When SARS issues an assessment with which the taxpayer is not in agreement with, certain procedures must be followed to ensure that the assessment is correctly dealt with. We will elaborate on the different options and time frames which a taxpayer must adhere to.
When to request?
When the taxpayer does not have sufficient information to formulate an objection, then he/she must request reasons for the assessment raised.
How long do you have?
This is done in terms of Rule 6(2) and must be delivered to SARS within 30 days from the date of assessment.
The request for reasons must be issued before the objection is lodged.
The period can be extended to 45 days, prior to the expiration of the 30-day period.
How long does SARS have to respond?
If SARS is of the opinion that adequate reasons for the assessment were given, they will respond within 30 days after receiving the request, unless an extension was negotiated prior to the 30 days expiring.
If adequate reasons were not provided, SARS will respond within 45 days after receiving the request. The period may be extended by another 45 days in exceptional circumstances. SARS must inform the taxpayer of the extension before the expiration of the 45 day period.
“Day” means a business day as defined in section 1 of the TAA and constitutes a day other than Saturday, Sunday or public holiday and, for the purpose of complying with the periods allowed in Chapter 9 (i.e. Dispute resolution), excludes the days between 15 December of each year and 16 January the following year.