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Tax Administration Act, 2011 (Act No. 28 of 2011)

Chapter 9 : Dispute Resolution

Part F : Settlement of dispute

146. Circumstances where settlement is appropriate


The Commissioner may, if it is 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 to SARS, having regard to—

(a) whether the "settlement" would be in the interest of good management of the tax system, overall fairness, and the best use of SARS" resources;
(b) SARS" cost of litigation in comparison to the possible benefits with reference to the prospects of success in court;

[Paragraph (b) substituted by section 55 of the Tax Administration Laws Amendment Act, 2015 (Act No. 23 of 2015)]

(c) whether there are any—
(i) complex factual 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 in which a participant or a group of participants in a tax avoidance arrangement has accepted SARS" 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 "settlement" of the "dispute" is a cost-effective way to promote compliance with a tax Act by the person concerned or a group of taxpayers.