I have 2 ESKOM clients, which I am assisting the past 3 years. On both of them sars requested 2008 returns. Both of them started working midyear of the 2008 tax year. They were both apprentice's then. At first zero returns was submitted as Eskom could not
Important:
This answer is based on tax law for the year ending 28 February 2020.
Answer:
You mention that “calculations came back” and the individuals owe SARS money. From the information provided we accept that SARS issued additional assessments and that they did so because they were satisfied that the assessment (the original one) did not reflect the correct application of a tax Act to the prejudice of SARS or the fiscus – see section 92 of the Tax Administration Act.
Such an (additional) assessment is actually issued in terms of section 95(1) of the Tax Administration Act. Under section 95(2), SARS must make the estimate based on information readily available to it.
From the information provided it is clear that the information available to SARS may not have been correct with respect to the taxpayers. In any event, the taxpayers had to lodge an objection to the additional assessments.
You mention that the interest currently accrues on the tax debt. It is possible that no objection was lodged and that the period to do so may have passed. We don’t have enough information to comment on that, but the only other alternative would be to request a reduced assessment under section 93(1) of the Tax Administration Act.