JHB 
When taxpayers dispute an assessment issued by SARS, many assume they are protected from any immediate collection steps. However, the reality is far more complex and far more urgent. SARS can and does initiate recovery action even while a dispute is still in progress, leaving many taxpayers blindsided by garnishee orders, asset attachments, and other recovery measures.
Understanding the objection process and ensuring proper follow-through is critical to avoiding unjustified recoveries.
How SARS recovers tax debt before disputes are resolved
SARS has the legal authority to collect assessed tax debts, even while those debts are being disputed. If you object to an assessment but do not take the required steps to suspend collection, SARS may proceed with debt recovery. This can include:
- Deductions directly from your bank account or through your employer
- Legal action, including judgments and warrants of execution
- Third-party appointments to collect on SARS’s behalf
In many cases, this happens because the taxpayer did not request a formal suspension of payment as part of their objection.
The importance of suspension of payment
Objecting to a SARS assessment does not automatically halt debt collection. A formal request to suspend payment must be submitted and approved by SARS. Without it, the debt is considered due and payable even if the objection is valid and still under review.
Taxpayers often overlook this critical step, especially those handling objections themselves without professional guidance. This oversight can result in significant financial and reputational damage.
Why DIY tax disputes are risky
Taxpayers who manage their own disputes may not be aware of the procedural requirements outlined in the Tax Administration Act. This can lead to:
- Rejected objections due to lack of detail or incorrect format
- Delays in the issuance of revised assessments
- Premature recovery steps taken by SARS
Even if you ultimately succeed in your objection, the financial damage caused during the process can be difficult to reverse.
How MMS Group can assist
At MMS Group, we specialise in navigating the complexities of the SARS dispute process.
Our experienced tax team can assist with:
Drafting and submitting detailed, compliant objections
Requesting suspension of payment to protect your cash flow
Monitoring the progress of your dispute and SARS responses
Liaising with SARS to ensure timely and accurate resolutions
Don’t let procedural oversights put your business at risk. With MMS Group, you have a trusted partner to protect your rights and your finances.
If you are facing an assessment you believe to be incorrect, contact MMS Group for professional support. We will help ensure your response is both legally sound and strategically effective.