- Title
- Cross-border assistance in the recovery of foreign tax debt
- Creator
- Barnard, Hugo
- Subject
- Taxation -- South Africa Tax administration and procedure -- South Africa
- Date Issued
- 2017
- Date
- 2017
- Type
- Thesis
- Type
- Masters
- Type
- LLM
- Identifier
- http://hdl.handle.net/10948/15989
- Identifier
- vital:28302
- Description
- Internationally, there is a growing drive towards inter-governmental assistance with tax matters, including assistance in the collection of outstanding tax debt. The purpose of this study is the consider the development of South Africa’s ability to assist with the collection of foreign tax debt. The South African common law revenue rule precludes South Africa from rendering assistance with the recovery of a foreign tax debt. The revenue rule, however, may be abrogated through legislation. Analysis of section 93 of the Income Tax Act1 and section 185 of the Tax Administration Act2 indicates that a pre-requisite for South Africa to render assistance with the collection of a tax debt is the existence of an international tax agreement between South Africa and the requesting state which makes provisions for such assistance. It was also found that the South African Revenue Service (SARS) would not be able to rely on section 172 of the Tax Administration Act in order to obtain a civil judgement for recovery of a foreign tax debt. Interpretation of these provisions in light of the Constitution3 and the Promotion of Administrative Justice Act4 (PAJA) indicates that they do not violate the Constitution, but actions taken by SARS may be subject to judicial review under the PAJA. After analysis of South Africa’s bilateral international tax agreements, it was found that 22 agreements contain provisions for assistance with collection of a tax debt. A review of the Multilateral Convention for Mutual Administrative Assistance in Tax Matters indicates that South Africa and 73 other countries are bound by it. Analysis of the provisions of the international tax agreements and the South African case law dealing with conflicts between international agreements and domestic legislation indicates that the South African courts would give preference to the provisions of the international agreement over domestic legislation in the case of a conflict. A review of selected cases involving assistance provisions in international tax agreements suggests that the South African courts will apply the assistance provisions to taxes that arose prior to the effective date of the assistance provisions.
- Format
- x, 144, 6 leaves
- Format
- Publisher
- Nelson Mandela Metropolitan University
- Publisher
- Faculty of Law
- Language
- English
- Rights
- Nelson Mandela Metropolitan University
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