Tax time periods and the "pay now argue later" rule : a analysis of the effect on taxpayers

Abstract

This dissertation analyses the effect that the tax time periods together with the “pay now, argue later” rule has on the taxpayer. In looking at the tax time periods in terms of the Tax Administration Act, I examine whether the tax time periods favour SARS, and if so what affect that has on the taxpayer. In addition, I look at what effect the “pay now, argue later” rule has on the taxpayer. The effect of the rule is found in the various enforcement mechanisms at SARS’ disposal and what their physical impact is on the taxpayer. Therefore, I discuss the various enforcement mechanisms as provided for in the Tax Administration Act as the ‘effect’ that the “pay now, argue later” rule has on taxpayers. I also make submissions about what effects the enforcement mechanisms themselves have on taxpayer. My dissertation concludes that the tax time periods do favour SARS and what the effect thereof together with the ”pay now, argue later” rule is the taxpayer. I make the submission that this results in the ‘scale’ being tipped in favour of SARS. In concluding, I make a suggestion as to what needs to be done in order to bring a balance in the relationship between SARS and taxpayers.