The clients income tax return for 2018 was audited. We submitted all supporting documents to SARS after which SARS issued an additional assessment refusing all vehicle expenses. Subsequently, we submitted a NOO where we resubmitted all supporting document
Important:
This answer is based on tax law for the year ending 28 February 2019.
Answer:
We don’t know if the taxpayer indicated in the notice of appeal that the taxpayer wishes to make use of alternative dispute resolution.
We start with rule 11(2) first – it reads as follows:
If no alternative dispute resolution procedures under Part C are pursued, the appellant must, if the appeal is to be dealt with by the tax board, within 35 days of delivery of the notice of appeal request the clerk to set the matter down before the tax board under rule 26.
The rules don’t allow for this period to be extended or explain how a late delivery of the notice must be dealt with.
We accept that the alternative dispute process was opted for. Rule 13(1) is then relevant. It reads as follows:
If the appellant has in a notice of appeal indicated a willingness to participate in alternative dispute resolution proceedings under this Part in an attempt to resolve the dispute, SARS must inform the appellant by notice within 30 days of receipt of the notice of appeal whether or not the matter is appropriate for alternative dispute resolution.
Under rule 15(3), the parties must finalise the alternative dispute resolution proceedings within 90 days after the date of delivery of the notice by SARS (the one referred to above).
The taxpayer can then, under rule 56, deliver a notice to SARS, the defaulting party, informing SARS of the intention to apply to the tax court for a final order under section 129(2) of the Act in the event that SARS fails to remedy the default within 15 days of delivery of the notice.
If SARS fails to remedy the default within the prescribed period, the taxpayer will apply to the tax court for a final order under section 129(2).