci :my otbtr cl[[>itL.-y.-i nnj)n>ed in Il-cihs Lit' Icuisln- tion, including penalties and imere« in coimectiors with such moneys:".

Act No. 9 of 1939 Skills Development Levies Act. 1999

Aiueiti1inei.it o f section 1

14S. Section 1 of the Skills Development £*tries A ct 1999. is hereby amended (a) by lliu aubstilnUlnt for die Jefiniiiou of

"Cflrniriissioner” o f rlie fnl lowing detuiition.

“ ‘Coiimiiwioner* means the ( ’on in m y oner for rhe Smith African Revenue Seivice appointed in

/.ii) .Si JJ49!A rt .Vo. : s or io n

GOV LKNMtNT OA/fE'J i 4 JULY JOLJT.nc AitmLmttraEtnn ^ rt ' 1115

\ o . f in d y r f i r Short title E x te n t of aiuondihfrii or i r p c n ]

L a m s ol' section 6 o l ' Llie S um iiAfnt;m Revenue Sen. ice Acl. J9V7(Act No. .54 oi' 1 997 J. or the Acting Commissioner deîftiiaied in termstil'ncelum 7 o f llwl AlL.” .

{ h i hy ihe in.ieninn after rhe definition of "Skills Development Act" oi ihe following definition.

■Tax A d m in i s t r y l io n Acl*

means tlie Tax Administration Act. 2011:” :

frj hy file reiiumberin& o f section 1 lo s e c tio n 1(1 !i: a n d

•/I) by llie insertionaiier subsection ( L i oi llie fol low i n n Mibêc I im i .

" ( 2 ) tJjile im I Lie iMjiile\l Uuli ll:h 11-.-,otherwise. a word or expression roivlncli ft meatdnjt lias been assignedin llie Tax Adirriutsiruiioji Ael,beats ihat meaning for purpose* o fthis Act."

A n i i i r d m r n t o f srrlimi 2

J4 9 , Set Lien 2 oi’ tb£ Skills Develop* oient L.evies Act, 1999. is hereby amended(a) by lbe yuiisltiillticHl fui' subjection i.2>

o f the foil owing suhsecrion:“ (2) Tise Commissionei must

minimi ster Lhe i* o \ isions oi' llie Act in so far as il relates io the collection o f [lie le w payable to tlie Commissioner in terms o f [ins Act. In u cC in iljiiitl; uilli [he B m v jg jflfltn f ihe Fuji A.jfcielr!l :-[]■ :-i 11 lt-tk A el.’": an d

i b i by I lie uisen ion alter subsecti on ( 2) oi the Loltowiiiw subseeLioir

“ (2A) Administrative teîm'e-ments and procedures for purposes o f llie performance of any duty.power or obligation or rhe exercise o f any riaJit in leims ol'this Act are Lo the cxlcul not rcmrlaicd in ihi>Acr. reaulated b y the Tax Administration A ct.” .

A m e iu lu r e r i tHt* s s tU w n

]>U, See Lion 6 o f the Skills Development Levies A cr, L999. is heieby amended<a/ by tlie substitution for subsection £1)

o f llie l u l h m u i j siili.HeelioTi:

■'( U Subject to iectiou 7. eveiy employer mnsi. nor laier than seven da vs. or Mich longer period as lbeCoHuuissionei' dcLcxmmes. after

» 2 N i J J 4 9 I ( ^ V E R N M E N ’l C i A Z t n t 4 J U L V 2 U 1 2

A c t . v d . : s o r 2 0 1 1 T .t k A f t u u n i t f r a C t n n A r t , T i l 1

Mo, f i n d yrfir Short title E x l t l l l of amendm ent oi' repeal

[lie cikI oJ each moiiih in reaped olw h i c h l l i e I t Y y i s p i y j i l i l c , p : : i v l l i e

!evy to die f-’omuiissioiieL' Jiii Ihe m a n w r mid] within ihe period dulunil i n c i l i n llii'i Atil. " mul

\ k > by rhe uibstitntinn for jnibn^tion f2j o f the fbllowiflf, subêciioir

“ (2) An employer if nisi [. noi laler lliau .seven diiys, Or nurh longer period a* the ConuuLs- sioucr d eterm ines alter (lie cud of m i ll niMiillt in ntqjtsrt o f wliirli ihe levy Js payable, pay tlie levy to the Conmrissloufr and] i o -

iethcr with [suclil payment o f llic l e v y i n [ e n n s o f siibstu!i o n flJi n b u i l t 3 J^tnlemenl—

(a) I n surh T o n u as the Comruls- sioiicr may require; mid

(b j refleeiing the ninmmt of llie levy due by that employer mid raulaiuiiift such other in tors n:tt Lon as ihe tiiiiin iis - sloner may require] return.,L

