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TAX3704 Assignment 2 Semester 2 due 17 September 2024

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TAX3704
ASSIGNMENT 2 SEMESTER 2 2024
UNIQUE NO.
DUE DATE: 17 SEPTEMBER 2024

, TAX3704

Assignment 2 Semester 2 2024

Unique Number:

Due Date: 17 September 2024

Tax Administration

Question 1

(a) Statutory powers granted to a senior SARS official under a request for
relevant material

Under the Tax Administration Act, No. 28 of 2011 (TAA), senior SARS officials have
the authority to request relevant material from taxpayers to ensure compliance and
verify the accuracy of tax returns. According to Section 40 of the TAA, SARS may issue
a request for relevant material, which includes documents and information necessary for
the assessment of a taxpayer’s tax liability. This request can extend to third parties who
may have relevant information about the taxpayer’s financial affairs. Failure to comply
with such a request can lead to penalties or further legal action.

Reference: South Africa. (2011). Tax Administration Act, No. 28 of 2011. Government
Printer. Retrieved from https://www.gov.za/documents/tax-administration-act




(b) Burden of proof according to section 102 of the TAA

Section 102 of the TAA stipulates that the burden of proof in tax disputes generally falls
on the taxpayer. This means that if SARS questions the accuracy of a tax return, it is up
to the taxpayer to provide sufficient evidence to support their claims. SARS must only
bear the burden of proof in cases where there are allegations of fraud or gross
negligence on the part of the taxpayer.

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