Module 2: Professional Writing
Topic 2: Communicating with SARS
CONTENTS
1. Introduction .................................................................................................................................................... 3
2. Submit ITR12 return to SARS ........................................................................................................................ 3
3. Taxpayer receives a Notice of Assessment (ITA34) .................................................................................... 4
4. SARS requests verification documents ........................................................................................................ 4
5. Taxpayer’s first communication to SARS – verification documents ......................................................... 4
6. SARS concludes the assessment or issues an additional assessment .................................................... 4
7. Taxpayer asks for reasons ............................................................................................................................ 4
8. The taxpayer objects to the additional assessment .................................................................................. 5
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Study Guide
1. Introduction
This study guide gives an overview of the various stages of completing and assessing an individual’s ITR12
return to enhance your written communication with the South African Revenue Service (SARS) during this
process.
Throughout this course you will be required to answer practical questions. Examples of letters to SARS
are included as annexures in this topic. The Tax Administration Act (TAA) and dispute process is covered
in the Tax Administration module during the second part of this course (Business Tax).
An overview of the process when submitting an individual’s ITR12 return on eFiling is illustrated in Figure
1 to indicate when it may be necessary to communicate with SARS, and more specifically, what should be
communicated. Each step is discussed thereafter.
Taxpayer receives a Taxpayer's first
Notice of SARS requests for
Taxpayer submits communication to
Assessment verification
ITR12 return SARS - verification
documents
(ITA 34) documents
SARS issues an
The taxpayer asks Is the taxpayer
SARS's response additional
for reasons aggrieved
assessment
The taxpayer
accepts the reasons
The taxpayer objects
and assessment
becomes final
Figure 1: The Tax Lifecycle
2. Submit ITR12 return to SARS
An ITR12 tax return for individuals can be submitted to SARS via eFiling or at a branch (online
appointment). eFiling is discussed in more detail in Topic 3 of this module.
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3. Taxpayer receives a Notice of Assessment (ITA34)
After the ITR12 return has been submitted, SARS issues a Notice of Assessment called the ITA34 (Income
Tax Assessment). The assessment should be a mirror reflection of the tax calculation as submitted in the
ITR12 return.
4. SARS requests verification documents
SARS can select the return for verification and as a result request supporting documentation used to
calculate the return as submitted in step one. This is called the verification process. If SARS selected the
return for verification, a verification letter will be sent to the taxpayer via eFiling requesting specific
supporting documentation for the relevant year of assessment, regardless of what has been uploaded by
third parties.
5. Taxpayer’s first communication to SARS – verification documents
The next step is to submit the requested supporting documentation to SARS via eFiling. Generally, SARS
makes a specific link available where the required documents for a year of assessment should be
uploaded and submitted to SARS. It is suggested that the taxpayer/tax practitioner submits a letter with
the supporting documents listing the documents attached and the purpose of the supporting documents.
Refer to Annexure A for a template of a letter addressed to SARS in response to SARS’s request for
supporting documents as part of the verification process. Please note that it is only an example and can
be changed. It is important to upload the requested supporting documents within the given timeframe.
An unclear or ambiguous verification process may lead to further audit procedures and additional
assessments.
6. SARS concludes the assessment or issues an additional assessment
Once SARS reviews the supporting documents, they can either agree with your calculation and finalise the
assessment without any changes or issue an additional assessment.
7. Taxpayer asks for reasons
If a taxpayer does not agree with the additional assessment issued, he/she can submit an online request
for SARS to provide reasons for the additional assessment. Please note this is not a formal letter to SARS,
rather a step in the eFiling process. SARS will then send a letter via eFiling to explain where
errors/differences have been found in the return submitted that resulted in the additional assessment. If
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Study Guide
the taxpayer accepts the reasons provided by SARS, the additional assessment becomes final. The
taxpayer may, however, disagree with SARS and dispute the assessment.
8. The taxpayer objects to the additional assessment
When a taxpayer does not agree with an assessment, the taxpayer may lodge a dispute thereto. To
dispute the outcome of the assessment or decision, a specific process must be followed within 80
business days from the date of the assessment. You must submit your objection on the prescribed
DISP01 form via eFiling or at a Branch office (Remember to make an appointment). Refer to the SARS
Guide to submit a dispute via eFiling which can be found on the SARS website for guidance on the process.
It is suggested that the taxpayer/tax practitioner submits a letter with the DISP01 form to SARS to
substantiate the grounds of the dispute against the SARS assessment. The letter to SARS must be concise
and refer to various sections of the relevant tax law and/or court cases. The background and facts should
be described, the grounds for objections, the supporting documentation and a conclusion should also be
included. Refer to Annexure B for a template of the notice of objection letter to SARS.
As a taxpayer you need to ensure you follow the legislative requirements as per the TAA, and therefore
you may need to submit more than one letter. You may need to submit a letter to SARS requesting
suspension of payment (refer to example in Annexure C), as SARS has a “pay now, argue later” policy. If
your objection falls outside of the 80 days’ timeframe for submitting the dispute, you need to submit a
letter requesting extension of the period for objection (refer to example in Annexure D).
Additional Reading Material:
SARS Guides
➢ GEN-PEN-05-G02-Guide-to-submit-a-dispute-via-eFiling-External-Guide
➢ LAPD-TAdm-G05-Dispute-Resolution-Guide - 23 MAY 2023
➢ LAPD-TAdm-G07-Guide-on-Dispute-of-a-Tax-Assessment
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