The South African Revenue Service (SARS) has extensive powers to collect tax. These powers are contained in various tax laws and are intended to facilitate the prompt collection of tax that is due. There have been a number of court cases dealing with the limitations of SARS’ collection powers.
The Western Cape High Court recently gave judgment in a case dealing with SARS’ collections powers. The case related to a judgment obtained by SARS against Fastmould Specialist CC in respect of Value-Added Tax (VAT) and employees’ tax. The VAT Act and the Income Tax Act both contain provisions allowing SARS to obtain judgments against taxpayers by filing a statement with the clerk or registrar of any competent court. The taxpayer is not afforded an opportunity to oppose the granting of the judgment.
- Five things every taxpayer in South Africa should know (fixedaccounting.com)
- VAT case – local and international consultants (eservices1.wordpress.com)
- VAT Registration at SARS (eservices1.wordpress.com)
- Value Added Taxes Around the World (turbotax.intuit.com)
- How To Do Your Back Income Taxes (turbotax.intuit.com)