Tax amendments materially narrow understatement penalty defence
The bona fide inadvertent error defence is limited to substantial understatements, but there is relief for taxpayers seeking to challenge estimated assessments.
#bonafideinadvertenterror
Draft amendments narrow taxpayers’ ‘bona fide inadvertent error’ defence
The proposal restricts the ‘bona fide inadvertent error’ defence under the understatement penalty regime to cases where the tax shortfall is a ‘substantial understatement’.
Proposal to tweak ‘bona fide inadvertent error’ in favour of SARS
The move will limit taxpayer defences that rely solely on claiming an unintentional mistake.
‘Instructive remarks’ from the Constitutional Court on understatement penalties
Expert legal interpretations, even if contrary to SARS’s stance, may not automatically result in understatement penalties.
