In my last article, I pointed out that an assessment is a very important document from which certain legal consequences flow.
So it's important to take every opportunity to persuade SARS not to issue an assessment, where it's not necessary to do so. To do this, note an objection to SARS' assessment. And because your objection is a legal document, it must be correct.
Read on as I show you why you need to submit a valid and complete objection.
**********Have you received a nasty assessment from SARS?
Request the specific information they wanted from you for the audit;
Keep you informed of the progress of the audit; and
Notify you within 21 business days of their findings before they raised the assessment?
I suspect it didn't! And now they've assessed you and you don't agree.
Here's an eReport that details what you should do to object to SARS' assessment.
Two reasons why your valid and complete objection is so important
1. The Tax Administration Act doesn't give you much opportunity to change your objection once you've submitted it. So make sure it's technically correct first, before you submit it to SARS. Here's how…
2. The aim of your objection is to tell SARS you're dissatisfied with the assessment. And it's also your chance to place your side of the story before the Court.
The trouble is, if you submit an invalid objection, you may have already lost your case. Make sure you have valid grounds of an objection. Let me explain…
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So what would the grounds of an objection actually look like?
As a general rule, your objection must tell the whole story - the rules use the words 'in detail'. And it means just that!
During 2014, your client spent more than 183 days out of the county, working for his employer in Thailand.
You submitted his tax return. In it you claimed that his income during that tax year was exempt in terms of section 10(1)(o)of the Income Tax Act.
SARS disallows this claim, and issues an assessment on this income.
Your grounds of objection can't simply say 'the assessment is wrong because the income is exempt by virtue of section 10(1)(o)' .
You must tell the whole story!
So tell SARS who the employee was working for and what position he held. Then say where his company sent him to work abroad and the position he held there. Finally confirm that he was abroad for at least 183 days, of which 60 days was unbroken, in a period of 12 months.
Now SARS has a clear picture of your objection and won't just throw it out as invalid.
Remember, your objection is one of the documents you'll take with you to Court. So get the Court on your side by explaining your grounds of objection 'in detail'.
In my next article, I'm going to tell you about a new weapon in SARS' armoury - the notice of invalidity.
The objection process is a technical one, here are four steps you can take
to make sure yours is a valid one.