Repeal (if section 7A

151. Scciiuu 7A of [lie Skills D e\dup - niem E tv ies Act, 1999, k hereby regaled .

Amend mcul o f sccTioii 11JJ2. Section 11 o f die SkDb DeveJop-

[jlulii Levies AeL. 1 9 9 9 . \-i hereby amended—( a l by cJie substitution for subsection ( 1 1

of die following subjectionLJ( I ) If i m employer iiuls Lo pay a

levy or any portion rheieof nil ihe Iasi day for payment thereof, as conlemplntcd l i ] section 6(2) or 7(1), H i L c r c K l is jmvnhle o i l iIk- ouManding amount [:n the rale contemplated paragraph (b) of llif dcfmirioit o f 'prescribed rate’ hi section 1 nf the InrniiicTaK Act, caleulmet) from the day following [hat Iasi day for payment to the d;iy Hint payment Is recei\ed by ihe Commissioner, SETA or approved body. as the case may lie j in accordance with the pro visionsof Chapter J 2 o f die lax Administration A c t . " ; and

(bi by die i LLlm: i ul' Hiibiiixtidu ('111.

Ji4 No JJ49!A rt .Vo. : s or io n

GOV LKNMLNT GA/fE'J i 4 JULY 2012T.nc AitmLmttraEtnn rt ' 1115

\ o . find yrfir Short title Extent o f amendm ent or irprn]

A m endm ent ol' section 1215J. Sett]dii 12 o f the Skills D evelop

ment Levies Act, 1939. is heiebyaiiLEiided—fdi by die substitution for subsection ( i )

o f The following subsection:" (1 i Subject m sulmcctinn (2), if

any levy remains unpaid after ihe last day ior payment thereof a?, coiltatt^llcil in section € 12> or T 1 1>. the Closmni dinner must under Chapter 15 o f tlie Tax Admin- isLmlion Acl. impose a pen nil y of 1(1 pi:' Lem of Thai unpaid amount [iv j>ayiibit1 in addition lo the ill If rest rai i tern pEa led in set lion 11].'%

(l>j hy tlm iiib'itiliilimi fur Mil >Si.v turn [2)o f lhe follmviog subsection:

“ (2J Tlie Commissioner or the exec til it e officer o f ilie SETA oi apjtrnved body, as rhe case may he. may I* lim in g due regard to rlie d rc tu u sta a tti o f ilie- c a s t j renJi rhe penalty or any portion Thereof imposed by subsection t 11 in accordance with tbe p iw rsions ol'Clmp- ter 15 nf ihe Tax Adininihiratinn Act."'; and

(c) by the deletion of subjections (3). (4)hi id (5).

Repeal of section 13154. Section 13 o f die Skdk Develop

ment Levies Act, 1W9. is hereby repealed.Amendment of section 15

155, Section 15 n f rhe Skills Development Levies Act, 1999, is hereby amended by the addition alter subsection 1,2 ) nf lt]c Polh™ in" uitb-^cmiii.

“(3) A n inspector has tiie same powers aiibided ro a senior SARS bffieiiil. a SARS official or SARS under Chapter 5 o f the Van Administration A ct" .

Repeal nf sections 16, 17, 20, 20A mill 21

15ft, Section*, lfi, 17, 20, JO A w dZ l o f tlie Skills Development Levies Act, 1999, are hereby repealed.

.Ni J.'491Aft .Vo. :s or ion

GOVLELMMkNT QAlfcTji 4 JULY JOt JT.nc AitmLmttraEtnn JL rt ' 1115

\o . find yrfir Short liflr Extent of mutndihtiil or irpciilAcl No. -1 ol 2W2 L!hfuiploymein In-

iLii'fLurr Contributions A ct, 2(^)2

Amendment or section 1

157. ^cdliiii 1 [>r i lie UncjupJoytnr a it tnsarance Contributions Act. 2002, is hereby amendedUn hy llu i nlvhLitiLliciEi h>E ilij dufniilmii

o f "t si oner" o f Tlie following definition:

" 'C om m issioner1 means ihe Commissioner for The Siinrh African Revenue Sen'ice appointed in tumu oi' sruclioii 6 o f tltu Suulh African Revenue Service A cl, ] 997 (Acl No. o f 1W T i. or the Acting Commissioner designated in terms o f seetion 7 o f [hat Act;";

(It) by iIib tuAtiffifxi aftot tk‘ ^Soitkin of “rranweraticM)" o f the felkw ittg definition

■J 'Ta\ Administration Act* means ihe Taft Administration Act, 2011;";

(c) U v llie ten umbei in-.; o f Section 1 lu section ! ( 1 ) : and

the insertion of tlie following subscciion atlet mbauciiDD t l j j j

■ lfift Unless the context indicates otherwise, a word or expression ro which ii meaning hjs been assigned in 111lz Th\Adimmslrntimi A d liufii n

tliar meanhin for purposes o f this A c[.“ .

