Page 145 - Juta's Indirect Tax

s 92 TAX ADMINISTRATION ACT 28 OF 2011 s 98
92 Additional assessments
If at any time SARS is satis ed that an assessment does not re ect the correct application of a tax Act to the prejudice of SARS or the scus, SARS must make an additional assessment to correct the prejudice.
93 Reduced assessments
(1) SARS may make a reduced assessment if—
(a) the taxpayer successfully disputed the assessment
under Chapter 9;
(b) necessary to give effect to a settlement under Part F of
Chapter 9;
[Para. (b) substituted by s. 45 of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(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;
(d) SARS is satis ed that there is a readily apparent undisputed error in the assessment by—
(i) SARS; or
(ii) the taxpayer in a return; or
[Para. (d) substituted by s. 49 of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
(b) submits a return or information that is incorrect or inadequate.
(2) SARS must make the estimate based on information readily available to it.
(3) If the taxpayer is unable to submit an accurate return, a senior SARS of cial 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.
96 Notice of assessment
(1) SARS must issue to the taxpayer assessed a notice of the assessment made by SARS stating—
(a) the name of the taxpayer;
(b) the taxpayer’s taxpayer reference number, or if one has
not been allocated, any other form of identi cation; (c) the date of the assessment;
(d) the amount of the assessment;
(e) the tax period in relation to which the assessment is
made;
(f) the date for paying the amount assessed; and
(g) a summary of the procedures for lodging an objection
to the assessment.
(2) In addition to the information provided in terms of
subsection (1) SARS must give the person assessed—
(a) in the case of an assessment described 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 would otherwise be in jeopardy.
97 Recording of assessments
(1) The particulars of an assessment and the amount of tax payable thereon must be recorded and kept by SARS. (2) A notice of assessment issued by SARS is regarded as made by a SARS of cial 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 ve years from the date of assessment or the expiration of a further period that may be required by the Auditor-General.
98 Withdrawal of assessments
(1) SARS may, despite the fact that no objection has been lodged or appeal noted, withdraw an assessment which—
(a) was issued to the incorrect taxpayer;
(b) was issued in respect of the incorrect tax period; or (c) was issued as a result of an incorrect payment allocation.
(d) . . .
[Para. (d) added by s. 46 (c) of Act 39 of 2013
(date of commencement deemed to have been 1 October 2012) and deleted by s. 50 of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
Prelex
Wording of para. (d) in force until promulgation of Tax Administration Laws Amendment Act, 2015
(d) SARS is satis ed 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.
(e)
a senior SARS of cial is satis ed that an assessment was based on—
(i) the failure to submit a return or submission of an incorrect return by a third party under section 26 or by an employer under a tax Act;
(ii) a processing error by SARS; or
(iii) a return fraudulently submitted by a person not
authorised by the taxpayer.
[Para. (e) added by s. 49 of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
(2) SARS may reduce an assessment despite the fact that no objection has been lodged or appeal noted.
94 Jeopardy assessments
(1) SARS may make a jeopardy assessment in advance of the date on which the return is normally due, if the Commissioner is satis ed that it is required to secure the collection of tax that would otherwise be in jeopardy.
(2) In addition to any rights under Chapter 9, a review application against an assessment made under this section may be made to the High Court on the grounds that—
(a) its amount is excessive; or
(b) circumstances that justify a jeopardy assessment do not exist.
(3) In proceedings under subsection (2), SARS bears the burden of proving that the making of the jeopardy assessment is reasonable under the circumstances.
95 Estimation of assessments
(1) SARS may make an original, additional, reduced or jeopardy assessment based in whole or in part on an estimate if the taxpayer—
(a) fails to submit a return as required; or
Juta’s IndIrect tax 2016
137
Prelex
Wording of para. (d) in force until promulgation of Tax Administration Laws Amendment Act, 2015
(d) in respect of which the Commissioner is satis ed
that—
(i) it was based on—
(aa) an undisputed factual error by the taxpayer in a return; or
TAX ADMINISTRATION ACT