Tag ArchivesTax Law

Case Study: Can the Tax Court Increase Penalties Issued by SARS?

Introduction Once the South African Revenue Services (‘SARS’) issues your business with a penalty relating to your Value Added Tax (‘VAT’) or Corporate Income Tax Returns (‘CIT’), would the Tax Court be able to increase such penalties if they are of the opinion that SARS were too lenient? The recently decided case of Purlish Holdings […]

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tax compliance status

The revocation of tax compliance status

In the recent decision of Red Ant Security Relocation and Eviction Services (Pty) Ltd v Commissioner for the South African Revenue Service the Pretoria High Court found that SARS had failed to follow due process in revoking tax compliance status in terms of the Tax Administration Act (“the TAA”). The Applicant in the matter sought […]

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What is a bona fide inadvertent error?

Section 222 (1) of the Tax Administration Act (the “TTA”) provides that where there has been an understatement, the taxpayer must pay the understatement penalty determined unless the understatement resulted from a bona fide inadvertent error. In terms of Section 221, an ‘understatement’ means any prejudice to SARS in respect of a tax period as […]

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