Reduced Assessment Requests
A reduced assessment request can be an effective remedy where the statutory requirements are met — and in some matters, it may be the only practical route left. The challenge is knowing when it applies and how to frame the request properly.
We assess the legal basis, procedural position and supporting evidence before recommending this route.
Excellent success rates.
At a glance
A narrow remedy that requires precise grounds.
Statutory basis
Reduced assessments are provided for under the Tax Administration Act, 2011.
Formal request
The request is submitted through SARS eFiling using the RRA01 form.
Detailed grounds
The request must demonstrate why the statutory requirements are met and be supported by relevant documentation.
Strategic assessment
Existing disputes, deadlines and prescription can materially affect the available route.
Tax Exclusive
Section 93
RRA01
Senior Review
The remedy
Not every SARS assessment should be challenged in the same way.
Our Founder, Nico Theron, wrote the book (Practical Guide To Handling Tax Disputes) on all the ways to challenge SARS’ assessments. Objection and appeal is one route. A reduced assessment request is another.
The value lies in identifying the right remedy before time, evidence or procedure works against you.
What is a reduced assessment request?
A reduced assessment request asks SARS to reduce an existing assessment where the requirements in the Tax Administration Act are met. The circumstances in which SARS may allow the request are narrowly defined, which is why the legal basis and factual support need to be carefully developed.
Why use this route?
In the right matter, a reduced assessment request can be more effective than an objection or appeal. It may also remain relevant where the ordinary objection-and-appeal route is unavailable or inappropriate.
Why these requests fail
The request is typically not simply a correction form. SARS must be given detailed grounds showing why the relevant statutory requirements are met, together with evidence that substantiates the position. Weak framing, incomplete documentation or choosing the wrong remedy can undermine an otherwise valid case. These requests are often declined by SARS at the first asking but if framed correctly, the next procedural step is often what gets our requests across the line.
Supporting information may include
How we approach it
From assessment to a properly framed request.
Before filing, we establish whether a reduced assessment request is genuinely the right remedy and what must be proved for SARS to allow it.
Review
the assessment
We examine the assessment, return, SARS correspondence, dispute history and any deadlines that may affect the available remedies.
Identify
the legal basis
We determine whether the facts fall within the statutory circumstances in which a reduced assessment may be issued.
Build
the evidentiary case
We develop the detailed grounds and supporting documentation needed to substantiate the request.
Submit
and engage SARS
We prepare the request, manage further information requirements and engage SARS on the merits of the application.
Strategic considerations
When this remedy may become important.
Reduced assessment requests are highly fact-dependent. These are some of the issues that can materially affect whether the remedy should be considered.
Objection or reduced assessment?
A reduced assessment request is not merely a substitute for an objection. The two remedies serve different purposes. The correct route depends on the nature of the error, the statutory basis available, the procedural stage and whether another dispute is already in progress.
Prescription does not always end the enquiry.
It is often incorrectly assumed that prescription automatically eliminates the possibility of a successful reduced assessment request. The position can be more nuanced and depends on the facts surrounding the assessment and the legal basis relied upon. We often find legal ways around the prescription hurdle.
An objection does not always have to come first.
The Act allows for certain reduced assessments without the return first having been subject to objection or appeal. This is one of the reasons the remedy should be considered on its own legal footing rather than as an afterthought.
A refusal follows a different litigation path.
A decision not to allow a reduced assessment request is not appealed in the same way as an assessment under the ordinary tax-dispute process. The appropriate remedy may require review proceedings in the High Court.
Frequently asked questions
Important things to know
Confidential case discussion
Not sure whether a reduced assessment request is the right remedy?
We can review the assessment, procedural history and available evidence and help you determine the strongest available route before you commit to a filing strategy. We will confirm scope and fees before any work commences.
