SARS audits and disputes: how to respond without making it worse
At a glance
What it is: A SARS review, verification or audit of your tax affairs, or a disagreement about an assessment
First step: Respond within the deadline, in writing, with the records SARS asked for
Disagree with an assessment? Object through the correct process, within the time allowed
Escalation: If the objection fails, you can appeal — to the Tax Board or the Tax Court
Cost of silence: Default assessments, penalties and interest, and losing the right to object
What it is
A SARS query can be routine — a verification of a return — or a deeper audit. The other side of the same coin is a dispute: you think an assessment is wrong, but SARS has issued it. Both situations have rules and deadlines, and how you respond in the first few weeks usually decides the outcome.
The important point: ignoring a SARS letter never makes it go away. Missing the deadline can mean a default assessment you can no longer easily challenge.
Who this affects
Businesses under verification
A VAT refund held for verification, or an income tax return flagged for supporting documents, is common. The key is to respond fully and on time.
Taxpayers disputing an assessment
If you believe the assessment is wrong, you object in a specific form, with reasons and documents. Missing the objection window removes the easiest route to a fix.
Questions to ask first
What exactly has SARS asked for, and by when?
Do I have the records to support what I declared?
Is an objection the right step, or should I first ask for reasons?
Have I kept the proof that my response was submitted on time?
Should a tax practitioner handle the correspondence for me?
How to respond to a SARS query
1. Read the notice and note exactly what is asked for, and by when.
2. Gather the records that support what you declared.
3. Respond in the form SARS asked for, and submit before the deadline.
4. If you disagree with an assessment, file an objection with reasons and documents, within the time allowed.
5. If the objection fails, appeal to the Tax Board or the Tax Court — keeping proof of every step.
Common mistakes
Missing the response deadline, then facing a default assessment and penalties.
Objecting without reasons or documents, which gets it dismissed.
Paying an amount you dispute without exercising your objection rights.
Assuming you cannot be represented — you can appoint a tax practitioner.
Sources
Tax Administration Act, 28 of 2011 (objections and appeals)
SARS: dispute resolution and audit guidance
Received a SARS letter?
We can help you respond on time, and handle the objection if it comes to that.