Arurodnrnl or srcrlon .11 5 8 , Seel ion i o f the Unemployment

I i W m O i a i O i i i i l r i b u t i m i H Act, 2002. i:n hereby amended—

'iu by tlie ûbstilution for subsection f 1) o f (he following subscetion;

“(1 > This Act must be administered by tfie Commissioner. m ac- eui'dunce with tlie provisions of lhe lay Administration A ct.” :

3S« Ni JJ49I (^VERNMEN’l GAitfcTt t 4 JULY JOt JAct .vd. :s or 2 0 1 1 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short title Exfienl o f amendm ent oi' rrpral

(b ) by llic insertion after subsuution ( 1 > ol [lie tiillin1, inn siibnectioii:

L,( 1A) Admiriisrtritty? requirem en t and piocedure:, I'oi purposes o f iti.- |kJTfihniisHicc o f HJiy duly, power or ohlieai ion or rhe exercise o f any i i^lit in terms o f this Act are. Lo the uM4.Hl not icuniiilud iu lliis Acr. repnlaTed !>v tlie l as Administration Ac!."i and

W> by the subslitLLiiuu lor subseulion (2) o f the following <;uh!-ectioii:

''t'2 t fTlie] In addition to section 9 o f lIlu Tax Administuition Auk and in accordance with scciiati 10 [if ibnl Act, [Ue i'ci]miiik.htoii l t Timy deiecare any power or assign any duty which relate* so the collection of-—ffi) contributions payable to die

Unemployment Insurance Conuni'-'jiouur in terms o f scu- tion 4J: and

0 } any information to be submitted Ly employers in tenn* ol This Act io The Unemploymenthmirauct (.‘om m iiii onei. ’'

Amendment of .u n io n S

li'lif. Suction S o f Lliu Unemployment Insurance Contributions Act. 2002, is hereby amendedfai by [lie substitution for subset [ion [2)

u f Uiu Ji>tl;m m<; Hiibscclioi]:“ (2) An employer m l , UmSIJici

with the payment [con (fin phi it'd J referred [o in subsection (f t , submit u [statem ent in such form as llie Ciminii^siiiiifT m aj rt'ijiiirt' Itndj return reflecting the amount o f the piiymcul hljJ such oilier particulars as the Minister may prescribe [by regulation].": and

f l ’i by the deletion o f subauction (3),

5MJ NVi Mfll (toVERMMtivi G A ztrrt 4 ju ly ^ u iiAft hi. Wat In II Tax Admmutralicn Art. T013

No. niifl vrflr Sborl illlr F\U 'iil o f .jilil'Ii dnii' in ni' rept-al

Am endm ent o f scctlon 9A160. Section 9A o f the l. uemplojTueiK

frunnnec Contribution A cL 2002. inIjtTdby j] [tended by die tidi^nn limit for subjection (I ) o f The folio wuie subsection:

"(1) jiihv employer ulm i- required to pay the amotuii nf ail employees" coctribuTioni ajid the employ'dL* coutribuliouri in revpccl u f every employee in lhe emplnynienl of th.it employer to ]1lte C om m issioner 111 im u s of ?rcliou 3 or to] the V ih.hi- plriymeiit Insurance ('nmnussioner in teim s o f section 9m i has failed to submit a statement as

required hi itjm s o f [section WtJi or] wirtitnj 9(1);

lb) hat furnished a remm as required in terms o f [section Ei2Al orf serfim F9f2A)l 9 |2 e bnl iIk Com- tnjf.ftk>ner is noi satisfied with the return;

( t l bus failed Lo deduct w nithliold employee*’ coil mbm ions; or

id) Ills failed to pay over any cojilribu-110 1 L> J'JilUL'ICd Ol it Ilh]LLLitl.

and such employer lias nor heen absolved from bis or her liabitines m Icm ii o f the provisions of tins A ft. the rcoiimiiissioner or (lie] liruaupkiy- meni Insurance (.'onm iniiwieif, Us Hie fiise may be.J may moke a reasonable cslimutc o f U;c Hiuuiml of miy contribu- I ion-3 due in len iu ol ?eelion 4 mid issue m ihe employer a notice o f assessmenl for die unpaid amount ".

ViiLrJiilnif nt o f serlitin tl>

l( t l. Section 10 o f tiie UnciiiployiucTii Insurance f ’onmhinions Act, 100J. is hereby amended(a) H til-.1 ûbstituliou for lubvecliun ■ 1)

of ihe fnllowtne subsection-"(1) jVn employer lo wIhmu ihis

Acl applies must iipyb' iui rtaisttm- uonroilie Commissioner its accordance with (.’liapiei o f (he lax Administration Act. or llic Viieni-playttfttU hiHiinmci: C M W l-lioner. [w hichever is uppliîblr to surlt h nplover In term s ol'

3 6 2 . S i 3 J 4 9 I ( ^ V E R N M E N ’l O A i t n t 4 JU L Y 2 0 [ J

A c t .Yd . ’ S o r 1U1I T.tx A ftu u n itfraC tn n A r t , T i l 1

\ o . f i n d y r f i r S h o r t t itle E x t e n t o f n m c n d i n e m o r r e p e a l

se c tio n 8 o r 9 .J i n ? ) i t c h m n n t i n ; n u !

w i t t o l s iiL 'h [ i c i i i n ! n% D U ty h e j n c -

iiertbed by th e [ C u i i i m i w j o i i e r ur} U nem ploym en t In su rance C om - n i h i ! n i i L ‘r [ , r i s [ i r r l i v f l y ] . ' :i c itl

< h i b y ihe d e l e t i o n o f s u b s e c t i o n (2).

