Answer Guideline TAX3704_Assessment 2_S2
It is advertised to use the below format
QUESTION
(a) Statutory Powers Granted to a senior SARS Official (2 marks)
• Senior SARS officials have the power to request relevant material under Section 46 of
the Tax Administration Act (TAA).
• According to Section 46, SARS can request any information, document, or material relevant
to the administration of a tax act from a taxpayer, a class of taxpayers or any other person to
submit relevant material within a reasonable period
COMMENTS (5 marks) For the first five sentences
Under Section 46
• The request for information is restricted to the records maintained or that should
reasonably be maintained by a person. The person is accordingly not obliged to obtain or
gather information outside such records to comply with an information request.
• A request for information must be related to and within the ambit of the administration of
the tax Acts, for example in the case of a request for income tax information the request
must be related to the Income Tax Act.
• Relevant material required by SARS in the request for information must be referred to in
the request with reasonable specificity.
• Relevant material requested by SARS for revenue estimation purposes are limited to the
information in this regard that a taxpayer has available.
• The request for information may only be used to obtain relevant material
Refer to lesson 2 page 12 please paraphrase where it necessary
(b) Burden of Proof under Section 102 of the TAA: (1 mark)
• Section 102 of the TAA establishes that the burden of proof lies with the taxpayer to prove
the correctness of any information submitted to SARS, namely that an amount is exempt, a
transaction is not taxable, or amounts are deductible or may be set off, the rate of tax
applicable and that a valuation is correct.
COMMENTS (4 marks) For the first four sentences
Section 102 of the TAA states that the taxpayer bears the burden to prove :
• An amount, transaction, event or item is exempt or otherwise not taxable
• That an amount is deductible or may be set off
• The rate of tax applicable to a transaction, event, item or class of taxpayer
• That an amount qualifies as a reduction of tax payable
• That a valuation is correct
• Whether a decision that is subject to objection and appeal under a tax Act is incorrect
Lesson 3 page 13
On all the questions that require tax legislation you may start every answer with “under Section 92
then your answer…” or put that on top as I did
(c) SARS Issuing an Estimated Assessment: (2 marks)
Page 1 of 3
It is advertised to use the below format
QUESTION
(a) Statutory Powers Granted to a senior SARS Official (2 marks)
• Senior SARS officials have the power to request relevant material under Section 46 of
the Tax Administration Act (TAA).
• According to Section 46, SARS can request any information, document, or material relevant
to the administration of a tax act from a taxpayer, a class of taxpayers or any other person to
submit relevant material within a reasonable period
COMMENTS (5 marks) For the first five sentences
Under Section 46
• The request for information is restricted to the records maintained or that should
reasonably be maintained by a person. The person is accordingly not obliged to obtain or
gather information outside such records to comply with an information request.
• A request for information must be related to and within the ambit of the administration of
the tax Acts, for example in the case of a request for income tax information the request
must be related to the Income Tax Act.
• Relevant material required by SARS in the request for information must be referred to in
the request with reasonable specificity.
• Relevant material requested by SARS for revenue estimation purposes are limited to the
information in this regard that a taxpayer has available.
• The request for information may only be used to obtain relevant material
Refer to lesson 2 page 12 please paraphrase where it necessary
(b) Burden of Proof under Section 102 of the TAA: (1 mark)
• Section 102 of the TAA establishes that the burden of proof lies with the taxpayer to prove
the correctness of any information submitted to SARS, namely that an amount is exempt, a
transaction is not taxable, or amounts are deductible or may be set off, the rate of tax
applicable and that a valuation is correct.
COMMENTS (4 marks) For the first four sentences
Section 102 of the TAA states that the taxpayer bears the burden to prove :
• An amount, transaction, event or item is exempt or otherwise not taxable
• That an amount is deductible or may be set off
• The rate of tax applicable to a transaction, event, item or class of taxpayer
• That an amount qualifies as a reduction of tax payable
• That a valuation is correct
• Whether a decision that is subject to objection and appeal under a tax Act is incorrect
Lesson 3 page 13
On all the questions that require tax legislation you may start every answer with “under Section 92
then your answer…” or put that on top as I did
(c) SARS Issuing an Estimated Assessment: (2 marks)
Page 1 of 3
