SARS Objections & Tax Appeals

SARS objections and appeals form part of the tax dispute resolution process and allow taxpayers to challenge an assessment or decision made by SARS. An objection is generally the first formal step in disputing a SARS assessment or decision.

A taxpayer generally has 80 business days from the date of the assessment or decision to submit an objection, subject to the applicable tax dispute rules and any provisions dealing with late objections. The objection must be submitted in the prescribed manner and should clearly set out the grounds of objection together with the relevant supporting documentation.

SARS will generally notify the taxpayer whether the objection has been allowed, partially allowed or disallowed within the applicable prescribed period, which is ordinarily 60 business days, subject to circumstances in which SARS may be entitled to a longer period. SARS may also request additional supporting documents before deciding the objection.

If an objection is disallowed or only partially allowed, the taxpayer may generally submit an appeal within 30 business days of the notice of the objection decision. The appeal must set out the grounds on which the taxpayer disagrees with SARS and include the required supporting information.

Depending on the circumstances, the dispute may proceed through alternative dispute resolution (ADR) or ultimately to litigation before the Tax Board or Tax Court. ADR provides an opportunity for SARS and the taxpayer to attempt to resolve the dispute without proceeding directly to a hearing.

Yes. Certain tax disputes may be dealt with through SARS’s alternative dispute resolution process, which is similar in some respects to mediation. ADR can provide a more efficient and less costly means of resolving a dispute than formal litigation.

Taxpayers may be entitled to object to and appeal various assessments and decisions relating to matters such as income tax, VAT, transfer duty and other taxes administered by SARS, depending on whether the particular assessment or decision is objectionable and appealable under the relevant tax legislation.

Yes. In appropriate circumstances, a taxpayer may request reasons for an assessment or decision. Obtaining reasons can help the taxpayer understand the basis of SARS’s position and formulate the grounds of objection.

Depending on the circumstances and the applicable legislation, a taxpayer may be able to request the remission of certain penalties or interest. The requirements and procedure will depend on the particular penalty, interest charge or SARS decision involved.

No. The fact that an assessment is disputed does not generally suspend the obligation to pay the tax. A taxpayer may, however, apply to SARS for a suspension of payment while an objection or appeal is being considered.

The objection and appeal procedures provide taxpayers with a formal mechanism to challenge assessments or decisions they believe are incorrect or unjustified. They also give SARS an opportunity to reconsider its position, review the evidence and correct errors where appropriate.

An objection should clearly identify the assessment or decision being disputed, explain the specific detailed legal grounds on which the taxpayer disagrees with SARS, and include relevant supporting documents and evidence. Clear, properly formulated grounds of objection are important because they define the issues in dispute.

The taxpayer must first submit an objection, generally within 80 business days of the assessment or decision. SARS considers the objection and issues its decision. If the objection is disallowed or partially allowed, the taxpayer may generally appeal within 30 business days. The dispute may then proceed through ADR, the Tax Board or the Tax Court, depending on the circumstances.