Tax Administration Laws Amendment Act, 2013

A Commissioner’s decision under subsection (1) can be objected to and appealed under Chapter 9 of the Tax Administration Act, and a tax-benefit transaction is presumed to have been undertaken mainly to obtain that benefit unless the contrary is proved.

A Commissioner’s decision under subsection (1) can be objected to and appealed under Chapter 9 of the Tax Administration Act, and related proceedings create a presumption about tax-benefit purpose in certain transactions or arrangements.

This provision amends section 3 of the Income Tax Act, 1962, by replacing paragraph (h) in subsection (4).

This amendment says an additional or reduced assessment for a year of assessment may be made within six years of the original assessment date.

If tax is withheld under subsection (1)(a), the resident must submit a return to the Commissioner within 60 days; otherwise, no rebate may be deducted under this section.

A person who pays or receives an exempt dividend must file a return with the Commissioner by the last day of the next month.

A company or regulated intermediary must obtain proof of certain foreign tax paid.

This provision amends Article 3 of the Income Tax Act, 1962, and refers to an amendment of section 6quat of Act 58 of 1962.

Section 6quat(5) is replaced to allow an additional or reduced assessment, subject to a six-year limit from the original assessment date.

If tax was withheld under the cited subsection, the resident must give the Commissioner a required declaration within 60 days, or no rebate under this article may be deducted.

A person who paid or received a dividend exempt under section 64F must file a return with the Commissioner by the last day of the next month.

A company or regulated intermediary must get proof of foreign tax deducted from dividends tax, in the form set by the Commissioner.

This provision deletes subparagraph (6) from paragraph 11B of the Fourth Schedule to the Income Tax Act, 1962.

This section amends parts of the Fourth Schedule to the Income Tax Act by deleting some subparagraphs and replacing one rule on delivery of employees’ tax certificates.

This section amends the Income Tax Act’s Fourth Schedule by deleting subparagraph (6) of paragraph 11B and refers to an amendment of paragraph 11C.

This provision amends several tax schedule paragraphs, including deleting some subparagraphs, changing when employee tax certificates may be delivered, letting the Commissioner prescribe provisional-tax tables, and changing a micro business withholding election and related payment deadlines.

An officer may enter premises for purposes of the Act, but usually needs a warrant from a magistrate or judge unless a listed exception applies.

This amendment expands when officers may enter, inspect, search, and seize items on premises, and sets warrant and procedure rules.

This provision inserts a new section in the Customs and Excise Act, 1964 called “Officers’ powers relating to criminal prosecutions.”

An officer may investigate, lay criminal charges, and provide assistance needed by the prosecuting authority for prosecutions under this Act.

This section amends Section 64E so that an applicant for accredited client status must apply for a specific level and meet the applicable criteria.

A customs officer may investigate offences, lay criminal complaints, and provide assistance needed by the prosecuting authority. The Commissioner may also make rules for special economic zones/customs-controlled areas.

Applicants for accredited client status must apply for a specific level and provide the required evidence. The Commissioner may set separate criteria for customs or excise clients.

Rules made under section 119A, and related amendments, withdrawals, or insertions made between 1 August 2012 and 31 August 2013, do not lapse because of section 119A(3).

Employers who are micro businesses registered under the Sixth Schedule may pay certain levies or contributions within the prescribed periods, must submit a return with payment, and unpaid contributions can trigger a 10% penalty.

The Commissioner’s decisions under subsection (1) can be objected to and appealed under Chapter 9 of the Tax Administration Act.

A Commissioner’s decision under subsection (1) can be objected to and appealed under Chapter 9 of the Tax Administration Act, 2011, and a scheme is presumed to be mainly for obtaining a tax benefit if the relevant transaction or arrangement would produce a tax benefit unless proved otherwise.

A Commissioner’s decision can be objected to and appealed under Chapter 9 of the Tax Administration Act, 2011. If it is proved that a disposal, transfer, operation, scheme, or understanding would avoid, postpone, or reduce royalty liability, it is presumed to have been entered into or carried out mainly or solely for that purpose unless the contrary is proved.

This section amends royalty administration rules: registered persons must file royalty returns on time, the Commissioner must send an annual report to the Minister, and certain officials must keep information secret.

The Commissioner’s decision under subsection (1) is subject to objections and appeals under Chapter 9 of the Tax Administration Act 2011, and certain transactions may be presumed to have been entered into to avoid or reduce royalty liability unless the contrary is shown.

Registered persons must file annual royalty returns, the Commissioner must give an annual report to the Minister within six months, and specified officials must keep the information confidential.

