Taxpayer W v Commissioner for the South African Revenue Service (24622)
Taxpayer W v Commissioner for the South African Revenue Service (24622) [2019] ZATC 21 (25 November 2019)
The court found that the incorrect statement in the appellant's tax return resulted in prospective prejudice to SARS, as the overstated assessed loss could have reduced future taxable profits if undetected. The error was not a bona fide inadvertent error because the appellant failed to exercise reasonable care in completing its tax return. The appellant did not implement or evidence any control measures to avoid obvious errors, nor did it scrutinise the tax return before submission, despite significant discrepancies in reported profits and losses. The duty to submit a correct return remains w…
Source excerpt
- Understatement Penalty
- Reasonable Care In Tax Return
- Bona Fide Inadvertent Error
- Burden Of Proof
- Taxpayer Liability For Agent
- Assessment Of Prejudice