Tax Administration Act 28 of 2011 - Gov

1 Government Gazette REPUBLIC OF SOUTH AFRICA Vol. 5 Cape Town 4 -XO\ 20 No. 3 STATE PRESIDENT'S OFFICE No. -XO\ 20 It is hereby notified that the President has assented to the following Act, which is hereby published for general information: No. 28 of 20 : 7D[ $GPLQLVWUDWLRQ Act, 20 . AIDS HELPLINE: 0800-123-22 Prevention is the cure 2No. 35491 GOVERNMENT GAZETTE, 4 JULY 2012 Act No. 28 of 2011 Tax Administration Act, 2011 GENERAL EXPLANATORY NOTE:[]Words in bold type in square brackets indicate omissions fromexisting underlined with a solid line indicate insertions inexisting provide for the effective and efficient collection of tax; to provide for thealignment of the Administration provisions of tax Acts and the consolidation of theprovisions into one piece of legislation to the extent practically possible; todetermine the powers and duties of the South African Revenue Service andofficials; to provide for the delegation of powers by the Commissioner; to providefor the authority to act in legal proceedings; to determine the powers and duties ofthe Minister of Finance.]

2 To provide for the establishment of the office of the TaxOmbud; to determine the powers and duties of the Tax Ombud; to provide forregistration requirements; to provide for the submission of returns and the duty tokeep records; to provide for reportable arrangements; to provide for the requestfor information; to provide for the carrying out of an audit or investigation by theSouth African Revenue Service; to provide for inquiries; to provide for powers ofthe South African Revenue Service to carry out searches and seizures; to providefor the consdentiality of information; to provide for the South African RevenueService to issue advance rulings; to make provision in respect of tax assessments; toprovide for dispute resolution; to make provision for the payment of tax; to providefor the recovery of tax; to provide for the SouthAfrican Revenue Service to recoverinterest on outstanding tax debts; to provide for the refund of excess payments; toprovide for the write-off and compromise of tax debts; to provide for the impositionand remittance of administrative non-compliance penalties; to provide for theimposition of understatement penalties; to provide for a voluntary disclosureprogramme; to provide for criminal offences and sanctions; to provide for thereporting of unprofessional conduct by tax practitioners; and to provide formatters connected therewith.

3 (English text signed by the President)(Assented to 2 July 2012)4No. 35491 GOVERNMENT GAZETTE, 4 JULY 2012 Act No. 28 of 2011 Tax Administration Act, 2011BE IT ENACTED by the Parliament of the Republic of South Africa, as follows: ARRANGEMENT OF SECTIONSS ectionsCHAPTER nitionsCHAPTER 2 GENERAL Administration PROVISIONSPart AIn of of tax of generally prevailingPart BPowers and duties of SARS and SARS and ict of or notice by SARSPart by the CommissionerPart DAuthority to act in legal proceedings on behalf of of appearance in proceedingsPart EPowers and duties of and duties of of Minister to appoint Tax OmbudPart FPowers and duties of Tax of Tax of Tax on of by Tax and recommendations5101520253035406No.

4 35491 GOVERNMENT GAZETTE, 4 JULY 2012 Act No. 28 of 2011 Tax Administration Act, dentialityCHAPTER of changes in reference numberCHAPTER 4 RETURNS AND RECORDSPart of party returns concerning to keep of records kept or of period in case of audit, objection or BReportable to be arrangement reference numberCHAPTER 5 INFORMATION GATHERINGPart AGeneral rules for inspection, veriscation, audit and criminal for inspection, veri cation or for SARS official to conduct audit or criminal taxpayer for criminal of criminal investigationPart BInspection, request for relevant material, audit and criminal for relevant of relevant material in audit or criminal during eld audit or criminal investigation5101520253035408No.

