RRLLB81
Assignment 2 RESEARCH REPORT Semester 1 2026
Tax planning and impermissible tax avoidance
Due Date: April 2026
Tax planning and impermissible tax avoidance
By
[RRLLB81 STUDENT]
(012345678)
Submitted in partial fulfilment of the requirements for the degree
BACHELOR OF LAWS
in the
DEPARTMENT OF CRIMINAL AND PROCEDURAL LAW
Terms of use
SCHOOL OF LAW By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
Tax planning and impermissible tax avoidance
By
[RRLLB81 STUDENT]
(012345678)
Submitted in partial fulfilment of the requirements for the degree
BACHELOR OF LAWS
in the
DEPARTMENT OF CRIMINAL AND PROCEDURAL LAW
SCHOOL OF LAW
UNIVERSITY OF SOUTH AFRICA
SUPERVISOR: PROF MM MONYAKANE
RRLLB81 ASSESSMENT 2 / FINAL PORTFOLIO
(DUE DATE: April 2026)
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
Abstract
This research examines the legal feasibility of South Africa‟s general anti-avoidance rule
under sections 80A to 80L of the Income Tax Act 58 of 1962. These provisions empower
SARS to attack an “arrangement” that yields a tax benefit where abnormality, misuse or
abuse, lack of commercial substance, or other tainted features are present.1 The study
distinguishes lawful tax planning from impermissible tax avoidance and evaluates whether
the GAAR strikes an acceptable balance between taxpayer autonomy and the state‟s
interest in protecting the tax base. It further considers the administrative framework of the
Tax Administration Act 28 of 2011, which supports enforcement through audit,
investigation and assessment powers.2 The central finding is that the GAAR is legally
feasible because it targets abusive arrangements rather than ordinary commercial
restructuring, but its open-ended standards can create interpretive uncertainty. The
research argues that careful judicial interpretation remains essential to preserve certainty,
fairness and constitutional legality.
1
Income Tax Act 58 of 1962 ss 80A–80L; SARS, Taxation in South Africa (26 August 2025) 19–20
2
Tax Administration Act 28 of 2011; SARS, „Tax Administration‟ (20 June 2023)
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 2 RESEARCH REPORT Semester 1 2026
Tax planning and impermissible tax avoidance
Due Date: April 2026
Tax planning and impermissible tax avoidance
By
[RRLLB81 STUDENT]
(012345678)
Submitted in partial fulfilment of the requirements for the degree
BACHELOR OF LAWS
in the
DEPARTMENT OF CRIMINAL AND PROCEDURAL LAW
Terms of use
SCHOOL OF LAW By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
Tax planning and impermissible tax avoidance
By
[RRLLB81 STUDENT]
(012345678)
Submitted in partial fulfilment of the requirements for the degree
BACHELOR OF LAWS
in the
DEPARTMENT OF CRIMINAL AND PROCEDURAL LAW
SCHOOL OF LAW
UNIVERSITY OF SOUTH AFRICA
SUPERVISOR: PROF MM MONYAKANE
RRLLB81 ASSESSMENT 2 / FINAL PORTFOLIO
(DUE DATE: April 2026)
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
Abstract
This research examines the legal feasibility of South Africa‟s general anti-avoidance rule
under sections 80A to 80L of the Income Tax Act 58 of 1962. These provisions empower
SARS to attack an “arrangement” that yields a tax benefit where abnormality, misuse or
abuse, lack of commercial substance, or other tainted features are present.1 The study
distinguishes lawful tax planning from impermissible tax avoidance and evaluates whether
the GAAR strikes an acceptable balance between taxpayer autonomy and the state‟s
interest in protecting the tax base. It further considers the administrative framework of the
Tax Administration Act 28 of 2011, which supports enforcement through audit,
investigation and assessment powers.2 The central finding is that the GAAR is legally
feasible because it targets abusive arrangements rather than ordinary commercial
restructuring, but its open-ended standards can create interpretive uncertainty. The
research argues that careful judicial interpretation remains essential to preserve certainty,
fairness and constitutional legality.
1
Income Tax Act 58 of 1962 ss 80A–80L; SARS, Taxation in South Africa (26 August 2025) 19–20
2
Tax Administration Act 28 of 2011; SARS, „Tax Administration‟ (20 June 2023)
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
