Remission of penalties in income tax matters

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Authors

Goldswain, George Kenneth

Issue Date

2009-08-25T11:00:24Z

Type

Dissertation

Language

en

Keywords

Section 76 , Additional tax , Penalties , Discretion , Extenuating circumstances , Mitigating circumstances , Constitution , Remission , Defences , Pleas

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Abstract

The additional tax ("penalties") imposable in terms of section 76(1) of the Income Tax Act (No 58 of 1962) when a taxpayer is in default, can be very harsh (up to 200% of the tax properly chargeable). The Commissioner may, in terms of section 76(2)(a), remit any penalty imposed, as he sees fit. However, when there was intent on the part of the taxpayer to evade the payment of tax, the Commissioner may not remit any portion of the 200% penalty imposable, unless he is of the opinion that "extenuating circumstances" exist. This dissertation examines the meaning of "extenuating circumstances", as interpreted by the judiciary, and lists the factors and defences that a taxpayer may plead to justify a remission of penalties, both in the case of an intention by the taxpayer to evade tax and in cases where the taxpayer is merely in default of section 76(1).

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Goldswain, George Kenneth (2009) Remission of penalties in income tax matters, University of South Africa, Pretoria, <http://hdl.handle.net/10500/2104>

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