SARS ASSESSMENTS

ONE SHOT TO DISPUTE!

The past tax year has been an eventful one, with SARS increasing their collection power and employing aggressive strategies to clamp down on tax non-compliance, taxpayers find themselves in the common situation of questioning whether their assessment has been carried out correctly.

It is vital for taxpayers to note that they essentially have only one shot to dispute their SARS assessment, and should therefore seek the assistance of a seasoned Tax Attorney who fully understands the nuances of tax law from the start, to ensure their shot counts!

Our multidisciplinary team of team of Tax Attorneys, Tax Practitioners and Chartered Accountants (SA) will be able to assist submit an objection against an assessment issued by SARS.

LEARN MORE

CONTACT US

MORE INFORMATION

When engaging in disputes with the taxman, there are many rules you need to be aware of and correct steps to take in order to engage SARS effectively.

Consider asking SARS for reasons
Before commencing with an objection, a taxpayer is entitled to request SARS to provide proper reasons for the assessment. Reasons allows the taxpayer to understand the assessment and more easily formulate an objection.
Always remember to include a suspension of payment
An objection does not automatically suspend the taxpayer’s obligation to pay tax. A suspension of payment is needed and should be filed before or simultaneously with the objection.
An objection needs a good cover letter
The objection form may be too brief to properly explain why the taxpayer is contesting the assessment. A cover letter is a brief submission of the taxpayer’s claim, setting out their grounds of objection, the amount contested, and legal argument.
Documentation is a must
The taxpayer bears the burden of proving any amount or transaction is exempt or otherwise not taxable. SARS requires documentary evidence with an objection to prove any such claim.
Diarise your dispute time frames
Failing to accurately follow dispute time frames will result in a failed objection. Taxpayers should take note:

The stakes are high when you submit an objection against an assessment, because any items you omit at this point will be considered bygones.

We are often approached by taxpayers only once their dispute with SARS has gone awry; often when it has progressed beyond the objection stage. It soon becomes evident that the taxpayer or their representative failed to address certain pertinent aspects in the objection, which makes it very difficult to salvage what may have appeared to be a very simple matter.

Vague and ill-informed objections can result in very serious ramifications for the taxpayer, even where they may have been assessed incorrectly.