IT14 related tax dispute. IT34/IT14 2006 showed a loss of R200355, IT34/IT14 2007 showed a loss of R52025 in addition to loss carried over from 2006. In 2008 however, SARS failed to carry over combined assessed losses
Important:
This answer is based on tax law for the year ending 28 February 2008.
Answer:
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. Section 93(1)(d) requires a readily apparent undisputed error in the assessment by SARS or by the taxpayer in a return, but will only apply to assessments not older than 3 years.
Section 93(1)(e) requires of the taxpayer to satisfy a senior SARS official 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.
We submit that the failure, by SARS, to not carry forward an assessed loss, is a processing error by SARS.