A Penalty Assessment Notice Has Been Issued on SARS eFiling – Guide

A Penalty Assessment Notice Has Been Issued on SARS eFiling- What Should You Do NEXT?

Receiving a penalty assessment notice from SARS can be stressful, but understanding the steps you need to take can help you manage the situation effectively.

Here’s a comprehensive guide to help you navigate through a penalty assessment notice issued on SARS eFiling.

Understanding a Penalty Assessment Notice

A penalty assessment notice is issued by the South African Revenue Service (SARS) when there has been a failure to comply with tax obligations. This can include late submission of tax returns, underpayment of taxes, or failure to register for VAT when required.

Steps to Take When You Receive “A Penalty Assessment Notice Has Been Issued on SARS eFiling“

1. Log into Your SARS eFiling Account

First, access your SARS eFiling account to view the details of the penalty assessment notice. Ensure you have your login credentials ready.

2. Review the Penalty Assessment Notice

Navigate to the notices section to find the penalty assessment notice. Review the notice carefully to understand the reason for the penalty and the amount due. It’s crucial to understand why the penalty was issued so you can address the issue properly.

3. Assess the Validity of the Penalty

Determine whether the penalty is valid. If you believe the penalty has been issued in error, you have the right to dispute it. If the penalty is valid, prepare to make the necessary payment to avoid further interest and penalties.

What to Do if the Penalty is Valid

Making the Payment

If the penalty is valid, ensure you make the payment promptly to avoid additional interest and penalties. Payments can be made directly through the SARS eFiling portal or at a bank.

What to Be Aware of When Disputing a Penalty Assessment Notice

When disputing a penalty assessment notice from SARS, it’s crucial to pay attention to several specific aspects to ensure your dispute is handled effectively:

Documentation Needed to Dispute SARS Penalty

Make sure to gather and provide comprehensive documentation to support your claim. This includes:

• Proof of Submission: Copies of your tax return or relevant filings showing timely submission.
• Correspondence Records: Any emails or letters exchanged with SARS that support your case.
• Receipts and Financial Records: Relevant financial documents that corroborate your claim, such as bank statements, payment receipts, or invoices.
• Supporting Statements: If applicable, statements from your accountant or tax advisor that can substantiate your position.

Tip: For example, if disputing a late submission penalty, include a screenshot of the submission confirmation from SARS eFiling showing the date and time.

Time Limits

Be acutely aware of the specific deadlines for lodging a dispute. SARS typically allows a 30-business-day window from the date of the penalty notice for you to file a Request for Remission (RFR). Missing this deadline can result in your dispute being automatically rejected.

Tip: Mark the deadline on your calendar and set reminders a week before the due date to ensure timely submission. Double-check the notice date on the penalty assessment to calculate the exact deadline.

Communication

Maintain a meticulous record of all communications with SARS. This includes:

• Submission Confirmations: Keep the electronic confirmation received after submitting your dispute or any tax-related documents.
• Email Correspondence: Save all emails sent to and received from SARS regarding your dispute.
• Physical Letters: Photocopy any hard-copy letters sent to SARS and keep the originals of any letters received.

Create a dedicated folder (both physical and digital) for your dispute documents. This organization ensures that all necessary paperwork is easily accessible if you need to reference or resubmit any information.

By focusing on these specific aspects, you can improve the likelihood of a successful dispute resolution with SARS. Accurate documentation, adherence to deadlines, and thorough communication records are essential for effectively managing the dispute process.