As explained by our founder, Nico Theron, in his book titled Practical Guide to Handling Tax Disputes, the Tax Administration Act, 2011 provides various remedies to taxpayers to challenge SARS’ assessments. One of those ways is objecting/appealing against the assessment. (see SARS objections and appeals). Another way is filing a reduced assessment request under the relevant statutory provisions.
Successfully obtaining a reduced assessment when relying on this remedy requires great skill and expertise. The circumstances under which such requests can be allowed are very narrowly defined and are very limited. However, it is often more effective than objecting/appealing but may also be the taxpayer’s only choice if objection/appeal is not an option (for whatever reason).
Since there is no prescribed process for relying on this remedy, it is often perceived as being ineffective. In our experience, however, it can be very effective. We have a magnificent success rate with this remedy.
Unicus Tax is a leading tax consulting firm in South Africa which offers quality and reliable tax solutions to both individual and corporate clients as its team of tax professionals has an in-depth understanding of the South African tax system.
The Tax Administration Act, 2011 provides taxpayers with several remedies to challenge SARS’ assessments, which Unicus Tax can assist with, one of which being the filing of reduced assessment requests in accordance with the relevant statutory provisions.
The circumstances under which such requests can be allowed are very narrowly defined and very limited; hence successfully obtaining a reduced assessment requires great skill and expertise.
Requesting a reduced assessment is often perceived as being ineffective, but Unicus Tax has been quite successful in assisting clients with this remedy.
These steps must be followed to apply for SARS Reduced Assessment:
If you have any cases in progress for the same assessment, a warning message will display and if a dispute case is in progress for the same assessment, you will only be allowed to submit an RRA01 form after that case has been finalised For these reasons, it is advisable to engage with an experienced tax practitioner like Unicus Tax to assess and to assist you in setting out the detailed grounds to your request.
Here are some common misconceptions about SARS Reduced Assessment:
Here are a few strategies and tips on maximizing tax savings through SARS Reduced Assessment:
Understand what a reduced assessment means. It’s a common misconception that the amount on the reduced assessment is what you owe. However, this amount must be considered in relation to the original assessment to determine the overall balance due or refundable.
When applying for a SARS Reduced Assessment in South Africa, depending on the facts of your case, you may need to provide the following documents:
Importantly, taxpayers will need to submit detailed grounds proving the request meets the requirements set out in the TAA and be able to substantiate the request by submitting relevant supporting documentation. In the event, the information and documents provided are not sufficient for the request, SARS may also request additional supporting documents.
We are expert tax specialists with a vast amount of experience. Our experience and tax exclusive policy places us the forefront of tax law. If you have a tax problem/issue, chances are we have dealt it before and know how to handle it to your best advantage.
We do not do auditing, accounting or any type of work other than tax. We are truly specialised and indeed experts in the field of tax. If you need a true tax expert, we are the people to speak to.
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A SARS reduced assessment is a tax assessment that contains a lower or reduced amount of taxable income compared to the Original Assessment.
SARS may issue a reduced assessment to a taxpayer if they are successful in an objection or appeal, if it is necessary to give effect to a settlement reached between SARS and the taxpayer, or if there is a readily apparent undisputed error in the assessment by either SARS or by the taxpayer in a return.
To apply for a reduced assessment from SARS, you need to complete and submit an RRA01 form via eFiling together with relevant supporting information.
The benefits of a SARS reduced assessment include owing less tax or being entitled to a higher refund.
Yes, as a salaried employee, you can apply for a SARS reduced assessment if there is a readily apparent undisputed error in your return or the assessment issued by SARS.
Expenses such as day-to-day business expenses, capital expenses, education expenses related to your business, entertainment expenses incurred for the purpose of generating income, and other expenses that meet certain criteria are eligible for deductions under SARS reduced assessment.
You can request a reduced assessment from SARS within three years of the date of the original assessment in the case of income tax.
SARS must consider the request and make a decision whether to allow the request.
No. You will have to Institute proceedings in the High Court to have SARS’ decision not allow a reduced assessment request reviewed.
You can apply for a SARS reduced assessment within three years of the date of the original assessment in the case of income tax.
