When a Tax Assessment Doesn’t Add Up
If you’ve received a SARS assessment that seems incorrect or unfair, you’re not alone. Many South African business owners feel overwhelmed when facing unexpected tax liabilities, especially when they believe SARS has made a mistake. Fortunately, you have the right to dispute a tax assessment, and the process is more structured (and winnable) than most think.
Understanding the ins and outs of tax dispute resolution in South Africa can help you protect your business, your finances, and your peace of mind.
What Is a Tax Dispute with SARS?
A tax dispute arises when a taxpayer disagrees with an assessment, penalty, or decision issued by SARS. This could relate to:
- Tax audits resulting in higher-than-expected assessments
- Interest and penalties that seem disproportionate
- Disallowed deductions or input VAT
Disputing SARS Assessments - Classification errors in income or expenses
These disputes can involve income tax, VAT, PAYE, or provisional tax. The important thing is to act quickly and correctly; you typically only have 30 business days to object.
Steps to Resolve a Tax Dispute in South Africa
1. Understand the SARS Assessment
Start by reading the notice carefully. Identify:
- What tax period is affected
- The exact amount SARS claims you owe
- The reason SARS provides for their decision
- Supporting documentation or calculations, they included
Make sure you have your own records, including tax submissions, correspondence, and financial statements.
2. Lodge a Formal Objection
The objection process is regulated and must follow SARS procedures. Here’s how it works:
- Complete the correct form: Use the NOO01 form on eFiling
- Clearly state your grounds for disagreement
- Attach all relevant documents to support your claim
- Submit within 30 business days of receiving the original assessment
Tip: If more time is needed, apply for an extension as soon as possible. Don’t miss deadlines, SARS is strict.
3. Await the SARS Decision
Once submitted, SARS will consider your objection. They may:
- Allow it in full (best case)
- Allow it in part
- Disallow it entirely
You’ll receive a notice of outcome (NOO), and if you’re still not satisfied, you can escalate to the appeal stage.
4. Appeal If Necessary
If your objection is denied or only partially approved, you may submit a Notice of Appeal (NOA). This will take your case to the next level, which may involve:
- Alternative Dispute Resolution (ADR): An informal way to settle without legal proceedings
- Tax Board or Tax Court: For larger or more complex cases
CTV Tax and Accounting assists businesses with appeals, providing legal and technical backing at every step.
Why Professional Help Matters in Tax Disputes
Going up against SARS on your own is risky. Here’s why working with a qualified tax practitioner can change the outcome:
- Deep knowledge of SARS procedures and documentation standards
- Ability to build strong, evidence-based arguments
- Professional communication with SARS on your behalf
- Saves time and stress during already tense situations
Preventing Future Tax Conflicts
Disputes often stem from small oversights or miscommunications. You can avoid recurring problems by:
- Keeping detailed financial records
- Using cloud-based accounting systems that integrate with SARS
- Booking regular tax health checks with your advisor
- Filing on time and accurately, every time
Prevention is better than confrontation. An audit-ready business is far less likely to find itself in a dispute.
Need Help With a Tax Dispute? Contact CTV Tax and Accounting
At CTV Tax and Accounting, we help businesses across South Africa navigate tax conflicts with clarity and confidence. Whether it’s lodging an objection, appealing a decision, or communicating with SARS on your behalf, we’re with you every step of the way.
“A single tax dispute doesn’t have to derail your business, not when you have the right people in your corner.”
