The Interrelationship Between A Tax Revolt And The Pay-Now-Argue-Later Principle

Abstract

Tax revolts have existed since time immemorial and have been caused by many factors. The pay-now-argue-later principle, as used by South African Revenue Services is a provision in tax administration to compel a taxpayer to settle their tax debt despite their intention to challenge the assessment for instance in a tribunal. The interrelationship between a tax revolt and the pay-now-argue-later principle researches the history, development, and psychology of a tax revolt. It also looks at the pay-now-argue-later principle, the dynamics, its rationale, and constitutionality. Some of the questions considered are whether a challenge to the pay-now-argue-later principle amounts to a tax revolt and what is the impact of the pay-now-argue-later principle on the rights of a taxpayer, including the right to protest in section 17 of the Constitution. The study looks at whether South African Revenue Service can use the pay-now-argue-later principle in dealing with a tax revolt. There is dearth of legal literature and case law about a tax revolt in South Africa and the region while many studies exist on the pay-now-argue-later principle. This study endeavors to fill that gap. This is a desk-based research. In its conclusion, the research makes recommendations that could be adopted especially by the fiscus.