R ep en t n f s e c tio n 12

162, Section 12 o t the U n em p lo y m en t T u m r jm L 'i : OmilnlmniHiK A c t . 2 f J 0 2 , i*

h e r e b y r e p e a l e d .

A i n e u r h n e n t o f s O r t i o f l 1 3

163. Section I J o l [lie U n em ploym en t Jii 'iLhhhlc CoTilriliuiuins Acl 2U02, U hereb y am en d ed —f h i by die ffuhrtiration for suh sec tio o ( I j

o f the fo llow ing subsection“ 1,1 1 li1 nay co u liib iiiion rcm u iiu

unp a id a fte r tlie last day fo r [Hym en! th e re o f as con tem pla ted in svclion S ( i ) o i 3(1 J, t l i e C o m i n i i -

utoner m u st, u n d e r C h ap te r 1 5 o f r!ie lax A dm im srration A ct. im pose a p en alty o f 10 per ccu t o f llie n u p r b i i i j m n m n i | i s p a y a b l e i n n d -

d i l i o n l o I h e i n l r n e s t c u i i l e i i i -

l i l r t t e d 111 E f c t l o i ! 12 ,j bu t tlie C o m m iss io n er o r lhe U n em p lo y m en t Insurance ( 'o iu m iss to n e r. as the case m ay be. m ay [. h a v in g d u e r rR im l to llie c ircm iisE tinces o f l h e r : i s e , l rem it tlie p en alty o r any po il ion th e re o f in acco rdance w ith the prov isions o f tL linp ter 1? o f l h e

Tfl.t A d m in istra tion A c t." , iinti ( h i b y the de le tion o f subf,ecSofls ( 2 ) . f.Vj

and (4).

R ep en t n f gKtiQO 1-1

164, Sectiun 14 o f Ihe U n em p lo y m en t In su ra n ce C o n tribu tions Act 2002, is he ieby repealed .

.■<64 . S i J J 4 9 I t J O V t f L V lM t M CiAZtn t 4 JULY J O t J

Act .vd. :s or 2 0 1 1 T.tx A ftu u n itfraC tn n Art, Til 1

Mo, find yrfir Short title Extent of niuciidniciii or I'rpra!

Aniendractil or section 1?165. Section 15 o f die L:demploymttit

IijsLii'nuuc Cunuibinituis Act. 2002. islimebv oilierntcil Ftv die .liklilior] jifltrsubsection (J) of rhe tblio’ivins; subsection;

L'( _i Ail iusrieekir Ii;ls llic nine pOW* si's afforded t o n senior SARS official, a SARS oriici^l or SARS under Chapter 5 of l!lll Tax Adiuiiiiitritjoii A cl."

Kepe.ii of section 17ItilS. Section 17 o f die I neniiiloymeut

Insurance COnMbuiious Act. '002, is hereby icjjejded.

Art \ t t . U of 2007 niumojid Ev[inrl Levy (Administration) Acl, 2007

Amendment of section 1

J67. Section I o f rite Diamond Ex|wrr Levy |[Admiuistiadon} Ael. 2007. is hereby amended—‘.ai by tlie substitution ioi ihe definiiion

ol' "Com m issiuuci" o f Ihe lullim ing definition:

" ‘Com m issioner' iiaeaiis. ihe Commissioner for the South Atri-

Ill RllVJ1]11U Si US" V IU4 B p 0 h l l t l l 4 113terms o f section f> of dte Sioulh African Revenue Service Act. 199T 1 Ael No. 34 o f 1997). or [he Adims r a m m i^ im w designated in terms o f section T o f that .Act:":

(b) by llie iiusertiofl -iliet tlrc definition ol' “registered person** of ilie following definition:

,J ‘Tax Administration Act' meant llie Tux Adi lulus! ru trail Ael. 20]!,";

ic) by die renumbering o f secrion 1 to scctiou I £1): mid

1 r j b y d i e i i m n l i a l i aflpr m i b ^ C t i i l t ) ( 1 1 o f

tlie following subsection:“ (2 1 Unless tlie contest indicates

otherwise. ji word oi exuression to which a rue/wine lias been fissioned l i i the Tax AduiinisTLarion .Act beats that lucjiuinji for purpose's of lliis A ct.1'.

i6t, .Ni J.'49!A rt .Vo. : s or io n I .1* A ^n '.i n u h . r; r-n \ r I ' 1115

GOV LELMMkNT GA/fE'J i 4 J ULY 201J

\ f > . f i n d y r f i r S h o r t t i t l e E x t e n t o r : ■ li k i 'i 11] 1 1 e l' 111 o r I ' c p c i i l

