Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.
Analysis of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution of The Republic of South Africa
CHAPTER 7 – CONCLUSION
7.6 ‘JUST CAUSE’ SHOWN DEFENCE40
In order to avoid providing SARS with information, documents or things, ‘good cause shown’ in terms of s 75(1)(b) is also available as a defence to taxpayers, where SARS attempts to compel compliance by the taxpayer by invoking the criminal sanctions under s 75(1)(b) of the Income Tax Act, in an attempt to enforce its requests under ss 74A and 74B. The refusal to provide SARS with the information, pending the outcome of the review proceedings, will prevent the inquiry and audit going forward until the question of the lawfulness,41 reasonableness42 and procedural fairness43 of SARS conduct has been addressed by the court.
40 See section 3.8: ‘Just Cause’ Defence supra.
41 See section 3.3: Lawfulness supra.
42 See section 3.4: Reasonableness supra; See also Local 174 International Brotherhood of Teamsters v US 240 F.2d 387.
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