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Income Tax Act, 1962 (Act 58 of 1962)

Chapter III: General Provisions

Part IIIA: Settlement of Dispute

88F. Procedure for settlement (Repealed)



[Repealed by the Tax Administration Act, 2011 (Act No. 28 of 2011)].


1) The person concerned should at all times disclose all relevant facts in discussions during the process of settling a dispute.


2) Any settlement will be conditional upon full disclosure of material facts known to the person concerned at the time of settlement.


3) All disputes settled in whole or in part, as contemplated in section 88D, must be evidenced by a written agreement between the parties in the format as may be prescribed by the Commissioner and must include details on—
a) how each particular issue was settled;
b) relevant undertakings by the parties;
c) treatment of that issue in future years;
d) withdrawal of objections and appeals; and
e) arrangements for payment.


4) The written agreement will represent the final agreed position between the parties and will be in full and final settlement of all or the specified aspects of the dispute in question between the parties.


5) The Commissioner must, where the dispute is not ultimately settled, explain the further rights of objection and appeal to the person concerned.


6) Subject to section 88G, the Commissioner and delegated official must adhere to the secrecy provisions with regard to the information relating to the person concerned and may not disclose the terms of any agreement to third parties unless authorised by law or by the person concerned.


7) The Commissioner must adhere to the terms of the agreement, unless it emerges that material facts were not disclosed to it or there was fraud or misrepresentation of the facts.


8) The Commissioner has the right to recover any outstanding amounts involved in the settlement in full where the person concerned fails to adhere to any agreed payment arrangement.