Business day: day that’s not Saturday, Sunday or public holiday
For dispute resolution (chapter 9) purposes, excludes days between 16 December – 15 January (both days inclusive)
Date of assessment:
assessment by SARS: date of issue of notice of assessment, or
self-assessment by TP:
• return is required = date return is submitted, or
• no return is required = date of last payment of the tax for tax period / effective date if no payment was made
Self-assessment: a determination of amount of tax payable under a tax Act by TP, and
submitting a return which incorporates the determination of the tax, or
making a payment of the tax, if no return is required
♠ Unless specified otherwise, persons must apply for registration within 21 business days after becoming obligated to register under a tax Act
♠ Applies to TP & those required to submit third-party returns
♠ Application for registration must be made in the prescribed form & manner + submission of further particulars & documents required for registration is
required
♠ Biometric info may be required
♠ Failure to provide all required particulars & docs means the person is not considered to have applied until all information is submitted
♠ SARS has the authority to register a person for applicable taxes, should they fails to register as required
♠ SARS allocates a tax reference no. to a registered person under a tax Act which, of which must be included in all returns & docs submitted to SARS – SARS
may regard a return or document as invalid if the reference no. is omitted
Registered persons must inform SARS of changes in certain particulars within 21 business days, including changes to:
Postal address
Physical address
Duly authorised or representative TP
Banking particulars used for tx with SARS
Electronic address used for communication with SARS
In practice, use the RAV01 form to inform SARS of changes in the specified particulars
Persons who have submitted a return, required to submit a return, and those not required to submit returns due to falling below a threshold or qualifying for an
exemption must keep certain records, books of account or docs for a specified period
Persons must maintain records, documents or books of account that:
Enable compliance with the requirements of a tax Act
Enable SARS to be satisfied that the requirements were observed (e.g., logbook as evidence of travel purposes)
Are required by a tax Act or Commissioner through public notice
• Failure to retain the required records is considered a criminal offence
• Burden of proof concerning tax positions taken rests w’ TP, to which they must discharge this burden on a balance of probabilities – documentary evidence
obtained & retained by a TP is crucial in fulfilling this burden
RETENTION PERIOD FOR RECORDS (s32)
• If persons submitted a tax return for a specific tax period, they must retain the relevant documents for a period of 5 years after submitting return
• If persons is not required to submit a return due to a threshold or exemption, they must retain the relevant documents for a period of 5 years from the end of
the relevant tax period
• For a persons required to submit a return but has not yet done so, the 5-year document retention period begins upon submission of the return
• In certain instances, persons may be required to retain records for a period longer than 5 years:
– If the records are relevant to an audit/investigation, the person must retain them until the audit is completed
– If a person has lodged an objection or noted an appeal against an assessment/decision, they must retain the relevant records until the dispute resolution
process is completed
There may be legal requirements, beyond those of the TAA, specifying longer retention periods, e.g., Companies Act may require companies to retain records for
7 years
FORM OF RECORDS KEPT OR RETAINED (s30)
Documents must be retained in one of the following forms:
– In their original form, in an orderly fashion & in a safe place
– In a form prescribed by Commissioner in a public notice, which may include an electronic form
– In a form specifically authorised by a senior SARS official, provided it is acceptable to the official
• If records are kept electronically, the person must comply with the requirements set out in
, © Warona Lekoko, 2024
ACCESS TO RECORDS (s31 and 33)
• A person's books of account & doc must be open for inspection by a SARS official in SA at all reasonable times during the retention period
• Inspection may be conducted to determine whether the person complies w/ document retention prescriptions
• Records may also be inspected for the purpose of an inspection, audit or investigation
• A senior SARS official may request that information be translated into one of the official language, should it not be in one of the official languages of SA
• The translation must be prepared and certified by a sworn and accredited translator or another person approved by the senior SARS official
WITHDRAWAL OF ASSESSMENTS
⇾ In situations in which it would be inequitable to recover tax under an erroneous assessment, SARS has the authority to withdraw an assessment even if the
TP hasn’t lodged an objection
⇾ Circumstances under which SARS may withdraw an assessment include:
assessment was issued to the incorrect taxpayer
assessment was raised for an incorrect tax period
assessment was issued as a result of an incorrect payment allocation
⇾ When SARS withdraws an assessment, it is treated as if it was never issued
⇾ However, if a senior SARS official agrees with TP in writing on the correct amount of tax for the relevant tax period, a revised original, additional, or reduced
assessment may be issued
⇾ This revised assessment is not subject to objection or appeal
PRESCRIPTION
Prescription provides timeframe within which SARS may make assessments – the limitations are as follows:
○ Original assessment by SARS: 3 years from the date of assessment
○ Self-assessment (return submitted): 5 years from the date of assessment of an original assessment by way of self-assessment by TP
○ Self-assessment (return not submitted): 5 years from the date of assessment of an original assessment by SARS
