LDC Taxpayer v Commissioner for the South African Revenue Service (IT 24888)
LDC Taxpayer v Commissioner for the South African Revenue Service (IT 24888) [2021] ZATC 6; 84 SATC 129 (18 June 2021)
The court found that the omission of the capital gain from the appellant's 2017 income tax return constituted an understatement as defined in section 221 of the Tax Administration Act, resulting in prejudice to SARS and the fiscus through delayed tax collection and resource allocation for audit. The evidence established that the capital gain accrued in the 2017 year of assessment, and the appellant's failure to disclose it was an omission. SARS was entitled to impose an understatement penalty. However, SARS incorrectly categorised the behaviour as 'reasonable care not taken in completing a re…
Source excerpt
- Understatement Penalty
- Reasonable Care In Completing Return
- Capital Gains Tax
- Prejudice To Fiscus
- Timing Of Accrual
- Tax Administration Act