Tax Administration Act, 2011 (Act No. 28 of 2011)Chapter 13 : Refunds190. Refunds of excess payments |
| (1) | SARS must pay a refund if a person is entitled to a refund, including interest thereon under section 188(3)(a), of— |
| (a) | an amount properly refundable under a tax Act and if so reflected in an assessment; or |
| (b) | the amount erroneously paid in respect of an assessment in excess of the amount payable in terms of the assessment. |
[Section 190(1) substituted by section 60(1)(a) of the Tax Administration Laws Amendment Act, 2015 (Act No. 23 of 2015)]
| (2) | SARS need not authorise a refund as referred to in subsection (1) until such time that a verification, inspection, audit or criminal investigation of the refund in accordance with Chapter 5 has been finalised. |
[Section 190(2) substituted by section 34(a) of the Tax Administration Laws Amendment Act, 2020 (Act No. 24 of 2020), GG44080, dated 20 January 2021]
| (3) | SARS must authorise the payment of a refund before the finalisation of the verification, inspection, audit or criminal investigation if security in a form acceptable to a senior SARS official is provided by the taxpayer. |
[Section 190(3) substituted by section 34(b) of the Tax Administration Laws Amendment Act, 2020 (Act No. 24 of 2020), GG44080, dated 20 January 2021]
| (4) | An amount under subsection (1)(b) is regarded as a payment to the National Revenue Fund unless a refund is made in the case of— |
| (a) | an assessment by SARS, within three years from the later of the date of the assessment or the erroneous payment; |
| (b) | self-assessment, within five years from the later of the date the return had to be submitted or, if no return is required, payment had to be made in terms of the relevant tax Act or the erroneous payment was made; or |
| (c) | an erroneous payment claimed by a taxpayer within the period referred to in paragraph (a) or (b), but not paid by SARS within the period. |
[Section 190(4)(c) inserted by section 21(c) of Notice No. 16, GG 42169, dated 17 January 2019 (Tax Administration Laws Amendment Act, 2018 (Act No. 22 of 2018))]
| (5) | If SARS pays to a person by way of a refund any amount which is not properly payable to the person under a tax Act, the amount, including interest thereon under section 187(1), is regarded as an outstanding tax debt from the date on which it is paid to the person. |
[Section 190(5) substituted by section 60(1)(c) of the Tax Administration Laws Amendment Act, 2015 (Act No. 23 of 2015)]
| (5A) | If a person who carries on the 'business of a bank' as defined in the Banks Act, 1990 (Act No. 94 of 1990), holds an account on behalf of a client into which an amount referred to in subsection (5) is deposited, reasonably suspects that the payment of the amount is related to a tax offence, the person must immediately report the suspicion to SARS, not proceed with the carrying out of any transaction in respect of the amount for a period not exceeding two business days unless— |
| (a) | SARS or a High Court directs otherwise; or |
| (b) | SARS issues a notice under section 179. |
[Section 190(5A) amended by section 28 of the Tax Administration Laws Amendment Act, 2017 (Act No. 13 of 2017)]
| (6) | A decision not to authorise a refund under subsection (1)(b) is subject to objection and appeal. |
[Section 190(6) substituted by section 60(1)(e) of the Tax Administration Laws Amendment Act, 2015 (Act No. 23 of 2015)]