SARS often sends out requests for information in terms of Section 46 of the Tax Administration Act (TAA). The question arises, in what circumstances SARS is permitted to ask such questions, and what limits exist in respect of their powers?
"I hate tax!" These were the words spoken by a director of one of the clients of the audit firm with whom I served articles. Whilst many would agree with this sentiment towards the taxman, this particular individual's zeal in devising schemes to pay as little tax as possible was legendary in our firm.
Our cover story dealing with what SARS can request from you, and when they can do this, would probably be cause for the blood pressure of one of my clients to soar to stratospheric levels, given that he has recently discovered-the hard way-what happens when you don't give SARS what they want, when they want it.
Submitting an objection to a tax assessment issued by SARS can be a cumbersome process for many taxpayers, including small businesses - especially if they don't have the money to consult a tax practitioner. While the relevant tax matter may not be of a technical nature at all, the objection process itself may pose a number of challenges.