Page 157 - Juta's Indirect Tax

s 163 TAX ADMINISTRATION ACT 28 OF 2011 s 165
or expedient with a view to achieving the objects of the preservation order.
(9) The court which made a preservation order may on application by a person affected by that order vary or rescind the order or an order authorising the seizure of the assets concerned or other ancillary order if it is satis ed that—
(a) the operation of the order concerned will cause the
applicant undue hardship; and
(b) the hardship that the applicant will suffer as a result of
the order outweighs the risk that the assets concerned may be destroyed, lost, damaged, concealed or transferred.
(10) A preservation order remains in force—
(a) pending the setting aside thereof on appeal, if any,
against the preservation order; or
(b) until the assets subject to the preservation order are
no longer required for purposes of the satisfaction of
the tax debt.
(11) In order to prevent any realisable assets that were
not seized under subsection (2) from being disposed of or removed contrary to a preservation order under this section, a senior SARS of cial may seize the assets if the of cial has reasonable grounds to believe that the assets will be so disposed of or removed.
(12) Assets seized under this section must be dealt with in accordance with the directions of the High Court which made the relevant preservation order.
164 Payment of tax pending objection or appeal
(1) Unless a senior SARS of cial otherwise directs in terms of subsection (3)—
(a) the obligation to pay tax; and
(b) the right of SARS to receive and recover tax,
will not be suspended by an objection or appeal or pending the decision of a court of law pursuant to an appeal under section 133.
(2) A taxpayer may request a senior SARS of cial to suspend the payment of tax or a portion thereof due under an assessment if the taxpayer intends to dispute or disputes the liability to pay that tax under Chapter 9.
(3) A senior SARS of cial may suspend payment of the disputed tax or a portion thereof having regard to relevant factors, including—
(a) whether the recovery of the disputed tax will be
in jeopardy or there will be a risk of dissipation of
assets;
(b) the compliance history of the taxpayer with SARS;
(c) whether fraud is prima facie involved in the origin of
the dispute;
(d) whether payment will result in irreparable hardship to
the taxpayer not justi ed by the prejudice to SARS or the scus if the disputed tax is not paid or recovered; or
(e) whether the taxpayer has tendered adequate security for the payment of the disputed tax and accepting it is in the interest of SARS or the scus.
[Sub-s. (3) amended by s. 58 (a) of Act 39 of 2013 (date of commencement deemed to have been 1 October 2012) and substituted by s. 50 (1) of Act 44 of 2014 – date of commencement: 20 January 2015.]
(4) If payment of tax was suspended under subsection (3) and subsequently—
[Words preceding para. (a) substituted by s. 58 (b) of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(a) no objection is lodged;
(b) an objection is disallowed and no appeal is lodged; or
Juta’s IndIrect tax 2016
(c) an appeal to the tax board or court is unsuccessful and no further appeal is noted,
the suspension is revoked with immediate effect from the date of the expiry of the relevant prescribed time period or any extension of the relevant time period under this Act.
(5) A senior SARS of cial may deny a request in terms of subsection (2) or revoke a decision to suspend payment in terms of subsection (3) with immediate effect if satis ed that—
[Words preceding para. (a) substituted by s. 58 (b) of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(a) after the lodging of the objection or appeal, the objection or appeal is frivolous or vexatious;
(b) the taxpayer is employing dilatory tactics in conducting the objection or appeal;
(c) on further consideration of the factors referred to in subsection (3), the suspension should not have been given; or
(d) there is a material change in any of the factors referred to in subsection (3), upon which the decision to suspend payment of the amount involved was based.
[Para. (d) substituted by s. 64 of Act 21 of 2012 – date of commencement deemed to have been 1 October 2012.]
(6) During the period commencing on the day that— (a) SARS receives a request for suspension under
subsection (2); or
(b) a suspension is revoked under subsection (5),
and ending 10 business days after notice of SARS’ decision or revocation has been issued to the taxpayer, no recovery proceedings may be taken unless SARS has a reasonable belief that there is a risk of dissipation of assets by the person concerned.
(7) If an assessment or a decision referred to in section 104 (2) is altered in accordance with—
(a) an objection or appeal;
(b) a decision of a court of law pursuant to an appeal
under section 133; or
(c) a decision by SARS to concede the appeal to the tax
board or the tax court or other court of law,
a due adjustment must be made, amounts paid in excess refunded with interest at the prescribed rate, the interest being calculated from the date that excess was received by SARS to the date the refunded tax is paid, and amounts short-paid are recoverable with interest calculated as provided in section 187 (1).
(8) The provisions of section 191 apply with the necessary changes in respect of an amount refundable and interest payable by SARS under this section.
Part C
Taxpayer account and allocation of payments (ss. 165–166)
165 Taxpayer account
(1) SARS must maintain one or more taxpayer accounts for each taxpayer.
(2) The taxpayer account must re ect the tax liability in respect of each tax type included in the account.
[Sub-s. (2) substituted by s. 59 (a) of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(3) The taxpayer account must record details for all tax periods of—
(a) the tax liability;
[Para. (a) substituted by s. 59 (b) of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(b) any penalty imposed;
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