2023
TAX2601-PRINCIPLES OF TAXATION SEMESTER 1
ASSIGNMENT 01 SOLUTIONS
DUE DATE: 1 MARCH 2023
MEL
,QUESTION 1
A binding general rule issued by the Commissioner of SARS (CSARS)
a sets a legal precedent.
b is issued in respect of the application or interpretation of tax law on
a matter of general interest or importance.
c is not binding on taxpayers.
d is the same as an interpretation note.
QUESTION 2
When interpreting the wording in the Income Tax Act, what should be considered?
a. The contra fiscum rule is applied first and thereafter the literal meaning.
b. The intention of the legislator is the only applied principle (purposive
interpretation).
c. The literal meaning of the words is first used, note is taken of the real
intention of the legislature, and lastly, the contra fiscum rule is applied.
d. "The Act should not be interpreted; it is a set of rules not open for discussion."
QUESTION 3
Which of the following is not a requirement for an appeal to the Tax Board?
a. the taxpayer or the commissioner does object to the Tax Board making
a ruling
b. the commissioner and the taxpayer mutually agree to make use of the
Tax Board .
c. the taxpayer or the commissioner does not object to the Tax
Board making a ruling.
d. amount in question is less than R500,00
QUESTION 5
Which of the following is incorrect:?
a. A taxpayer may request SARS to provide reasons for the assessment.
1
, b. There is no burden on the taxpayer.
c. When determining if the onus has been discharged, the courts assess the
balance of probability.
d. The onus is on the taxpayer to show that an amount is not taxable.
QUESTION 6
Which one of the following taxes is not considered a wealth tax?
a. Excise duty
b. Donation tax
c. Capital gains tax
d. Estate duty
QUESTION 7
Which one of the following is not a procedure for settlement in terms of
alternative dispute resolution (ADR)?
a. The settlement agreement must be confirmed by the Tax Court
b. The settlement agreement must be in writing.
c. A senior SARS official appoints a suitably qualified person to act as facilitator
d. The taxpayer indicates on the notice of appeal that he wants to use the ADR
process
QUESTION 8
Which one of the following is not a procedure for settlement in terms of the
alternative dispute resolution (ADR)?
a. The appointed facilitator can make a recommendation to reach consensus.
b. The settlement must be confirmed by the Tax Court.
c. The secrecy provisions must be adhered to.
d. The settlement agreement must be in writing.
e.
QUESTION 9
2
TAX2601-PRINCIPLES OF TAXATION SEMESTER 1
ASSIGNMENT 01 SOLUTIONS
DUE DATE: 1 MARCH 2023
MEL
,QUESTION 1
A binding general rule issued by the Commissioner of SARS (CSARS)
a sets a legal precedent.
b is issued in respect of the application or interpretation of tax law on
a matter of general interest or importance.
c is not binding on taxpayers.
d is the same as an interpretation note.
QUESTION 2
When interpreting the wording in the Income Tax Act, what should be considered?
a. The contra fiscum rule is applied first and thereafter the literal meaning.
b. The intention of the legislator is the only applied principle (purposive
interpretation).
c. The literal meaning of the words is first used, note is taken of the real
intention of the legislature, and lastly, the contra fiscum rule is applied.
d. "The Act should not be interpreted; it is a set of rules not open for discussion."
QUESTION 3
Which of the following is not a requirement for an appeal to the Tax Board?
a. the taxpayer or the commissioner does object to the Tax Board making
a ruling
b. the commissioner and the taxpayer mutually agree to make use of the
Tax Board .
c. the taxpayer or the commissioner does not object to the Tax
Board making a ruling.
d. amount in question is less than R500,00
QUESTION 5
Which of the following is incorrect:?
a. A taxpayer may request SARS to provide reasons for the assessment.
1
, b. There is no burden on the taxpayer.
c. When determining if the onus has been discharged, the courts assess the
balance of probability.
d. The onus is on the taxpayer to show that an amount is not taxable.
QUESTION 6
Which one of the following taxes is not considered a wealth tax?
a. Excise duty
b. Donation tax
c. Capital gains tax
d. Estate duty
QUESTION 7
Which one of the following is not a procedure for settlement in terms of
alternative dispute resolution (ADR)?
a. The settlement agreement must be confirmed by the Tax Court
b. The settlement agreement must be in writing.
c. A senior SARS official appoints a suitably qualified person to act as facilitator
d. The taxpayer indicates on the notice of appeal that he wants to use the ADR
process
QUESTION 8
Which one of the following is not a procedure for settlement in terms of the
alternative dispute resolution (ADR)?
a. The appointed facilitator can make a recommendation to reach consensus.
b. The settlement must be confirmed by the Tax Court.
c. The secrecy provisions must be adhered to.
d. The settlement agreement must be in writing.
e.
QUESTION 9
2
