My client previous accountants submitted the EMP501 for the period 2011/2012 incorrectly (was suppose to file the recon under the sole trader business and not under the private company). SARS demands payment of R120,000 for outstanding PAYE/UIF based on t
Important:
This answer is based on tax law for the year ending 28 February 2012.
Answer:
For purposes of the guidance that follows we accepted that the tax debt arose from assessments issued by SARS – presumably EMP27’s.
We accept that the date of the issue of these assessments are more than three (or five) years before the current date.
We submit that the only option available would then be to request a reduced assessment under section 93(1)(d) of 93(1)(e) of the Tax Administration Act.
Section 93(1)(d) requires a readily apparent undisputed error in the assessment by SARS or by the taxpayer in a return. That may apply to the assessments not older than 3 years. Section 93(1)(e) requires that taxpayer to satisfy a senior SARS that the relevant assessment was based on—
(i) the failure to submit a return or submission of an incorrect return by a third party under section 26 or by an employer under a tax Act;
(ii) a processing error by SARS; or
(iii) a return fraudulently submitted by a person not authorised by the taxpayer.