This provision amends several definitions in the Tax Administration Act, 2011.

This provision amends section 3 of the Tax Administration Act, 2011.

Section 10(1)(b) is amended so a delegation becomes effective only when signed by the Commissioner.

This section amends section 11 of the Tax Administration Act, 2011, including the heading and subsection (3), and says the amendment starts on 1 January 2014.

This provision amends several defined terms in the Tax Administration Act, including tax debt, return, relevant material, and outstanding tax debt.

This amendment replaces paragraph (e) so that it covers collecting tax debt and refunding tax that was paid too much.

This section amends article 10 by replacing paragraph (b) of subsection (1) with wording that says it applies only when signed by the Commissioner.

Before suing the Commissioner in the High Court, an applicant must give at least one week’s written notice, unless the court directs otherwise; service must go to the Commissioner’s public-notice address, and certain cost orders in SARS’s favor must be paid to SARS.

Section 25 is amended so that a person required by a tax Act or the Commissioner to submit a return, or who submits one voluntarily, must submit it.

The Commissioner may use a public notice to require certain persons to submit a return by the date stated in the notice.

A senior SARS official may require further or more detailed tax returns, and a person required to file one must use the prescribed form and manner and provide full, true information.

This section amends the definition of “financial reporting standards” and says High Court proceedings against the Commissioner cannot be started unless the applicant gave at least one week’s written notice, unless a court orders otherwise.

This provision amends Article 25 of the Tax Administration Act, 2011 by replacing the words before paragraph (a) in subsection (1).

The Commissioner may, by public notice, require certain persons to file a return by the date stated in the notice.

A senior SAID official may require a person to file further or more complete returns, and the person must file them in the prescribed form and manner with the prescribed information.

This amendment replaces the definition of “financial reporting standards” in section 34.

A senior SARS official may require relevant material to be provided under oath or solemn declaration, including for a criminal investigation.

This section substitutes section 54 of the Tax Administration Act, 2011 and relates to the powers of a presiding officer.

The presiding officer has the same powers over witnesses at the inquiry as a president of the tax court has under sections 127 and 128.

This section amends section 68 of the Tax Administration Act, 2011 by changing wording and adding a new paragraph about certain SARS verification or audit-selection information.

This provision amends section 69 of the Tax Administration Act, 2011.

This section amends section 70 of the Tax Administration Act, 2011 by changing subsection (2) and adding a new paragraph (e) about information for a registered tax practitioner.

This section amends section 73 of the Tax Administration Act, 2011 by deleting a word in subsection (1) and replacing paragraph (c).

A Senior SAID official may require relevant material to be provided under oath or solemn declaration.

This section replaces the English text of article 54 with new text titled “Powers of presiding officer.”

The presiding officer has the same powers over witnesses at the inquiry as a president of the tax court has under sections 127 and 128.

This provision amends Article 68 of the Tax Administration Act, 2011 by changing a list item and adding a new paragraph about SAID verification or audit selection information that may be withheld if disclosure could reasonably harm its effectiveness.

This provision amends article 69 by changing the wording in subsection (8) and adding a new item requiring the name and tax practitioner registration number of a registered tax practitioner.

This provision amends Article 70 of the Tax Administration Act, 2011 by changing paragraph formatting and adding a new paragraph about information from a recognized controlling body for a registered tax practitioner.

This section amends section 73 of the Tax Administration Act, 2011, and requires certain information requests to be made under the Promotion of Access to Information Act.

This amendment changes section 79(4)(o) to require a statement confirming tax returns have been filed and tax has been paid, or acceptable arrangements with SARS have been made.

This section amends section 93 of the Tax Administration Act, 2011, by replacing paragraph (b) in subsection (1).

This section amends the rules for withdrawing certain tax assessments and for issuing a revised assessment after a written agreement.

This amendment changes the tax-administration rule so an applicant must have filed all required tax returns and paid any tax due, or have arrangements acceptable to SAID for any outstanding returns or tax debt.

This section amends Article 93 of the Tax Administration Act, 2011 by replacing subsection (1)(b).

This provision amends section 98 so a withdrawn tax assessment is generally treated as not issued, unless a senior SARS official and the taxpayer agree in writing on the correct tax and a revised assessment is issued.

This section amends section 99 of the Tax Administration Act, 2011 by changing wording in subsection (2)(d) and adding a new subparagraph about an assessment under section 98(2).

The Commissioner may set the form of a document that must be completed and delivered under the rules.

Section 110(2) is replaced so that sections 122, 123, 124, 126, 127, 128 and 129 apply to the tax board and the chairperson, with necessary changes and under procedures set in the rules.

