SARS Disputes Explained: From Objection to Court
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Disagree with a SARS assessment? You’re not alone. From understatements to miscalculations, disputes happen, and the Tax Administration Act outlines exactly how to challenge them. Here’s a step-by-step guide to navigating the process with confidence and precision.
Start with an Objection
If you believe SARS raised an incorrect assessment, your first step is to file a formal objection.
Deadline: Within 80 business days from the date SARS issued the assessment or decision or provided you with the reasons/further reasons.
Extensions: If you are late with your objection, you must provide reasons for the late submission. If SARS condones the request an extension of 30 additional business days, or up to three years in special circumstances such as illness, fraud, or SARS delays.
Note: You also have the right to object against SARS’s decision not to condone the late submission of the objection and should its objection be disallowed, appeal against that decision.
To file an objection on eFiling, follow the steps in the Guide to submit a dispute via eFiling. Alternatively, if you need to visit a SARS Branch office make an appointment.
SARS Reviews the Objection
SARS will review your submission and issue a formal response. They should let you know within 30 business days if the objection is invalid or they need further evidence.
At the end of the review, SARS will either:
Allow the objection in full
Allow it in part, or
Disallow it entirely.
Their response will include reasons, allowing you to decide whether to accept the outcome or proceed further.
For more information on objections go to the SARS Website.
Not Satisfied? You Can Appeal
If you’re not satisfied with the outcome of their objection to a SARS assessment, they can escalate the matter by lodging an appeal.
You need to submit an appeal within 30 business days from SARS’s objection decision. If you are late with your appeal, SARS may grant additional 21 business days or up to 45 business days in exceptional circumstances.
Appeals are submitted via eFiling following the steps in the Guide to submit a dispute via eFiling, or using the Notice of Appeal (ADR2 form) when submitting manually.
The appeal can follow one of three routes:
Alternative Dispute Resolution is a quicker, informal approach with a neutral facilitator.
Tax Board is suitable for less complex disputes involving smaller amounts.
Tax Court is required for more complex or high-value cases.
Alternative Dispute Resolution (ADR)
ADR allows for a structured yet informal discussion between SARS and the taxpayer, facilitated by a neutral party. Both parties must agree to the process. If resolved, the matter ends there. If unsuccessful, the case proceeds to the Tax Board or Tax Court.
ADR is often a preferred route due to its efficiency and cost-effectiveness.
Escalating to Tax Board or Tax Court
The Tax Board handles simpler cases. Proceedings are less formal and more cost-effective.
The Tax Court is reserved for more complex disputes. You may require legal or professional representation. Further appeals can escalate to the High Court, Supreme Court of Appeal, or even the Constitutional Court depending on the matter.
Suspend Payment While Disputing
Generally, SARS can demand payment even while the dispute is unresolved. However, you may apply for a suspension of payment.
To apply, submit a written request with supporting documents explaining:
That a valid objection or appeal has been submitted.
That the tax is genuinely in dispute.
That immediate payment would cause financial hardship.
That SARS will still be able to recover the debt later if necessary.
If granted, SARS must halt collection efforts until the matter is finalised. However, note that this is a delay, not a cancellation. Interest may accrue if the dispute is unsuccessful.
Key Timelines to Know
Dispute resolution is a time consuming exercise. The applicable timelines are highlighted below:
Request reasons for assessment: Within 30 business days from the date of the assessment.
File an objection: Within 30 business days from the date of the assessment or from the date SARS provides reasons (if requested).
Apply for an extension to file an objection: Up to 21 additional business days, or up to 3 years in special circumstances (e.g. illness or fraud).
Lodge an appeal: Within 30 business days from the date SARS issues its decision on your objection.
SARS response to objection: Within 60 business days of receiving your objection (can be extended once by a further 45 days).
Apply for suspension of payment: This can be done at any time after the objection or appeal has been submitted.
Final Notes for Practitioners
Always act within the timeframes—delays can close your client's legal options.
Ensure all supporting documents are submitted upfront to avoid unnecessary delays.
Use SARS eFiling for a clear audit trail and faster processing.
Educate your clients about their rights and obligations during a dispute.
Read more in the SARS Short Guide to the Tax Administration Act 2011.
