Mcusi Accounting Services

SARS may issue an assessment to taxpayers based on various reasons such as understatements and late submissions. SARS may also issue an additional assessment on a submitted return should it feel there is a misrepresentation of actual amounts. While SARS may be correct at times, it is not always the case. Should a taxpayer be aggrieved by an assessment, here are some options to consider:

Request for reason: when the grounds provided in the assessment do not enable the taxpayer to understand the basis of the assessment, the taxpayer is entitled to request for reasons within 30 days from a SARS assessment.

Request for remission: the request for remission (RFR) can be lodged by a taxpayer on different tax types. However the taxpayer does bear the burden of proof once again, under what basis must SARS grant a remission, whether partially or in full. Either way, here you are at SARS' mercy, give them a good reason why they should. The taxpayer can object to the imposition of certain other admin non-compliance penalties or interest where the request was not allowed r partially allowed. The RFR must be submitted to SARS within 30 business days of an assessment.

Notice of objection: The taxpayer has the right to object to an assessment or decision by SARS. An objection must be submitted within 30 business days after the date of the assessment. Where the taxpayer requested reasons for the assessment, the objection must be submitted within 80 business days after the date of the notice or decision.

Suspension of payment: the taxpayer may request SARS to suspend the payment of tax or a portion thereof under an assessment if the taxpayer intends to dispute or disputes the liability to pay that tax. SARS will not institute any collection steps from the date in which a valid request for suspension of payment is received, until 10 days after being informed that the request has been declined, or after a notice is received that an already approved suspension of payment has been revoked. The dispute resolution options explained above are a measure implemented by SARS to ensure that taxpayers are afforded with an opportunity to dispute tax assessments which they may not necessarily agree with, and it is important that taxpayers are aware of the time frames as well as steps to follow to lodge a dispute to ensure that a compliant tax status is maintained.

Alternative Dispute resolution: another form of dispute resolution other than litigation, or adjudication through the courts. This method has also proven to be more affordable than the other progressive types. A taxpayer may request this means however it is at SARS’ discretion that it is granted. This kind of dispute is considered where the taxpayer is not satisfied with the outcome of your appeal. It takes approximately 90 days to conclude this process.

These are just some of the easily accessible and cost-effective methods of disputing/disagreeing with the tax collector that are available to any taxpayer who has access to sufficient evidence and documentation to support their claim. In most cases, it is advisable to work with a tax practitioner for a favourable outcome, however not guaranteed either. In the case where you encounter an assessment you are not happy with, you’ll thank yourself for keeping accurate records to support every claim and tax detail, from case numbers to invoices and maybe even recordings; a quote or two from the income tax act may also go a long way!

MAS is happy and ready to meet you halfway when you are ready 🙂 Happy filing!