A m e n d m e n t o l ' s e c I i o n 7

168. Section 7 o f rhe Diamond bxpoit Levy (Adi»iiH*traLiuu) Act, 2007, ih hereby amended—

fdi by tlie ûbsrimtion in subsecriou ( i) for tlie words preceding paragraph i a) o f d m I'nUi m iiL j2 words

lirEve|*v] In addition ro the records required under rhe Tax A f t m i m t t l n i l i n n i A c l . C V t F V l U L l i l -

r e r e d p e r s o n m w t r e t a i n [r iro n ls a c c e s s a r y l o o b s e r v e i h e r e q u l r e -

n & t t s o f r l i i s A c t aurl l h e L e w

A c l , Li i d i i i l i i i i i ] l i i e f o l l o w r u e

records— and ib) by ihe deletion of subjections (2) and

(3).R e p e a t u f w c l i o u s 1 0 l * i 1 5

169, Seciions 10. 11, 12, 13. W and 13 o f ihe Diamond hxpoit Levy (Administration) Act, 2007. fue hereby repealed.A i i r t w J m e m o f s e t l i o n 1 6

1 7 f t Section 16 o f ihe Diamond r . \ | H i ! T

Lery (Admmistra$bii) Act, 20017. is hereby amended—

! t i } by i I i l J b t l L k t i l y t i o i i f i n - ( ) )

o f (he following snbseciion:” (15 Ti)e Commissioner will be

respotisiUe Tor Miliuiij L i-uriliu: tlni Act ,ind rhe L e v y Act. i n accordance with llie provisions o f lhe Tax AdminisliJilion Acl, together Wilh tin: iiii-aiiiLtniee uf the Rejiultityi ii!> described in subseeiion (2).” ;

j j by the insertion niter subsection $ 1} of lire following subseeliuu:

“ (IA') Administrative require-

nienTi and piocedures for purposes c f the performance of any duty.p D W W n r L i l h l i i ’ j i l i n u n v d i e c x V t i H U

o f any richt in terms of this Act a r e .

to the exfenl not regulated iu tliis Act. teaululed bv llje Tax Administration Act.": and

( c l h y the deletion of stibsectiou ( 3 :R e p e n t n f s e c t i o n 1 7

1 7 1 , S e c t i o n 1 7 o f l l i e D i a m o n d E , \ p u r l

Levy (Administration) Acr, 2007, is h e r e b y r e p e a l e d .

.Ni J.'49!Aft .Vo. :s or ion

GOVLKNMtNT Q A lfc T ji 4 JULY JOtJ

T.nc A itm L m ttraE tnn JL r t ' 1115

\ o . find ypflr Short tfric Extent o f niutndintrii or I’l-jical

A ft No. 20 o f 2007 iitfur! ties Lrntisffr Tiix Administration \ t l, 20157

Anifiidiuenil or seclion i

172. Setli[)]i L o f ilie Stcm ilies Tian\- fer Tax Ayduiitsisirarion Acr. I007, is hereby amendedm i by iIll wbgijiiiliari fm wibtudioii ( ) )

o f ihe following suhsecrtoii'"'U > Tlie Commissioner rmist ad-

midjbtd iliib Acl und lhe Securities f'r Ti fer Jar; Acr, id ,-iccord-.une with the |Tr£>vi$kjp oi die T.i\_Adi niiih nation AcL, 2011.*';

t in hy rlie insertion after ‘tuhsectujfi (1 j of lhe fdUbwiiig subsection:

“ H A ) Administrative requirements and procedure tor purposet>f llic f lUtfi HT! U!] LiJU LlJ HUY iillly.power or o b liv io n or rlie exerciseoi'tinv lieiit in terms o f tliis .Act are.to die extent m t rcsiuktted in diisAcr, reRpJrted hv tlie Administration Act. 2011.*1:

> c) by die substitution fur subsection (2) o f ilie fol townie subsecnoii:

"(2) L’nless lhe context indicates, otherwise. n WtntE or expression lowhich a nieanine lias been assignedm the lax Administration Act. 2011, nnd any Ward or expression to which j! iLiciubiiii' Ills Iw k ftsjiipucd hi liic SecLuinei transfer lax .Act, IU0T, bears tlie meaning so assigned (.ior tlie purposes of this Act."; and

i d ) by lhe de tel ion o f subseetion (3).Amendment o f section 3

173. Section J of tlie &eCDrilit$ Lrsuiifer- Tax Administration A c t 2007. is hereby untended by the deletion o f subjection f_4j rliereof.

