Page 156 - Juta's Indirect Tax

s 161 TAX ADMINISTRATION ACT 28 OF 2011 s 163
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
Payment of tax (ss. 162–164)
162 Determination of time and manner of payment of tax
(1)Taxmustbepaidbythedayandattheplacenoti ed by SARS, the Commissioner by public notice or as speci ed in a tax Act, and must be paid as a single amount or in terms of an instalment payment agreement under section 167.
[Sub-s. (1) substituted by s. 49 of Act 44 of 2014 – date of commencement deemed to have been 1 October 2012.]
(2) The Commissioner may by public notice* prescribe the method of payment of tax, including electronically.
[Sub-s. (2) substituted by s. 49 of Act 44 of 2014 – date of commencement deemed to have been 1 October 2012.]
(3) Despite sections 96 (1) (f) and 167, a senior SARS of cial 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 dif cult 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 of cial deems appropriate under the circumstances; or
(ii) provide such security as the of cial deems necessary.
163 Preservation order
(1) A senior SARS of cial may, in order to prevent any realisable assets from being disposed of or removed which may frustrate the collection of the full amount of tax that is due or payable or the of cial on reasonable grounds is satis ed may be due or payable, 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 speci ed in the preservation order, from dealing in any manner with the assets to which the order relates.
[Sub-s. (1) substituted by s. 57 (a) of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(2) (a) SARS may, in anticipation of the application under subsection (1) seize the assets pending the outcome of an application for 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.
[Para. (a) substituted by s. 57 (b) of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(b) Until a preservation order is made in respect of the seized assets, SARS must take reasonable steps to preserve and safeguard the assets including appointing a curator bonis in whom the assets vest.
[Para. (b) substituted by s. 57 (c) of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(3) A preservation order may be made if required to secure the collection of the tax referred to in subsection (1) and in respect of—
[Words preceding para. (a) substituted by s. 57 (d) of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
* See GN 415 in GG 37690 of 30 May 2014. 148
(a) realisable assets seized by SARS under subsection (2); (b) the realisable assets as may be speci ed 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
speci ed in the order or not; or
(d) all assets which, if transferred to the person after the
making of the 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 preservation order should not be made nal;
(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; and
(d) upon application by SARS, con rm the appointment of the curator bonis under subsection (2) (a) or appoint a curator bonis in whom the seized assets vest.
[Para. (d) added by s. 57 (g) of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(5) A preservation order must provide for notice to be given to the taxpayer and a 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 will be suf cient service of that notice or rule if a copy thereof is af xed to or near the outer 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;
(b) if not appointed under subsection (4) (d), appointing a curator bonis in whom the assets vest;
[Para. (b) substituted by s. 57 (h) of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(c) realising the assets in satisfaction of the tax debt;
(d) making provision as the court may think t for the reasonable living expenses of a person against whom the preservation order is being made and his or her legal dependants, if the court is satis ed 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 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
Juta’s IndIrect tax 2016