Guide · SARS disputes
Received a SARS additional assessment? What to do next
- Registered tax practitioner, Cape Town CBD
- CFP® · Registered Tax Practitioner (SARS) · CIBA member (SAIBA6662)
- In practice since 2011
In short: an additional assessment is SARS changing a return it has already assessed, usually after a verification or audit. You can ask for the reasons within 30 business days, object within 80 business days, and appeal if the objection is disallowed. Objecting does not stop SARS from collecting, so if you dispute the amount you should also ask for suspension of payment under section 164.
What an additional assessment is
Under section 92 of the Tax Administration Act, SARS can raise an additional assessment when it is satisfied that an existing assessment doesn't reflect the correct tax. In practice this usually follows a verification, where SARS asked for supporting documents, or an audit. SARS then disallows deductions it believes are unsupported, or adds income it believes you left out.
It is different from an estimated assessment, which SARS raises when you didn't submit a return or the documents it asked for. The remedies differ, so check the letter carefully.
First steps in the first week
- Find the assessment date. Every deadline counts from it, in business days.
- Compare the assessment with your return. List every line SARS changed and the amount.
- Read the letter of findings or audit letter. It should explain why SARS made each change.
- Gather your evidence for each disputed line: certificates, invoices, bank statements, contracts.
- Decide about payment. If you can't or shouldn't pay the disputed amount, prepare a section 164 request now.
The dispute process and deadlines
| Step | Deadline | Notes |
|---|---|---|
| Request for reasons | 30 business days from the assessment date | Optional. Use it when SARS hasn't explained the adjustments well enough for you to object. |
| Notice of objection (NOO) | 80 business days from the assessment date, or from the date SARS gives reasons | Lodged on eFiling, with grounds for each disputed item and supporting documents. |
| SARS decision on the objection | Set by the dispute rules | SARS may ask for more documents first. It can allow, partly allow or disallow the objection. |
| Notice of appeal (NOA) | 30 business days from the notice disallowing the objection | You can choose alternative dispute resolution (ADR) before the matter goes to the Tax Board or Tax Court. |
If you are already late, SARS can extend the objection period where there are reasonable grounds, and for longer only in exceptional circumstances. A late objection must include a condonation request explaining the delay.
Do you have to pay while you object?
Yes, unless SARS agrees to suspend payment. The Tax Administration Act follows a "pay now, argue later" rule: lodging an objection does not by itself stop SARS from collecting, including by instructing your bank or employer to pay it directly.
Section 164 lets you ask SARS to suspend payment of the disputed amount while the objection or appeal runs. Read our section 164 guide for how it works.
Common mistakes
- Treating the deadline as calendar days instead of business days, or counting from the wrong date
- Objecting in general terms without addressing each adjustment and attaching evidence
- Ignoring the debt while the objection runs, then finding money taken from a bank account
- Submitting a request for correction when the situation calls for a formal objection
Questions about additional assessments
Can SARS change my tax return years later?
Generally SARS has three years from the original assessment to raise an additional assessment, five years for self-assessments such as VAT and PAYE. These limits don't apply where the original return involved fraud, misrepresentation or non-disclosure of material facts.
What are understatement penalties?
When SARS believes your return understated your tax, it can add an understatement penalty on top of the extra tax, at a percentage that depends on how SARS classifies the behaviour. You can object to the penalty as well as the tax.
How long does SARS take to decide an objection?
The dispute resolution rules set time periods for SARS to decide, which can be extended in some cases. If SARS doesn't decide on time, there are remedies, including complaints to the Office of the Tax Ombud.
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