Receiving notice of a SARS audit can be stressful, especially if you’re unsure of what to expect or what your rights are. Many individuals and businesses panic or respond without understanding their legal position—which can lead to costly mistakes.
At Leozzy Accounting, we guide clients through every step of the audit process, ensuring that their rights are protected and their responses are compliant. Here’s what you need to know about your legal rights during a SARS audit in South Africa.
📑 What Is a SARS Audit?
A SARS audit is an in-depth review of your financial records, tax returns, and business activities to verify that you’ve complied with tax laws. This can involve requests for documents, site visits, and interviews with you or your representatives.
⚖️ Your Legal Rights During a SARS Audit
1. Right to Notification
You have the right to receive a formal notice of audit from SARS, usually via a letter or email. This notice must state:
-
That an audit is being conducted
-
Which tax period and tax type it relates to
-
What information or documents SARS is requesting
2. Right to Legal Representation
You are entitled to appoint a tax practitioner, accountant, or legal advisor to represent you. At Leozzy Accounting, we provide expert audit support to ensure clear, accurate, and compliant communication with SARS.
3. Right to Request Clarification
You have the right to request clarity on what is being audited, the scope of the audit, and why it is being conducted. SARS must conduct audits within the boundaries of the law and for justifiable reasons.
4. Right to Reasonable Timeframes
SARS must give you reasonable time to respond to any queries or submit documents. If you need more time, you can request an extension—this is often granted when justified.
5. Right to Privacy and Confidentiality
Any information you provide during the audit must be treated as confidential. SARS officials are legally bound to maintain privacy under the Tax Administration Act.
6. Right to Be Treated Fairly and Respectfully
SARS must conduct audits professionally and without intimidation. You have the right to courteous, unbiased treatment throughout the process.
7. Right to Challenge Findings
If you disagree with the audit outcome, you have the legal right to:
-
Request a correction
-
File an objection or appeal
-
Take the matter to the Tax Board or Tax Court
🚫 What You Should Avoid During a SARS Audit
-
Ignoring SARS requests or deadlines
-
Submitting incomplete or inaccurate information
-
Communicating without legal or tax support
-
Attempting to destroy or withhold records
🛡️ How Leozzy Accounting Supports You During a SARS Audit
-
We help you gather and review documents for submission
-
Draft professional responses and supporting arguments
-
Represent you in correspondence or meetings with SARS
-
Challenge incorrect assessments through legal channels
-
Provide guidance every step of the way to ensure your rights are upheld
📞 Facing a SARS Audit? Don’t Go Through It Alone
At Leozzy Accounting, we combine expert knowledge of tax law with hands-on audit support to protect your business and reputation. If you’ve received a SARS audit letter—or suspect one is coming—contact us immediately for expert guidance and representation.
