The South African Revenue Service
("SARS") often sends out information
requests in terms of section 46 of the Tax Administration Act. The
question arises, in what circumstances SARS is permitted to ask
such questions and what limits exist in respect of their
powers?
The Tax Administration Act has recently been amended by the Tax
Administration Laws Amendment Act, 2014. This made certain changes
to SARS' powers to request information from a taxpayer.
Section 46(1) of the Tax Administration Act states that:
"SARS may, for the purposes of the administration of a
tax Act in relation to a taxpayer, whether identified by name or
otherwise objectively identifiable, require the taxpayer or another
person to, within a reasonable period, submit relevant material
(whether orally or in writing) that SARS requires".
