Delhi HC: Workman Cannot Claim Section 17(B) of the ID Act Wages after Reaching Superannuation Age  ||  Allahabad HC: Caste by Birth Remains Unchanged Despite Conversion or Inter-Caste Marriage  ||  Delhi High Court: Tweeting Corruption Allegations Against Employer Can Constitute Misconduct  ||  Delhi High Court: State Gratuity Authorities Lack Jurisdiction over Multi-State Establishments  ||  Kerala High Court: Arrest Grounds Need Not Mention Contraband Quantity When No Seizure is Made  ||  SC: Silence During Investigation Does Not Ipso Facto Mean Non-Cooperation to Deny Bail  ||  Supreme Court: High Courts Cannot Re-Examine Answer Keys Even in Judicial Service Exams  ||  SC: Central Government Employees under CCS Rules are Not Covered by the Payment of Gratuity Act  ||  Supreme Court Holds CrPC Principles on Discharge and Framing of Charges Continue under BNSS  ||  Supreme Court: High Courts Must Independently Assess SC/ST Act Charges in Section 14A Appeals    

Purveyors South Africa Mine Services (Pty) Ltd vs. Commissioner for the South African Revenue Services (Pty) Ltd - (07 Dec 2021)

Onus rests on the taxpayer to establish, on a balance of probabilities, that it has fully met the requirements of the provision

Direct Taxation

The primary issue before the SCA was whether the Commissioner for South African Revenue Services (SARS) was correct in rejecting Purveyors’ voluntary disclosure application for non-compliance with Section 227 of the Tax Administration Act, 2011 (the TAA), more specifically on the ground that, it was not made voluntarily.

The Tax Court agreed with SARS and dismissed Purveyors’ case. It found, that the application was not voluntary as there was an element of compulsion on the part of Purveyors, when it submitted the application.

Words ‘voluntary’ and ‘disclosure’ in the section of the Tax Administration Act, 2011 require that the voluntary disclosure application must measure up fully to the requirements of the section. It is clear that the onus rests on the taxpayer to establish, on a balance of probabilities, that it has fully met the requirements of the section. The language used in the section clearly indicates the legislature’s intention to arm the Commissioner with extensive powers to prevent taxpayers from disclosures which are neither voluntary nor complete in all material respects.

The fact that the section provides that the disclosure application must be made in the prescribed form or manner rather than obtaining ad hoc advice from SARS is a clear indication that the mischief sought to be prevented is one where a taxpayer discloses information to SARS and later on makes a voluntary disclosure application. In facts of present case, from the outset – and well before the submission of its voluntary disclosure application – Purveyors knew that it was liable for the import VAT on the aircraft and penalties, which were not going to be waived.

The voluntary disclosure application must comply with the provisions of the section in all material respects. Moreover, that the taxpayer must take SARS into their confidence and voluntarily make a proper and frank disclosure which is neither prompted nor made as a result of any fear or compulsion. SARS must undoubtedly not be aware of the default. The Court was of the opinion that upon a true analysis of the facts of the present case, Purveyors’ application does not pass the test. The application was not voluntarily made. Purveyors, in its application, did not disclose information of which SARS was unaware. Appeal dismissed.

Tags : VOLUNTARY DISCLOSURE   NON-COMPLIANCE   PROVISION  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved