93.    Reduced assessments

(1)     SARS may make a reduced assessment if-

(a)     the taxpayer successfully disputed the assessment under Chapter 9;

(b)     necessary to give effect to a settlement under Part F of Chapter 9;

(c)     necessary to give effect to a judgment pursuant to an appeal under Part E of Chapter 9 and there is no right of further appeal;

[Paragraph (c) amended by section 49 of Act 23 of 2015 effective on 8 January 2016]

(d)     SARS is satisfied that there is a readily apparent undisputed error in the assessment by-

(i)     SARS; or

(ii)     the taxpayer in a return;

[Paragraph (d) substituted by section 49 of Act 23 of 2015 and amended by section 18 of Act 21 of 2021]

(e)     a senior SARS official is satisfied that an assessment was based on-

(i)      the failure to submit a return or submission of an incorrect return by a third party under section 26 or by an employer under a tax Act;

(ii)     a processing error by SARS; or

(iii)    a return fraudulently submitted by a person not authorised by the taxpayer; or

[Paragraph (e) inserted by section 49 of Act 23 of 2015 and amended by section 28(a) of Act 24 of 2020. Subparagraph (iii) amended by section 18 of Act 21 of 2021]

(f)      the taxpayer in respect of whom an assessment has been issued under section 95(1), requests SARS to issue a reduced assessment under section 95(6).

[Paragraph (f) added by section 28(b) of Act 24 of 2020]

(2)     SARS may reduce an assessment despite the fact that no objection has been lodged or appeal noted.