By Chris Herbst, Chartered Business Accountant in Practice (CBAP) with CIBA, General Tax Practitioner (GTP) with SAIT, Stellenbosch University. Team registered with SAIT, SAIPA and CIBA.
When SARS disallows your objection, in full or in part, the dispute does not end there. The next step is a Notice of Appeal (NOA), which takes the disputed amounts to alternative dispute resolution (ADR), the tax board or the tax court. Section 107 of the Tax Administration Act 28 of 2011 gives you that right, and the dispute resolution rules set the form, the content and the deadline. This guide explains when you appeal, how long you have, what the NOA must contain, how ADR and the tax board work, each eFiling screen, and the mistakes that cost taxpayers their appeal before anyone looks at the merits.
What is a SARS Notice of Appeal (NOA)?
A Notice of Appeal is the formal step you take when you disagree with SARS's decision on your objection. The SARS Appeals page puts it plainly: if you disagree with the outcome of your objection, you have the right to appeal against that decision to the tax board or tax court.
On eFiling the appeal is lodged as an NOA, and the SARS Guide to submit a dispute via eFiling (GEN-PEN-05-G02, revision 23) shows it on the DISP01 dispute form, the same form used for the objection.
How is an appeal different from an objection?
An objection asks SARS itself to change an assessment. An appeal asks an independent forum to decide the dispute: an ADR process with a facilitator, a tax board chaired by a legal practitioner, or the tax court presided over by a judge. If you have not objected yet, the appeal is not available to you; start with our guide to the SARS Notice of Objection (NOO).
What can I appeal against?
You appeal against the disallowance, or partial disallowance, of an objection. That covers an income tax assessment you objected to, an understatement penalty imposed on the assessment, and interest and penalties disputed through the remission and objection route. GEN-PEN-05-G02 sets out the sequence: a request for remission where it applies, then the NOO, then the NOA if the objection is disallowed or partially allowed.
When can I lodge a Notice of Appeal?
You can lodge an NOA once SARS has delivered the outcome of your objection and that outcome disallows the objection in full or in part. If SARS allowed your objection in full, there is nothing to appeal. If it allowed part of it, you appeal only the part it disallowed.
Can I appeal without objecting first?
No. The appeal is against the decision on an objection. Section 107(1) of the Tax Administration Act gives the right of appeal to a taxpayer who objected and whose objection was disallowed. An assessment you never objected to cannot be appealed.
Can I appeal different items from the ones in my objection?
The appeal must be based on the same items you objected to. GEN-PEN-05-G02 requires the same source codes and amounts used in the NOO to be completed on the NOA. You may add a new ground of appeal, but under rule 10 of the dispute rules a new ground may not amount to a new objection against a part or amount of the assessment you did not object to, as the SARS Dispute Resolution Guide explains.
What is the deadline for a SARS Notice of Appeal?
You must lodge the appeal within 30 business days after delivery of the outcome of the objection. This is the period on the SARS Appeals page and in GEN-PEN-05-G02, and it comes from rule 10 read with section 107 of the Tax Administration Act.
Can the 30 business days be extended?
Yes, by a senior SARS official, and only on grounds you give. The official may extend the period by 21 business days if satisfied that reasonable grounds exist for the delay, or by up to 45 business days if satisfied that exceptional circumstances exist. You state the reasons in the "Reason for Late Submission" field on the NOA.
Is there a final cut-off for a late appeal?
Yes. SARS states that no appeal can be submitted more than 75 business days after the date of the decision to disallow the objection: the initial 30 business days plus the maximum extension of 45. After that point the right to appeal that decision is gone.
What happens if SARS refuses to condone my late appeal?
SARS does not consider the merits of an appeal whose late submission is not condoned, and it tells you so. The decision not to condone is itself subject to objection and, if that objection is disallowed, appeal, as the SARS Appeals page confirms.
What must a Notice of Appeal contain?
A valid NOA identifies which of your objection grounds you are taking on appeal, explains why you disagree with SARS's reasons for disallowing the objection, and comes with the documents that support your grounds. The SARS Dispute Resolution Guide lists the rule 10 requirements:
- the prescribed form: the NOA on eFiling, or the ADR2 form for the manual exceptions;
- an address at which you accept delivery of documents once the appeal moves off eFiling;
- the grounds of objection you are taking on appeal, in detail;
- the grounds for disputing SARS's basis for disallowing the objection;
- any new ground of appeal, within the rule 10 limit;
- your signature or that of your duly authorised representative;
- whether you want to use alternative dispute resolution.
