Page 578 - Juta's Indirect Tax

IN 15 (4) TAX ADMINISTRATION ACT: INTERPRETATION NOTES IN 15 (4) INTERPRETATION NOTE: NO.15 (ISSUE 4)
DATE:
ACT: SECTION: SUBJECT: CONTENTS
Preamble
20 NOVEMBER 2014
TAX ADMINISTRATION ACT 28 OF 2011
SECTIONS 104 AND 107
EXERCISE OF DISCRETION IN CASE OF LATE OBJECTION OR APPEAL
1. Purpose
2. Background 3. The law
4. Objections
4.1 Section 104
4.2 Factors relevant to the exercise of the senior SARS of cial’s discretion in considering a request to extend the
period in which to lodge an objection
4.2.1 The reasons for the delay
4.2.2 The length of the delay
4.2.3 The prospects of success on the merits
4.3 Limitation on the extension of time to lodge an objection 4.4 Format of an application for an extension of time
4.5 Refusal to grant an extension
4.6 Periods in which to resubmit invalid objections
5. Appeal – extension of the period in which an appeal against an unsuccessful objection may be lodged 6. Conclusion
Annexure A – Objection process and timeframes
Annexure B – The law
Preamble
In this Note unless the context indicates otherwise –
• ’assessment’ means an assessment as de ned in section 1, namely, the determination of the amount of a tax liability
or refund, by way of self-assessment by the taxpayer or assessment by SARS;
• ‘decision’ means a decision referred to in section 104(2);
• ‘Income Tax Act’ means the Income Tax Act 58 of 1962;
• ’rules’ mean the rules referred to in section 103 which were made by the Minister, after consultation with the Minister
of Justice and Constitutional Development, and published in Government Notice 550 in the Government Gazette
37819 of 11 July 2014;
• ‘section’ means a section of the TA Act;
• ‘senior SARS of cial’ means a senior SARS of cial referred to in section 6(3);
• ‘TA Act’ means the Tax Administration Act 28 of 2011;
• ‘taxpayer’ means a ‘taxpayer’ as de ned in section 151; and
• any word or expression bears the meaning ascribed to it in the TA Act.
1. Purpose
This Note provides guidance on the factors that a senior SARS of cial will take into account when deciding whether to extend the period for lodging an objection under section 104(4) or an appeal under section 107(2). It also serves to highlight that the period during which an objection or appeal may be lodged is limited.
2. Background
A taxpayer who is aggrieved –
• by an assessment made on the taxpayer; or
• by certain decisions made under the TA Act or tax Acts,*
may object to and appeal against those assessments or decisions under the TA Act.
An objection against an assessment or decision must be lodged in the manner, under the terms and within the period prescribed in the rules.† A person whose objection has been disallowed may appeal to the tax board or tax court against that outcome and in such event the appeal must be lodged in the manner, under the terms and within the periods prescribed
* Section 104(2). † Section 104(3).
570 Juta’s IndIrect tax 2016