A critical examination of the commissioner’s discretionary powers under the vat act: A South African perspective

Abstract

This study critically examines the discretionary powers conferred on the Commissioner for the South African Revenue Service (SARS) under the Value-Added Tax (VAT) Act, focusing specifically on Section 72. Using a comparative analysis with the United Kingdom’s VAT framework, the research examines how discretion is shaped by principles of fairness, certainty, simplicity, and transparency. The findings show that South Africa confers broader and less regulated powers than the UK, where discretion is narrowly administrative, formally codified, and subject to stronger transparency and judicial oversight. These differences have significant implications for legal certainty, taxpayer rights, and compliance in South Africa. The study contributes by highlighting the risks of over-broad discretion in tax administration and recommends adopting a more structured and transparent approach, including the publication of binding regulations and clearer criteria for decision-making. Such reforms would align South Africa’s VAT system more closely with constitutional standards and best international practices.

Keywords: {'name': 'Value-Added Tax (VAT)'}, {'name': 'Discretionary Powers'}, {'name': 'Tax Commissioner'}, {'name': 'South African VAT Act'}, {'name': 'United Kingdom VAT Act'}, {'name': 'Tax Administration'}

Authors & affiliations

Sizakele Ngwenya
North-West University

Daniel P. Schutte
North-West University

Banele Dlamini
North-West University

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