Page 160 - Juta's Indirect Tax

s 179 TAX ADMINISTRATION ACT 28 OF 2011 s 184
(2) A person that is unable to comply with a requirement of the notice, must advise the senior SARS of cial of the reasons for the inability to comply within the period speci ed in the notice and the of cial may withdraw or amend the notice as is appropriate under the circumstances.
(3) A person receiving the notice must pay the money in accordance with the notice and, if the person parts with the money contrary to the notice, the person is personally liable for the money.
(4) SARS may, on request by a person affected by the notice, amend the notice to extend the period over which the amount must be paid to SARS, to allow the taxpayer to pay the basic living expenses of the taxpayer and his or her dependants.
(5) SARS may only issue the notice referred to in subsection (1) after delivery to the tax debtor of a nal demand for payment which must be delivered at the latest 10 business days before the issue of the notice, which demand must set out the recovery steps that SARS may take if the tax debt is not paid and the available debt relief mechanisms under this Act, including, in respect of recovery steps that may be taken under this section—
(a) if the tax debtor is a natural person, that the tax debtor may within ve business days of receiving the demand apply to SARS for a reduction of the amount to be paid to SARS under subsection (1), based on the basic living expenses of the tax debtor and his or her dependants; and
(b) if the tax debtor is not a natural person, that the tax debtor may within ve business days of receiving the demand apply to SARS for a reduction of the amount to be paid to SARS under subsection (1), based on serious nancial hardship.
[Sub-s. (5) added by s. 57 (b) of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
(6) SARS need not issue a nal demand under subsection (5) if a senior SARS of cial is satis ed that to do so would prejudice the collection of the tax debt.
[Sub-s. (6) added by s. 57 (b) of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
180 Liability of nancial management for tax debts
A person is personally liable for any outstanding tax debt of the taxpayer to the extent that the person’s negligence or fraud resulted in the failure to pay the tax debt if—
[Words preceding para. (a) substituted by s. 67 of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(a) the person controls or is regularly involved in the management of the overall nancial affairs of a taxpayer; and
(b) a senior SARS of cial is satis ed that the person is or was negligent or fraudulent in respect of the payment of the tax debts of the taxpayer.
181 Liability of shareholders for tax debts
(1) This section applies where a company is wound up other than by means of an involuntary liquidation without having satis ed its outstanding tax debt, including its liability as a responsible third party,
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withholding agent, or a representative taxpayer, employer or vendor.
[Sub-s. (1) substituted by s. 68 (a) of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(2) The persons who are shareholders of the company within one year prior to its winding up are jointly and severally liable to pay the tax debt to the extent that—
[Words preceding para. (a) substituted by s. 68 (b) of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(a) they receive assets of the company in their capacity as shareholders within one year prior to its winding-up; and
(b) the tax debt existed at the time of the receipt of the assets or would have existed had the company complied with its obligations under a tax Act.
(3) The liability of the shareholders is secondary to the liability of the company.
(4) Persons who are liable for the tax debt of a company under this section may avail themselves of any rights against SARS as would have been available to the company.
[Sub-s. (4) substituted by s. 68 (c) of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(5) This section does not apply—
(a) in respect of a ‘listed company’ within the meaning of
the Income Tax Act; or
(b) in respect of a shareholder of a company referred to in
paragraph (a).
182 Liability of transferee for tax debts
(1) A person (referred to as a transferee) who receives an asset from a taxpayer who is a connected person in relation to the transferee without consideration or for consideration below the fair market value of the asset is liable for the outstanding tax debt of the taxpayer.
[Sub-s. (1) substituted by s. 69 of Act 39 of 2013 – date of commencement deemed to have been 1 October 2012.]
(2) The liability is limited to the lesser of—
(a) the tax debt that existed at the time of the receipt of the asset or would have existed had the transferor complied with the transferor’s obligations under a tax
Act; and
(b) the fair market value of the asset at the time of the
transfer, reduced by the fair market value of any
consideration paid, at the time of payment.
(3) Subsection (1) applies only to an asset received by the transferee within one year before SARS noti es the
transferee of liability under this section.
183 Liability of person assisting in dissipation of assets
If a person knowingly assists in dissipating a taxpayer’s assets in order to obstruct the collection of a tax debt of the taxpayer, the person is jointly and severally liable with the taxpayer for the tax debt to the extent that the person’s assistance reduces the assets available to pay the taxpayer’s tax debt.
184 Recovery of tax debts from other persons
(1) SARS has the same powers of recovery against the assets of a person who is personally liable under section 155, 157 or this Part as SARS has against the assets of the taxpayer and the person has the same rights and remedies as the taxpayer has against such powers of recovery.
(2) SARS must provide a person referred to in subsection (1) with an opportunity to make representations—
Juta’s IndIrect tax 2016