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The general meaning of “extenuating circumstances” for the purposes of section 76(2)(a) of the Income Tax Act

The general meaning of “extenuating circumstances” for the purposes of section 76(2)(a) of the... The additional tax (referred to as a “penalty” by the judiciary), which may be imposed in terms of section 76(1) of the Income Tax Act (“the Act”) when a taxpayer is in default, can be very harsh (Up to 200% of the tax correctly chargeable). The Commissioner may remit any penalty imposed as he sees fit. However, when there was intent on the part of the taxpayer to evade the payment of tax, the Commissioner may not remit the 200% penalty, unless he is of the opinion that there are “extenuating circumstances”. This article examines the general meaning, as interpreted by the courts, of the “extenuating circumstances” that may be taken into account for the purposes of remission of penalties in terms of section 76(2)(a) of the Act. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Meditari Accountancy Research Emerald Publishing

The general meaning of “extenuating circumstances” for the purposes of section 76(2)(a) of the Income Tax Act

Meditari Accountancy Research , Volume 9 (1): 13 – Apr 1, 2001

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References (2)

Publisher
Emerald Publishing
Copyright
Copyright © 2001 MCB UP Ltd. All rights reserved.
ISSN
1022-2529
DOI
10.1108/10222529200100007
Publisher site
See Article on Publisher Site

Abstract

The additional tax (referred to as a “penalty” by the judiciary), which may be imposed in terms of section 76(1) of the Income Tax Act (“the Act”) when a taxpayer is in default, can be very harsh (Up to 200% of the tax correctly chargeable). The Commissioner may remit any penalty imposed as he sees fit. However, when there was intent on the part of the taxpayer to evade the payment of tax, the Commissioner may not remit the 200% penalty, unless he is of the opinion that there are “extenuating circumstances”. This article examines the general meaning, as interpreted by the courts, of the “extenuating circumstances” that may be taken into account for the purposes of remission of penalties in terms of section 76(2)(a) of the Act.

Journal

Meditari Accountancy ResearchEmerald Publishing

Published: Apr 1, 2001

Keywords: Remission of penalties; Extenuating circumstances; ; Mitigating circumstances; Mitigating circumstances

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