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).


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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 

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