| (1) | SARS may withdraw or modify an "advance ruling" at any time. |
| (2) | If the "advance ruling" is a "binding private ruling" or "binding class ruling", SARS must first provide the "applicant" with notice of the proposed withdrawal or modification and a reasonable opportunity to make representations prior to the decision whether to withdraw or modify the "advance ruling". |
[Section 86(2) substituted by section 26 of the Tax Administration Laws Amendment Act, 2020 (Act No. 24 of 2020), GG44080, dated 20 January 2021]
| (3) | SARS must specify the date the decision to withdraw or modify the "advance ruling" becomes effective, which date may not be earlier than the date— |
| (a) | the decision is delivered to an "applicant", unless the circumstances in subsection (4) apply; or |
| (b) | in the case of a "binding general ruling", the decision is published. |
| (4) | SARS may withdraw or modify a "binding private ruling" or a "binding class ruling" retrospectively if the ruling was made in error and if— |
| (a) | the "applicant" or "class member" has not yet commenced the "proposed transaction" or has not yet incurred significant costs in respect of the arrangement; |
| (b) | a person other than the "applicant" or "class member" will suffer significant tax disadvantage if the ruling is not withdrawn or modified retrospectively and the "applicant" will suffer comparatively less if the ruling is withdrawn or modified retrospectively; or |
| (c) | the effect of the ruling will materially erode the South African tax base and it is in the public interest to withdraw or modify the ruling retrospectively. |