The court may hear and decide certain interlocutory or procedural applications about a dispute under this Chapter, as provided for in the rules.

This section amends section 118 of the Tax Administration Act, 2011, including who may decide certain tax court appeals and when the president of the court must decide an appeal alone.

This provision amends section 129 of the Tax Administration Act, 2011, changing the opening words of subsection (2) for cases involving an assessment or decision under appeal or a procedural application under section 117(3).

This section amends article 99 of the Tax Administration Act, 2011 by changing the wording in paragraph (d) of subsection (2).

The Commissioner may prescribe the form of a document that must be completed and delivered under the rules.

This amendment replaces subsection 110(2) so that sections 122, 123, 124, 126, 127, 128 and 129 apply under the rules, with the necessary changes, and according to procedures determined by the tax board and the chairperson.

This section amends article 117 so the court may hear and decide certain interim or procedural applications under the rules.

This provision amends section 118 so that, in certain mining-related appeals, the commercial community representative must be a registered mining engineer with experience, and some appeals can be decided by the tax court president sitting alone.

This amendment gives the tax court rules for understatement penalty appeals and test cases.

The tax court must determine awarded costs according to High Court fee rules, and it may make cost orders in certain test, interlocutory, or procedural matters.

This provision amends section 133 so that subsection (2)(b)(i) refers to leave granted by the president of the tax court under section 135.

A taxpayer cannot recover a paid amount from the withholding agent or responsible third party, but may recover an unlawful or erroneous payment from SARS.

This section amends section 161 of the Tax Administration Act, 2011.

This section lets a senior SARS official ask the High Court, ex parte, for an order to preserve assets to protect tax collection, and it also deals with understatement penalty appeals and test-case effects.

The tax court must determine certain costs under this article according to fees set by High Court rules, and it may make costs orders in specified test cases and procedural applications.

This provision amends Article 133 of the Tax Administration Act, 2011 by replacing wording in subarticle (2)(b)(i).

A taxpayer generally cannot recover a deducted or withheld amount from the withholding agent or responsible third party, but may recover an unlawful or erroneous payment from SARS.

This provision amends Article 161 of the Tax Administration Act, 2011.

This amendment lets SARS seek and enforce preservation orders to stop assets being dealt with where that could frustrate tax collection.

This provision amends section 164 of the Tax Administration Act, 2011, including powers for a senior SARS official to suspend disputed tax payments and to deny or revoke suspension-related decisions.

This section amends tax administration rules so taxpayer accounts must show the tax liability for each tax type, and SAID may seize assets and manage them while a preservation-order application is pending.

This provision amends section 164 to let a Senior SARS official suspend disputed tax payment, refuse a request under subsection (2), or revoke a suspension decision immediately.

This section amends section 165 so the taxpayer account must show tax liability for each tax type included, plus related tax liability and interest on outstanding tax debts.

SARS may allocate a payment against penalty, interest, or the oldest outstanding tax debt amount, despite anything to the contrary in a tax Act.

This provision amends section 169 so that SARS is treated as the creditor for tax-debt recovery proceedings, may not recover very small tax debts, and must carry those amounts forward.

SARS may file a certified tax-debt statement in court after at least 10 business days' notice if a person has an outstanding tax debt.

SARS may amend a tax debt amount in a section 172 statement if SARS thinks the amount is incorrect.

This amendment lets SAID allocate a payment under a tax law to penalties, interest, or the oldest outstanding tax debt, despite contrary tax-law wording.

SAID must treat tax debts as collectible under this Chapter, but need not collect amounts below R100 or another amount set by the Commissioner by public notice.

SAID may file a certified statement with a competent court after giving at least 10 business days’ notice when a person has an outstanding tax debt.

SAID may amend the tax amount stated in a declaration filed under article 172 if it considers the amount incorrect.

SARS may file a new statement under section 172, and must withdraw a statement if the tax debt is fully paid, there are no other outstanding tax debts, and the person requests withdrawal in the prescribed form and manner.

This section changes section 177 so that SARS may start sequestration, liquidation, or winding-up proceedings for an outstanding tax debt.

A senior SARS official may tell a person who holds or owes money for a taxpayer to pay that money to SARS toward the taxpayer’s outstanding tax debt.

This amendment says a person may be personally liable for a taxpayer’s unpaid tax debt if that person’s negligence or fraud caused the non-payment, but the excerpt ends mid-condition.

This section changes the rules for company tax debt when a company is wound up. Certain shareholders can be jointly and severally liable for unpaid tax debt, and liable persons may use the same rights against SARS that the company would have had.

