Is it possible to reverse/correct SARS estimates dating back to 1989 if the individual was unemployed? SARS issued estimates dating from 1989 to 1997 resulting now in a large amount of tax outstanding for the this individual. They have signed an affidavit
Important:
This answer is based on tax law for the year ending 28 February 2020.
Answer:
For purposes of the guidance that follows we accepted that the “SARS estimates” are in fact assessments issued by SARS.
We agree that, if the date of the issue of these assessments are more than three (or five) years before the current date. We also accept that SARS initiated proceedings for recovery of the related tax debt before the expiration of 15 years from the date the relevant assessment of tax became final.
We submit that the only option available would then be to request a reduced assessment under section 93(1)(e) of the Tax Administration Act. That requires a processing error by SARS or a return fraudulently submitted and is not caught by the prescription period. We don’t have enough facts regarding section 93(1)(e)(i).