WRAP-UP OF LEARNING UNIT 19

TAX ADMINISTRATION ACT

Having completed this learning unit, you should now know the following concepts, which were
covered in the study material:
• Powers and duties of the commissioner
• Registering as a taxpayer
• Returns
• Assessments
• Objection and appeal
• Settlement of disputes
• Tax payments
• Penalties
• Registration of tax practitioners

Every taxpayer must submit a return of income earned during a tax year. He/she/the trust/the
business is then assessed on this income by the Commissioner, who determines the amount of
tax payable/refundable by the taxpayer for such a tax year. If the taxpayer is not satisfied with the
tax assessed, an objection may be lodged to such an assessment and, if the objection is
disallowed, appeal to either the Tax Board or the Tax Court if the alternative dispute resolution
(ADR) process is not followed. If the taxpayer agrees with the assessment or is successful in the
objection and appeal, the outstanding tax must be paid when it becomes due; otherwise, interest
will be charged on the outstanding amount of tax. If a taxpayer does not submit a return,
he/she/the trust/the business will be guilty of an offence and liable for a fine or imprisonment if
convicted. Additional tax may also be imposed in certain circumstances.

ASSESSMENT CRITERIA (NOT EXAMINABLE)

This learning unit is very important regarding tax practice, as SARS may use
various forms of penalties and interest when taxpayers are not tax compliant; for
example, not submitting tax returns, making late payments for taxes due, or even
failing to declare income for tax purposes.

When reading through this learning unit, make sure you understand the following:
• the powers and duties of the Commissioner
• registering as a taxpayer
• returns and assessments
• the process of objection and appeal
• settlement of disputes
• tax payments and penalties
• the registration of tax practitioners.