2023 Tax Season: What You Need To Know

Taxpayers are required to submit a Notice of Objection (NOO) within 80 days (compared to 30 days under the prior rules) from the date of the assessment. In cases where the taxpayer has requested reasons, the objection must be submitted within 80 days following either the delivery of the SARS notice confirming that adequate reasons have been provided or the receipt of the SARS letter containing the requested reasons. This 80-day period does not include the potential 30-day extension that a taxpayer may request.

According to the updated regulations, a taxpayer can appeal based on a new ground not mentioned in the Notice of Objection (NOO). However, this provision does not apply if the new ground pertains to an objection against a portion of the assessment that was not previously contested.

Alternative Dispute Resolution facilitators must possess relevant tax expertise and be mutually agreeable to SARS and the taxpayer. Upon receiving approval from all parties involved, a senior SARS official is responsible for appointing the facilitator within 15 days from the commencement date of the Alternative Dispute Resolution (ADR) process.

The facilitator must deliver their first report within five days of the initial meeting and the final report within ten days after the process has been concluded. Additionally, SARS is required to furnish an explanation detailing the reasons behind the assessment and their opposition to the appeal. Rule 31(3) has also been revised to permit SARS to introduce additional grounds for rejecting the objection, provided that it does not entirely alter the foundation of the assessment.

The updated regulations also enable the Tax Board clerk, or the Tax Court registrar, to issue subpoenas for individuals to appear at the appeal, present evidence, or submit documents related to the appeal’s pertinent issues. If a party believes that the subpoena is irrelevant or unreasonable, they have the option to seek relief from the Tax Court.