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
Under South African tax legislation, specifically the Tax Administration Act (TAA), SARS has statutory
powers to request relevant material during an audit. These powers are outlined primarily in Section
46 of the TAA. Here’s what Jack should understand about these powers:
1. Request for Relevant Material:
o Definition: SARS has the authority to request any material or documents deemed relevant
to an audit or investigation. This includes books of account, records, or any other documents
related to the taxpayer's business or financial affairs.
o Scope: The request can cover all financial records, including invoices, bank statements,
contracts, and correspondence that might provide insight into the taxpayer's financial status
and compliance with tax obligations.
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
Under South African tax legislation, specifically the Tax Administration Act (TAA), SARS has statutory
powers to request relevant material during an audit. These powers are outlined primarily in Section
46 of the TAA. Here’s what Jack should understand about these powers:
1. Request for Relevant Material:
o Definition: SARS has the authority to request any material or documents deemed relevant
to an audit or investigation. This includes books of account, records, or any other documents
related to the taxpayer's business or financial affairs.
o Scope: The request can cover all financial records, including invoices, bank statements,
contracts, and correspondence that might provide insight into the taxpayer's financial status
and compliance with tax obligations.
