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Error made on PAYE return: recourse

Friday, 07 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 2014/03/07.

Q: We have had continuous problems with SARS trying to sort a matter out for a client tax return 2011. The client attempted to complete his own return, when completing the PAYE he made a mistake and put in 1698 in place of 16986. He only became aware of the problem when SARS started calling him about his outstanding account.  He then approached our firm in May 2013 for help. We have filed several objections and asked SARS to fix the error.  Needless to say with no avail. 

A: You may request that the assessment be reduced in terms of s93 of the Tax Administration Act as it seems that the error relates to an "undisputed error”. The prescription rules in terms of s 104 does not apply (as you are not objecting to the assessment) and SARS may make a reduced assessment within 3 years after the date of the original or subsequent assessment.

93. Reduced assessments.—(1) SARS may make a reduced assessment if—(a) the taxpayer successfully disputed the assessment under Chapter 9; (b) necessary to give effect to a settlement under section 149;(c) necessary to give effect to a judgment pursuant to an appeal under Part E of Chapter 9 and there is no right of further appeal; or (d) SARS is satisfied that there is an error in the assessment as a result of an undisputed error by— (i) SARS; or (ii) the taxpayer in a return. (2) SARS may reduce an assessment despite the fact that no objection has been lodged or appeal noted.  



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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