Submit Request for Objection and Appeal – Admin Penalties

ASUBMIT REQUEST FOR OBJECTION AND APPEAL – ADMIN PENALTIES

Submit Request for Objectionand Appeal – Admin Penalties

EXTERNAL GUIDE ON HOW TO SUBMIT A REQUEST FOR REMISSION

CONTENTS

1. INTRODUCTION 2

2. DETAILED PROCEDURES (SUBMIT NOO AND NOA VIA EFILING) 3

2.1. LOGON TO THE EFILING WEBSITE 3

2.2. ACCESS THE REQUEST FOR OJECTION OR APPEAL FORM AND ASSESSMENT NOTICE 4

2.3. COMPLETE THE REQUEST FOR OBJECTION (NOO) OR APPEAL FORM (NOA) 11

2.4. SUBMIT THE REQUEST FOR OBJECTION OR APPEAL 12

2.5. UPLOAD SUPPORTING DOCUMENTS 13

2.6. FOR MORE INFORMATION 13

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1. INTRODUCTION

A taxpayer can lodge an objection and appeal against penalty imposed by SARS if he/she does not agree with the penalty amount. The prescribed dispute forms must be completed i.e Notice of Objection (NOO) and Notice of Appeal (NOA) for appeals. The NOO form can only be completed once the Request for Remission (RFR) has been submitted to SARS and the RFR has been partially allowed or disallowed and the NOA can only be completed and submitted to SARS once the NOO has been submitted to SARS and the outcome of the objection has been received.

Only one tax type (i.e IT or PAYE) with multiple transgressions may be disputed on one NOO or NOA form. Income tax and PAYE admin penalties must be disputed independently.

Where the Income Tax Reference number is used on the NOO or NOA, only Personal Income Tax (PIT) related disputes must be accepted. The same will apply for Pay As You Earn (PAYE), if the PAYE Reference number is used on the form, only disputes relating to PAYE Admin Penalties must be accepted.

The following are the grounds and reasons that the employer can select when disputing against PAYE admin penalty:

ww SARS Error

ww Serious Illness / Death/Liquidation/Sequestration

ww Not Liable to File

ww Other/ Mitigation Factors – i.e. remedied in full, unable to remedy and partially remedied

Diputes against the penalties can be requested via any of the following channels:

ww eFiling;

ww e@syfile (Applicable to PAYE,SDL and UIF)

ww At a local SARS branch office; or

ww SARS Contact centre on 0800 00 SARS (7277). The NOO and NOA forms will be posted to the taxpayer.

The NOO and NOA/or supporting documents can be submitted via any of the following channels:

ww eFiling;

ww e@syfile (Applicable to PAYE,SDL and UIF)

ww At a local SARS branch office; or

ww Post or drop box.

Where the NOO or NOA form is submitted manually and all mandatory fields are not completed, a letter will be generated and sent to the taxpayer together with the incomplete form. The taxpayer must complete ALL mandatory fields on the NOO and NOA form and resubmit to SARS.

SARS can either ALLOW, PARTIALLY ALLOW or DISALLOW the objection or appeal against admin penalties by the taxpayer or employer and the outcome of the objection or appeal will be communicated to the taxpayer by means of a dispute outcome letter (AP34D). This letter will be viewable on eFiling if the NOO or NOA form was submitted via eFiling.

When the objection or appeal is fully allowed, all the admin penalties in relation to the disputed transactions will be suspended. The partially allowed option will only be available for transactions relating to PAYE missing Employee Tax Certificates (IRP5/IT3(a)s) or incorrect or incomplete IRP5/IT3(a)s. When the request for remission outcome is disallowed, the reasons will be given on the “dispute outcome” letter i.e. AP34D

SARS non-compliance penalty engine will identify the transgressions and determine the penalty amount. Penalty totalling 10% of the employer PAYE payable will be levied on the employer. The 10% total penalty amount will be split across the transgressions identified for the employer.

3SUBMIT REQUEST FOR OBJECTION AND APPEAL – ADMIN PENALTIES

The penalty assessment notice (AP34) will reflect the full penalty amount of 10% of the employer’s PAYE paid. The statement of the account will be attached to the assessment and will provide the details of 1% instalments linked to the total 10% penalty amount.

When a new submission of the declaration is received from the employer, the penalty instalment amount will be recalculated where the compliance level of the employer has changes, i.e the employer has corrected the previous incorrect or incomplete certificates.

2. DETAILED PROCEDURES (SUBMIT NOO AND NOA VIA eFILING)

2.1. LOGON TO THE eFILING WEBSITE

Step 1

Navigate to www.sarsefiling.co.za

Click on LOGIN

Log in with your Login name and Password

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2.2. ACCESS THE REQUEST FOR OJECTION OR APPEAL FORM AND ASSESSMENT NOTICE

Step 1

Click on “Returns” and select “Returns History” and then just below “Returns History” select “Income Tax or Employee’s Tax”. A history of the taxpayer’s returns will be displayed.

Step 2

Select the relevant return. The Income Tax or EMP201 work page will be displayed.

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Step 3

To search for the Penalty Assessment Notice (AP34), click on “SARS Correspondence” and “Search Admin Penalties”. Under Tax Type, either choose Income Tax or Employees Tax.

