As another tax year ends, SA Revenue Service (Sars) has intensified its collection strategies following increased demand from government as the coffers run dry.
One contentious strategy is the “pay now, argue later” principle.
Although this doctrine is not new, Sars’ reliance on the provision has heightened over recent years.
Two fundamental consequences, both at the peril of the taxpayer, are at stake: loss of interest on funds recovered, and the two-year time bar to claim refunds, even if the taxpayer is eventually successful. Balancing the enforcement of collection and the infringed-upon rights of taxpayers is steadily approaching constitutional adjudication.
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