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 Authority to Request Information: SARS has broad statutory powers to request information
that is considered relevant to its audit or investigation activities. This includes the ability to
request documents, records, and other relevant material from taxpayers and third parties
who hold information pertinent to the taxpayer's financial affairs.
o Range of Requested Material: SARS can demand a wide range of documentation, including
but not limited to, financial statements, invoices, bank statements, correspondence, and
electronic records. This request aims to ensure that SARS has access to all necessary
information to accurately assess tax liability and compliance.
2. Legal Obligations of the Taxpayer:
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 Authority to Request Information: SARS has broad statutory powers to request information
that is considered relevant to its audit or investigation activities. This includes the ability to
request documents, records, and other relevant material from taxpayers and third parties
who hold information pertinent to the taxpayer's financial affairs.
o Range of Requested Material: SARS can demand a wide range of documentation, including
but not limited to, financial statements, invoices, bank statements, correspondence, and
electronic records. This request aims to ensure that SARS has access to all necessary
information to accurately assess tax liability and compliance.
2. Legal Obligations of the Taxpayer:
