Module 2 Flashcards
(15 cards)
Remember: reference section __ of the ___ ‘Burden of proof’ for easy exam marks.
Reference section 102 of the Tax Administration Act (TAA)
Who does the burden of proof generally fall on?
The taxpayer.
What dates are donations tax and dividend tax payable?
The last business day of the month following the month that the donation was made or dividend was paid.
What is the penalty regime for adminstrative non-compliance?
. Fixed amount penalties for general non-com
. Percentage-based penalties for specific non-com
What is the penalty regime for understatements?
Penalty levied on the shortfall (the difference between declared tax and correct amount)
What qualifies as a “substantial understatement”?
Exceeds greater of:
. 5% of proper tax, or;
. R1 million
What is a “Binding class ruling”?
A ruling issued by SARS that is applicable to transactions by a specific class.
What is a “Binding general ruling”?
A ruling issued by SARS on the interpretation/application of relevant tax legislation
What is a “binding private ruling”?
A ruling issued by SARS for application of tax legislation to specific parties in a proposed transaction.
What are “reportable arrangements”?
Any deal, plans or transavtion that:
. Could give a tax or financial advantage, and;
. Falls into certain categories defined by law
What are excluded from the definition of reportable arrangements?
Normal loans or leases, exchange-regulated transactions
What is a participant as defined?
. The promoter of the scheme
. Any person who gets a tax/financial benefit
. Any party named in SARS public notices
What are the requirements for an understatement penalty?
Understatement; and
Not a bona fide inadvertent error
What is “understatement” as defined in Section 221?
Must be a prejudice to SARS/fiscus
Which sections should a valid objection apply with?
Section 104 of the TAA and Rule 7 of the Rules