JJO Ni JJ49I tJO V LELMMLN1 CiAZtn t 4 JULY JOt JAct .vd. :s or 2011 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short liflr Extent o f : i l i ki'i 11] 11 e l ' i) I or rr|iral

Aniendraotil or section 4

174. See ti oil 4 o f llie Securities Trans- Ja Tax AdnmiislrtittoTi Act, 2007. is OPJtiby muenildii—fdi by die sutaiiration for subsection 11)

o f ihe following subsection:“ (1) Till! t~ ! o i ] i l l l ! 4 * k > T I L Lr I l l l l - I

refund rhe Amount of any overpayment oi tax or o f any interes! or penalty properly chargeable in respect nf the transfer o f any security. [If application for llie refund is tun dr within two years aflcr tlie d n t e »f t h M t i n r n K i Y i i i e n l l in accordance ivith sections 190 and 191 o f rhe la s Administration Act, 1011. '. and

t u t liy l I l u d^letum oJ snioeclitnvi (2) flnd

Repeal o f sections £ , (1 and 7

175. Sections 5. (j and 7 o f the Socni j- tius TvHiiHt'jv Tijk iTl 11111E -■ 11 f>1 H.JI I Aul. 20UV, are hereby tepealed

Am ri trlu im l o f s t d k n 8

176. The Securities Transfer Tax Admin-1 L r j l l 94 M 1 A * 2 l . H0f^. i K L!_!lLj1>V M LI LU1 L 11 V

tlie substitution for section S of the following section:

“3, Interest on overdue payments and prt tally on default ncD V trnbk from j^rson to whom security is transferred.— \. 1 h In [ 1 i l l ease o f a l i s t e d

security, si member or participiiut ilhv recover the amount of fHit*! interest [referred to in section 5, penalty on defnitll referred to in section 6 or (liej or penalty fin ihe raw of tension referred to in section 7] payable by that member or participant [In tenns or this Act] hehLl[ tto Tax AdminiHLmtiwi Ac! from the person—!itj to whom .i listed sefiuriry i traus-

iiT ijd. ori h) who cancels nr redeems a listed

security,to the exteul ilittl iliv Meliuu os iuaeiioti o f titat person resulted in tire interest or penalty.

i l l Ni JJ49I GOV tfLVlMtM OAZfcTl t 4 JULY 2012Act .vd. :s or 2011 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short tide Fstfin of nmtndnittil oi' repeal(2) In the cant ol'an unlisted security,

ihecottirtuiy !mdi iv.iici! ili.ii Kecuay may recover lbe nmowt of {11***] iin r- est Irefrrred to in section 5. penalty nn flcTfiulf vrfrrrrri lo in serlfon 6 Of Lhe} or pamity [in dir ease of ei a.sinn refer red to hi section 7J payable by that company [hi terms of I his Acl] under die tax Administration Acr from tlie person to whom that security was traoikiircd, Id die extent lluii lhe net tun oi1 inaction of thaT perjwm resulted in the interest or penalty."

Repeal ot sections 10. 11, 12, 14, 15, Irf. 17, IS nnd 1$177. S-eetiuns 9. 10. 11, 12. 14. 15. 16,

IT. is and 19 or’ the Securities Ttwutfer lax Administration Ail. 1007. lie heieby repealed.Subsli lotion of sctUwi 2»

178, The Securities Transfer Tax Ad- mini sEration Act. 2001, is hereby amended by llie substitution for section 20 i)l' llie folio win" sislipti;

"Offences [and penal lies]20. iAnvl In addition to the offences contained m seciiou 235 and 236 of the fax Administration Act. 20 L I anv person who L—(a) fails or neglects to furnish. file or

snhiuil ain declaration or docii- ineni ns nut) when required by or under tills Art;

(b) ivl diout Just cau« shown. refuses or neglects lo fnmish any itifnr- mation, document or thing referred to In section 12:

f r( fails In disclose nny mnterinl JVn I in die deehu'idiou referred lu ill section 2 or 3:

(di obstructs or liiiidel's nny person in die performance nf his or her functions under or in terms or this Act:

(t) submits dr furnishes a false rer- lllicfiw or statement: or

m Ni JJ49!A ft .Vo. : s or io n

GOVtfLMMhN'l' QAlfcTji 4 JULY JOt JT.nc AitmLmtlraCtnn rt ' 1115

MO, find yrfir Short title Extern o f Ll ['1 kl'] 11'] 11 [ L' 111 O l ' I 'c p c i l l

<jy\ iieqiiires jiii unlisted seenrity and I’m Is l[i ill 1 til r]i lhe conUiAiy of ihe n'ansfer witlnn the period referred to hi section 2. is guilty of an4.:>JTljib u m i l l 1 in!i!i: m i u m L v in 'I m n I n

ji fine or to impvisoimienl for n period noi exceeding [12 m ou th y IWO eLlTS.".

R epeal o f section 21179. Section 21 o f tlie Securities Trans

fer Tax Administration Acl, 2 0 0 is hereby ie|jealLLd.

