The SAIT Tax Administration and Dispute Management Technical Work Group’s submission on the Draft Tax Administration Laws Amendment Bill, 2025 raises several key points. The WG recognises the need for enhanced inspection powers to combat VAT fraud but stresses that these should not exacerbate existing delays in VAT and related registrations. On suspension of payment (SOP) linked to reduced assessments, the WG highlights misalignments in timelines and urges SARS to leverage eFiling to streamline processes, broaden SOP provisions, and issue clear guidance. The most significant concern relates to the proposed restriction of the “bona fide inadvertent error” defence, which the WG argues undermines established case law (Coronation and Thistle Trust), narrows taxpayer protections, and risks unfair penalties for genuine errors. The group strongly recommends retaining the current framework, delinking the defence from “substantial understatement,” and ensuring smaller taxpayers are not disadvantaged. Finally, the WG welcomes the introduction of early alternative dispute resolution (ADR) but requests clarity on implementation timelines, noting its potential to reduce disputes and improve efficiency.
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