A Probe into the Constitutionality of Relevant Sections of the Tax Administration Act

Abstract

Several provisions of the Tax Administration Act infringes on certain constitutional rights of the taxpayers, especially in circumstances where SARS recovers tax debts, but the provisions also places many stringent and administratively burdensome obligations on the appointed third parties. Although many tax practitioners and academics in the field has taken to the pen on this particular subject, my reason for undertaking this research is in light of the fact that not many research has been conducted in terms of the current provisions of the Tax Administration Act, and that not many research was done taking into account the particular obligations and liabilities of appointed third parties such as banks. My research is interpretive in nature, as I have interpreted the new provisions of the Tax Administration Act, and thereafter compare it to the old provisions as contained in the Income Tax Act in order to determine whether the limitations on the rights of the taxpayer will also survive the constitutional limitation test. My research is also of a comparative and exploratory nature. I conducted investigations of the laws and applications in other countries, in order to determine if we are in-line with international standards and practices. I conclude that certain provisions of the newly implemented Tax Administration Act reasonably and justifiably limits the taxpayer’s constitutional rights, however other provisions allows for a challenge to the constitutional validity. I also conclude that the actions of SARS officials should be evaluated and challenged under judicial review.