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dc.contributor.advisorLubbe, M.
dc.contributor.authorFeuth, Johannes Alexander
dc.date.accessioned2015-02-11T07:28:29Z
dc.date.available2015-02-11T07:28:29Z
dc.date.issued2013
dc.identifier.urihttp://hdl.handle.net/10394/13330
dc.descriptionMCom (South African and International Taxation), North-West University, Potchefstroom Campus, 2014en_US
dc.description.abstractThe Tax Administration Act (28 of 2011) (TA Act), which was promulgated on 4 July 2012 and came into effect on 1 October 2012, was enacted with the purpose of aligning all the administrative provisions dealt with under the various sections of the Income Tax Act (58 of 1962) (IT Act) and the Value-Added Tax Act (89 of 1991) (VAT Act) under one piece of legislation. The TA Act (28 of 2011) provides guidance on various matters of tax administration, including a very controversial penalty levying regime. Prior to the TA Act (28 of 2011), section 76 of the IT Act (58 of 1962) and section 60 the VAT Act (89 of 1991) (hereafter referred to as the pre-TA Act (28 of 2011) penalty provisions) dealt with the levying of additional taxes in cases of understated tax returns. Sections 76 and 60 of the respective acts unfortunately did not provide proper guidelines on the assessment and calculation of these additional taxes or on how the levying of these additional taxes could conform to matters of administrative justice. These matters have been included under sections 221 to 223 of the TA Act (28 of 2011) (hereafter referred to as the understatement penalty percentage provisions under the TA Act (28 of 2011)) and have been welcomed by most taxpayers. This research study focused on the critical evaluation of the understatement penalty percentage provisions under the TA Act (28 of 2011) as well as the provisions which were repealed and replaced by the TA Act (28 of 2011) and which were previously applied in terms of the pre-TA Act (28 of 2011) penalty provisions. A comparison between the latter provisions, the understatement penalty percentage provisions under the TA Act (28 of 2011) and foreign legislation is made with the purpose of addressing how effective and fair the TA Act (28 of 2011) will prove to be. The study also includes brief advice on any possible improvements or practical approaches regarding the understatement penalty percentage provisions under the TA Act (28 of 2011). It is also seen as necessary to evaluate the effectiveness of the regulations promulgated in terms of sections 221 to 223 of the TA Act (28 of 2011), and to identify possible problems with the application and interpretation of the relevant understatement penalty percentage provisions under the TA Act (28 of 2011) by the Commissioner. A literature review was used to critically analyse and compare various pieces of legislation and precedents, including South African and foreign laws and legislation, with possible practical illustrative examples. The objective with the literature review was to clarify issues such as the fairness of the understatement penalty percentage provisions under the TA Act (28 of 2011) and the pre-TA Act (28 of 2011) penalty provisions. The findings of the research study revealed that the enactment of the understatement penalty percentage provisions under the TA Act (28 of 2011) on 1 October 2012 partially achieves the objective of providing taxpayers with a penalty levying system that is more reasonable and fair in comparison with the pre-TA Act (28 of 2011) penalty provisions. Despite a more favourable outcome achieved by the TA Act (28 of 2011), the research concludes that proper guidance and measures for levying a penalty are still lacking and that the legislation is unfortunately still failing in this regard. Harsh penalty percentages based on certain behavioural criteria that are not defined create the need for obvious improvements. That said, the TA Act (28 of 2011) is still young and creates a basis on which further amendments and improvements can take place.en_US
dc.language.isoenen_US
dc.subjectAdditional Taxen_US
dc.subjectBehavioursen_US
dc.subjectDiscretionen_US
dc.subjectIncome Tax Acten_US
dc.subjectTax Administration Acten_US
dc.subjectTax Penaltiesen_US
dc.subjectUnderstatement penalty percentageen_US
dc.subjectValue-Added Tax Acten_US
dc.subjectAddisionele belastingen_US
dc.subjectGedragen_US
dc.subjectDiskresieen_US
dc.subjectInkomste Belasting Weten_US
dc.subjectBelastingadministrasie Weten_US
dc.subjectBelasting boetesen_US
dc.subjectOnderverklaring-boete persentasieen_US
dc.subjectBelasting op Toegevoegde Waarde Weten_US
dc.titleRefining the understatement penalty in terms of the Tax Administration Acten
dc.typeThesisen_US
dc.description.thesistypeMastersen_US
dc.contributor.researchID21139946 - Lubbe, Melissa (Supervisor)


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