| (1) |
SARS may reject an "application" for an "advance ruling" if the "application"— |
| (a) |
requests or requires the rendering of an opinion, conclusion or determination regarding— |
| (i) |
the market value of an asset; |
| (ii) |
the application or interpretation of the laws of a foreign country; |
| (iii) |
the pricing of goods or services supplied by or rendered to a connected person or associated enterprise, as defined in section 31 of the Income Tax Act, in relation to the ‘applicant’ or a ‘class member’; |
[Section 80(1)(a)(iii) substituted by section 28 of the Tax Administration Laws Amendment Act, 2023, GG49947, dated 22 December 2023]
| (iv) |
the constitutionality of a tax Act; |
| (v) |
a "proposed transaction" that is hypothetical or not seriously contemplated; |
| (vi) |
a matter which can be resolved by SARS issuing a directive under the Fourth Schedule or the Seventh Schedule to the Income Tax Act; |
[Section 80(1)(a)(vi) substituted by section 57 of the Tax Administration Laws Amendment Act, 2012 (Act No. 21 of 2012)]
| (vii) |
whether a person is an independent contractor, labour broker or personal service provider; or |
| (viii) |
a matter which is submitted for academic purposes; |
| (i) |
a frivolous or vexatious issue; |
| (ii) |
an alternative course of action by the "applicant" or a "class member" that is not seriously contemplated; or |
| (iii) |
an issue that is the same as or substantially similar to an issue that is— |
| (aa) |
currently before SARS in connection with an audit, investigation or other proceeding involving the "applicant" or a "class member" or a connected person in relation to the "applicant" or a "class member"; |
| (bb) |
the subject of a policy document or draft legislation that has been published; or |
| (cc) |
subject to dispute resolution under Chapter 9; |
| (c) |
involves the application or interpretation of a general or specific anti-avoidance provision or doctrine; |
| (i) |
that is of a factual nature; |
| (ii) |
the resolution of which would depend upon assumptions to be made regarding a future event or other matters which cannot be reasonably determined at the time of the "application"; |
| (iii) |
which would be more appropriately dealt with by the competent authorities of the parties to an agreement for the avoidance of double taxation; |
| (iv) |
in which the tax treatment of the "applicant" is dependent upon the tax treatment of another party to the "proposed transaction" who has not applied for a ruling; |
| (v) |
in respect of a "transaction" that is part of another "transaction" which has a bearing on the issue, the details of which have not been disclosed; or |
| (vi) |
which is the same as or substantially similar to an issue upon which the "applicant" has already received an unfavourable ruling; |
| (e) |
involves a matter the resolution of which would be unduly time-consuming or resource intensive; or |
| (f) |
requests SARS to rule on the substance of a "transaction" and disregard its form. |
| (2) |
The Commissioner may publish by public notice a list of additional considerations in respect of which the Commissioner may reject an "application". |
| (3) |
If SARS requests additional information in respect of an "application" and the "applicant" fails or refuses to provide the information, SARS may reject the "application" without a refund or rebate of any fees imposed under section 81. |
Special Investigating Units and Special Tribunals Act, 1996
