You may dispute an assessment raised by SARS, if the right process is followed and within the prescribed timeframe. If the incorrect process is followed, or not submitted in time, you may permanently lose out on the opportunity to dispute the assessment. Awareness of the available remedies and relevant time frames are crucial for this reason.
If you are aggrieved by an assessment raised by SARS, you may, prior to submitting an objection, first ask SARS to provide reasons for the assessment to enable you dispute it. The request for reasons must be submitted within 30 days[1] from the date of SARS’ assessment. SARS has 45 days to provide you with the requested reasons.
Within 30 days from the date of assessment (or 30 days after SARS provided the requested reasons if reasons were first requested), you may submit an objection against the assessment raised by SARS. If you are unable to submit your dispute within 30 days, you may ask extension of another 30 days if reasonable grounds exist for the delay, or up to 3 years, if exceptional circumstances are present for your delay in submitting the objection. Your objection letter should clearly state the grounds for your objection as well as the relief that you are seeking.
A separate request for remission of the penalties and interest levied may also be submitted in certain circumstances. If such request is declined, you may similarly object against SARS’ decision not to remit the penalties and/or interest.
If your objection is disallowed and you disagree with this decision, you have the right to appeal that decision within 30 days from SARS notifying you of the outcome of objection. An extension of 21 days may be granted if reasonable grounds exist for the delay in submitting your return, or up to 45 days if exceptional circumstances are present. The appeal should be in the SARS prescribed form and manner and must specify certain specific details.
As part of the appeal, you may elect to first attempt to resolve the matter via alternative dispute resolution (ADR). The ADR process creates a structure within which disputes may be resolved or settled in a less formal and inexpensive way and within a much shorter period. The ADR entails a discussion between SARS and yourself or your representative, in the presence of a facilitator to resolve the dispute informally. Only if the ADR was unsuccessful, the dispute will proceed to be heard by the tax board or tax court (depending on the quantum in dispute) where the chairperson or judge will decide on the matter.
Pending the dispute process, you will remain liable for payment of the amount in dispute. To prevent SARS from taking collection steps in this period, you can submit a request for suspension of payment of the outstanding tax debt. Once submitted, SARS may not proceed to collect the outstanding tax debt (which is subject to dispute) until the dispute has been resolved or if SARS disallowed the suspension request. This consists of the dispute process in a nutshell. You are welcome to contact us should you require any assistance with your dispute process.
[1] All references to days are to business days.