Page 579 - Juta's Indirect Tax

IN 15 (4) TAX ADMINISTRATION ACT: INTERPRETATION NOTES IN 15 (4)
in the TA Act and the rules.* A senior SARS of cial may, within prescribed limits, extend the period prescribed in the rules within which an objection or appeal must be lodged.
The objection and appeal procedures, which are contained in the TA Act and the rules, apply to any dispute under, amongst others, the following tax Acts† administered by the Commissioner:
• Diamond Export Levy Act 15 of 2007
• Diamond Export Levy (Administration) Act 14 of 2007
• Employment Tax Incentive Act 26 of 2013
• Estate Duty Act 45 of 1955
• Income Tax Act 58 of 1962
• Mineral and Petroleum Resources Royalty Act 28 of 2008
• Mineral and Petroleum Resources Royalty (Administration) Act 29 of 2008
• Securities Transfer Tax Act 25 of 2007
• Securities Transfer Tax Administration Act 26 of 2007
• Skills Development Levies Act 9 of 1999
• Tax Administration Act 28 of 2011
• Transfer Duty Act 40 of 1949
• Unemployment Insurance Contributions Act 4 of 2002
• Value-Added Tax Act 89 of 1991
The Customs and Excise Act No. 91 of 1964 contains its own provisions relating to dispute resolution.
3. The law
The relevant sections of the TA Act and the rules are reproduced in Annexure B. 4. Objections
4.1 Section 104
A taxpayer who had the right to object or appeal against an assessment or decision under the repealed or amended provisions of a tax Act, and who was still entitled to but had not yet exercised that right before the commencement date of the TA Act, may object under the comparable provisions of the TA Act.‡ The periods of time run from the date that the right or entitlement rst arose but subject to the provisions of the TA Act. Accordingly, if a longer period applies under the TA Act that longer period applies.§
Section 104(3) stipulates the requirements for a valid objection. It requires that the objection must be lodged in the manner, under the terms and within the period prescribed in the rules. An aggrieved taxpayer may, before lodging an objection, request the reasons for the assessment as provided for under rule 6(1). Under rule 6(2) this request must –
• be in the prescribed form and manner;
• specify the taxpayer’s delivery address; and
• be delivered to SARS within 30 days from the date of assessment.¶
Rule 7 deals with objections and, more speci cally, provides the manner and terms for lodging a valid objection. Rule 7(1) deals with the timing of the objection and provides that a notice of objection must be delivered to the Commissioner within 30 days after –
• the date of the assessment or decision when no reasons for the assessment are requested by the taxpayer;
• the delivery of a notice by SARS under rule 6(4) stating that adequate reasons for the assessment had been provided; or • the delivery of a notice by SARS providing the reasons for the assessment as requested by a taxpayer under rule 6.
A ‘day’, as de ned in rule 1, means –
‘a ‘business day’ as de ned in section 1 of the [TA] Act’. A ‘business day’ is de ned in section 1 as –
‘a day which is not a Saturday, Sunday or public holiday, and for purposes of determining the days or a period allowed for complying with the provisions of Chapter 9, excludes the days between 16 December of each year and 15 January of the following year, both days inclusive;’.
Since ‘day’ in the rules means a ‘business day’ as de ned in the TA Act, ‘business day’ will be used for purposes of this Note.
An objection that is not lodged within the time limit of 30 business days is an invalid objection. Under section 104(4) a senior SARS of cial** may extend the period for lodging an objection if satis ed that reasonable grounds exist
* Section 107(1).
† The term ‘tax Act’ is defined in section 1 and means the TA Act or an Act, or portion of an Act, referred to in section 4 of the SARS Act, excluding the Customs and Excise Act.
‡ Section 269(5).
§ Section 269(5).
¶ See Annexure B for the definition of ‘date of assessment’.
** Section 6(3) requires powers and duties exercised by a senior SARS official to be exercised by the Commissioner, a SARS official with specific written authority from the Commissioner or a SARS official occupying a post designated by the Commissioner.
Juta’s IndIrect tax 2016 571