In the ongoing battle against non-compliance, the South African Revenue Service (SARS) has ramped up its efforts, leaving taxpayers feeling the heat. However, amidst the aggression, taxpayers still possess a powerful tool to counter overly aggressive actions by the tax authority.
Tax Consulting SA experts shed light on the complexities of South Africa’s tax laws, emphasizing how these intricacies often leave taxpayers uncertain about their rights. Many find themselves in the precarious position of having to pay upfront before even having the chance to argue their case with SARS.
Recent High Court judgments in the Western Cape and Gauteng have underscored the limited options available to taxpayers caught on the wrong side of SARS’ pursuit of non-compliance. With little room to maneuver, individuals and businesses find themselves grappling with mounting pressure when the taxman comes knocking for dues.
However, amidst this seemingly one-sided battle, Section 164 of the Tax Administration Act (TAA) No. 28 of 2011 emerges as a beacon of hope for taxpayers. Tax Consulting experts highlight this section as potentially one of the most effective means of giving taxpayers the breathing space they need to build their case.
Section 164(1) of the TAA stipulates that, unless directed otherwise by a senior SARS official as per section 164(3), the obligation to pay tax, and SARS' right to receive and recover tax, will not be suspended by an objection or appeal or pending the decision of a court of law pursuant to an appeal.
This provision serves as a crucial lifeline for taxpayers, allowing them the opportunity to challenge SARS' actions without immediate financial repercussions. By leveraging this provision, taxpayers can gain the time needed to thoroughly prepare their case and engage in a fair and just resolution process.
Tax Consulting SA emphasizes the importance of understanding and utilizing Section 164 to its fullest extent. Armed with knowledge of their rights under the law, taxpayers can level the playing field in their dealings with SARS, ensuring a more equitable and transparent process.
In the ongoing war against non-compliance, taxpayers need not feel powerless in the face of SARS' aggressive tactics. Section 164 stands as a powerful tool, offering a pathway for individuals and businesses to assert their rights and defend themselves against unfair treatment.
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