Taxpayers are now able to request SARS to reduce an existing assessment in a less formal method than was previously available.
Historically, taxpayers were required to follow the formal dispute resolution process by way of objection and appeal in an effort to get an assessment reduced by SARS.
With the recent introduction of the Request for Reduced Assessment (“RRA01”) form on SARS e-Filing, taxpayers are no longer required to submit a Notice of Objection to have an assessment reduced. It is however important to note that a request to reduce an assessment does not replace the objection and appeal process. It merely offers a less formal method to resolve errors that are readily apparent and is only applied in limited circumstances where all the requirements are met.
The Tax Administration Act, 2011 (“TAA”) sets out the circumstances under which a taxpayer may request a reduced assessment. Taxpayers need to submit detailed grounds proving it meets the requirements set out in the TAA and they should be able to substantiate its RRA01 form by submitting relevant supporting documentation with their request.
In the guide issued by SARS in respect of the RRA01 form it confirms that the following letters will be issued by SARS in respect of the Request for Reduced Assessment Process:
A letter acknowledging receipt of the request for reduced assessment;
Request for additional supporting documents (should it be required);
Outcome letter in which taxpayers will notified whether the request for a reduced assessment has been allowed or disallowed.
The introduction of the RRA01 form is expected to allow a simpler method of requesting a reduced assessment and assist taxpayers in resolving the requests more timeously.
It is crucial that taxpayers ensure it meets the requirements set out in the TAA prior to submitting its RRA01 form on SARS E-filing in an effort to allow for an efficient process. For this reason it is advisable to engage with an experienced tax practitioner firm such as VAT IT SA to assess whether you meet the relevant requirements and to assist you in setting out the detailed grounds to your request.
Article by:
Claudia Steyn
Tax Compliance Manager