○ Additional assessment: limited by practices prevailing at the date of the original assessment
○ Reduced assessment: limited by practices prevailing at the date of the original assessment
No prescription in certain circumstances:
⤷ In cases of fraud, misrepresentation, non-disclosure of material facts, intentional or negligent misrepresentation, intentional or negligent non-
disclosure of material facts, failure to submit a return or failure to make payment
⤷ When SARS & TP agree prior to expiry of the limitation period that limitations will not apply
⤷ Necessary for dispute resolution, reducing an assessment for a readily undisputed error, or making a reduced or additional assessment after a
taxpayer submits a true and full return or relevant material
SARS can extend prescription periods if TP fails to provide relevant material or disputes SARS' entitlement to info
SARS may extend the prescription period by up to 3 years (assessment by SARS) or 2 years (self-assessment) for audit or investigation matters related to:
Application of the doctrine of substance over form
Application of general anti-avoidance provisions
Taxation of hybrid entities or instruments
Transfer pricing matters
▴ If a TP disagrees with a SARS assessment or decision, they must follow the dispute resolution process (DRP) to address the matter
▴ Internal remedies – e.g., objection & appeal process, ADR or resolution before a Tax Board or Tax Court – must be exhausted before a higher court is
approached
▴ Process involves specific timeframes that TP must adhere to
Decisions subject to objection & appeal (s104(2)):
Decision by a senior SARS official not to extend the period for objecting
Decision by a senior SARS official not to extend the period for appealing
Any other decision subject to objection and appeal under a tax Act
▴ s164(1):Disputing an assessment doesn't automatically suspend the obligation to pay the tax – TP must request the suspension of payment during the
dispute resolution process & SARS will consider the request
▴ s100(1), (2):Failure to use the next available remedy or exhausting dispute resolution means leads to the assessment becoming final from TPs perspective –
doesn't prevent SARS from making additional assessments unless there is a settlement agreement or a determination by the Tax Board or courts with no
further right of appeal
▴ s144(1):Throughout the process, SARS or TP may initiate a settlement procedure to reach finality w/o following all dispute resolution steps
Other mechanisms for erroneous assessments include:
Reduced assessment: requesting a reduced assessment for a readily apparent undisputed error in a SARS assessment/TPs return (s93(2))
Withdrawal of assessment: in limited circumstances, requesting SARS to withdraw an assessment (s98(1))
▴ For issues not related to assessments or decisions, TP may lodge a complaint with SARS Complaints Management Office (CMO) or tax ombud
▴ TP may request a SARS official to withdraw/amend a decision – should the administrative action is deemed unlawful, unreasonable or procedurally unfair, TP
can institute proceedings in court for judicial review under PAJ
For dispute resolution (chapter 9) purposes, excludes days between 16 December – 15 January (both days inclusive)
Date of assessment:
assessment by SARS: date of issue of notice of assessment, or
self-assessment by TP:
• return is required = date return is submitted, or
• no return is required = date of last payment of the tax for tax period / effective date if no payment was made
Self-assessment: a determination of amount of tax payable under a tax Act by TP, and
submitting a return which incorporates the determination of the tax, or
making a payment of the tax, if no return is required
♠ Unless specified otherwise, persons must apply for registration within 21 business days after becoming obligated to register under a tax Act
♠ Applies to TP & those required to submit third-party returns
♠ Application for registration must be made in the prescribed form & manner + submission of further particulars & documents required for registration is
required
♠ Biometric info may be required
♠ Failure to provide all required particulars & docs means the person is not considered to have applied until all information is submitted
♠ SARS has the authority to register a person for applicable taxes, should they fails to register as required
♠ SARS allocates a tax reference no. to a registered person under a tax Act which, of which must be included in all returns & docs submitted to SARS – SARS
may regard a return or document as invalid if the reference no. is omitted
Registered persons must inform SARS of changes in certain particulars within 21 business days, including changes to:
Postal address
Physical address
Duly authorised or representative TP
Banking particulars used for tx with SARS
Electronic address used for communication with SARS
In practice, use the RAV01 form to inform SARS of changes in the specified particulars
Persons who have submitted a return, required to submit a return, and those not required to submit returns due to falling below a threshold or qualifying for an
exemption must keep certain records, books of account or docs for a specified period
Persons must maintain records, documents or books of account that:
Enable compliance with the requirements of a tax Act
Enable SARS to be satisfied that the requirements were observed (e.g., logbook as evidence of travel purposes)
Are required by a tax Act or Commissioner through public notice
• Failure to retain the required records is considered a criminal offence
• Burden of proof concerning tax positions taken rests w’ TP, to which they must discharge this burden on a balance of probabilities – documentary evidence
obtained & retained by a TP is crucial in fulfilling this burden
RETENTION PERIOD FOR RECORDS (s32)
• If persons submitted a tax return for a specific tax period, they must retain the relevant documents for a period of 5 years after submitting return
• If persons is not required to submit a return due to a threshold or exemption, they must retain the relevant documents for a period of 5 years from the end of
the relevant tax period
