The Tax Administration Act, 2011 introduced a framework for decision-making that ensures that powers and duties that have far-reaching impact are only delegated to suitable qualified and experienced senior SARS officials and are exercised directly by the senior SARS official or under that official’s direct supervision.
The administration of the Act is divided into four tiers:
- The Minister of Finance
- The Commissioner
- Senior SARS Official
- SARS Official
1. The Minister of Finance
Among other key responsibilities, the Minister possesses substantial authority, including the power to issue and enforce regulations that govern tax procedures and compliance. Additionally, the Minister is empowered to appoint or remove the Tax Ombud, who plays a crucial role in overseeing tax-related issues and ensuring fair practices. The Minister also has the authority to alter the deadlines for the submission of tax returns and the payment of taxes, which can impact the financial planning and operational timelines for individuals and businesses alike. It is essential to understand that these specific powers are strictly non-delegable. This means that the Minister is the sole individual entrusted with these critical functions, and cannot transfer or delegate these responsibilities to any other person or authority. This ensures that the decision-making process remains centralized and consistent, maintaining the integrity and accountability of the tax administration system.
2. The Commissioner
The powers assigned to the Commissioner personally can be separated into those that allow the Commissioner to determine the macro environment within which SARS functions, and specific operational powers that are the Commissioner’s reserve.
Authority to determine the tax environment include the authority:
▪ To issue public notices, for instance which specify in what form a taxpayer must retain records; when an auditor must inform a taxpayer of the stage of an audit, and when compounded interest will apply to a tax type.
▪ To prescribe tax forms.
▪ To publish details of taxpayers convicted of an offence;
▪ To publish facts concerning a taxpayer to counter inaccurate reporting in the media.
▪ To permit a jeopardy assessment.
▪ To settle a tax dispute.
3. Senior SARS officials
Only a senior SARS official who is delegated by the Commissioner may perform one or more of the more serious powers or functions. Throughout this module you will notice that there are many powers and functions which must be performed by senior SARS officials. A SARS official acting under a delegation must be so delegated in writing with the mandate or authority specified.
4. SARS officials
The majority of functions and powers under the tax Acts will be performed and executed by SARS officials. ‘SARS official’ is a defined term in the TA Act and means:
• The Commissioner.
• An employee of SARS.
• A person contracted or engaged by SARS, other than an external legal representative, for purposes of the administration of a tax Act and who carries out the provisions of a tax Act under the control, direction or supervision of the Commissioner.
Powers and duties not specifically required by the Tax Administration Act, 2011 to be exercised by the Commissioner or by a senior SARS official may be exercised by a SARS official.
Where the Tax Administration Act, 2011 makes reference to “officer” in the context of a person, who is engaged by the Commissioner in carrying out the provisions of the relevant tax Act, it also means a SARS official as defined in the Tax Administration Act, 2011.
Certain SARS officials, who are not necessarily senior SARS officials, may perform particular functions. These officials hold the authority in terms of the Tax Administration Act, 2011, or are assigned the function by the Commissioner or a senior SARS official.
The functions reserved for this category of officials are:
• Officials who may institute or defend civil proceedings.
• Officials with whom the Tax Ombud’s office may liaise.
• Officials who may conduct field audits or criminal investigations.
- Hassan Nabi
- December 30, 2024
- 8:55 am
