A Quick Guide to Section 95 of the Tax Administration Act

A Quick Guide to Section 95 of the Tax Administration Act

• 17 March 2025
• Tax Administration
• The Tax Faculty Tax Specialist

This article is based on tax law for the year ending 28 February 2026.

Question:

Where in the Tax Administration Act (TAA) does it state that a taxpayer cannot object to an auto or estimated assessment if they have not done so by the due date in October each year?

Answer:

Effectively Disputing SARS Estimated Assessments: A Quick Guide to Section 95 of the Tax Administration Act

When a taxpayer receives an estimated assessment from the South African Revenue Service (SARS), it’s important to follow the correct steps to effectively challenge and potentially reverse the assessment. Under section 95 of the Tax Administration Act, 2011 (TAA), SARS is empowered to issue an estimated assessment if a taxpayer:

• Fails to submit a return (Section 95(1)(a)),
• Submits incorrect or inadequate information (Section 95(1)(b)), or
• Fails to respond to more than one request for relevant material as per Section 46 (Section 95(1)(c)).

Tax practitioners need to understand their rights and the procedural steps to dispute this estimated assessment properly.

Steps to Dispute an Estimated Assessment

1. Review the Assessment Notice

Carefully examine the notice of assessment to confirm it is indeed an estimated assessment. SARS typically issues these under specific circumstances listed in Section 95(1), and it is often indicated on the VAT217 notice of assessment or other tax assessments.

2. Submit Relevant Material

In accordance with Section 95(4) of the TAA, the obligation to submit a correct and complete return or relevant material remains even after the issuance of an assessment. Taxpayers have 40 business days from the date of the estimated assessment to provide the requested relevant material to SARS fully and accurately. This submission serves as the foundation for disputing the assessment.

Supporting documentation can be submitted via eFiling, the SARS SOQS portal, virtual appointments, or even at a SARS branch if necessary.

3. Request an Extension if Necessary

If you need more time to gather the appropriate documents, you may request an extension from SARS. Section 95(6) states that only reasonable grounds are required for an extension request. However, if the request is made beyond 70 days, SARS requires exceptional circumstances. Submit the request with supporting documentation for SARS to review.

4. Await SARS's Response

After submitting the relevant material, SARS is responsible for reviewing the information. If SARS is satisfied, they may issue a corrected or reduced assessment in line with Section 95(2), which states that the estimation must be based on information readily available to SARS. If SARS accepts the submission, the dispute may be resolved without further action.

5. File an Objection if Necessary

Should SARS refuse to issue a reduced or corrected assessment after reviewing the submitted material, you may lodge an objection against the estimated assessment. This process is governed by Chapter 9 of the TAA, specifically Section 104, which allows taxpayers to object to an assessment. Note that the date of SARS's notification of rejection forms the start of the objection timeline, and objections must be filed within 80 business days from that date.

6. Prepare Your Objection

Under Sections 104 and 105 of the TAA, objections must include:

• Specific grounds for disputing the assessment.
• Supporting documentation that justifies the objection.
• A clear, well-structured explanation outlining your disagreement with the estimated assessment.

7. Consider Suspension of Payment

If the estimated assessment results in an amount owing, you may apply for a suspension of payment under Section 164 of the TAA while the dispute is being resolved. This prevents SARS from taking collection steps during the dispute resolution process.

8. Engage Specialist Assistance

If the process becomes complex or uncertainty arises, it may be beneficial to work with a tax dispute specialist who can provide expert advice and representation during the process.

9. Important Considerations

• Proper Submission Channels: Make all submissions through platforms like eFiling or other SARS-approved channels. Include all relevant case numbers, correspondence, and supporting documents to ensure your case is comprehensively addressed.
• Document Communication: Keep a detailed record of all written and verbal communications with SARS for reference and accountability.
• Adherence to Deadlines: Missing deadlines can result in the assessment becoming final and binding, so be diligent in monitoring timelines for submissions and responses.

By following these steps and referring to the applicable provisions in the Tax Administration Act (particularly Section 95 and Chapter 9), taxpayers can effectively dispute an estimated assessment issued by SARS and work towards resolving any discrepancies in their tax obligations.

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