Taxpayers are under increased pressure with the economic downturn and the impact of COVID-19. As a result of this, many are lodging tax disputes with SARS and are urgently awaiting tax refunds to help ease financial pressures.
Claiming your refund
Unfortunately, the South African Revenue Service (SARS) has been slow to refund many taxpayers and currently delayed refunds is one of the top complaints most taxpayers have about the revenue service. But don’t despair, SARS must pay a refund when a taxpayer is entitled to it as per Section 190(1) of the Tax Administration Act (TAA) which states that SARS is obligated to pay a refund (with interest) to any taxpayer that is entitled to it – and this includes refunds relating to income tax, value-added tax (VAT), mineral royalties or pay-as-you-earn.
A problem, taxpayers might encounter, is that according to Section 190(2), SARS has the right to conduct an audit before paying a refund. If you in a situation where you are being subjected to a protracted audit by SARS, you are legally entitled to approach the court for an order directing SARS to finalise their audit by a certain date. If you have tendered security in a form acceptable to a Senior SARS official , then Section 190(3) states that SARS must pay a refund.
Taxpayers need to be aware that SARS might off-set a refund against any other outstanding taxes – so it is important that all your tax payments are up to date if you are to attain your refund.
Resolving disputes
Unfortunately, tax disputes can be complex with various interpretations of rules and procedures. Often taxpayers are unaware of the different recourses they have when they receive an assessment or decision by SARS and they often abandon their claims without launching a challenge. One of the best things you can do in this situation is to consult a tax expert to advise you as to the tactics and strategies for dealing with the ‘pay now and argue later’ rule that SARS usually abides by.
Take control of your tax in 2021
Our tax specialists deal with each client individually and can give you expert advice regarding your tax refunds and tackling any disputes you or your business may have. Our client’s tax matters are of the utmost importance to us and we strive to keep ourselves updated and informed with the very latest legislation. For expert assistance with all matters relating to business or individual tax, contact us today.