RRLLB81
Assignment 2 Semester 1 2026
RESEARCH REPORT
Due Date: April 2026
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, Tax planning and impermissible tax avoidance
By
[RRLLB81 STUDENT]
(012345678)
Submitted in partial fulfilment of the requirements for the degree
BACHELOR OF LAWS
in the
DEPARTMENT OF CRIMINAL AND PROCEDURAL LAW
SCHOOL OF LAW
UNIVERSITY OF SOUTH AFRICA
SUPERVISOR: PROF MM MONYAKANE
RRLLB81 ASSESSMENT 2 / FINAL PORTFOLIO
(DUE DATE: April 2026)
Varsity Cube 2026 +27 81 278 3372
, Abstract
This research examines the legal feasibility of South Africa‟s general anti-avoidance
rule under sections 80A to 80L of the Income Tax Act 58 of 1962. These provisions
empower SARS to attack an “arrangement” that yields a tax benefit where
abnormality, misuse or abuse, lack of commercial substance, or other tainted
features are present.1 The study distinguishes lawful tax planning from impermissible
tax avoidance and evaluates whether the GAAR strikes an acceptable balance
between taxpayer autonomy and the state‟s interest in protecting the tax base. It
further considers the administrative framework of the Tax Administration Act 28 of
2011, which supports enforcement through audit, investigation and assessment
powers.2 The central finding is that the GAAR is legally feasible because it targets
abusive arrangements rather than ordinary commercial restructuring, but its open-
ended standards can create interpretive uncertainty. The research argues that
careful judicial interpretation remains essential to preserve certainty, fairness and
constitutional legality.
1
Income Tax Act 58 of 1962 ss 80A–80L; SARS, Taxation in South Africa (26 August 2025) 19–20
2
Tax Administration Act 28 of 2011; SARS, ‘Tax Administration’ (20 June 2023)
Varsity Cube 2026 +27 81 278 3372
Assignment 2 Semester 1 2026
RESEARCH REPORT
Due Date: April 2026
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, Tax planning and impermissible tax avoidance
By
[RRLLB81 STUDENT]
(012345678)
Submitted in partial fulfilment of the requirements for the degree
BACHELOR OF LAWS
in the
DEPARTMENT OF CRIMINAL AND PROCEDURAL LAW
SCHOOL OF LAW
UNIVERSITY OF SOUTH AFRICA
SUPERVISOR: PROF MM MONYAKANE
RRLLB81 ASSESSMENT 2 / FINAL PORTFOLIO
(DUE DATE: April 2026)
Varsity Cube 2026 +27 81 278 3372
, Abstract
This research examines the legal feasibility of South Africa‟s general anti-avoidance
rule under sections 80A to 80L of the Income Tax Act 58 of 1962. These provisions
empower SARS to attack an “arrangement” that yields a tax benefit where
abnormality, misuse or abuse, lack of commercial substance, or other tainted
features are present.1 The study distinguishes lawful tax planning from impermissible
tax avoidance and evaluates whether the GAAR strikes an acceptable balance
between taxpayer autonomy and the state‟s interest in protecting the tax base. It
further considers the administrative framework of the Tax Administration Act 28 of
2011, which supports enforcement through audit, investigation and assessment
powers.2 The central finding is that the GAAR is legally feasible because it targets
abusive arrangements rather than ordinary commercial restructuring, but its open-
ended standards can create interpretive uncertainty. The research argues that
careful judicial interpretation remains essential to preserve certainty, fairness and
constitutional legality.
1
Income Tax Act 58 of 1962 ss 80A–80L; SARS, Taxation in South Africa (26 August 2025) 19–20
2
Tax Administration Act 28 of 2011; SARS, ‘Tax Administration’ (20 June 2023)
Varsity Cube 2026 +27 81 278 3372
