Category: Part B – Objection and appeal (TAA)

Section 104 (TAA) – Objection against assessment or decision

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104.    Objection against assessment or decision

(1)     A taxpayer who is aggrieved by an assessment made in respect of the taxpayer may object to the assessment.

(2)     The following decisions may be objected to and appealed against in the same manner as an assessment:

(a)     a decision under subsection (4) not to extend the period for lodging an objection;

(b)     a decision under section 107(2) not to extend the period for lodging an appeal; and

(c)     any other decision that may be objected to or appealed against under a tax Act.

(3)     A taxpayer entitled to object to an assessment or ‘decision’ must lodge an objection in the manner, under the terms, and within the period prescribed in the ‘rules’.

(4)     A senior SARS official may extend the period prescribed in the ‘rules’ within which objections must be made if satisfied that reasonable grounds exist for the delay in lodging the objection.

(5)     The period for objection must not be so extended-

(a)     for a period exceeding 30 business days, unless a senior SARS official is satisfied that exceptional circumstances exist which gave rise to the delay in lodging the objection;

[Paragraph (a) substituted by section 57 of Act 16 of 2016 effective on 19 January 2017]

(b)     if more than three years have lapsed from the date of assessment or the ‘decision’; or

(c)     if the grounds for objection are based wholly or mainly on a change in a practice generally prevailing which applied on the date of assessment or the ‘decision’.

Section 106 (TAA) – Decision on objection

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106.    Decision on objection

 

(1)     SARS must consider a valid objection in the manner and within the period prescribed under this Act and the ‘rules’.

 

(2)     SARS may disallow the objection or allow it either in whole or in part.

 

(3)     If the objection is allowed either in whole or in part, the assessment or ‘decision’ must be altered accordingly.

 

(4)     SARS must, by notice, inform the taxpayer objecting or the taxpayer’s representative of the decision referred to in subsection (2), unless the objection is stayed under subsection (6) in which case notice of this must be given in accordance with the ‘rules’.

 

(5)     The notice must state the basis for the decision and a summary of the procedures for appeal.

 

(6)     If a senior SARS official considers that the determination of the objection or an appeal referred to in section 107, whether on a question of law only or on both a question of fact and a question of law, is likely to be determinative of all or a substantial number of the issues involved in one or more other objections or appeals, the official may-

 

(a)     designate that objection or appeal as a test case; and

 

(b)     stay the other objections or appeals by reason of the taking of a test case on a similar objection or appeal before the tax court,

 

in the manner, under the terms, and within the periods prescribed in the ‘rules’.

Section 107 (TAA) – Appeal against assessment or decision

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107.    Appeal against assessment or decision

 

(1)     After delivery of the notice of the decision referred to in section 106(4), a taxpayer objecting to an assessment or ‘decision’ may appeal against the assessment or ‘decision’ to the tax board or tax court in the manner, under the terms and within the period prescribed in this Act and the ‘rules’.

 

(2)     A senior SARS official may extend the period within which an appeal must be lodged for-

 

(a)     21 business days, if satisfied that reasonable grounds exist for the delay; or

 

(b)     up to 45 business days, if exceptional circumstances exist that justify an extension beyond 21 business days.

 

(3)     A notice of appeal that does not satisfy the requirements of subsection (1) is not valid.

 

(4)     If an assessment or ‘decision’ has been altered under section 106(3), the assessment or ‘decision’ as altered is the assessment or ‘decision’ against which the appeal is noted.

 

(5)     By mutual agreement, SARS and the taxpayer making the appeal may attempt to resolve the dispute through alternative dispute resolution under procedures specified in the ‘rules’.

 

(6)     Proceedings on the appeal are suspended while the alternative dispute resolution procedure is ongoing.

 

(7)     SARS may concede an appeal in whole or in part before-

 

(a)      the matter is heard by the tax board or the tax court; or

  

(b)     an appeal against a judgment of the tax court or higher court is heard.