Taxpayers beware: SARS expects full compliance when objecting to assessments

Taxpayers beware: SARS expects full compliance when objecting to assessments

Podcast

Taxpayers beware: SARS expects full compliance when objecting to assessments

Podcast

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Nicholas discusses a recent case involving a neurologist and his practice, where the South African Revenue Service (SARS) exercised its powers under the Tax Administration Act to obtain both personal and business bank statements directly from the bank. Based on these statements, SARS issued additional tax assessments against the neurologist and his practice, prompting the neurologist to file objections.

During the objection process, SARS requested further information from the taxpayer to verify income and ensure an accurate tax assessment. However, the taxpayer refused to provide the requested details, leading SARS to deem the objections invalid. Nicholas emphasises that SARS will not consider objections unless they meet the validity requirements set out in the Tax Administration Act. This case ultimately went to the Tax Court.

Nicholas highlights that SARS has broad information-gathering powers, including the authority to request bank statements and other financial details to fulfill its mandate. Taxpayers must ensure their objections comply with legal requirements to be considered on their merits.

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