Tax Administration Act, 2011 (Act No. 28 of 2011)

Chapter 7 : Advance Rulings

75. Definitions
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In this Chapter, unless the context indicates otherwise, the following terms, if in single quotation marks, have the following meanings:

 

"advance ruling"

means a "binding general ruling", a "binding private ruling" or a "binding class ruling";

 

"applicant"

means a person who submits an "application" for a "binding private ruling" or a "binding class ruling";

 

"application"

means an application for a "binding private ruling" or a "binding class ruling";

 

"binding class ruling"

means a written statement issued by SARS regarding the application of a tax Act to a specific "class" of persons in respect of a "proposed transaction";

 

"binding effect"

means the requirement that SARS interpret or apply the applicable tax Act in accordance with an "advance ruling" under section 82;

 

"binding general ruling"

means a written statement issued by a senior SARS official under section 89 regarding the interpretation of a tax Act or the application of a tax Act to the stated facts and circumstances;

"binding private ruling" means a written statement issued by SARS regarding the application of a tax Act to one or more parties to a "proposed transaction", in respect of the "transaction";

 

"binding private ruling"

means a written statement issued by SARS regarding the application of a tax Act to one or more parties to a "proposed transaction", in respect of the "transaction";

 
"class"

means—

(a)shareholders, members, beneficiaries or the like in respect of a company, association, pension fund, trust, or the like; or
(b)a group of persons, that may be unrelated and—
(i)are similarly affected by the application of a tax Act to a "proposed transaction"; and
(ii)agree to be represented by an "applicant";

 

"class member" and "class members"

means a member or members of the "class" to which a "binding class ruling" applies;

 

"non-binding private opinion"

means informal guidance issued by SARS in respect of the tax treatment of a particular set of facts and circumstances or "transaction", but which does not have a "binding effect" within the meaning of section 88;

 

"proposed transaction"

means a "transaction" that an "applicant" proposes to undertake, but has not agreed to undertake, other than by way of an agreement that is subject to a suspensive condition or is otherwise not binding; and

 

"transaction"

means any transaction, deal, business, arrangement, operation or scheme and includes a series of transactions.