Category: General | APPEALS OBJECTIONS TAX TAX2024
Taxpayers who are dissatisfied with assessments or decisions made by the tax authorities have the right to challenge these through a formal process of objections and appeals. This process is governed by the Tax Administration Act (TA Act) and various tax Acts. Here’s an overview of how the objection and appeal system works, the timelines involved, and how to manage delays.
1. Filing an Objection
When a taxpayer disagrees with an assessment or decision, they can file an objection. The objection must be submitted in the manner and within the time limits prescribed by the rules.
Timelines for Objections:
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Request for Reasons: Before lodging an objection, a taxpayer may request the reasons behind an assessment or decision within 30 days from the date of assessment or decision.
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Submission of Objection: If reasons are not requested or provided, the objection must be delivered within 80 business days from the date of the assessment or decision. If reasons are requested, the objection period starts from the receipt of these reasons.
Definition of Business Days:
- Business days exclude weekends, public holidays, and the period from December 16 to January 15, inclusive. This ensures clarity in calculating deadlines.
Previous Rules:
- Under previous rules, the period to lodge an objection was 30 days. The new rules, effective from March 10, 2023, have extended this to 80 business days. If the previous period had expired before this date, it cannot be used to justify a late objection.
2. Extensions for Lodging an Objection
If a taxpayer fails to lodge an objection within the 80 business day period, they can apply for an extension under certain conditions.
Applying for an Extension:
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The taxpayer must provide detailed reasons for the delay, including factors like illness, being abroad, or delays in receiving necessary information.
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Extensions can be granted for up to 30 business days beyond the original 80-day period, but this is subject to exceptional circumstances. In cases where exceptional circumstances justify a longer delay, an extension may be granted for up to three years from the date of the assessment or decision.
Factors Considered for Extensions:
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Reason for Delay: Detailed and justifiable reasons are essential.
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Length of Delay: The justification for the delay must match the length of the extension requested.
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Prospects of Success: Although not decisive, the likelihood of success on the merits of the objection can influence the decision.
3. Refusal and Appeals
If a senior SARS official denies an extension request, they must provide reasons for their decision. Taxpayers have the right to appeal this refusal.
Appealing a Denial:
- Taxpayers can object and appeal against the decision of a senior SARS official not to grant an extension. The appeal must follow the rules and timeframes prescribed.
Limitations on Extensions:
- Extensions cannot be granted if more than three years have passed from the date of the assessment or decision, or if the objection is based on changes in general practices.
4. Resubmitting Invalid Objections
If an objection is deemed invalid, SARS will notify the taxpayer within 30 business days. The taxpayer then has 20 business days to resubmit a valid objection without needing an extension. If the resubmission is not compliant, or if the 20-day period lapses, a new valid objection must be submitted with an application for an extension if necessary.
In conclusion, navigating the objection and appeal process requires careful attention to deadlines and procedural requirements. Taxpayers should be diligent in meeting deadlines, providing detailed reasons for any delays, and understanding their rights to appeal decisions. Properly managed, this process ensures that taxpayers can effectively challenge assessments and decisions with the necessary legal backing.
For taxpayers seeking to dispute an assessment or decision, adherence to these procedures and timelines is crucial for ensuring that their objections are considered and that their rights are preserved.
