Tax Appeals

If you find yourself disagreeing with the findings of a tax audit by SARS, you have the right to file an appeal. Navigating the appeals process can be complex, but understanding each step can help you resolve disputes effectively. This blog provides a comprehensive guide to navigating tax appeals with SARS.

?

Understanding the Appeals Process

The appeals process allows you to challenge the findings of a tax assessment issued by SARS. It involves several stages, each designed to ensure that you have a fair opportunity to present your case.

1. Notice of Assessment

The process begins when SARS issues a Notice of Assessment following an audit. This notice details the adjustments made to your tax return and the amount of tax owed.

·??????? Review the Notice: Carefully review the Notice of Assessment to understand the changes and the reasons behind them.

·??????? Time Frame: Note the deadlines for filing an objection.

2. Filing an Objection

If you disagree with the Notice of Assessment, you can file an objection. This is a formal process where you submit a detailed explanation of why you believe the assessment is incorrect.

·??????? Form ADR1: Use the prescribed form, ADR1, to lodge your objection.

·??????? Supporting Documents: Include all relevant documentation that supports your case, such as financial records, receipts, and correspondence.

·??????? Submission Deadline: Submit the objection within the deadline.

3. SARS Review of the Objection

Upon receiving your objection, SARS will review the submitted documents and may request additional information or clarification. This review process can take several months.

·??????? Response Time: SARS aims to respond to objections within 60 business days, but complex cases may take longer.

·??????? Additional Information: Be prepared to provide any additional information or documents requested by SARS promptly.

4. Filing an Appeal

If your objection is disallowed or only partially allowed, you can file an appeal. The appeal process involves a more detailed review by the Tax Board or Tax Court.

·??????? Notice of Appeal: Submit a Notice of Appeal to SARS within 30 business days of receiving the outcome of your objection.

·??????? Tax Board or Tax Court: Depending on the complexity and amount in dispute, your case will be heard by the Tax Board or the Tax Court.

?

5. Tax Board or Tax Court Hearing

The Tax Board handles simpler, less significant cases, while more complex and higher-value cases are heard by the Tax Court. Both bodies provide an impartial review of the dispute.

·??????? Hearing Procedures: Be prepared for formal hearing procedures, including presenting evidence and cross-examining witnesses.

·??????? Final Decision: The decision of the Tax Board or Tax Court is binding, although further appeal to a higher court is possible in some cases.

Conclusion

Navigating tax appeals with SARS can be challenging, but understanding the process, having Latita Africa’s help, and following best practices can significantly improve your chances of a favourable outcome. By being prepared, staying organized, and seeking our guidance, you can effectively manage tax disputes and work towards a resolution.

?

www.latitaafrica.com