What supporting documents should I attach?
Attach every document that proves the amount you say is correct: certificates, statements, invoices, logbooks, contracts and the calculation that ties them to the return. The SARS Appeals page asks for all substantiating documents in support of the grounds of appeal. The outcome letter on your objection tells you why SARS disallowed it, and your documents should answer those reasons one by one.
Do I need a power of attorney for my practitioner to sign?
No. The Dispute Resolution Guide states that the form must be signed by the taxpayer or the taxpayer's duly authorised representative, and that a power of attorney is not required but optional. A registered tax practitioner can lodge the NOA through their own eFiling profile once you have appointed them.
How do I choose between ADR, the tax board and the tax court?
You choose ADR or litigation on the NOA itself. If you choose ADR and SARS agrees the matter is suitable, the appeal goes to ADR first. If ADR does not resolve it, or you choose litigation, the amount in dispute and SARS's agreement decide whether the tax board or the tax court hears it.
- ADR: Who decides: The parties, with a facilitator if both agree; Key rule: Ends in agreement, settlement or referral
- Tax board: Who decides: A legal practitioner as chairperson; Key rule: Tax in dispute up to R1 000 000
- Tax court: Who decides: A High Court judge, an accountant and a commercial member; Key rule: Can order costs
How does alternative dispute resolution (ADR) work on an appeal?
ADR is a less formal process in which SARS and the taxpayer try to resolve the appeal by agreement or settlement. If you ask for ADR on the NOA, SARS must tell you within 30 business days whether the matter is appropriate for ADR. If you did not ask for it but SARS considers the matter suitable, SARS tells you, and you have 30 days to say whether you agree. The SARS Appeals page states that SARS endeavours to finalise ADR within 90 business days unless agreed otherwise, and to issue the assessment that gives effect to an agreement within 45 business days of the last signature.
When does SARS refuse ADR?
The Dispute Resolution Guide lists the cases in which SARS treats an appeal as unsuitable for ADR, including where there are too many disputed facts to reach agreement, where the dispute involves intentional evasion or fraud, where a settlement would be contrary to the law or a practice generally prevailing, and where the public interest requires a court ruling on the point.
When does the tax board hear an appeal?
An appeal against an assessment is heard first by a tax board where the tax in dispute does not exceed R1 000 000, a senior SARS official and the taxpayer agree, and the chairperson does not direct that the appeal go to the tax court instead. The tax board is established under section 108 of the Tax Administration Act and generally sits at the place closest to your residence or place of business.
When does the appeal go to the tax court?
The tax court hears appeals above the tax board threshold, appeals the parties do not agree to send to the board, appeals a board chairperson refers to it, and matters where a party does not accept the board's decision. Either party may require the referral by notifying the clerk of the tax board within 21 business days of receiving the decision, and the tax court then hears the appeal afresh.
How do I lodge a Notice of Appeal on eFiling?
Personal income tax appeals go through the eFiling guided process, which SARS states reduces the risk of submitting an invalid appeal. You can also lodge at a SARS branch by appointment. The steps below follow section 4.3 of GEN-PEN-05-G02.
- Open Disputes. Log in to eFiling, open Returns, then the "Dispute\Suspension of Payment" tab, and select "New" to open the "Request to File Dispute" page. You can also reach it from the assessment notice or the return work page.
- Select the tax type and period. Confirm the tax type (Personal Income Tax) and the year of assessment whose objection outcome you are appealing.
- Choose "Notice of Appeal". Select "Notice of Appeal" as the dispute type and click "Next". The "Dispute Item List" shows only the items that can be disputed.
- Tick the disputed items. Each line shows the source code, its description, the case number, the dispute type (NOA) and the dispute amount. Use the same source codes and amounts as your NOO.
- Enter the requested value. State the amount you say is correct. eFiling rejects a requested value equal to the disputed value.
- Choose ADR or litigation. Indicate whether the appeal should be resolved through "Alternative Dispute Resolution" or "Litigation".
- Complete the grounds. Set out your grounds in the "Reason/Grounds" block and choose whether they apply to the selected period or all selected periods. Complete "Reason for Late Submission" if you are outside the 30 business days.
- Review the Summary page and view the form. Check the period, source codes, dispute values and requested values, then click "View Form" to see the pre-populated DISP01.
