How to Handle your Objections?
At this stage of the process, it is very important to realise that submitting an objection to SARS is a dispute resolution process which is seen as pre-litigation work. (In case the matter proceeds to litigation)
Getting an objection wrong can mean that the assessment is final and nothing can be done to correct it. It is, therefore, important that the objection is done within the rules issued by SARS and within the time prescribed by the SARS rules to have it considered. When SARS considers an objection it is only being considered but not a guarantee that it will be allowed. Therefore, further understanding of the case is important to communicate the reasons the taxpayer is to the right with reference to the Income Tax Act.
At FMJ Tax Consulting, we also assist in handling your SARS audits and specialize in assisting clients with any tax-related queries.
Some factors that must be kept in mind when filing an objection
You only have 30 days from the date of the assessment or final assessment
If you exceed this time period, you have to have reasonable grounds for this (up to 60 days)
Where the objection is more than 60 days old from the final assessment, you have to have exceptional circumstances for time taken to object
You cannot object more than 3 years after the final assessment even if you have exceptional circumstances
Correct grounds have to be used (Getting this wrong may cause major complication to the objection)
If SARS has valid grounds for disallowing, you have to have a legal basis for the objection
An appeal with an alternative dispute resolution process could be entered into with SARS should the objection not be successful and where the objection was done within the prescribed time period
SARS has a limit of time after disallowing the objection to do an appeal. For getting this in late, the assessment is final and nothing can be done to correct your assessment other than pay SARS or accept the assessment.
You have to understand the rules published and gazetted July 2014 so that you know how to work with SARS on objections and what to do next and over and above, you must understand your case in detail with reference to tax legislation (Such as the income tax act)
Let Us Handle Your Objections
If you do not work in the field of taxation and or do not have experience with this, it is best to leave the objection to a professional in the field. Handling the case yourself might tangle you into a situation that you may never get yourself out of and put yourself in a position where you will have to accept what SARS says.
Even at this point, it must be understood that objections / appeals are a legal process that might land up in court.
Most are resolved out of court but the above dispute process is a legal process which means that the strict rules of objection must be followed or SARS will render the objection as invalid and leave it up to you to try again within a certain period of time.
We have a lot of experience in the field of taxation which includes objection handling. As SARS is auditing more and more, this would mean that there will be more disagreements or disputes to be handled. We are therefore expecting a huge influx of disagreements and objections / appeals from individuals.
We have been working with this for a few years now and have studied the rules extensively to ensure that we correctly handle objection on behalf of clients.
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At FMJ Financial, we are committed to helping you navigate your tax responsibilities with ease. Reach out to us today for professional tax consulting services.
Frequently Asked Questions
We work with hundreds of complex individual tax cases each year. As tax is our trade and we engage with SARS each day of our working life, we have learned how to present information to SARS, how to merge documents so that SARS could easily follow and we know which documents to submit to SARS and which documents would cause confusion. We work around this in our compilations and ensure that what is submitted to SARS is easy to follow, neatly presented and is exactly what SARS needs to verify audits.
We are different in that we spend a lot of time on our presentation which often leads to successful results with SARS.
We are also different in that should SARS ask questions, we consider carefully how to respond, draft written responses and give SARS exactly what is requested, nothing more, nothing less.
In the event that SARS disagrees, we lodge disputes, sometimes even on the same day SARS raises an additional assessment or the next day. 95% of our disputes are lodged within a week.
Should the objection fail and there are sufficient grounds to overturn an additional assessment, we present the information in an appeal which means that SARS legal gets involved. Due to the level of skill, qualifications and experience the tax practitioner has, the final result is per the individual return filed more than 95% of the time. (Excludes cases where information was withheld from the tax practitioner such as additional income).
We do not simply collect documents from a client and forward it to SARS. We assess documents, inspect the document for correctness and ensure that the position taken is correct, build and audit file that is simple and understandable and only then do we present SARS with a copy of our audit file. If there is no audit or review, we still keep the audit file for our current clients in case SARS opens a past return which happens on occasion.
Many clients approach us only after filing a return and after filing documents to SARS. This could make the case harder as we have to make sense of the position taken previously, and then formulate a new position and explain the reasons for the previous versions.
For example, lets say a person claims against a travel allowance and the taxpayer submits a logbook with a different opening to the previous year’s closing, this could cause irreparable damage to one’s case. Thus, if documents are merely forwarded from taxpayer to tax practitioner to SARS, one has to ask the value of the system. if on the other hand, this is inspected and any errors corrected, then the initial filing is likely to have a much more favorable outcome. There is value in inspecting documents, building a file and ensuring what is submitted to SARS is correct, accurate and understandable.
We have to understand a case before we can give feedback so we first do an initial assessment and then we are able to put together a plan of action.
If possible, we will provide an upfront quote otherwise we will call you to explain how we can assist.
Please see our video on the home page for further information.
- Regular feedback is given to clients when their case is in progress
- Your email will be answered within reasonable turnaround times, usually 1 to 2 working days.
- You can expect full management of your tax profile
- Timeous responses to correspondence
- Reminders for your specific deadlines
- A personalised tax service