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Value-Added Tax Act, 1991 (Act No. 89 of 1991)

Part IX - Compliance

61. Recovery of tax from recipient

 

(1) Where in respect of any supply made by a vendor the vendor has, in consequence of any fraudulent action or any misrepresentation by the recipient of the supply, incorrectly applied a rate of zero per cent or treated such supply as being exempt from tax, the Commissioner may, notwithstanding anything to the contrary contained in this Act, raise an assessment upon the recipient for the amount of tax payable, together with any interest and penalty that has become payable in terms of Chapter 12, 15 or 16 of the Tax Administration Act, as the case may be, in respect of such amount.

 

(2) [Subsection (2) deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)]

 

(3) This section shall not be construed as preventing the Commissioner from recovering the amounts of unpaid tax, penalty and interest from the vendor, but in the event of such amounts being recovered from the recipient the vendor shall be absolved from liability for the payment of the amounts due.