Remedies where medical deduction disallowed because the 3 year prescription period passed
12 January 2015
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: I have a
client who had to upload documents for the 2008 tax period as his tax
practitioner failed to do so. An additional assessment was raised and a huge
tax liability was incurred as his medical aid expenses were not taken into
account. I have lodged a dispute and it has been disallowed due to the 3 year
prescribed time frame.
Is there any way I can get this tax year reassessed?
We have assumed that you lodged the objection more than 30
days after the additional assessment was issued.
A: In terms of
section 99(1)(a) TAA read with section 100(1)(b) TAA, an assessment will become
final if no objection is lodged and a period of 3 years has passed since the
date of assessment. The only exception to this would be section 93(1)(d) TAA
which allows SARS to issue a reduced assessment if there is an undisputed error
by SARS or the taxpayer, notwithstanding that no objection was lodged.
However it is our view that by not providing the
substantiating documents the taxpayer has in fact failed the burden of proof in
section 102 TAA which resulted in the additional assessment and it is therefore
not as a result of an undisputed error. SARS therefore are correct that they
cannot amend the additional assessment.
Disclaimer: Nothing in
this query and answer should be construed as constituting tax advice or a tax
opinion. An expert should be consulted for advice based on the facts and
circumstances of each transaction/case. Even though great care has been taken
to ensure the accuracy of the answer, SAIT do not accept any responsibility for
consequences of decisions taken based on this query and answer. It remains your
own responsibility to consult the relevant primary resources when taking a