Many taxpayers feel powerless against SARS. They think a decision made by SARS is always correct.
Well, it's not. SARS can make mistakes. And when it does, the law is on your side.
In fact, if you have a dispute under any one of the following Acts you can dispute decisions and assessments made by SARS if you think they're wrong. The dispute resolution procedures are applicable to nine taxes imposed under the different Acts, including:
So if your company disagrees with an assessment by SARS, you can request, in writing, the reasons why.
For example, if SARS hasn't allowed your deduction, ask under which section of the Act it's disallowed this deduction.
But before you do, there's a specific format your company must use to lodge its objection.
Three things you must do to lodge your objection
It's important that you get SARS' reasons for the assessment before your company makes an objection. You must do this within 30 days of the assessment date. SARS then has 60 days to respond with any reasons it may have.
If your objection is based on an assumption that turns out to be wrong, SARS will disallow your company's objection. So it's crucial you refer to SARS' reasons when objecting, prove they were wrong and then tell SARS what the correct application of the tax law is.