The importance of detailed grounds of objection

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The importance of detailed grounds of objection

• 20 October 2025
• Tax Administration
• Adv Christel van Wyk

Objection as the First Step in a Dispute

When SARS issues an assessment and a taxpayer is aggrieved by it, the appropriate next step is to lodge an objection. This assumes, of course, that the assessment was issued on proper grounds and that the taxpayer is in a position to formulate valid grounds of objection. The objection represents the first formal step in the tax dispute process, and the importance of getting this step right cannot be overstated.

eFiling Allows an Abridged Process

In practice, the SARS eFiling system enables a fairly basic — and often overly simplified — process for completing and submitting the notice of objection online. It is easy to overlook the requirement that the grounds of objection must be submitted in detail. Importantly, it is very difficult to add further grounds later in the process.
When the grounds of objection are drafted comprehensively and with sufficient detail, they form the foundation for the rest of the dispute process. This step can quite literally determine whether you succeed or fail in your dispute against SARS.

The Extent of Detail Required

How much detail is required when formulating grounds of objection? The answer is not straightforward.

First, all the factual and legal issues in dispute must be identified.

Second, each issue should be addressed with enough specificity to clearly indicate the basis on which the facts or interpretation applied by SARS are being challenged.

Third, procedural irregularities in SARS’s conduct may also form the basis of additional grounds of objection.

For example:

• Where SARS imposes understatement penalties without proving the facts supporting such penalties, or without establishing the required causal link between the taxpayer’s behaviour and the alleged prejudice to SARS.
• Where SARS issues an assessment without providing adequate grounds for such assessment.

To properly protect the taxpayer’s rights, these procedural aspects must be clearly and thoroughly addressed during the objection phase of the dispute.

Adding New Grounds

The dispute rules changed with effect from 10 March 2023. The amended Rule 32(3) now provides:

“The appellant may include in the statement a new ground of appeal unless it constitutes a ground of objection against a part or amount of the disputed assessment not objected to under Rule 7.”

Case Law

In the recent case of TALT v C:SARS (A2023/077887) [2024] ZAGPJHC 827 (27 August 2024), the key issue was whether the taxpayer could raise a so-called new ground of appeal not included in its objection letters.

The court held that the new ground of appeal did not constitute a novation. It was not a separate objection, but rather an amplification of an existing ground relating to the same issue — in this case, the capital gain under dispute. The taxpayer’s appeal was upheld, and the court emphasised the importance of distinguishing between an amplification of an existing ground and an entirely new ground.

Conclusion

Best practice is to appoint a suitably qualified tax practitioner at the earliest possible stage to handle the objection process. This ensures that the grounds of objection are properly detailed and comprehensive — avoiding the need for later debates about adding further grounds in the dispute process.

Learn More

If you would like to explore this topic further, join us on 12 November 2025 for a practical webinar on Client Record Management Retention, Disposal and Security. The session will unpack the latest procedural developments, illustrate best practices through case studies, and provide guidance on drafting effective objections and managing disputes confidently.

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