Relevant factors for the suspension of the payment of disputed tax - a comparative analysis
CITATION: Van Zyl, L. & Van Wyk, D. 2016. Relevant factors for the suspension of the payment of disputed tax - a comparative analysis. Journal of Economic and Financial Sciences, 9(2):561-577.
The original publication is available at https://jefjournal.org.za
Section 164(3) of the Tax Administration Act No. 28 of 2011 gives a senior SARS official the discretion to suspend the payment of disputed tax or a portion thereof, having regard to relevant factors. Limited guidance is available in this regard. The objectives are to establish the concerns and uncertainties regarding the relevant factors and to determine whether a ‘suspension of the payment of disputed tax’ in terms of section 164(3) constitutes the granting of ‘credit’ in terms of a ‘credit agreement’ in terms of the National Credit Act, Act No. 34 of 2005. This is achieved by adopting an explanatory research approach and performing a literature review and comparative analysis respectively. The conclusion is reached that the current factors listed are not necessarily the most relevant ones. Recommendations are made to simplify the process and to revise and improve the wording regarding the relevant factors.