The Tax Administration Act Takes Effect

introduction

The Tax Administration Act, No 28 of 2011 ('TAA'), which was promulgated on 4th July 2012, took effect on 1st October 2012, except for certain specific provisions dealing with the imposition of interest payable to the Commissioner: South African Revenue Service by taxpayers, and, also, by the Commissioner to taxpayers.  The rules regulating the payment of interest will be changing, such that, in future, interest will be compounded on a monthly basis, both in respect of interest payable by a taxpayer on the late payment of tax, and, also, in respect of refunds payable by SARS to taxpayers.

transitional rules

Chapter 20 of the TAA contains a number of transitional provisions seeking to ensure the smooth transition from actions which were commenced under the administrative provisions of various fiscal statutes, but which had not yet been completed by 30th September 2012.  Chapter 20 of the TAA provides that any tax number allocated to a taxpayer prior