Abstract
| Original language | English |
|---|---|
| Title of host publication | Tax Simplification |
| Subtitle of host publication | An African Perspective |
| Editors | Chris Evans, Riel Franzsen, Elizabeth (Lilla) Stack |
| Place of Publication | South Africa |
| Publisher | Pretoria University Law Press |
| Chapter | 7 |
| Pages | 159-176 |
| Number of pages | 18 |
| ISBN (Print) | 978-1-920538-96-5 |
| Publication status | Published - 2019 |
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Legal Uncertainty in the South African VAT. / van Oordt, Marius; Krever, Rick.
Tax Simplification: An African Perspective. ed. / Chris Evans; Riel Franzsen; Elizabeth (Lilla) Stack. South Africa : Pretoria University Law Press, 2019. p. 159-176.Research output: Chapter in Book/Conference paper › Chapter
TY - CHAP
T1 - Legal Uncertainty in the South African VAT
AU - van Oordt, Marius
AU - Krever, Rick
PY - 2019
Y1 - 2019
N2 - A significant cause of compliance costs for taxpayers is legal uncertainty resulting from ambiguity in the law and indistinct borders between differing tax rules. The self-assessment principles found in most modern tax systems require taxpayers to interpret the law, with the risk of penalties if their interpretation proves incorrect. The costs of establishing a correct interpretation may be significant. This paper reports the findings of a study undertaken to find the main areas of uncertainty in the South African value added tax (VAT) law as indicated by queries by tax advisors and tax disputes elevated to the courts. Five areas of VAT law were found to be primary sources of uncertainty. In some instances, uncertainty is attributable to structural features of the law. Legislative amendment may be required to address the problem in these instances. Other sources of uncertainty include taxpayer ignorance or poor guidance by tax authorities. Administrative measures to clarify the operation of the law may be sufficient to reduce uncertainty and consequently compliance costs in these cases.
AB - A significant cause of compliance costs for taxpayers is legal uncertainty resulting from ambiguity in the law and indistinct borders between differing tax rules. The self-assessment principles found in most modern tax systems require taxpayers to interpret the law, with the risk of penalties if their interpretation proves incorrect. The costs of establishing a correct interpretation may be significant. This paper reports the findings of a study undertaken to find the main areas of uncertainty in the South African value added tax (VAT) law as indicated by queries by tax advisors and tax disputes elevated to the courts. Five areas of VAT law were found to be primary sources of uncertainty. In some instances, uncertainty is attributable to structural features of the law. Legislative amendment may be required to address the problem in these instances. Other sources of uncertainty include taxpayer ignorance or poor guidance by tax authorities. Administrative measures to clarify the operation of the law may be sufficient to reduce uncertainty and consequently compliance costs in these cases.
M3 - Chapter
SN - 978-1-920538-96-5
SP - 159
EP - 176
BT - Tax Simplification
A2 - Evans, Chris
A2 - Franzsen, Riel
A2 - Stack, Elizabeth (Lilla)
PB - Pretoria University Law Press
CY - South Africa
ER -