Nomsa logged into eFiling expecting a routine refund. Instead, she found an additional assessment for over R40,000, with no clear explanation of where the number came from. Her stomach dropped. Her first instinct was to pay it just to make the problem go away.

If you've ever stared at a SARS assessment that doesn't match your own numbers, you know that feeling. The good news is that SARS assessments aren't final — you have a legal right to dispute them, and the process, while formal, is manageable once you understand the steps.

Understand What You're Actually Disputing First

Before you object to anything, request the "grounds of assessment" from SARS if they weren't provided. This document explains exactly why SARS adjusted your return — a disallowed deduction, a mismatch in third-party data, or a flagged VAT input claim, for example.

Many disputes fail not because the taxpayer was wrong, but because they objected to the wrong thing or without addressing SARS's actual reasoning. Read the assessment line by line and compare it against your own return and supporting records before you do anything else.

Step 1: Request Reasons (If Needed)

If the assessment doesn't make sense on its face, you can formally request reasons via eFiling before objecting. SARS must respond within 30 business days. This step is optional but useful — it can save you from lodging an objection based on a misunderstanding, and it resets your objection clock once reasons are provided.

Step 2: Lodge a Formal Objection (NOO)

This is where most disputes actually happen. You must submit a Notice of Objection (NOO) via eFiling within 80 business days of the assessment date (this replaced the older 30-day window in recent years, but always check the date on your specific assessment, as older assessments may still carry shorter windows).

Your objection needs:

• The specific grounds you're disputing, in clear, factual language

• Supporting documentation — invoices, bank statements, contracts, correspondence

• A calculation showing what you believe the correct liability should be

Vague objections ("this assessment is wrong") get rejected outright. Specific, evidenced objections get engaged with.

Step 3: Wait for SARS's Response

SARS is required to respond to a valid objection within 60 business days, either by allowing it, partially allowing it, or disallowing it. In practice, response times vary, and it's worth checking your eFiling profile regularly rather than waiting for a notification.

If SARS disallows your objection, you'll receive a "Notice of Disallowance" — and this is where many business owners either give up or make an expensive mistake by ignoring the next deadline.

Step 4: Escalate to Appeal (ADR or Tax Board/Court)

If your objection is disallowed and you still believe SARS is wrong, you have 30 business days to lodge a Notice of Appeal. From here, you generally have two paths:

1. Alternative Dispute Resolution (ADR) — a facilitated negotiation process, faster and less formal than court, often the right call for small business disputes

2. Tax Board or Tax Court — for larger or more complex disputes, particularly where the amount in dispute exceeds the Tax Board's jurisdiction (currently R1 million)

Most small business disputes settle at ADR stage. Very few need to reach Tax Court, and it's rarely worth the cost and time for smaller amounts.

Common Mistakes That Sink a Dispute

• Missing the 80 business day deadline — SARS's system is unforgiving on timelines. Once it's gone, your only route back in is a formal request for condonation, which isn't guaranteed.

• Paying the disputed amount without engaging — paying doesn't stop the dispute clock, but it does remove your urgency to actually follow through.

• Objecting without evidence — an objection is only as strong as the paperwork behind it.

• Not requesting suspension of payment — while disputing, you can apply to SARS to suspend the payment obligation until the matter is resolved, which protects your cash flow.

This is exactly where having a professional accounting firm in your corner pays for itself. A dispute handled correctly the first time, with the right supporting documentation and language, moves faster and succeeds more often than one handled reactively under pressure.

What This Means for Your Business

An incorrect SARS assessment is stressful, but it's not the end of the road. The process exists precisely because assessments do get things wrong — mismatched third-party data, timing differences, or administrative errors are common. What matters is acting within the deadlines and building your case on evidence, not frustration.

For South African small business owners already stretched thin running the business itself, having someone who understands SARS's internal processes handle the dispute can be the difference between a resolved matter and a drawn-out, costly one.

Ready to get your finances in order? At Saber Accounting, we help South African small businesses stay compliant, cut unnecessary costs, and make smarter financial decisions. Whether you need help disputing a SARS assessment, tax planning, or ongoing compliance, our expert team is here.

Book a free consultation today