Individual Income Tax page:

Employees’ tax page:

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Step 4

There is a new page on eFiling called the Administrative Penalties work page. This page will be accessible by clicking on a Penalty Assessment Notice on the Income Tax / EMP201 work page, or the “View” hyperlink on the screen in Step 3 above.

There will be various new functions available on this work page and they include the following:

ww Viewing the Penalty Assessment Notice,

ww Querying the status of the non-compliance,

ww Requesting a Penalty Statement of Account (Historic or Interim), and

ww Disputing the Penalty Assessment Notice.

Step 5

To view the Penalty Statement of Account, click on “Request Penalty Statement” on the Administrative Penalties work page in Step 4 above or the “APSA” hyperlink on the EMP201 work page. There will be an option to request a Historic or Interim / Ad Hoc statement of account.

Step 6

Another way to view the penalty assessment notice is to select the link “AP34” under the Administrative Penalty block on the Income Tax or EMP201 work page.

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Step 7

To create a Request objection or appeal, select “Dispute” on the Income Tax or EMP201 work page. (The “Dispute” button is also available on the AP34 PDF document if this option was selected.

OR

Step 8

The dispute work page will open. Select the dispute option “I would like to file a Request for objection” or “I would like to file a Request for appeal”

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Step 9

A table will be displayed that indicates all the penalty transactions that were imposed on the taxpayer’s account. Select the penalty transaction which is under dispute and for which remission will be requested.

Note: The option to lodge a Notice of Objection (NOO) can only be selected after the taxpayer has submitted a Request for Remission (RFR1) and SARS has notified the taxpayer of the outcome thereof.

Step 10

Click on “Continue” display NOO or NOA form. A confirmation screen will appear – select “OK” to continue or “Cancel” to discard.

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2.3. COMPLETE THE REQUEST FOR OBJECTION (NOO) OR APPEAL FORM (NOA)

Note: All applicants’ (individual and company/ close corporation/ government/ foreign entity) demographic details will be pre-populated on the form.

Applicant Details – Individual

�� Ensure that the correct information is completed in the following fields:

ww Surname

ww First two names

ww ID number (if the taxpayer does not have a South African ID number, a valid passport number must be captured in the field for passport number)

ww Passport Number (this field must be completed if the taxpayer does not have a South African ID number)

ww Passport country (country of issue), e.g. South Africa = ZAF

ww Home telephone number (only numeric digits must be entered)

ww Business telephone number (only numeric digits must be entered)

ww Cell phone number (only a 10 digit numeric number must be entered)

ww Contact email address

Applicant Details – Company/Close Corporation/Government/Foreign Entity

ww Surname or Registered Name

ww Trading or Other Name

ww CK Number (This is the entity’s registered number e.g. 2007/145689/07

ww Business telephone number (only numeric digits must be entered)

ww Fax number (only numeric digits must be entered)



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Particulars of Representative (Person dealing with dispute on behalf of taxpayer)

ww Surname

ww Initials

ww ID number (if the taxpayer does not have a South African ID number, a valid passport number must be captured in the field for passport number)

ww Passport country (country of issue), e.g. South Africa = ZAF

ww Passport Number (this field must be completed if the taxpayer does not have a South African ID number)


ww Telephone number (only numeric digits must be entered)

ww Fax number (only numeric digits must be entered)

ww Tax Practitioner Registration number

ww Capacity (The relevant block must be ticked)

ww Accounting officer for Local / Public Authority / Accountant (The relevant block must be ticked)


ww Are you signing on behalf of the taxpayer?

ww If yes, do you have a power of attorney from the taxpayer?

ww Is the taxpayer aware of and agree with the grounds of the dispute?

ww Reason why taxpayer is unable to sign this dispute

Postal address for Delivery of Notice (Correspondence)

�� Please ensure that the postal address is completed in the following sequence:

ww Box/Bag number

ww Suburb/District

ww City

ww Country

ww Postal code

ww For street delivery, please follow the physical address format


Declaration

�� Complete the date in the format CCYYMMDD before submitting the form.

Amounts under dispute – Administrative Penalty

�� Transaction number: This number will be pre-populated and will be the same as on the Penalty Notice of Assessment (AP34).

Reasons and ground for dispute

�� Select the relevant reason for dispute from the following:

ww Serious Illness/Sequestration/Liquidation or Death

ww Not liable to file

ww SARS error

ww Other/Mitigation factors

�� For reasons “SARS error” or “Other/Mitigation factors”, the taxpayer must provide details of the reason in the blocks provided.

Note: The mandatory fields will be indicated in red.

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2.4. SUBMIT THE REQUEST FOR OBJECTION OR APPEAL

�� After completion of the objection or appeal form, the taxpayer can select one of two options:

ww Select “File” to submit the NOO or NOA form to SARS

ww Select “Save Online” to save the NOO or NOA form and to submit to SARS at a later stage

�� A confirmation message will appear to inform the taxpayer that his / her request for objection or appeal has been successfully submitted.

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2.5. UPLOAD SUPPORTING DOCUMENTS

�� Click on the “Dispute Supporting Documents” to upload the documents.

2.6. FOR MORE INFORMATION

�� Call the SARS Contact Centre on 0800 00 SARS (7277) Helpdesk operating hours : 08h00 - 17h00 (excluding weekends and public holidays); or

�� Email your queries to [email protected], which could take up to 24 hours (excluding weekends and public holidays)for a response

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Submit Request for Objection and Appeal – Admin PenaltiesSeptember 2011