SAID may issue a new statement under article 172, and must withdraw a statement when the person has paid the full tax debt, has no other outstanding tax debt, and asks for withdrawal in the prescribed form and manner.

SAID may take steps to sequestrate, liquidate, or deregister a person if there is an outstanding tax debt.

A senior SARS official may notify a person who holds or owes money for a taxpayer to pay that money to SARS toward the taxpayer’s outstanding tax debt.

This amendment makes a person personally liable for a taxpayer’s outstanding tax debt where the person’s negligence or fraud caused the non-payment.

This amendment makes certain former shareholders jointly and severally liable for a company’s unpaid tax debt when the company is terminated outside voluntary liquidation, and lets liable persons claim the company’s rights against SAID.

A transferee who receives an asset from a connected-person taxpayer for no consideration or for less than fair market value is liable for that taxpayer’s outstanding tax debt.

A senior SARS official may apply for an order to collect an outstanding tax debt.

If SARS refunds money that was not properly payable, the refunded amount becomes an outstanding tax debt from the date of payment.

This section amends section 191(2)(a) of the Tax Administration Act by replacing the wording about disputed amounts with wording tied to section 164 timing or suspension of payment.

This section amends three definitions in the Tax Administration Act: “compromise,” “debtor,” and “write off.”

This provision amends the definition of “understatement” in section 221 of the Tax Administration Act, 2011.

A person who receives an asset from a connected taxpayer for free or below fair market value becomes liable for that taxpayer’s outstanding tax debt.

This amendment replaces wording in section 186 so that a senior SAID official may apply for an order under subsection (2) to collect outstanding tax debt.

If SAID pays someone a refund that should not have been paid under a tax law, the amount is treated as an outstanding tax debt owed back to SAID from the payment date.

This section amends article 191 of the Tax Administration Act, 2011 by replacing wording in subarticle (2)(a).

This section amends Article 192 by changing the definitions of write-off, concession, and debtor.

This provision amends section 221 of the Tax Administration Act, 2011 by replacing part of the definition of “onderstelling.”

Taxpayers with an understatement must pay an understatement penalty, unless the understatement comes from a bona fide inadvertent error.

This section amends tax penalty rules, including understatement penalties and administrative non-compliance penalty percentages.

An understatement penalty imposed under section 222, or SARS’s decision not to remit one under section 223(3), can be objected to and appealed under Chapter 9.

SARS approval of a voluntary disclosure application and relief under section 229 must be recorded in a written agreement with the qualifying person liable for the outstanding tax debt.

This section amends section 231 of the Tax Administration Act, 2011 by replacing paragraph (b).

Only a senior SARS official may lay a complaint to the South African Police Service or the National Prosecuting Authority about an offence under this section. Some people are exempt from section 240 if they only give certain advice or help complete returns in the listed limited situations.

A decision to impose an understatement penalty, or SARS’s decision not to remit one, can be objected to and appealed under Chapter 9.

This provision amends section 230 so that approval of a voluntary disclosure application and relief under section 229 must be supported by a written agreement in the prescribed format between SARS and the qualifying person liable for the outstanding tax debt.

This section amends section 231 of the Tax Administration Act, 2011 by replacing paragraph (b) in subsection (1).

The section amends tax administration rules so only a senior SAID official may lodge a complaint with the police or NPA about an offence under the article, and it also sets exceptions for certain advice-giving persons and reporting/accountability rules for recognised bodies and supervising tax practitioners.

A senior SARS official may disclose taxpayer information for a complaint only if the official thinks it is necessary, and SARS must notify the taxpayer and the person complained against before the complaint or disclosure happens.

This text amends tax-administration rules on public officers and reports by recognized bodies.

This amendment lets a senior SAID official disclose certain taxpayer information when filing a complaint, and requires SAID to notify the affected taxpayer and the intended complaint target before filing or disclosure.

This section amends Article 246 about SARS approval and appointment of a public officer.

This section amends section 256 to redefine “outstanding tax debt” and exclude certain debts.

This section changes how certain tax penalties, interest, and objections are handled around the Act’s commencement date.

This provision amends section 256 by replacing paragraph (a) in subsection (3) with new wording about outstanding tax debt.

This amendment lets certain additional tax, penalties, or interest still be assessed and collected, and gives specific relief rules for understatement penalties and voluntary disclosures.

This provision amends the arrangement of sections for the Tax Administration Act, 2011 and sets when the amendments take effect.

This section amends the index of the Tax Administration Act, 2011, sets the short title of this Act, and states when the amendments start to apply.