TAX3704
ASSIGNMENT 1 2025
DUE: SEPTEMBER 2025
SEMESTER 2 2025
, TAX3704 Assignment 1 2025 – Semester 2 2025
DUE: SEPTEMBER 2025
QUESTION 1
Question 1 (10 marks, 12 minutes)
Taxpayer A is a resident of the Republic. Taxpayer A is aware of the fact that, as a taxpayer, he has a duty
to retain records, books of account or documents for a specific period, he also realises that there may be
exceptions to the rule. Taxpayer A seeks clarification in respect of his own records, which are kept in a safe
place in Zimbabwe, where he spends most of the time running a business of exporting tobacco products.
(a) Place, form and period for keeping records:
Under the Tax Administration Act (TAA)
A taxpayer must keep all relevant records, books and documents “in their original form
in an orderly fashion and in a safe place.” Records may also be retained in electronic
format if prescribed by SARS or authorised by a senior SARS official. The required
retention period is generally 5 years. Specifically, TAA §29(3) provides that a person
who submits a return need not retain records “after a period of five years from the date
of submission of the return,” and a person not required to submit a return may dispose
of records “after a period of five years from the end of the relevant tax period.” In
practice Taxpayer A’s records must therefore be kept (on paper or as prescribed
electronic copies) safely for at least five years from the relevant return date. under TAA
§31 SARS may require inspection of the records “in the Republic,” so even if held in
Zimbabwe they must be made available for review by SARS as needed.
ASSIGNMENT 1 2025
DUE: SEPTEMBER 2025
SEMESTER 2 2025
, TAX3704 Assignment 1 2025 – Semester 2 2025
DUE: SEPTEMBER 2025
QUESTION 1
Question 1 (10 marks, 12 minutes)
Taxpayer A is a resident of the Republic. Taxpayer A is aware of the fact that, as a taxpayer, he has a duty
to retain records, books of account or documents for a specific period, he also realises that there may be
exceptions to the rule. Taxpayer A seeks clarification in respect of his own records, which are kept in a safe
place in Zimbabwe, where he spends most of the time running a business of exporting tobacco products.
(a) Place, form and period for keeping records:
Under the Tax Administration Act (TAA)
A taxpayer must keep all relevant records, books and documents “in their original form
in an orderly fashion and in a safe place.” Records may also be retained in electronic
format if prescribed by SARS or authorised by a senior SARS official. The required
retention period is generally 5 years. Specifically, TAA §29(3) provides that a person
who submits a return need not retain records “after a period of five years from the date
of submission of the return,” and a person not required to submit a return may dispose
of records “after a period of five years from the end of the relevant tax period.” In
practice Taxpayer A’s records must therefore be kept (on paper or as prescribed
electronic copies) safely for at least five years from the relevant return date. under TAA
§31 SARS may require inspection of the records “in the Republic,” so even if held in
Zimbabwe they must be made available for review by SARS as needed.