• For a persons required to submit a return but has not yet done so, the 5-year document retention period begins upon submission of the return
• In certain instances, persons may be required to retain records for a period longer than 5 years:
– If the records are relevant to an audit/investigation, the person must retain them until the audit is completed
– If a person has lodged an objection or noted an appeal against an assessment/decision, they must retain the relevant records until the dispute resolution
process is completed
There may be legal requirements, beyond those of the TAA, specifying longer retention periods, e.g., Companies Act may require companies to retain records for
7 years
FORM OF RECORDS KEPT OR RETAINED (s30)
Documents must be retained in one of the following forms:
– In their original form, in an orderly fashion & in a safe place
– In a form prescribed by Commissioner in a public notice, which may include an electronic form
– In a form specifically authorised by a senior SARS official, provided it is acceptable to the official
• If records are kept electronically, the person must comply with the requirements set out in
, © Warona Lekoko, 2024
ACCESS TO RECORDS (s31 and 33)
• A person's books of account & doc must be open for inspection by a SARS official in SA at all reasonable times during the retention period
• Inspection may be conducted to determine whether the person complies w/ document retention prescriptions
• Records may also be inspected for the purpose of an inspection, audit or investigation
• A senior SARS official may request that information be translated into one of the official language, should it not be in one of the official languages of SA
• The translation must be prepared and certified by a sworn and accredited translator or another person approved by the senior SARS official
WITHDRAWAL OF ASSESSMENTS
⇾ In situations in which it would be inequitable to recover tax under an erroneous assessment, SARS has the authority to withdraw an assessment even if the
TP hasn’t lodged an objection
⇾ Circumstances under which SARS may withdraw an assessment include:
assessment was issued to the incorrect taxpayer
assessment was raised for an incorrect tax period
assessment was issued as a result of an incorrect payment allocation
⇾ When SARS withdraws an assessment, it is treated as if it was never issued
⇾ However, if a senior SARS official agrees with TP in writing on the correct amount of tax for the relevant tax period, a revised original, additional, or reduced
assessment may be issued
⇾ This revised assessment is not subject to objection or appeal
PRESCRIPTION
Prescription provides timeframe within which SARS may make assessments – the limitations are as follows:
○ Original assessment by SARS: 3 years from the date of assessment
○ Self-assessment (return submitted): 5 years from the date of assessment of an original assessment by way of self-assessment by TP
○ Self-assessment (return not submitted): 5 years from the date of assessment of an original assessment by SARS
○ Additional assessment: limited by practices prevailing at the date of the original assessment
○ Reduced assessment: limited by practices prevailing at the date of the original assessment
No prescription in certain circumstances:
⤷ In cases of fraud, misrepresentation, non-disclosure of material facts, intentional or negligent misrepresentation, intentional or negligent non-
disclosure of material facts, failure to submit a return or failure to make payment
⤷ When SARS & TP agree prior to expiry of the limitation period that limitations will not apply
⤷ Necessary for dispute resolution, reducing an assessment for a readily undisputed error, or making a reduced or additional assessment after a
taxpayer submits a true and full return or relevant material
SARS can extend prescription periods if TP fails to provide relevant material or disputes SARS' entitlement to info
SARS may extend the prescription period by up to 3 years (assessment by SARS) or 2 years (self-assessment) for audit or investigation matters related to:
Application of the doctrine of substance over form
Application of general anti-avoidance provisions
Taxation of hybrid entities or instruments
Transfer pricing matters
▴ If a TP disagrees with a SARS assessment or decision, they must follow the dispute resolution process (DRP) to address the matter
▴ Internal remedies – e.g., objection & appeal process, ADR or resolution before a Tax Board or Tax Court – must be exhausted before a higher court is
approached
▴ Process involves specific timeframes that TP must adhere to
Decisions subject to objection & appeal (s104(2)):
Decision by a senior SARS official not to extend the period for objecting
Decision by a senior SARS official not to extend the period for appealing
Any other decision subject to objection and appeal under a tax Act
▴ s164(1):Disputing an assessment doesn't automatically suspend the obligation to pay the tax – TP must request the suspension of payment during the
dispute resolution process & SARS will consider the request
▴ s100(1), (2):Failure to use the next available remedy or exhausting dispute resolution means leads to the assessment becoming final from TPs perspective –
doesn't prevent SARS from making additional assessments unless there is a settlement agreement or a determination by the Tax Board or courts with no
further right of appeal
▴ s144(1):Throughout the process, SARS or TP may initiate a settlement procedure to reach finality w/o following all dispute resolution steps
Other mechanisms for erroneous assessments include:
Reduced assessment: requesting a reduced assessment for a readily apparent undisputed error in a SARS assessment/TPs return (s93(2))
Withdrawal of assessment: in limited circumstances, requesting SARS to withdraw an assessment (s98(1))
▴ For issues not related to assessments or decisions, TP may lodge a complaint with SARS Complaints Management Office (CMO) or tax ombud
▴ TP may request a SARS official to withdraw/amend a decision – should the administrative action is deemed unlawful, unreasonable or procedurally unfair, TP
can institute proceedings in court for judicial review under PAJ
