SARS can only declare an objection to an assessment/additional assessment or a SARS decision invalid if SARS does so within 30 days from date of delivery of an objection and only if there was non-compliance with the dispute resolution rules, more specifically, rule 7(2) of the those rules.
In practice, SARS however declares objections invalid for a variety of reasons completely unfounded in law. Where an objection has been declared as invalid, a taxpayer has one of two choices, (a) resubmit a new objection within 20 days after the notice of invalid objection, or alternatively or (b) lodge an application with the Tax Court to declare the objection as valid.
More often than not, where a taxpayer exercises option (a) the taxpayer will receive yet another notice of invalidity which leaves the taxpayer in a deadlock and the dispute unresolved as the taxpayer is then barred from noting an appeal.
Tax Dispute Resolution has had impeccable success with applications to the Tax Court to declare objections valid, with SARS conceding on all our applications to date without even having to go to court. In addition, SARS have tendered costs on our applications to pay the taxpayer’s cost for making the application. Further, we have several cases where SARS not only conceded to the court application but in addition continued to issue a reduced assessment, thereby effectively allowing the objection.
Care should be taken with these applications to avoid costs against taxpayers and must be strategically well placed to ensure success. Our team of admitted attorneys, tax professionals and charted accountants have submitted successful applications for a variety of clients and on a variety of tax types, including natural persons, companies, income tax and VAT.