Share with your friends

South Africa: Proposal would allow estimated assessment for certain taxpayer failures

South Africa: Estimated assessment, taxpayer failures

Proposed legislation—the 2020 Draft Tax Administration Laws Amendment Bill (released 31 July 2020)—proposes changes to the Tax Administration Act (TAA) that in part address a taxpayer’s failure to submit relevant material to the South African Revenue Service (SARS).


Related content

Taxpayers typically receive requests for information from SARS. Under the proposal, a provision of the TAA would be amended to allow SARS to issue an “estimated assessment” when a taxpayer fails to submit relevant material as requested by SARS after receiving more than one request from SARS for the material. Any estimated assessment issued by SARS would not be subject to objection or appeal unless the taxpayer submits the relevant material and SARS does not issue a reduced assessment. Taxpayers subject to an estimated assessment would be allowed to request that SARS issue a reduced assessment when the relevant material is submitted to SARS within 40 business days of the assessment being issued. A SARS official may extend the period within which the relevant material must be submitted.

Read an August 2020 report [PDF 108 KB] prepared by the KPMG member firm in South Africa 

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal