Abstract:
The South African Revenue Service (“SARS”) is an organ of state in terms of the South
African Revenue Service Act. SARS is mandated to administer the collection of tax The
Commissioner for the South African Revenue Service (“CSARS”) is granted certain
discretionary powers. This study focuses on two of these discretions as contained in the
Tax Administration Act 28 of 2011, as amended (“the TAA”) - the granting of a suspension
of payment of outstanding tax (“suspension”), and the waiver of interest and penalties
imposed on a taxpayer (“waivers”).
In the exercise of these discretions, the CSARS must also uphold the Constitution of the
Republic of South Africa (“the Constitution”). The Constitution is the supreme law of the
Republic of South Africa (‘the Republic”) and contains the Bill of Rights. As the
cornerstone of the Republic’s democracy, the Bill of Rights affirms the values of human
dignity, equality and freedom of all the people living in the Republic’s, and expressly sets
out that it binds all organs of state.
One important right contained in the Bill of Rights is the right to lawful, reasonable and
procedurally fair administrative action. This right is given effect to in the Promotion of
Administrative Justice Act 3 of 2000 (“PAJA”).
This study evaluates firstly, the CSARS’ discretionary powers to grant suspension and
waivers; secondly, the provisions of administrative justice with specific focus on PAJA
and thirdly, the role administrative justice plays in the CSARS’ exercise of his discretions.
