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Income Tax 3 Year Prescription Period
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2013/01/24 at 02:11:42 PM GMT
Posts: 7
Income Tax 3 Year Prescription Period

Hi,

If a taxpayer received an IT34 which had three dates namely:
Date of assessment: 2009-07-21
Due date: 2009-08-01
Second date: 2009-08-31

My question is on which of the above dates do we look at for the three year prescription to apply from?

Does the Tax Administration Act cover the fact that prescription begins from date of assessment (2009-07-21)?

 

Kind regards

Guy Patron



Last edited 24 January 2013
2013/01/29 at 08:05:13 PM GMT
Posts: 53
Prescription under the TAACT

Hi Guy

I hope the undermentioned notes will help:

According to paragraph 8.6 of SARS ‘ "Short Guide to the Tax Administration Act" page 37 the 3 years commences from the date of the assessment(21/07/2009).See extract enclosed hereunder:

8.6. Periods of limitation for issuance of an assessment

To provide certainty to taxpayers TAAct prescribes periods after which SARS cannot raise an assessment.

8.6.1. SARS administered tax and self-assessment tax

The period that applies depends on whether the underlying liability arose from an assessment by SARS or through a self-assessment by the taxpayer.

Table 5: Periods of limitation for issue of assessments Incident

Example

Period

Original assessment is issued by SARS

Income tax

Three years from date of the original assessment."

The words "date of assessment " is defined under section 1 of the said Act and means:

(a)    In the case of an assessment by SARS ,the date of the issue of the notice of assessment ;or

(b)   In the case of self assessment by the taxpayer…”  ; presumably (b) relates to Vat.

 



2013/01/29 at 08:15:34 PM GMT
Posts: 53
Prescription under the TAACT

Under the the IT Act the date of assessment was defined as follows:

"date of assessment " in relation to any assessment ,means the date specified in the notice of such assessment as the due date or,where a due date is not specified ,the date of such notice".

It seems that under the TAACT the appropriate date  that prescription runs from is no longer the due date of the assessment.



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