Kumba Iron Ore is objecting to a massive SARS assessment. Here's how you can
As was recently reported, Kumba Iron Ore, of which the majority is owned by Anglo American, will be appealing a ruling by SARS stating that it owes them R5.5 billion (almos an entire quarter of its market value), of which R3.7 billion is interest and penalties.
In a statement, the company made it clear that they had co-operated fully with SARS during its audit, but that they disagreed with its findings, and that they will object the assessment 'vigorously'...
Now, it's worth noting that Kumba Iron Ore has made use of an invaluable tool, namely an appeal which objects to the entire assessment.
You see, if SARS happens to raise an assessment on you, and you completely disagree with it, you can lodge an objection.
So if you're ever unhappy with a SARS assessment, don't just sit back and take it. Take action! Get the ball rolling by following these 5 simple steps in lodging your objection...
News flash: Pretoria East Motors' assessment reduced from R5 million to R1 million
SARS raised an assessment of R5 million on Pretoria East Motors (PEM).
But SARS had made a mistake.
And if PEM didn't fight SARS, they would've paid four times what they had to!
Can you afford to unnecessarily pay four times your Vat or tax?
Here's what PEM did and how you too can fight SARS' assessment.
Read through and understand all of the reasons for your objection.
Ensure that you're objecting on appropriate grounds. In other words, your opinion is one thing, but you'll need to straighten it out with hard facts.
Put together ALL supporting documentation which you believe will prove your case to SARS.
For example, if SARS didn't allow your bad debt deductions, then gather all your correspondence for the debtor demanding payment. Also get invoices from debt collectors, invoices to the debtor, and the statement of the account etc. in order to prove your case convincingly.
Prepare your objection letter.
Once you have all of your supporting documentation, and you've drafted your objection letter, do the following:
· Complete your objection on the Objection of Notice Form (NOO1). You can find this on eFiling;
· Send it to SARS, using the address which is stated on the assessment, within 30 days of the assessment, or simply lodge your objection via eFiling; and
· ALWAYS make sure that you stamp dates on all documents you hand deliver and ensure that you keep copies of them for yourself.
TIP: Very often there's not enough writing space on the NOO1 form when giving the basis of your objection.
So just give a brief summary and then refer the reader to your attached objection for a full disclosure.
To learn so much more great advice, steps, tips and information on lodging objections to a SARS assessment, page over to chapter O 02
in your Practical Tax Loose Leaf Service
Alternatively, click here.
Note: 5 of 1 vote