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Uploaded on
October 12, 2024
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Written in
2024/2025
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TAX3704_Assessment 2_S1_2024


ASSESSMENT 2 (35 marks)

QUESTION 1 (25 marks)

SARS searched the premises of a taxpayer and took all the taxpayer's laptops to establish
whether there was any relevant electronic material or information on them, which the
taxpayer did not provide to SARS. The laptops were seized and taken to SARS’s forensic
auditors at the Head Office.
Shortly after SARS removed the laptops, they confiscated three luxury cars from the
taxpayer.

REQUIRED:

MARKS

(a) Indicate in bullet format the difference between the seizure of laptops
4
and the confiscation of luxury cars. Use short sentences.


(b) Discuss the limitations of the powers and obligations of the senior SARS
official and other officials when conducting a search for information and
seizing relevant material. 10
You must use short sentences in bullet format to answer the
question.


(c) Explain why SARS confiscates movable property (in this case the luxury
cars) of a taxpayer and what procedures SARS must follow before an
asset may be confiscated. You must use full sentences, and you may 11
not use any bullets when answering the question. (Refer to
legislation.)



QUESTION 2 (10 marks)

Your client did not report an arrangement to SARS because he believed that one of the other
investors had already reported it. After investigating the situation, you conclude that your
client was negligent.

REQUIRED:

MARKS

Describe the process of reporting the reportable arrangement to SARS
(a) 6
and what SARS must do after receiving the information.

Discuss the possibility of an administrative penalty and the amount
(b) 4
thereof if the above arrangement is not reported.



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