TAX2601
ASSIGNMENT 01 SEMESTER 1 & 2
,
, TAX2601/101
ASSIGNMENT 1: FIRST SEMESTER 2021 (continued)
QUESTION 1
When interpreting the wording used in the Income Tax Act, the application of the contra fiscum
rule may be necessary. What does this mean?
(1) The court will apply the interpretation that is more favourable to SARS.
(2) The court will apply the interpretation that places the bigger burden on the taxpayer.
(3) The court will apply the interpretation that places the smaller burden on the taxpayer.
(4) The court will apply the interpretation that is fair for both SARS and the taxpayer.
QUESTION 2
In South Africa, taxpayers are taxed on a residence basis. What does this mean?
(1) All South African residents are taxpayers.
(2) People are taxed according to the area in which they reside.
(3) Non-residents do not pay any tax in South Africa.
(4) Residents are taxed on all income they earn, from anywhere in the world.
QUESTION 3
Which interpretation rules are binding on SARS and taxpayers?
(1) Binding class rulings
(2) Binding general rulings
(3) The opinion of SARS
(4) Interpretation notes
QUESTION 4
Which one of the following statements is true for the Alternative Dispute Resolution process?
(1) SARS has to accept the taxpayer’s interpretation then the dispute will be resolved.
(2) The taxpayer has to accept SARS’s interpretation then the dispute will be resolved.
(3) SARS does not keep a register of disputes settled through this process as all cases are
unique.
(4) The process may be used to settle any dispute that relates to a dispute on interpretation of
facts.
QUESTION 5
Which one of the following statements is true relating to legal precedent?
(1) A decision by the High Court is binding on the Supreme Court of Appeal.
(2) A decision by the Tax Court is binding on the High Court.
(3) A decision by the Tax Court is binding on the Supreme Court of Appeal.
(4) A decision by the Supreme Court of Appeal is binding on the High Court.
17
ASSIGNMENT 01 SEMESTER 1 & 2
,
, TAX2601/101
ASSIGNMENT 1: FIRST SEMESTER 2021 (continued)
QUESTION 1
When interpreting the wording used in the Income Tax Act, the application of the contra fiscum
rule may be necessary. What does this mean?
(1) The court will apply the interpretation that is more favourable to SARS.
(2) The court will apply the interpretation that places the bigger burden on the taxpayer.
(3) The court will apply the interpretation that places the smaller burden on the taxpayer.
(4) The court will apply the interpretation that is fair for both SARS and the taxpayer.
QUESTION 2
In South Africa, taxpayers are taxed on a residence basis. What does this mean?
(1) All South African residents are taxpayers.
(2) People are taxed according to the area in which they reside.
(3) Non-residents do not pay any tax in South Africa.
(4) Residents are taxed on all income they earn, from anywhere in the world.
QUESTION 3
Which interpretation rules are binding on SARS and taxpayers?
(1) Binding class rulings
(2) Binding general rulings
(3) The opinion of SARS
(4) Interpretation notes
QUESTION 4
Which one of the following statements is true for the Alternative Dispute Resolution process?
(1) SARS has to accept the taxpayer’s interpretation then the dispute will be resolved.
(2) The taxpayer has to accept SARS’s interpretation then the dispute will be resolved.
(3) SARS does not keep a register of disputes settled through this process as all cases are
unique.
(4) The process may be used to settle any dispute that relates to a dispute on interpretation of
facts.
QUESTION 5
Which one of the following statements is true relating to legal precedent?
(1) A decision by the High Court is binding on the Supreme Court of Appeal.
(2) A decision by the Tax Court is binding on the High Court.
(3) A decision by the Tax Court is binding on the Supreme Court of Appeal.
(4) A decision by the Supreme Court of Appeal is binding on the High Court.
17
