Reduced Assessment Request
Taxpayers (or their accountants, tax practitioners, auditors or lawyer) often make mistakes when completing a tax return. For example the taxpayer did not claim a deduction that they were entitled to. Or the taxpayer omitted to declare a capital loss on a return. This often leads to an incorrect assessment which may be identified long after the period for lodging an objection has lapsed (see SARS objections and appeals). A useful remedy in these cases is submitting a SARS reduced assessment request.
The benefit of this remedy is that taxpayers have a longer period of time to try and get an incorrect assessment rectified – up to five years in some cases.
One of the main requirements for this process is that the error must be a readily apparent undisputed error.
Depending on the nature of the error, it may require great skill to show satisfaction of this requirement. Where SARS does not allow a taxpayer’s request, the taxpayer can request a decision revision (see decision revision).
As master tax practitioners we are very comfortable with the processes and legitimate avenues available to ensure only the taxes that are due is paid, and nothing more.