![]() This taxpayer will either have to request that Sars waive the debt, or approach the courts to challenge the validity of the additional assessment. “The real problem is that there is now no easy legal recourse to challenge the validity of the additional assessment in the TAA since the taxpayer only became aware of the assessment long after the 30 business days in which to object to it have lapsed.” It is unclear what exactly transpired in this case, whether the taxpayer simply ignored the request or whether it never reached the taxpayer. Westermeyer says there was a period where Sars would request additional information and when the taxpayer did not respond in time they would simply disallow all the expenses and raise an additional assessment. In this instance Sars allowed expenses relating to rental income in the 2015 tax return, but then issued an additional assessment in 2019 where the expenses were disallowed, leaving the taxpayer with a debt owed to Sars. However, if the time in which the taxpayer can object lapses then it becomes more tricky and costly.ĭuring the webinar Westermeyer referred to a taxpayer who has been living in New Zealand for six years and has now been confronted with an additional assessment – issued in 2019 on a tax return that was assessed in 2015. Once Sars has issued an assessment the taxpayer has 30 days to lodge an objection if they are not happy with the decision. If taxpayers respond to the requests in time they have recourse in terms of the Tax Administration Act (TAA). “We have found that there are periods where it seems as if Sars is doing database clean-ups which trigger queries in the process,” said Westermeyer during a webinar hosted by The Tax Faculty.Īct promptly, or things get tricky and costly Taxpayers are required to keep relevant documentation pertaining to the tax return for five years. In terms of the Income Tax Act an income tax return prescribes three years after the date of assessment and self-assessed tax returns, such as value-added tax (Vat) returns, prescribe after five years. Taxpayers beware, Sars will catch up on any undeclared income ![]()
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