Well-structured LML4804 PORTFOLIO (ANSWERS) Semester 2 2024 - DISTINCTION GUARANTEED. (DETAILED ANSWERS - DISTINCTION GUARANTEED!)..... QUESTION 1 (TAX ADMINISTRATION AND TAX AVOIDANCE) The Tax Administration Act 28 of 2011 (TAA) empowers the Commissioner for the South African Revenue Service (the ...
LML4804
PORTFOLIO Semester 2 2024
Unique Number:
Due Date: 25 October 2024
QUESTION 1
In addressing the Vintage Club's inquiry regarding the notice from SARS demanding
information about its members, we must assess the legal framework that governs SARS’
actions. The Tax Administration Act 28 of 2011 (TAA) provides SARS with the authority to
request relevant material for the purpose of tax administration, which includes audits and
investigations, especially in cases where there is a potential for tax non-compliance.
SARS' Authority to Request Information
Section 46 of the TAA empowers SARS to request relevant material from taxpayers or third
DISCLAIMER & TERMS OF USE
1. Educational Aid: These study notes are designed to serve as educational aids and should not be considered as a
substitute for individual research, critical thinking, or professional guidance. Students are encouraged to
conduct their own extensive research and consult with their instructors or academic advisors for specific
assignment requirements.
2. Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the
information provided in these study notes, the seller cannot guarantee the completeness or correctness of all
the content. It is the responsibility of the buyer to verify the accuracy of the information and use their own
judgment when applying it to their assignments.
3. Academic Integrity: It is crucial for students to uphold academic integrity and adhere to their institution's
policies and guidelines regarding plagiarism, citation, and referencing. These study notes should be used as a
tool for learning and inspiration, but any direct reproduction of the content without proper acknowledgment and
citation may constitute academic misconduct.
4. Limited Liability: The seller of these study notes shall not be held liable for any direct or indirect damages,
losses, or consequences arising from the use of the notes. This includes, but is not limited to, poor grades,
academic penalties, or any other negative outcomes resulting from the application or misuse of the information
provided.
, For additional support +27 81 278 3372
QUESTION 1
In addressing the Vintage Club's inquiry regarding the notice from SARS demanding
information about its members, we must assess the legal framework that governs
SARS’ actions. The Tax Administration Act 28 of 2011 (TAA) provides SARS with
the authority to request relevant material for the purpose of tax administration, which
includes audits and investigations, especially in cases where there is a potential for
tax non-compliance.
SARS' Authority to Request Information
Section 46 of the TAA empowers SARS to request relevant material from taxpayers
or third parties if such material is necessary for the administration of a tax act. The
term "relevant material" is broadly defined and includes any information, document,
or item that SARS considers necessary to determine a taxpayer’s compliance with
the tax laws. Importantly, SARS must request this material with reasonable
specificity. This means that the notice should clearly outline the nature of the
information requested and the reasons behind the request. In this case, SARS is
seeking the names and personal details of the club’s members, likely to cross-check
their lifestyles and wealth levels against their tax returns.
Privacy Considerations and Legal Requirements
While SARS does have broad powers to collect information, the Vintage Club must
also consider the right to privacy of its members. The Protection of Personal
Information Act 4 of 2013 (POPIA) applies in this context. POPIA sets out
requirements for the lawful processing of personal information, ensuring that the
processing is done in a way that respects the privacy rights of individuals. However,
SARS is generally exempt from POPIA’s requirements when conducting audits, as
SARS’ duties are performed in the interest of public finance, which supersedes
individual privacy in tax-related matters. Nonetheless, SARS must still act within the
bounds of the law and cannot conduct arbitrary investigations without justifiable
cause.
Specifics of the Notice and Relevant Grounds
The Vintage Club should verify that SARS’ notice complies with the requirements of
the TAA. Firstly, the notice must have been issued by a senior SARS official, and it
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper dochub. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €2,69. Je zit daarna nergens aan vast.
