Global Courant
The South African Revenue Service has quietly announced the start of the 2023 tax season, which will begin on Friday, July 7, 2023.
The group has already made updates to its mobile filing platform in preparation for the season and has also begun populating taxpayer profiles with available third-party data.
It is expected that the Tax and Customs Administration will also use automatic assessments in 2023, which have proven successful in previous years in processing returns for taxpayers with less complex tax matters.
The tax season typically lasts about four months for non-provisional taxpayers (the 2022 season ends in October) and lasts longer for provisional taxpayers (ending in January); However, SARS has not yet announced the closing dates for the season.
While these dates are still pending, taxpayers should be aware of several changes and new rules being introduced for the upcoming tax season, especially regarding dispute resolution.
According to Danielle Luwes, Tax Manager at Hobbs Sinclair, these changes will have a significant impact on both taxpayers and the IRS.
The new rules include an extension of deadlines, changes to the appeal process and updates to the appointment of alternative dispute resolution (ADR) judges.
“It is essential to be aware of your rights and obligations as a South African taxpayer when it comes to taxes. Being aware of these changes and seeking advice from a tax advisor who is familiar with tax laws, tax policies and procedures is crucial,” the group said.
“Knowledge is power when it comes to taxation. Remember to exercise your rights and take the necessary steps to ensure a fair and equitable resolution of your tax dispute with SARS.”
Extension of deadlines
Under the new rules, the parties (taxpayers or SARS) can agree on shorter deadlines if the timelines for various proceedings are not already regulated by the rules.
The 2014 rules only allowed overtime.
Object to attack
A notice of objection (NOO) must be filed by a taxpayer within 80 days (30 days under the 2014 rules) of the date of the assessment.
If the taxpayer has requested reasons, the NOO must be provided within 80 days of the delivery of either the SARS notification that sufficient reasons have been given or the SARS letter with the reasons requested.
The 80-day period does not include the additional 30-day extension that a taxpayer may reasonably request, and exceptional circumstances may warrant an extension of up to three years.
Under the new rules, a taxpayer can appeal on a new ground that has not been put forward in the NOO, unless it concerns a new objection to a part of the assessment that was not previously objected to.
Appointment of an ADR facilitator
The facilitator must have sufficient tax experience and be acceptable to both SARS and the taxpayer.
Once the facilitator has been accepted by all parties, a senior SARS officer will appoint the facilitator within 15 days of the effective date of the ADR.
The facilitator must act independently and impartially.
Delivery of the facilitator’s report
The facilitator is required to provide a report within five days of a meeting and a final report within 10 days of the end of the ADR process.
New motivation assessment notice and notice of objection
SARS must provide a statement explaining why they made the assessment and why they oppose the appeal. Rule 31(3) has been amended to allow SARS to add new grounds for rejecting the appeal unless it completely changes the basis of the assessment or requires a new assessment to be issued.
Summonses of witnesses before the tax authorities and the tax court
Under the new rules, an individual can be summoned by the Registrar of the Internal Revenue Service or the Registrar of the Internal Revenue Service to attend the appeal and testify or provide documents on issues relevant to the appeal. If a party believes the subpoena is irrelevant or unreasonable, they can ask the tax court for help.
SARS has also updated its information page for the upcoming tax season, with helpful guides and instructions on how to file your tax return.
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