Act No. 36 o f 2007 Revenue Laws Serein? A]]KH(l]lKHl A cl. 2007

Repeal o f sections 3? and 36

180. Sections 33 .md 36 o f Tlie Revenue Laws Sefund Amendment Acl, 2007. we hereby re|iealed.

A rt No. 4 o f :<X)S Taxation Laws Si-c-i ii Lil Ainendmeul A cl, 20M8

Repeal uf sections 16 tint! 18

1ft]. Sections. 1 ft and IS of rhe I'axannn Laws Second Amendment Act, 2008. me hereby repealed.Amendment of section 23

182, Section 2. o f rhe taxation J .aws Second .Vmendmeut Act. 2008, i i hereby amended by die deletion u f subsection 01-

A rt No. 29 of2EWS M iner a] nntl Petro- 111 i i i ii Retail rt'es Krjyjh](\ (A tlm kl$- Lrttion ) A ct, 2008

Ameiulment ol seclion 1

183, Section t o f the \Tinerai anil Petroleum Resources Royalty (Administration) Act. 2008. is hereby am ended—

(a) by ilk- Hiili^liIiiliim fiv'dv) dcfmili[>n o f 11 Commissioner" of the iolloivmc: definition:

" 1 Cornu JssiontT ' means the Commissioner for the Somh African Rev enue Sen-ice appointed in terms. o f lection 6 uf the SuulliA frican Revenue Seivi ce Act, 19 97(Act No. -M of 199" j, or tiie ActingCommissioner dL'simmled in lenuso f secrion 7 o f ihat Act:":

i l b Ni JJ49I tJO V LELMMLN1 CiAZtn t 4 JULY JOE JAct .vd. :s or 2 0 1 1 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short liftr Exfienl or :iiin']iilii(L'ii! or I'rpra!

(b) by die deletion o f ihe delinmon ol'‘mmbiinlinn ptivnlc opinion"

i c i by die ™b-,ntiitiou for rhe definition of a “ notice of a^se^sment" o f ibe1 r hi I l k\ i i bii (lu h ni! inn.

1 ‘notice o f n ssessinritf tneanv a tiortce oi assessment [m entioned in sccliou fl[ us dvseirbeJ in icclion yft o f die Tax Adniiimrraiion A c t” : and

t d) by the inseiiiuu ;iiia lIlu dcfmiliou o f “ Knvalty Acr" o f tlie follow ins definition:

" 'll3\ AdillllliitlTltktL A cl’ iflCmiii the Teix AdministrationAct 201! :L\H!lft

(e) by die msemon after subsection f.2) of the following subsection:

“ (,?) Unless (lie iiontexi indicates mhem'iM a word or EKpiiehMOii to winch a meaning lias been assumed in llie Tax AtlininiilniiiuiiAcl. bums rhat meaning tor |itulpoxes o f dtis Act"

Anifiidmrnl o f xei'lHm -1

1S4, Scciiou 4 o f tlie Mtnentl iinJ Petio- lemn Resources Royalty (A*.1miiiisn:ihon) Act. 'DOS, is hereby amended by tlie MibshHtiion in ijubseelion 11} lor piuiijiiuph ( h f o f the foi low in e |iaitioraph:

"1 b i o f which one or more members [of thnt unincorporated body] hold a j ii ( m Hies i ii u e i ltI 11. luluiiliitti ptmtiti llX- jilomlion liulii. 11 lii 1111 Lf rhfhl. ulinttU pemut or production lialit granted pvnu- ant to the Mineral and Petroleum Re- somees DcvdopmCut Act lur ii lease or MibleaM mentioned in section 11 n fflhe Mineral mid Petroleum Resources lle- YvEotuiLfiiL] lliiU Act in icspeel o f such n right): and".

iJS .Ni J.'49!A rt .Vo. : s or io n

GOV LELMMkNT OA/fE'J i 4 JULY JOIJT.nc AitmLmttraEtnn ^ rt ' 1115

\f>. find yrfir Short title Extent o f n u if iK lih fiii o r I’l-jical

A m endm ent or sec I ion 5185. Section 5 o f The .Mineral aiui Petro-

Icimi Royalty (A dm iiiisin iin]) Acl. i* 1 ucreby nuin^Hd—(a) by die substitution for subsection 11)

o f lhe follow m i subsection:"( 1} A rcutii 1 ll[ i;[l n ^ n i [iiiwT

submit ,in estiuLire o f ihe royalty payable hi respect o f a year of assvssiaaU within six months iiI'llt rlit first Hay o f that year and must make a payment (iotflther with | si tell | h return lot lliai paymenl[a£ llie rniinnissifiner in»y p rescribe]} equal to one-hail o f llie amount o f ihe royalty so estimated.". and

\tj> by iIil nih'itiliilimi fur siibs^vtHiii (2)o f llie follow ing Subsection1

“ (2} A reîsteted person must submit mi cs&tiatc o f llie royally psyabls in i^specT o f a year of a«essm «il by the Iasi day of that year niul submit ii payment (lu- cerher with ]> iifh ] a rctam for tIut payineni [as lh e Com m issioner muy iiiTSCfllKj) Lviual lo Hit amonw o f the I’oyalty kl> esriinarsd

JKO N i JJ49I (^V ER N M EN ’l CiAZt n t 4 J ULY LLU12

Act .vd. : s or 2011 T.tk AftuunitfraCtnn Art, T il 1

Mo, find yrfir Short title E x te n t o f iiiiH'inliiiL'ii! oi' I'cpciil

less the iiitiotini paid as mentioned in -SiLbvKtKJtl ( i ) . ”

Repeat or section 7I8tj, Section T ot the M in e ra l and

Petroleum Resources Royalty (Admims- h^L ion j Acl. 200R , is h e rc ljv re jied lcd .

