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Remedies where medical deduction disallowed because the 3 year prescription period passed

12 January 2015   (0 Comments)
Posted by: Author: SAIT Technical
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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 decision.


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.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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