5 35491 GOVERNMENT GAZETTE, 4 JULY 2012 Act No. 28 of 2011 Tax Administration Act, 2011 Part for to of presiding dentiality of not suspended by civil or criminal proceedingsPart DSearch and for of out of premises not identi ed in without professional s right to examine and make for return of seized relevant material or costs of damagesCHAPTER 6 CONFIDENTIALITY OF prohibition of con dential information and of taxpayer information and general to other in criminal, public safety or environmental to taxpayer of own of names of offendersCHAPTER 7 ADVANCE of advance of advance rulings and class for advance of application for advance for advance effect of advance of advance rendered changes in tax or modi cation of advance of advance private and guidelines for advance rulings5101520253035404510No.

6 35491 GOVERNMENT GAZETTE, 4 JULY 2012 Act No. 28 of 2011 Tax Administration Act, 2011 CHAPTER of of of of of limitations for issuance of assessments100. Finality of assessment or decisionCHAPTER 9 DISPUTE RESOLUTIONPart AGeneral101. De nitions102. Burden of proof103. Rules for dispute resolutionPart BObjection and appeal104. Objection against assessment or decision105. Forum for dispute of assessment or decision106. Decision on objection107. Appeal against assessment or decisionPart CTax board108. Establishment of tax board109. Jurisdiction of tax board110. Constitution of tax board111. Appointment of chairpersons112. Clerk of tax board113. Tax board procedure114. Decision of tax board115.

7 Referral of appeal to tax courtPart DTax court116. Establishment of tax court117. Jurisdiction of tax court118. Constitution of tax court119. Nomination of president of tax court120. Appointment of panel of tax court members121. Appointment of registrar of tax court122. Con ict of interest of tax court members123. Death, retirement or incapability of judge or member124. Sitting of tax court not public125. Appearance at hearing of tax court5101520253035404512No. 35491 GOVERNMENT GAZETTE, 4 JULY 2012 Act No. 28 of 2011 Tax Administration Act, 2011126. Subpoena of witness to tax court127. Non-attendance by witness or failure to give evidence128. Contempt of tax court129. Decision by tax court130. Order for costs by tax court131.

8 Registrar to notify parties of judgment of tax court132. Publication of judgment of tax courtPart EAppeal against tax court decision133. Appeal against decision of tax court134. Notice of intention to appeal tax court decision135. Leave to appeal to Supreme Court of Appeal against tax court decision136. Failure to lodge notice of intention to appeal tax court decision137. Notice by registrar of period for appeal of tax court decision138. Notice of appeal to Supreme Court of Appeal against tax court decision139. Notice of cross-appeal of tax court decision140. Record of appeal of tax court decision141. Abandonment of judgmentPart FSettlement of dispute142. De nitions143. Purpose of Part144. Initiation of settlement procedure145.

9 Circumstances where settlement is inappropriate146. Circumstances where settlement is appropriate147. Procedure for settlement148. Finality of settlement agreement149. Register of settlements and reporting150. Alteration of assessment or decision on settlementCHAPTER 10 TAX LIABILITY AND PAYMENTPart ATaxpayers151. Taxpayer152. Person chargeable to tax153. Representative taxpayer154. Liability of representative taxpayer155. Personal liability of representative taxpayer156. Withholding agent157. Personal liability of withholding agent158. Responsible third party159. Personal liability of responsible third party160. Right to recovery of taxpayer161. Security by taxpayer51015202530354014No. 35491 GOVERNMENT GAZETTE, 4 JULY 2012 Act No.

10 28 of 2011 Tax Administration Act, 2011 Part BPayment of tax162. Determination of time and manner of payment of tax163. Preservation order164. Payment of tax pending objection or appealPart CTaxpayer account and allocation of payments165. Taxpayer account166. Allocation of paymentsPart DDeferral of payment167. Instalment payment agreement168. Criteria for instalment payment agreementCHAPTER 11 RECOVERY OF TAXPart AGeneral169. Debt due to SARS170. Evidence as to assessment171. Period of limitation on collection of taxPart BJudgment procedure172. Application for civil judgment for recovery of tax173. Jurisdiction of Magistrates Court in judgment procedure174. Effect of statement led with clerk or registrar175.