The South African Revenue Service (SARS) officially announced the start of tax season 2023, beginning on Friday, 7 July 2023. To prepare for this busy period, SARS updated its mobile filing platform and populated taxpayer profiles with third-party data.
For the 2023 tax season, SARS will continue using auto assessments, which effectively manage tax returns for individuals with simpler tax affairs. The tax season typically lasts around four months for non-provisional taxpayers, concluding in October. Provisional taxpayers enjoy a longer deadline, extending until January. However, SARS has not yet confirmed the closing dates for this season.
Auto assessments simplify the tax filing process by automatically calculating tax returns for eligible taxpayers. This system reduces the burden of manual submissions and makes tax compliance more efficient.
Taxpayers need to understand the various changes and new rules for the upcoming tax season, particularly concerning dispute resolution. These updates aim to streamline processes and enhance taxpayer rights.
The new rules extend the timeframe for delivering a notice of objection to 80 days from the assessment date. This represents a significant increase from the previous 30-day limit established in 2014. If taxpayers request reasons for their assessment, they must submit the notice within 80 days of receiving the relevant SARS notice or letter.
The updated rules also include the appointment of Alternative Dispute Resolution (ADR) facilitators. These facilitators must possess suitable tax experience and gain mutual acceptance from both parties involved. They must act independently and impartially, ensuring a fair resolution process.
SARS now possesses the authority to provide a statement explaining the assessment and the rationale for opposing an appeal. Additionally, SARS can introduce new grounds for disallowing an objection, as long as these do not fundamentally alter the assessment basis or require a new assessment.
Under the new rules, parties can subpoena witnesses to appear before the Tax Board and Tax Court. These witnesses may need to provide evidence or documents relevant to the case. If parties find a subpoena irrelevant or unreasonable, they can seek relief from the Tax Court.
For more information and professional assistance with your tax returns, contact Latita Africa to ensure your financial records remain in order. Our dedicated team helps you navigate the complexities of tax season with ease.
