If you are aggrieved by an assessment issued by SARS, you have the right to object to such an assessment.
You do not, however, have the right to object in instances where it was what is known as a self-assessment. A self assessment means that tax payers assessed their own tax liability then filed and submitted the tax return(s) to SARS. For example in case of Value-Added Tax (VAT) and Pay-As-You-Earn (PAYE), these taxes require tax payers to self assess and then file and submit the respective tax returns as and when they become due.
You can also object to the imposition of certain other administrative non-compliance penalties, or interest where your request for remission of such penalty/interest was not allowed or partially allowed (for example, Late payment penalties for VAT, PAYE, UIF and SDL). You also have the right to object against the imposition of other tax related penalties (for example, Understatement penalties).
You do not have the right to object to the imposition of certain statutory interest such as, interest charged on late payments.
Taxpayers have 30 business days to lodge an objection with SARS and can do this either via e-filing or at the branch. SARS has up to 60 business days to provide the taxpayer with the outcome of the objection (in practice, this may take longer depending on the capacity that SARS has).
The objection needs to be submitted in a prescribed manner and should cover all important and relevant aspects such as the grounds of objection, the amount subject to objection (with the relevant SARS code), request for condonation where the objection is late. A specific and clear request must be articulated to SARS by the taxpayer as part of the submission.
Once the objection is filed, the taxpayer may also submit a parallel application for the suspension of payment of any tax liability arising as a result of the assessment issued by SARS.
After reviewing the application, SARS will inform the taxpayer whether the application has been successful or unsuccessful. In the event that the objection application is unsuccessful, SARS will provide reasons for the decision; and if it is successful, then a reduced assessment will be issued as appropriate. It is worth noting that taxpayers will not be able to submit an objection 3 years after the date of the original assessment and that SARS reserves the right to grant or reject any late objection/dispute application.
If you have a tax issue you need assistance with please book a FREE 30 minute consultation with a qualified CA(SA) and a registered Tax Practitioner using the details below.
Tel: 087 808 5219 | Mobile: 066 086 6065 | Email: info@firstplace.co.za | Instagram | Facebook | LinkedIn | YouTube | www.firstplace.co.za | Article by: GJ Bulala TA (SA)
