ARTICLE · 02 NOVEMBER 2015

Increasing Disconnect Between SARS' Legislated Powers And Its Internal Policies

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It is always difficult to predict certain issues which may arise when the legislation is being drafted and often practical issues only arise subsequent to the promulgation of tax Acts.

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While the Tax Administration Act, 28 of 2011 ("the TAA") determined and consolidated the powers and duties of South African Revenue Service ("SARS") officials engaged in the administration of a tax Act, it also, to a certain extent codified the rights and obligations of taxpayers to whom the TAA applies. Due to the fact that the TAA has now been in effect for a couple of years since its commencement date of 1 October 2012, there is a greater understanding of how the legislation is being practically implemented. Recent experience indicates that there may be a growing disconnect between the internal policies being implemented by SARS officials and the actual powers provided for in the enabling legislation. This article briefly highlights two examples recently encountered in practice.

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