Refund of an over-payment of tax - Part 4 of the Taxation Administration Act, 1996 (superseded)
Ruling number | TAA 003 |
Date issued | 16 September 1999 |
Issued by | P Achterstraat Chief Commissioner of State Revenue |
Effective from | 16 September 1999 |
Effective to | 31 December 2015 |
Status | Replaced by TAA 003v2 |
Preamble
The following guidelines relate to the refund of an overpayment of tax under Part 4 of the Taxation Administration Act 1996. (“TAA”)
If a taxpayer makes a payment that is greater than the assessment against which the payment is made, the Chief Commissioner must generally refund the difference to the taxpayer (section 18) or offset the amount against another taxation liability (section 19).
Ruling
Determining the refund mode
When an overpayment of tax occurs, the Chief Commissioner will determine whether a refund cheque should issue or whether the overpayment should be applied to another taxation liability of the taxpayer.
If a taxpayer has another taxation liability or liabilities, section 19(1) of the TAA provides a discretion for the Chief Commissioner to transfer the amount of the overpayment to that other liability or liabilities. This is the course which will usually be followed by the Office of State Revenue. The taxpayer will be provided with full details of how the overpayment was applied.
A refund may be credited towards a taxpayer’s future liability but only with the taxpayer’s consent. (section 19(2)).
Refunds by Cheque
Refunds after a successful objection or appeal
A refund of an overpayment of tax which arises on a reassessment of a taxation liability as a result of a successful objection or appeal will be made under section 104 of the TAA. If the taxpayer has other taxation liabilities, the amount of the overpayment of tax may be applied to those other liabilities.
In addition, interest at the market rate will be paid under section 105, on the amount of the relevant overpayment. Interest payable under section 105 is not a “refund” and will not be applied to another taxation liability. A cheque for the interest will be issued to the taxpayer.
Refunds when the tax has been passed on
Where legislation provides for the passing on of the tax to another person, and this has occurred, a refund cheque will be issued only where the Chief Commissioner is satisfied that arrangements have been made to pass on the refund to the person/s who paid the tax.