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

Chapter 19 : General Provisions

256. Tax compliance status

 

(1) A taxpayer may apply, in the prescribed form and manner, to SARS for a confirmation of the taxpayer's tax compliance status.

 

(2) SARS must issue or decline to issue the confirmation of the taxpayer's tax compliance status within 21 business days from the date the application is submitted or such longer period as may reasonably be required if a senior SARS official is satisfied that the confirmation of the taxpayer's tax compliance status may prejudice the efficient and effective collection of revenue.

 

(3) A senior SARS official may provide a taxpayer with confirmation of the taxpayer's tax compliance status as compliant only if satisfied that the taxpayer is registered for tax and does not have any—
(a) outstanding tax debt, excluding a tax debt contemplated in section 167 or 204 or a tax debt that has been suspended under section 164 or does not exceed the amount referred to in section 169(4); or
(b) outstanding return unless an arrangement acceptable to the SARS official has been made for the submission of the return.

 

(4) A confirmation of tax compliance status must be in the prescribed format and include at least—
(a) the original date of issue of the tax compliance status confirmation to the taxpayer;
(b) the name, taxpayer reference number and identity number or company registration number of the taxpayer;
(c) the date of the confirmation of the tax compliance status of the taxpayer to an organ of state or a person referred to in subsection (5); and
(d) a confirmation of the tax compliance status of the taxpayer as at the date referred to in paragraph (c).

 

(5) Despite the provisions of Chapter 6, SARS may confirm the taxpayer’s tax compliance status as at the date of the request, or a previous date as prescribed by the Minister in a regulation under section 257(2A), by—
(a) an organ of state; or
(b) a person to whom the taxpayer has presented the tax compliance status confirmation.

[Section 256(5) substituted by section 72 of the Tax Administration Laws Amendment Act, 2015 (Act No. 23 of 2015)]

 

(6) SARS may alter the taxpayer's tax compliance status to non-compliant if the confirmation—
(a) was issued in error; or
(b) was obtained on the basis of fraud, misrepresentation or non-disclosure of material facts,

and SARS has given the taxpayer prior notice and an opportunity to respond to the allegations of at least 14 days prior to the alteration.

 

(7) A taxpayer's tax compliance status will be indicated as non-compliant by SARS for the period commencing on the date that the taxpayer no longer complies with a requirement under subsection (3) and ending on the date that the taxpayer remedies the non-compliance.

 

[Section 256 substituted by section 64 of the Tax Administration Laws Amendment Act, 2014 (Act No. 44  of 2014)]