I want to find out how it works regarding using a BPR that is not issued for one of our clients, for one of our clients. Our client wish to use BPR-311 but we don't know what the procedures are. Can we only use it and dispute with SARS when disallowed, do
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
Chapter 7 of the Tax Administration Act provides the law that governs binding rulings. As was stated in the explanatory memorandum:
The provisions establish the framework for the system and set out basic rules regarding the application process, fees, exclusions and refusals, the effect of rulings, the impact of subsequent law changes, retrospectivity and the publication of rulings.
Section 82, in Chapter 7, deals with the binding effect of advance rulings and reads as follows:
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If an 'advance ruling' applies to a person in accordance with section 83, then SARS must interpret or apply the applicable tax Act to the person in accordance with the ruling.
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An 'advance ruling' does not have 'binding effect' upon SARS in respect of a person unless it applies to the person in accordance with section 83.
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A 'binding general ruling' may be cited by SARS or a person in any proceedings, including court proceedings.
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A 'binding private ruling' or 'binding class ruling' may not be cited in any proceeding, including court proceedings, other than a proceeding involving an 'applicant' or a 'class member', as the case may be.
Based on this, BPR311, will only apply to the applicant. For a ruling to apply to more than one person, it must be a class ruling - the person must be a 'class member' identified in the a 'binding class ruling'.
See the SARS website for the process - the application process starts with the completion and submission of the application forms, which have to be drafted according to a certain format. https://www.sars.gov.za/Legal/Interpretation-Rulings/Pages/Advance-Tax-Rulings-ATR.aspx
All applications for BPRs and BCRs must be filed online on www.sarsefiling.co.za. The system can be accessed on the Internet via the SARS website www.sars.gov.za or through the SARS eFiling website www.sarsefiling.co.za. The Advance Tax Rulings website also contains specific instructions in connection with each form to assist in the completion process. The link to Advance Tax Rulings can be accessed after logging in by selecting 'Services' and then 'Other Services'.
You can contact the ATR unit on 012 422 8589 for guidance through the online application process or to answer any questions you may have.