Disagree with SARS? Here’s How we Can Assist You

“When taxpayers are aggrieved by an assessment or a decision that is subject to objection and appeal, they have a right to dispute it.” (SARS)

As a taxpayer in South Africa, you have the right to dispute tax assessments, if you have valid reason to disagree with SARS on the interpretation of either the relevant facts involved, or the laws that apply to the facts, or both.

SARS has a well-established dispute resolution process – but it is also time-consuming and often complex, with strict deadlines and a substantial amount of administration.

Here’s how we can help you manage the timelines and process for a (hopefully) successful dispute against a SARS assessment, including those that create unmanageable tax liabilities.

A solid foundation is paramount

Before lodging an objection, it’s crucial to make a Request for Reasons for a SARS assessment, which will detail SARS’ findings of fact and the law it applied. You need this to build a solid objection.
All substantiating documentation required for the objection must be collated, as it must be submitted with your objection within the objection period.
It’s also important to ensure your other tax affairs are compliant, as your overall tax compliance status can influence SARS’ decision-making process.
Maintaining updated contact details with SARS, checking your compliance status regularly, and reacting promptly to notification emails or SMSes from SARS are all vital – but we can take care of this for you.

Pay now, argue later

Where a disputed assessment involves a tax debt, the debt must be paid even if you are submitting an objection, thanks to SARS’ “pay now, argue later” principle. This is often a substantial challenge for taxpayers.

If you want to avoid paying immediately, a “Request for Suspension of Payment” must also be submitted timeously, in a separate process. If granted, this will prevent SARS from commencing collection proceedings on the outstanding amount until the objection is finalised.

Ducks in a row

Submitting a tax objection is a serious business. The validity and strength of the arguments and evidence to be presented in the objection should be carefully – and objectively – evaluated.

The objection must detail the grounds on which the assessment is disputed, set out the parts or amounts in dispute and, depending on the nature of the dispute, address penalties and interest incurred. Substantiating documentation that provides evidence for the objection must be collated and submitted to SARS within the objection period.

The bottom line: professional tax expertise is highly recommended when drafting an objection.

Keep to tight deadlines

Meeting the tight timelines is crucial for protecting your right as a taxpayer to dispute an assessment. By acting quickly and meeting deadlines, we can help you to ensure the best chances of resolving the dispute favourably.

Important deadlines include:

You have 30 business days after the date of assessment to make a Request for Reasons, which will extend the period within which an objection can be lodged.
The law allows 80 business days to file a Notice of Objection (NOO) against a SARS assessment or decision, starting on the date of assessment, or, where a Request for Reasons was made, from the date of receiving the reasons requested from SARS.
30 business days from the date of the outcome of your objection, a Notice of Appeal can be submitted if the objection is disallowed or partially allowed.

If you have missed a deadline due to valid reasons, we can help you request an extension – although ideally you should request an extension before missing a deadline.

Monitor and manage the dispute process

To protect your rights in a tax dispute, it’s important to manage the dispute process to ensure SARS adheres to set time frames and service expectations. SARS is obliged to:

respond to a Request for Reasons within 45 business days.
request additional substantiating documents for an objection within 30 business days.
where SARS requests additional documents for an objection, notify the taxpayer of the outcome within 45 business days of the submission deadline or delivery date of the requested documents.
where SARS does not request additional documents for objection, advise the taxpayer of the outcome of the objection, together with its reasons, within 60 business days of the objection.
issue an assessment within 45 days after a settlement is reached.

If the outcome of an objection is not acceptable, a Notice of Appeal can be filed, and Alternative Dispute Resolution (ADR) can be considered. We can assist you to request for an ADR from SARS, as this may provide for a more cost-effective and expedited dispute resolution process.

Matters that cannot be resolved by ADR can be referred to either the tax board or tax court, depending on the disputed amount and the complexity of a case. If the outcome of an appeal to the tax board or tax court is not satisfactory, an appeal to the High Court or Supreme Court of Appeal may also be possible.

Tax expertise at your fingertips

Tax disputes can be complicated and time-consuming, and missing the deadlines can erode your right as a taxpayer to object to an assessment.

We can guide you through the steps, ensuring you meet all the requirements and deadlines and greatly increasing your chances of a positive outcome.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.