Notice of objection: Disputing your SARS tax assessment

In this article, we unpack how to object to a SARS tax assessment, including the timelines, common pitfalls, and how professional guidance can increase your chances of success.

First things first: What is a Notice of Assessment?

After filing your tax return, SARS issues a Notice of Assessment (ITA34), which summarises their calculated tax payable or refundable. If SARS identifies any discrepancies or issues an additional assessment (such as following a verification or audit), you might receive an unexpected tax liability.

If you disagree with this outcome, you cannot simply ignore it or delay payment. The correct legal route is to file a Notice of Objection (NOO) within the prescribed timelines.

When can you object?

You may lodge an objection if:

• You believe SARS incorrectly assessed your tax return.
  
• There are calculation or data capture errors.
  
• You disagree with the adjustments SARS made (e.g. disallowed deductions, incomeinclusions, penalties, etc.)

Important: You cannot object simply because you are unable to pay the assessment. An objection must be based on factual or legal disagreements with SARS’ assessment.

Timelines for filing a notice of objection

• Within 30 business days: You must file the objection within 30 business days from the date of assessment.

• Extension (up to 21 business days): If reasonable grounds exist for late filing, SARSmay grant an extension of up to 21 additional business days.

• Extension (up to 3 years): In exceptional circumstances (e.g. severe illness, absence from SA, or SARS administrative delays), SARS may allow late objections up to three years after the assessment date (Tax Administration Act, Section 104(4)).

Tip: Always object as soon as possible to avoid technical rejection for lateness.

How to file a notice of objection

Gather supporting documentation

Before objecting, collect all relevant evidence, including:

• Bank statements
  
• Invoices
  
• Employer certificates (IRP5s)
  
• Medical aid or retirement certificates
  
• Any other proof supporting your claim

Complete the correct form

For income tax, VAT, and PAYE objections, SARS requires an NOO form to be completed electronically via eFiling or the SARS MobiApp. Manual submissions are no longer accepted.

Provide detailed reasons

A common cause for rejection is vague or incomplete reasons for objection. Ensure your submission:

• Clearly states each ground of dispute
  
• Refers to your supporting documents
  
• Applies tax law or SARS practice to justify your position

Submit and monitor

After submission, SARS will acknowledge receipt and provide an outcome (Notice of Outcome of Objection, ITA128) within 60 business days. If further verification or documentation is required, SARS may extend this period with written notice (Tax Administration Act, Section 104(3)).

What happens after an objection?

If your objection is successful (either fully or partially)

SARS will issue a new assessment (ITA34) showing the updated amounts based on thechanges they accepted.

If your objection is unsuccessful

You still have options. You can take the matter further by submitting a Notice of Appeal.This must be done within 30 business days from when SARS informs you that your objection was disallowed.

How are appeals resolved?

Depending on how complex the matter is and the amount involved, your appeal could be resolved through:

1. Alternative Dispute Resolution (ADR) (a negotiation process with SARS)
   
2. A hearing at the Tax Board (for smaller, simpler disputes)
   
3. Proceedings in the Tax Court (for larger or complex disputes)
   

Common pitfalls to avoid

As always, prevention is better than cure. Avoid the following during filing season:

• Filing outside prescribed timelines without a valid reason
  
• Submitting incomplete documentation
  
• Providing generic or unclear reasons for objection
  
• Assuming inability to pay is a valid objection ground
  
• Ignoring SARS’ requests for additional documents within stipulated time frames

Why professional assistance matters

The objection and appeal process is a legal procedure that is governed by strict timelines and requirements. Errors or omissions can result in:

• Automatic rejection of your objection
  
• Loss of rights to dispute the assessment
  
• Increased interest and penalties due to unresolved disputes

At Tax Debt Compliance, we have extensive experience in lodging objections and appeals across tax types and industries. Our team of tax specialists and legal professionals see to it that your objection is legally sound and strategically positioned. In addition to this, we make sure that all supporting documents and calculations are accurate, and that deadlines are met. With us on your side, you also have representation in ADR or Tax Board proceedings if escalation is required.

Final thoughts

Disagreeing with SARS’ assessment does not mean you are at their mercy. The Tax Administration Act empowers you to dispute assessments, but success lies in your understanding of the process, your ability to provide comprehensive reasons and evidence, and your adherence to the strict timelines.

If you have received an assessment that you believe is incorrect, don’t put it off. Contact Tax Debt Compliance today. We will guide you through the objection process, represent your best interests, and work tirelessly to achieve a fair outcome for you or your business.