- Attach documents and submit. Upload the supporting documents and click "Submit". Afterwards, "Disputes" then "View Submitted" shows the details of the NOA you lodged.
Which source codes apply to penalties and interest on appeal?
SARS uses dedicated source codes when you dispute certain interest and penalties, and the same codes carry through from the objection to the appeal. The SARS Appeals page lists them, including 9990 for the underestimation of provisional tax under paragraph 20, 9991 for non-submission of provisional tax under paragraph 20A, 9992 for omission of income and 9993 for late or non-submission of a tax return.
When must I use the manual ADR2 form?
The manual Notice of Appeal (ADR2) is reserved for the exceptions SARS lists, such as estate duty, donations tax and paragraph 13(1) of the First Schedule to the Income Tax Act. It is submitted at a SARS branch or by email, not on eFiling. A personal income tax appeal on an ordinary ITR12 assessment goes through eFiling.
Do I have to pay the disputed tax while my appeal runs?
Yes, unless SARS suspends payment. Section 164 of the Tax Administration Act provides that the obligation to pay tax is not suspended by an objection or appeal unless a senior SARS official directs otherwise. You request suspension on eFiling under the same "Dispute\Suspension of Payment" menu.
What does SARS weigh when deciding a suspension request?
The Dispute Resolution Guide lists the factors under section 164(3): your compliance history, the amount of tax involved, the risk of dissipation of assets, whether you can provide adequate security, whether payment would cause irreparable financial hardship, whether sequestration or liquidation is imminent, whether fraud is involved in the origin of the dispute, and whether you have failed to provide information SARS requested for the decision.
What happens to interest if I win the appeal?
SARS issues an assessment to give effect to the outcome: after an ADR agreement or settlement, or after a tax board decision, the SARS Appeals page states that SARS endeavours to do so within 45 business days. If you did not pay and the assessment stands, the Dispute Resolution Guide confirms that amounts short-paid are recoverable with interest calculated as provided in the Tax Administration Act, which is why the suspension request matters.
Who has to prove what on appeal?
The taxpayer carries the burden of proof on appeal, with two exceptions. Under section 102 of the Tax Administration Act, as the Dispute Resolution Guide sets out, SARS bears the burden of proving that an estimate under section 95 is reasonable and the facts on which it based an understatement penalty. That matters if your dispute concerns a section 95 estimated assessment or a section 223 understatement penalty.
What can the tax board decide?
The tax board can confirm the assessment, order it to be altered, refer it back to SARS for further examination and assessment, or make an order in a procedural matter. The chairperson cannot order costs. SARS states that the chairperson issues the decision within 60 business days after the hearing and that the clerk delivers it to the parties within 10 business days.
When can costs be awarded against me?
Only the tax court makes costs orders. The Dispute Resolution Guide lists the grounds: grounds of assessment or appeal held to be unreasonable, a tax board decision substantially confirmed after a party took it to the tax court, a postponement at the other party's request, and an appeal withdrawn or conceded after the registrar allocates a hearing date.
What are the common mistakes with a SARS Notice of Appeal?
Most appeals that fail early fail on procedure, not on the tax. These are the errors we see most often:
- Missing the 30 business days. The clock runs from delivery of the objection outcome. Waiting for a reply to a letter or a call does not stop it.
- Appealing items that were never objected to. The NOA must carry the same source codes and amounts as the NOO. A new amount needs its own objection.
- Repeating the objection word for word. The appeal must answer SARS's reasons for disallowing the objection, as stated in the outcome letter.
- Leaving out the documents. Grounds without proof give SARS and the board nothing to decide in your favour.
- Not choosing ADR deliberately. ADR is quicker and less formal; choose it unless the point needs a ruling.
- Not asking for suspension of payment. The appeal does not stop collection or interest by itself.
- Using the appeal to correct a return. If the error is yours and the return can still be corrected, a request for correction or a corrected return during the auto-assessment window is the right route, not a dispute.
Do You Need Help With a Notice of Appeal (NOA)?
An appeal is won on the record: the objection, SARS's reasons and the documents that answer them. We read the objection outcome, decide which grounds to carry forward, prepare the NOA and supporting schedule, and lodge it on eFiling as your registered tax practitioner. Our fees for ITR12 work are on the personal tax pricing page, and more dispute guides sit under SARS compliance. Contact us with your objection outcome letter and we will tell you how we can help.
