If SARS has raised an assessment which you're not happy with, you are by no means helpless!
Many employers just let SARS have its way when they issue them an outrageous assessment, which means that they'll end up paying money to SARS which they shouldn't actually be getting. So you end up losing money you shouldn't have in the first!
So take action and stand up to SARS!
That's right! According to section 104 of the Tax Administration Act, you can lodge an objection against a SARS assessment.
Here are the three basic steps you should know when lodging an objection to SARS...
Four simple steps to lodge an objection against SARS
Read through assessment and make sure you understand the reasons for it.
Ensure that you're objecting on appropriate grounds. Such grounds include if SARS:
· Makes a decision you don't agree with;
· Makes a mistake on your tax or VAT returns;
· Doesn't give a refund;
· Doesn't allow a deduction; or
· Doesn't waive an administrative penalty, a non-compliance penalty or an understatement penalty, etc.
Ensure you have supporting documents that you believe will assist your case against SARS.
For example, if SARS disallowed your bad debts deduction, gather:
· All your correspondence for the debtor demanding payment;
· Invoices from debt collectors;
· Invoices to the debtor; and ;
· The statement account; etc. to prove the debt isn't recoverable.
Complete your objection on the correct prescribed forms:
· For VAT, STC or PAYE assessments, you must use the ADR 1
· For income tax, you must use the NOO form, which can be gotten either on eFIling (for registerd users) or from your nearest SARS branch.
Deliver it to SARS at the address that is present on the assessment.
this must be done within 30 days of the assessment.
Alternatively, you can lodge your objection through the eFiling system.
If you submit your objection via eFiling, then notifications and letters from SARS will appear on the objections work page. So, SARS won't phone you, email you or send you a letter. Instead they expect you to regularly check your eFIling profile for any correspondence.
So you must take a proactive approach when communicating with SARS, after lodging an objection, because they are more than likely to request more information from you.
If you're late in providing information to SARS, you can ask for an extension, but only on solid grounds.
So just to be safe, rather be prompt in your responses to SARS and always keep an eye on your eFiling profile after lodging an objection to SARS.
If SARS rejects your objection, you can appeal it.
*To learn more details, page over to Chapter O 02: Objections
and D 04: Dispute Resolution,
in your Practical Tax Loose Leaf Service
If you don't already have a copy, click here.