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News & Press: SARS operational & eFiling questions

Additional VAT assessments raised without SARS requesting supporting documents

31 March 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

The answer to this query is based on legislation as at 2014/03/31.

Q: My father, a dentist, has been issued with a VAT assessment in respect of the 2 months ended September 2013. This assessment disallows the full input claim for the period without any reasons being advised. Moreover, I believe that procedurally the issuing of the assessment was incorrect; a SARS auditor simply telephonically requested supporting documents for this period from my father. No search letter/ official written correspondence was ever issued requesting the information; an assessment was simply raised.

 

A: This is not a unique problem that your father is experiencing with SARS, and specifically with VAT. I would appreciate it if you would forward me the screen prints and assessments in order to prove to SARS that an assessment was raised without the proper notification. SAIT will include this in our submission to SARS as proof that the tax practitioners are experiencing this problem. Even though SARS has not followed the correct procedure, it does not make the additional assessment invalid.  

We suggest you request reasons for the assessment (disallowance of input VAT deduction) as without the reasons for the assessment one will be unable to prepare an objection. So the first step will be to request the reasons for the assessment and then to request the suspension of payment, indicating the intent to submit an objection. 

According to SARS the request for reasons for the assessment shows intent. As long as the taxpayer can show intent for the submission of an objection, SARS has to consider the suspension of payment. Please remember to e-mail me the proof as requested in this regard in order to include in the examples of operational issues that SAIT wishes to submit to SARS.


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Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

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