The Minister of Finance has increased the jurisdiction of the Tax Board to encompass matters where the tax in dispute does not exceed R500,000 (previously R200,000). If the tax in dispute is greater than R500,000, then the matter must be heard by the Tax Court. If the tax in dispute is less than R500,000, but the matter is sufficiently complex, then it may also be heard by the Tax Court.
The procedures of the Tax Board are intended to be informal and inexpensive.
There is no detailed set of rules which must be complied with, and strict rules of evidence may be relaxed. A taxpayer will often appear personally or, in the case of a corporate taxpayer, through its representative taxpayer.
Legal or other representation at the Tax Board is allowed with the permission of the Chairperson (an advocate or attorney). If a taxpayer is not satisfied with the decision of the Tax Board, the matter may be re-heard by the Tax Court. This means that the matter starts afresh in the Tax Court, rather than the Tax Court reconsidering the decision of the Tax Board.
Proceedings before the Tax Court are similar to those before the High Court of South Africa. They are governed by a detailed set of rules, dealing with issues such as statements of grounds of assessment and appeal, discovery of documents and pre-trial conferences, as well as the hearing of the matter itself.
The Tax Court is presided over by a judge of the High Court (or three such judges if the matter is large or complex enough). There are usually also two other members of the Tax Court present - an accountant and a commercial member. Legal representation is allowed in the Tax Court.
If either a taxpayer or SARS is dissatisfied with a decision of the Tax Court, they may appeal to a full bench of the High Court and, potentially, thereafter to the Supreme Court of Appeal. In certain circumstances, an appeal from the Tax Court may proceed directly to the Supreme Court of Appeal.
