Page 582 - Juta's Indirect Tax

IN 15 (4) TAX ADMINISTRATION ACT: INTERPRETATION NOTES IN 15 (4) law. An objection which is delivered to SARS more than three years after the date of the assessment or decision cannot,
therefore, be entertained.
4.6 Periods in which to resubmit invalid objections
Rule 7(2) provides that SARS may regard an objection as invalid if a taxpayer did not deliver an objection in the manner and terms set out in rule 7(2). SARS must notify the taxpayer and state the grounds for invalidity in a notice which must generally be issued to the taxpayer within 30 business days of delivery of the invalid objection. Such taxpayer may, under rule 7(5), submit a new objection within a period of 20 business days of the delivery of the notice without having to apply for an extension. However, a taxpayer who does not submit a new objection or who submits a new objection without complying with the requirements of rule 7(2), must apply for an extension of the period in which to lodge an objection.*
5. Appeal – extension of the period in which an appeal against an unsuccessful objection may be lodged
Any taxpayer who has lodged an objection to an assessment or decision and who is dissatis ed with SARS’s decision to disallow the objection in whole or in part under section 106(2), may appeal against that decision within 30 business days after the date of the notice informing the taxpayer of the decision under section 106(4).
A senior SARS of cial may extend the period of 30 business days prescribed by the rules within which to lodge an appeal by –
• 21 business days if satis ed that reasonable grounds exist for the delay in noting the appeal;† or
• up to 45 business days, if exceptional circumstances exist that justify an extension beyond 21 business days.‡
The factors relevant to the exercise of a discretion in extending the period in which to lodge an objection are also relevant to the exercise of a discretion in extending the period to lodge an appeal. As indicated in 4.1, these factors are neither all-embracing nor individually decisive and each case will be considered on its own merits.
6. Conclusion
An objection against an assessment or decision must be lodged within 30 business days of the date of assessment or decision. Similarly, an appeal against the disallowance of an objection must be lodged within 30 business days§ of the date of disallowance of the objection. A senior SARS of cial may extend the date for lodging an objection by –
• 21 business days if satis ed that reasonable grounds exist for the delay in lodging the objection; and
• between 22 business days and three years if satis ed that exceptional circumstances exist which gave rise to the delay in lodging the objection.
No extension can be granted for –
• a delay of more than three years from the date of assessment or decision; or
• an objection that relates to a change in the practice generally prevailing at the date of assessment or decision.
A senior SARS of cial may extend the date for lodging an appeal by –
• 21 business days, if satis ed that reasonable grounds exist for the delay; or
• up to 45 business days, if exceptional circumstances exist that justify an extension beyond
* Rule 7(6).
† Rule 10(1).
‡ Section 107(2)(a). § Section 107(2)(b).
574 Juta’s IndIrect tax 2016