Amend]] Lent of scctlon H

187, Section a o t die Mineral and Petroleum Resources Royalty (Atlininis- tintimi) Act, 200R. i--. Iiere tiv a m e n d e d —

t i t i by the substitution in iobs.eetion (1 )

for tlie words preceding para£i;iph (a)

n f die r n llw in f TAOids" f A l b i a d d it io n to rlie records,

re q u ire d u n d e r th e la* A dm uitE tn je rioji A cl. a l e t t e r e d p e rso n m u st

retain [sucli lYeoide ns Are necessary In s ilisfy Hit1 requirem ents o f this Act and rlio Royalty Act. including— It h e fo&j win* re c o rd s : a n d

( I n by d ie d e le tio n o f su b s e c tio n (2 ).

Amendment nf ^rrlinn V

ISM. Section 9 uf the Mineral <uitl Petrol etim Resources Royalty i .A d in in k - Eiiitiojil A tr . ZOf.'ilj. i i tw rc b y n [lien d ed by

the deletion o f subsections (,l). I - J . ( J )HTld < 5}.

Repeal o f sccttons 10. i l . 12, J? nnd 16189. Sections to. 11. 12. 1.-! and 16 of

the Mineral and Petroleum Resources R o y a lty ( Administration) Au(. ZOOS, hicIjl-icIsv rc[H:]il ll[I .

Am endm ent of section 17190. Section 1" of the Mineral and

Petroleum Resources Roycilty fAdminis- li:ilu m ) A nt 2O0f>, i-. liu n J jy ju u u n d e d —

by the substitution ior subsection 1.1 1

o t" 1 tie Iii 11 iiv\ m i: B tlbw C lin ti:

11 (I ) T he f.’o n m i i^ io n e r is r e s p o n

sib le lo r a d m in is te r in g tliis A f t an d

lh e R n v a llv A c l. it! aeco td finC c w illi tlie tiro v is io n s o f tlie f a * A d m im sirri-

t io n Acl.*': and

*K1 .Si JJ49I tXJ V tfLVlMtM CiAZt r l t 4 J ULY LLU12Act .vd. :s or 2 0 1 1 T.tk AftuunitfraCtnn Art, Til 1

Mo, find yrfir Short tfrlc Exfienl or aiucndnieiil or i rpciil

t b ) by lIlu dulx-imiiusu for subsection (2 n flh e J'olhm itUf Kubceclipn:

"'(2} Administrative requirem en t and procedures toi purposes u f iti.- im inniiiiKC i>f HJiy duty, power or ohiieai ion or rhe exerciê o f Sjjy liRbl in lertns o f this Act are. Lu tin: e\iuni lj>h i emulated in ihis Acr. repniated bv the Ian Administration Act."

Reêiil nf section IK

191. Section IS uf (Iku Mineral :uul Petroleum Kasources Royalty (Adtmmu:- tration) Act, 200&, i i hereby repealed.A iucndiucnt of section 18A

192. Section ISA o f [lie Mineral .md Petroleum Resources Royally (Administration) Aci, 20DS is iieieliy amended— fa) by the substitution for subsection i l )

o f Ilk; rallowiiijE subsection:“I'Ji FTln*l For pui’poses nf tiii?.

Act. the Commissi onei may onlv issue a non-binding private opinion | ro n person rrsni'iiine ihr nut Irriilmeiil o f :i particular sel of facts and rim uustn iites or a uar- tia ilnr transit? tioul m Lean* ol' Chapter 7 oftfaf J nx Adntnu stranon Act.": and

( b i by i1ill deletion o f subscxwftls (2) ami t+).

A ft Not 61 of 2008 Revenue L aw s S a - < hi iil Aineiidinrni \ i l 2008

Rc-pcal o f sections 1.? and 14

195. Serious 3. 13 and 14 o f tlie Revalue Ijiwk Second Amendment Act, 2006. are hereby repealedAllli'udlllflll Uf HtTlioil Ifl

194. Scetiun 16 uf lbe Reênne Laws Second Amendment Act. 2O0K, is hereby amended by the deletion in snbsection (1) o f piuujnaph (b).Repeal o f section 10

J95. .Secs mu 21) of ihe lie venue Lawn Second Amendment Act. 200S. iv lieieby repealed.

3W No JJ49I (^VERNMEN’l tiAjCL'E'J t 4 JULY JOE JAct .vd. :s or 2011 T.tk A ftu u n itfraC tn n Art, Til 1

\o . find yrfir Short liftr Extent of fiiiiflidinnii or rrprfilAft No. l«oi2U0!> Tnxntioh Lotts Sec

ond Auiewhnetil At l, 20fW

Kf iif ni of sections 12.13,14.33,34 anrt 38

196. Set I limis 12, 13, 1 1, 33, .11 mi ill 3S o f tbs I ac tio n Laws Second Amendment Act. 200?. aj e hereby repealed.