Tax Administration Act, 2011 (Act No. 28 of 2011)Chapter 5 : Information GatheringPart A : General rules for inspection, verification, audit and criminal investigation42. Keeping taxpayer informed |
| (1) | A SARS official involved in or responsible for an audit under this Chapter must, in the form and in the manner as may be prescribed by the Commissioner by public notice, provide the taxpayer with a notice of commencement of an audit and, thereafter, a report indicating the stage of completion of the audit. |
[Section 42(1) substituted by section 16 of Notice No. 16, GG 42169, dated 17 January 2019 (Tax Administration Laws Amendment Act, 2018 (Act No. 22 of 2018))]
| (2) | Upon conclusion of the audit or a criminal investigation, and where— |
| (a) | the audit or investigation was inconclusive, SARS must inform the taxpayer accordingly within 21 business days; or |
| (b) | the audit identified potential adjustments of a material nature, SARS must within 21 business days, or the further period that may be required based on the complexities of the audit, provide the taxpayer with a document containing the outcome of the audit, including the grounds for the proposed assessment or decision referred to in section 104(2). |
| (3) | Upon receipt of the document described in subsection (2)(b), the taxpayer must within 21 business days of delivery of the document, or the further period requested by the taxpayer that may be allowed by SARS based on the complexities of the audit, respond in writing to the facts and conclusions set out in the document. |
| (4) | The taxpayer may waive the right to receive the document. |
| (5) | Subsections (1) and (2)(b) do not apply if a senior SARS official has a reasonable belief that compliance with those subsections would impede or prejudice the purpose, progress or outcome of the audit. |
| (6) | SARS may under the circumstances described in subsection (5) issue the assessment or make the decision referred to in section 104(2) resulting from the audit and the grounds of the assessment or decision must be provided to the taxpayer within 21 business days of the assessment or the decision, or the further period that may be required based on the complexities of the audit or the decision. |
[Section 42(6) substituted by section 48(b) of the Tax Administration Laws Amendment Act, 2012 (Act No. 21 of 2012)]