Page 16 - Test 1 Slides - 1. Introduction & Application Of Legislation
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INTRODUCTION & APPLICATION OF LEGISLATION
Interpretation rules
• Sometimes certain rules give SARS discretion in the way it should
apply certain provisions of the Income Tax Act.
• In order to deal with this confusion, the commissioner can issue
binding general rulings or interpretation notes (previously called
practice notes).
• Binding general rulings are issued by CSARS, at his or her discretion,
in respect of the application or interpretation of tax law on a
matter of general interest or importance. These rulings are binding
on SARS and on taxpayers.
• Interpretation notes are merely the opinion of SARS regarding the
interpretation and application of various legislative provisions and
do not form part of the Income Tax Act, and are also not binding on
SARS, except if they are a binding private or class ruling. Therefore,
a taxpayer can object to an assessment even if SARS has assessed
that taxpayer in terms of an interpretation note.
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