The SARS Dispute Process: A Professional's Guide to Getting it Right

4 Nov

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When SARS gets it wrong, or you believe they have, you don’t have to take the knock quietly. Disputing an assessment, penalty, or interest charge isn’t about being difficult. It’s about knowing your rights, protecting your (or your client’s) finances, and following a formal process that’s already built into our tax system.

But here’s the reality: many professionals miss out on legitimate relief because they either don’t understand the system or misstep on a technicality. With SARS's dispute process nowavailable on eFiling, it’s more important than ever to follow the right sequence and submit the correct forms, supporting documents, and timelines. Below we look at the processes in more detail.

Request for Remission (RFR)

If you’re challenging a penalty or interest charge, for example, for late payment or underestimation, your first step is not an objection, but a Request for Remission. This tells SARS that you believe the penalty or interest should be waived, and why.

You can file this directly via eFiling:

Go to Returns > Disputes/Suspension of Payment > New
Select the tax type and period
Enter the relevant source code and the value you believe should have been charged
Clearly explain your grounds (e.g. SARS error, illness, not liable to file, etc.)

If SARS agrees, the charges may be reduced or cancelled. If they partially allow or disallow the RFR, your next step can be to lodge an objection.

Need Clarity? You Can Request for Reasons

Before jumping into an objection, ask yourself: do you fully understand why SARS made the assessment? If not, you should Request for Reasons. This not only pauses the dispute clock and gives SARS 45 business days to respond, but enables you to know how SARS got to the assessed figures. Use this to your advantage, especially where the notice or assessment is vague or automated.

You can request for reasons when:

SARS issued a notice of assessment (the original assessment, or a notice of assessment after verification or audit completed by SARS).
A Request for Remission (RFR) was either disallowed or partially allowed.

The request for reasons function is also available on eFiling, and should be used any time you need SARS to justify a position before you can argue it. You can access the request for reason function on eFiling, select the “Disputes\Suspension Of Payment” or “Request For Reason” tab under the “Returns” menu.

Notice of Objection: Your Formal Rebuttal

If your RFR was denied, or you’re disputing an actual assessment (not just penalties), your next move is a Notice of Objection (NOO). This is your chance to lay out the facts, legal grounds, and provide proof. You have 80 business days from:

The date of the original assessment, or
The date SARS provides reasons (if you requested them), or
The outcome of your RFR

to file the objection.

Important: SARS requires supporting documentation, and your objection won’t be accepted without it. Uploads must be done at the time of filing or the system won’t allow submission.

Also note: In certain cases you will not be able to use efiling to submit an NOO electronically. This isn’t a rejection of your objection, it’s a system limitation. For example, if the assessed value is higher than it should be you will not be able to reduce the values on efiling. In these cases, complete the ADR1 form manually, and:

Book an eFiling appointment with SARS
Upload the ADR1 once the case number is issued
Or make an appointment and submit the form and supporting documents at a SARS branch.

Notice of Appeal: When SARS Still Says No

If your objection is disallowed or only partially allowed, and you still believe SARS got it wrong, you have 30 business days to file a Notice of Appeal (NOA).

At this stage, you choose whether the matter goes to:

The Tax Board (for smaller, simpler disputes), or
The Tax Court (for higher-value or complex matters)

You can also request Alternative Dispute Resolution (ADR) as part of the appeal. This is a more informal, facilitated negotiation process and is often quicker and less costly than litigation. If ADR doesn’t resolve the issue, your appeal rights remain intact.

Need a Break? Request Suspension of Payment

While the dispute is ongoing, SARS may still try to collect the disputed amount. To prevent this, submit a Suspension of Payment request via eFiling. This is particularly important for preserving cashflow and avoiding enforced collections.

You can request this at the time of filing your RFR, NOO or NOA, or as a separate submission.

Key Reminders from SARS's Official Guidelines:

You must follow the sequence: RFR → NOO → NOA (where applicable)
You can’t dispute assessments older than three years (unless condonation is granted)
For some items (e.g. VAT on imported services, pre-1999 issues, trust cases), use the manual ADR1 form
Estimated assessments under Section 95 generally cannot be disputed, but you can request remission or provide the missing material to have SARS revise them.

Final Word: Don’t Let the System Beat You

Tax disputes aren’t personal. They’re procedural. But knowing the steps, respecting the deadlines, and submitting well-prepared forms can be the difference between recovering thousands and losing out.

For more detail, consult SARS's full Dispute Guide or visit the SARS website.