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Tax Administration Act, 2011 (Act No. 28 of 2011)

Chapter 8 : Assessments

93. Reduced assessments


(1) SARS may make a reduced assessment if—
(a) the taxpayer successfully disputed the assessment under Chapter 9;
(b) necessary to give effect to a settlement under Part F of Chapter 9;

[Section 93(1)(b) substituted by section 45 of the Tax Administration Laws Amendment Act, 2013 (Act No. 39 of 2012)]

(c) necessary to give effect to a judgment pursuant to an appeal under Part E of Chapter 9 and there is no right of further appeal;
(d) SARS is satisfied that there is a readily apparent undisputed error in the assessment by—
(i) SARS; or
(ii) the taxpayer in a return; or
(e) a senior SARS official is satisfied that an assessment was based on—
(i) the failure to submit a return or submission of an incorrect return by a third party under section 26 or by an employer under a tax Act;
(ii) a processing error by SARS; or
(iii) a return fraudulently submitted by a person not authorised by the taxpayer; and
(f) the taxpayer in respect of whom an assessment has been issued under section 95(1), requests SARS to issue a reduced assessment under section 95(6).

[Section 93(1)(f) inserted by section 28(b) of  the Tax Administration Laws Amendment Act, 2020 (Act No. 24 of 2020), GG44080, dated 20 January 2021]


[Section 93(1) substituted by section 49 of the Tax Administration Laws Amendment Act, 2015 (Act No. 23 of 2015)]


(2) SARS may reduce an assessment despite the fact that no objection has been lodged or appeal noted.