TAX3704
ASSIGNMENT 2 (SEMESTER 2)
DUE DATE: 17 September 2024
Written Assignment Submission Guidelines:
Please ensure that your assignment is submitted electronically through the myUnisa platform no
later than September 2024. Kindly note that fax or email submissions will not be accepted.
NB: Assignment submitted to the lecturer(s) through email will not be considered.
QUESTION 1: Audit Risks and SARS Procedures
(a) Explain to Jack what statutory powers are granted to a senior SARS official under a request for
relevant material. Refer to applicable tax legislation. (10 marks)
ANSWER:
Statutory Powers Granted to SARS Under a Request for Relevant Material
1. Statutory Powers for Requesting Relevant Material:
o Request for Information: SARS, under the Tax Administration Act (TAA), possesses
extensive statutory powers to request information deemed relevant to its audits or
investigations. This includes the ability to demand that a taxpayer, or any third party with
information pertinent to the taxpayer’s financial affairs, provide documents, records, and
other relevant material.
o Scope of Request: SARS can request a wide range of documents such as financial
statements, bank records, invoices, receipts, and any other documents that can help in
assessing the accuracy of the taxpayer’s reported income and expenses. This also extends
ASSIGNMENT 2 (SEMESTER 2)
DUE DATE: 17 September 2024
Written Assignment Submission Guidelines:
Please ensure that your assignment is submitted electronically through the myUnisa platform no
later than September 2024. Kindly note that fax or email submissions will not be accepted.
NB: Assignment submitted to the lecturer(s) through email will not be considered.
QUESTION 1: Audit Risks and SARS Procedures
(a) Explain to Jack what statutory powers are granted to a senior SARS official under a request for
relevant material. Refer to applicable tax legislation. (10 marks)
ANSWER:
Statutory Powers Granted to SARS Under a Request for Relevant Material
1. Statutory Powers for Requesting Relevant Material:
o Request for Information: SARS, under the Tax Administration Act (TAA), possesses
extensive statutory powers to request information deemed relevant to its audits or
investigations. This includes the ability to demand that a taxpayer, or any third party with
information pertinent to the taxpayer’s financial affairs, provide documents, records, and
other relevant material.
o Scope of Request: SARS can request a wide range of documents such as financial
statements, bank records, invoices, receipts, and any other documents that can help in
assessing the accuracy of the taxpayer’s reported income and expenses. This also extends
