An Important Lesson to Taxpayers

The Supreme Court of Appeal ("SCA") in Comptutek (Pty) Ltd v C: SARS 2012 ZASCA 178 ("Computek case") has entrenched an important lesson to all taxpayers that are required to file objections and appeals in respect of assessments that have been raised by the South African Revenue Service ("SARS"). The Computek case illustrates that errors made or insufficient detail in filing comprehensive objections or appeals may later be fatal to the taxpayer's case during the litigation process.

The SARS raised an assessment against the taxpayer in the Computek case for an amount of R4 040 377.28 in respect of under-declared and under-paid value-added tax ("Vat"). The capital portion of the outstanding Vat liability comprised of R1 246 177.57 and the remaining portion related to additional tax, penalties and interest. The assessment letter informed the taxpayer of its ability to lodge an objection in writing and that objection must be received within a certain period. The