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Income Tax Act, 1962 (Act 58 of 1962)

Chapter III: General Provisions

Part IIIA: Settlement of Dispute

88D. Circumstances where appropriate to settle (Repealed)



[Repealed by the Tax Administration Act, 2011 (Act No. 28 of 2011)].


The Commissioner may, where it will be to the best advantage of the state, settle a dispute, in whole or in part, on a basis that is fair and equitable to both the person concerned and the Commissioner, having regard to inter alia

a) whether that settlement would be in the interest of good management of the tax system, overall fairness and the best use of the Commissioner’s resources;
b) the cost of litigation in comparison to the possible benefits with reference to—
i) the prospects of success in a court;
ii) the prospects of the collection of the amounts due; and
iii) the costs associated with collection;
c) whether there are any—
i) complex factual or quantum issues in contention; or
ii) evidentiary difficulties,

which are sufficient to make the case problematic in outcome or unsuitable for resolution through the alternative dispute resolution procedures or the courts;

d) a situation where a participant or a group of participants in a tax avoidance arrangement has accepted the Commissioner’s position in the dispute, in which case the settlement may be negotiated in an appropriate manner required to unwind existing structures and arrangements; or
e) whether the settlement of the dispute will promote compliance of the tax laws by the person concerned or a group of taxpayers or a section of the public in a cost-effective way.