oa Meditari : Research Journal of the School of Accounting Sciences - Reliance on professional and non-professional advisors or staff as a defence to the imposition of penalties in income tax matters



Many taxpayers rely on their advisors to look after their tax affairs. In spite of this reliance, taxpayers still find themselves in default for the purposes of section 76(1) of the Income Tax Act and additional tax (referred to as a "penalty" by the judiciary) is imposed.

This article examines whether the reliance by a taxpayer on his advisor, be it his accountant, bookkeeper or even a member of staff, can constitute a complete or partial defence to the imposition of additional tax in terms of section 76(1) or be regarded as an "extenuating circumstance" for the purposes of remission of additional tax in terms of section 76(2)(a).


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