Globally, tax authorities are becoming more aggressive when it comes to following up on business tax.
And locally, there's been an increase in tax audits and disputes
is under strain to intensify its tax collections
from a smaller pool of taxpayers, said KPMG corporate tax director Roula Hadjipaschalis on Fin24
And that means, SARS
will continue to audit
large corporate taxpayers regularly.
In fact, the Tax Administration Act
now gives tax authorities invasive powers such as search and seizure of documents without a warrant and 'criminal sanctions on not providing information timeously,' says Moneyweb
But what can you do if you feel SARS
was unfair or inaccurate in assessing your business' tax
Here's a way to object to any tax assessment SARS
imposes on your business without facing jail time, according to Natalie Cousens
of the Tax Bulletin
You'll need to follow these four steps to object to a tax assessment from SARS:
1. Make sure you know why SARS penalised you – you must ask for a reason within 30 days of the tax assessment.
2. Complete an ADR1/NOO form within 30 days of hearing from SARS, and attach a letter of objection.
3. Get a unique reference number from SARS to keep track of your tax objection.
4. Make sure SARS responds within 60 days if it needs more information from you.
will then let you know in writing within 60 days if your tax objection
was successful. If so, SARS
will issue you with a reduced tax assessment.
Follow these four steps if you object to SARS' assessment
of your business tax and you could get off with a lighter tax assessment
If you want more inforamtion on SARS' search and seizure
powers get your hands on the Practical Tax Loose Leaf
. In the Practical Tax Loose Leaf
we've a dedicated chapter on SARS' search and seizure powers
, in it you'll discover:
What is search and seizure and why does SARS have this power?
2 different types of searches SARS can perform
When SARS can search your premises without a warrant
Onus of proof is on SARS!
How to make sure SARS sticks to its own laws
What can SARS seize?
What to do if SARS infringes on your rights.
Get the Practical Tax Loose Leaf here