Receiving a letter from SARS is anxiety-inducing for most South African taxpayers, even when there is nothing wrong. An audit selection, a request for supporting documents, or an additional assessment notice can feel like an accusation — but in most cases, SARS is either verifying information through a routine process or has identified a specific discrepancy that needs to be explained. Knowing how the process works, what your rights are, and how to respond correctly removes most of the fear and significantly improves your outcomes.
This guide covers the main types of SARS engagements that individual taxpayers and small businesses face, how to respond to each, the formal objection and appeal process if you disagree with a SARS assessment, and when to bring in a registered tax practitioner.
Types of SARS Queries and What They Mean
Not every SARS letter is an audit. Understanding what you are actually dealing with helps you respond proportionately.
Supporting documents request (SARS verification): SARS selects returns for verification as a routine risk management process. You will receive a letter on eFiling requesting specific documents — typically within 21 business days. This is not an audit. It is SARS confirming that what you declared is supported by documentation. Respond within the timeframe, provide exactly what is requested (not more), and the matter is typically resolved within 21 days of submission.
Request for relevant material (audit): A formal audit is more extensive. SARS requests a wider range of records — bank statements, invoices, contracts, payslips, loan agreements, and more. This is issued under Section 46 of the Tax Administration Act and carries legal weight. You must respond within the specified period or request an extension. An audit can cover multiple tax years and multiple tax types (income tax, VAT, PAYE simultaneously).
Additional assessment (revised tax liability): After a verification or audit, SARS may issue a Notice of Assessment (ITA34 or similar) with a higher tax liability than your original return. This may include penalties and interest. You have 30 business days to pay or to formally dispute (object to) the assessment. Do not ignore this notice.
Statement of account with arrears: SARS is stating that your account has outstanding amounts — unpaid tax, penalties, or interest. This is not a dispute notice but a collection notice. If you believe the amounts are incorrect, dispute first; if correct, address payment before enforcement action (garnishee orders or bank account freezes) is initiated.
Responding to a Document Request
The single most important rule is: respond within the timeframe. Missing a SARS deadline — even by a day — significantly weakens your legal position and can result in additional penalties. If you cannot gather all the requested documents in time, request a 21-day extension on eFiling before the original deadline expires. SARS typically grants reasonable extension requests.
Provide documents in the format SARS specifies — usually PDF uploads through eFiling. Label each document clearly. Only submit what is requested. Submitting unsolicited documents that raise additional questions is a common mistake. Answer the question asked, not the question you think they might ask next.
Keep copies of everything you submit and record the date of submission. Download the eFiling submission confirmation. If SARS later claims they did not receive a document, your submission record is your evidence.
If You Disagree With an Additional Assessment
If SARS issues an additional assessment you believe is incorrect, you have 30 business days from the date of the assessment to submit a Notice of Objection (NOO) on eFiling. This is not a phone call or an email — it is a formal legal step in the dispute resolution process under the Tax Administration Act.
The Notice of Objection must state clearly: which specific items in the assessment you disagree with, what the correct position is (in your view), and why. You must attach supporting documents that substantiate your position. A vague objection ("I disagree with this assessment") without specific grounds and supporting evidence is insufficient and will likely be disallowed.
After receiving your objection, SARS has 60 business days to respond with one of three outcomes: allow the objection in full (they accept your position), allow it in part (they adjust some items but not others), or disallow it (they maintain their original assessment). If the objection is disallowed or partially allowed, you then have 30 business days to appeal — first to SARS's Alternative Dispute Resolution (ADR) process, and ultimately to the Tax Court if unresolved.
When to Involve a Registered Tax Practitioner
A registered tax practitioner (someone registered with both SARS and a recognised controlling body like SAIPA, SAICA, or the Tax Faculty) is not just useful for filing returns — they become essential when SARS queries arise.
Involve a practitioner if: you receive a formal audit notice (not just a routine verification request); the additional assessment involves a significant amount; the dispute involves complex issues like transfer pricing, depreciation methodology, or fringe benefits; SARS issues a warrant to examine your business records in person; or if you are approaching a Tax Court appeal.
For routine verification requests on straightforward returns, an informed individual can often handle the response themselves. For anything more complex, the cost of professional advice is almost always less than the cost of an incorrect response that results in penalties, additional tax liability, or a failed objection.
Ensure the practitioner you engage is registered with SARS as a Tax Practitioner (they can show you their registration number) and is in good standing with their professional body. A practitioner acting on your behalf without proper registration creates liability for both of you.
Penalties — What They Are and Whether They Can Be Reduced
SARS imposes two main types of penalties: administrative penalties (for late filing or non-submission of returns, charged monthly) and understatement penalties (for understating taxable income, ranging from 10% for a bona fide error to 200% for deliberate tax evasion).
Administrative penalties can be waived if you have a good compliance history and the late filing was due to circumstances beyond your control. Submit a request for remission of penalties on eFiling, explaining the reason for the non-compliance. SARS considers first-time or infrequent non-compliance more sympathetically than a pattern of late filing.
Understatement penalties are harder to reduce but can be negotiated in some circumstances through the ADR process. An understatement resulting from an honest mistake in applying tax law may attract a lower penalty than one that was deliberately understated.
Quick Checklist When SARS Makes Contact
- Identify exactly what type of engagement it is — verification, audit, additional assessment, or arrears notice
- Note the response deadline and calendar it immediately — SARS deadlines are strict
- If you cannot respond in time, request a 21-day extension on eFiling before the deadline
- Respond only to what is asked — do not volunteer additional information or documents
- Keep copies of everything submitted and download eFiling submission confirmations
- If you disagree with an additional assessment, file a formal Notice of Objection within 30 business days
- Involve a registered tax practitioner for any formal audit or significant additional assessment
- Do not ignore any SARS notice — the consequences of non-response escalate rapidly
A registered tax practitioner or accountant in your area with experience handling SARS queries is one of the most valuable professionals to have in your corner — KiesSlim makes it easy to find and compare them based on real client reviews.