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ABSA OPENS WAY TO AVOID TAX TIFF SLOG

ABSA OPENS WAY TO AVOID TAX TIFF SLOG

In a legal victory that could save companies time and possibly money, the high court in Pretoria affirmed Absa’s contention that it can bypass a mandated “protracted slog” through a dispute resolution mechanism to resolve a difference with the SA Revenue Service (Sars).

Absa took two of the tax agency’s decisions directly on review before the North Gauteng High Court, arguing that Sars made errors in the application of the law when it accused it of being party to an impermissible tax avoidance scheme and issued it with an assessment of the tax liability arising from it. The victory could herald a change in how companies and the broader public approach tax-related disputes, especially if their gripes are rooted in the application of the law. Under tax legislation, taxpayers who feel aggrieved by a decision of Sars have to go through an internal dispute resolution process that often takes years, and while it runs its course the taxpayers must set aside money until it is resolved…

By Amanda Visser

Every effort was made to ensure accurate reflection of the law and the tax principles discussed in our articles or as set out on our website at the time of publishing on the website. Tax law develops all the time and it is therefore recommended that views expressed in the past be vented by users for current applicability and accuracy.  Comments made and views expressed in our articles and on our website does not constitute advice to any person or company. Unicus Tax Specialists SA will not be liable for any loss or damage of whatever nature or form caused due to reliance on this article.

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