95. Estimation of assessments
(1) SARS may make an original, additional, reduced or jeopardy assessment based in whole or in part on an estimate, if the taxpayer—
(a) does not submit a return;
(b) submits a return or relevant material that is incorrect or inadequate; or
(c) does not submit a response to a request for relevant material under section 46, in relation to the taxpayer, after delivery of more than one request for such material.
[Subsection (1) substituted by section 29(a) of Act 24 of 2020]
(2) SARS must make the estimate based on information readily available to it.
(3) If the taxpayer is unable to submit an accurate return, a senior SARS official may agree in writing with the taxpayer as to the amount of tax chargeable and issue an assessment accordingly, which assessment is not subject to objection or appeal.
(4) The making of an assessment under subsection (1) does not detract from the obligation to submit a return or the relevant material.
[Subsection (4) added by section 29(b) of Act 24 of 2020]
(5) An assessment under subsection (1)(a) or (c) is only subject to objection and appeal if SARS decides not to make a reduced or additional assessment after the taxpayer submits the return or relevant material under subsection (6).
[Subsection (5) added by section 29(b) of Act 24 of 2020 and substituted by section 19(a) of Act 21 of 2021]
(6) The taxpayer in relation to whom the assessment under subsection (1)(a) or (c) has been issued may, within 40 business days from the date of assessment, or a longer period as the Commissioner may prescribe by public notice, request SARS to make a reduced or additional assessment by submitting a true and full return or the relevant material.
[Subsection (6) added by section 29(b) of Act 24 of 2020, substituted by section 19(b) of Act 21 of 2021 and by section 29(a) of Act 18 of 2023 deemed effective on 31 July 2023]
(7) If reasonable grounds for an extension are submitted by the taxpayer, a senior SARS official may extend the period referred to in subsection (6) within which the return or relevant material must be submitted, for a period not exceeding the relevant period referred to in section 99(1) or forty business days, whichever is the longest.
[Subsection (7) added by section 29(b) of Act 24 of 2020 and substituted by section 19(c) of Act 21 of 2021]
(8) If SARS decides not to make a reduced or additional assessment as requested under subsection (6), the date of the assessment made under subsection (1)(a) or (1)(c), for purposes of Chapter 9, is extended to the date of the written notice of the decision.
[Subsection (8) added by section 19(d) of Act 21 of 2021 and substituted by section 29(b) of Act 18 of 2023]