Have you received a nasty assessment from SARS?
Don't just sit back and let SARS have its way.
You have a lifeline.
Here are four steps you can use to lodge your objection
Unfortunately, you have to pay now and argue later!
One of the most common terms, when it comes to owing SARS money because of an assessment, is the pay-now, argue-later rule.
It means you have to pay a tax debt before your tax dispute is finalised or resolved. So, your obligation to pay tax, which arises on an assessment, isn't ''automatically'' suspended simply because you lodged an objection or appeal.
And it's in the law. The case of Metcash Trading Ltd v Commissioner of the South African Revenue Service and Another 2001 (1) SA1109 (CC)
showed the Constitutional Court being in favour of the pay-now, argue-later
principle for several reasons.
So, you have to pay now and argue later. Unless you apply for a postponement. Here's how…
Filling in the wrong block on your Vat return, will trigger the 'Dear Vendor' letter
SARS tell you your VAT201 declaration has been identified for verification. It wants you to review your VAT201 and submit corrections.
DON'T just upload all your documents!
Or you'll give SARS permission to grab money from your business bank account!
Here's what you should do…
Request for a payment suspension
You can ask SARS to suspend your obligation to pay any assessed taxes, if you plan to object or appeal against an assessment. The Tax Administration Act lets you to apply to SARS in writing for this.
But you must make sure your application reaches SARS within the 30 day period you have to object to the assessment. Or else SARS will start collection proceedings.
For sample points of important claims you should include in your application, click here.
We discuss the triggers for SARS assessments in detail at this year's Vat Masterclass. Book your seat here
and save R1 000 if you book and pay today.