SARS Reduced Assessment: How to Correct an Undisputed Error Using RRA01 or RRA02
Quick Answer: Can SARS Reduce an Incorrect Tax Assessment Without an Objection?
Yes. Under section 93 of the Tax Administration Act, SARS may reduce a tax assessment in certain circumstances without requiring a taxpayer to follow the formal objection and appeal process.
This includes assessments containing readily apparent undisputed errors and certain errors involving third-party information, fraudulent returns or SARS processing.
Taxpayers may request a reduced assessment through SARS eFiling using:
- RRA01 for personal income tax assessments.
- RRA02 for company, close corporation and trust income tax assessments.
However, these procedures apply only when the relevant legal requirements are satisfied.
An incorrect assessment does not automatically qualify for a reduced assessment. In some circumstances, a Request for Correction or formal objection may be the appropriate procedure.
1. What Is a Reduced Assessment?
A reduced assessment is an amended assessment issued by SARS that reduces an existing assessment in accordance with the Tax Administration Act.
Section 93 provides several circumstances in which SARS may reduce an assessment.
Two particularly important provisions are:
- Section 93(1)(d): Readily apparent undisputed errors.
- Section 93(1)(e): Certain third-party reporting errors, fraudulent returns and SARS processing errors.
The Request for Reduced Assessment procedure provides a less formal way to request correction where the statutory conditions are met.
It is not a general replacement for the tax dispute process.
2. What Is an Undisputed Error Under Section 93(1)(d)?
Section 93(1)(d) allows SARS to reduce an assessment where there is a readily apparent undisputed error in either:
- A return submitted by the taxpayer; or
- An assessment issued by SARS.
The error must be objectively identifiable and not require the resolution of a substantive disagreement about the facts or interpretation of tax legislation.
Examples of Potential Undisputed Errors
Examples may include:
- A clear numerical transposition error.
- An amount accidentally captured incorrectly in a tax return.
- A duplicated amount that is readily identifiable.
- A straightforward processing mistake reflected in an assessment.
Whether an error qualifies depends on the facts and supporting documentation.
Example: Incorrect Income Captured
Suppose a taxpayer’s supporting documents show an amount of R150,000, but the amount was accidentally captured as R510,000 in the return.
The difference is:
R510,000 − R150,000 = R360,000
If the error is readily apparent and undisputed, the taxpayer may be able to request a reduced assessment under section 93(1)(d).
However, SARS must be satisfied that the statutory requirements are met.
The R360,000 difference represents the incorrectly recorded amount, not the taxpayer’s tax refund or tax saving.
3. When Does Section 93(1)(e) Apply?
Section 93(1)(e) addresses specified circumstances where SARS is satisfied that an assessment was based on:
- An employer’s or third party’s failure to submit a required return.
- An incorrect return submitted by an employer or third party.
- A fraudulent return submitted by an unauthorised person.
- A processing error by SARS.
This provision is particularly relevant where the taxpayer’s assessment is affected by incorrect third-party reporting.
Example: Incorrect IRP5 Information
Suppose an employer submits an IRP5 reflecting remuneration of R600,000 instead of the correct R500,000.
The incorrect information is used in the employee’s income tax assessment.
If the employer’s reporting error is established and the relevant legal requirements are met, the taxpayer may qualify for a reduced assessment under section 93(1)(e).
Supporting documents may include a corrected IRP5 and relevant payroll records.
Important: Section 93(1)(e) is not simply another category of section 93(1)(d). Each provision has its own statutory requirements.
4. What Is the Difference Between Section 93(1)(d) and Section 93(1)(e)?
| Consideration | Section 93(1)(d) | Section 93(1)(e) |
|---|---|---|
| Main purpose | Correct a readily apparent undisputed error | Correct assessments affected by specified reporting, fraudulent-return or processing errors |
| Source of error | Taxpayer’s return or SARS assessment | Employer, third party, unauthorised person or SARS processing |
| Type of evidence | Clear evidence establishing the undisputed error | Evidence supporting one of the specified statutory grounds |
| Older prescribed assessments | Generally not available once the assessment has prescribed | May remain available where the statutory requirements are satisfied |
| SARS approval | Required | Required |
The correct provision must be selected when submitting the request.
Choosing the wrong provision can result in rejection or unnecessary delays.
5. Can You Request a Reduced Assessment After Three Years?
This is one of the most important distinctions.
SARS’s guidance explains that an RRA request under section 93(1)(d) is generally unavailable where the assessment has prescribed.
For ordinary income tax assessments, this is commonly associated with a three-year prescription period, subject to the applicable statutory rules.
However, section 93(1)(e) may still be available for an older assessment, provided the circumstances satisfy that provision.
Example
A taxpayer discovers an error in an assessment issued more than three years ago.
If the error is simply an incorrect amount captured by the taxpayer, section 93(1)(d) may no longer be available.
If the assessment was based on an incorrect employer return or a qualifying SARS processing error, section 93(1)(e) may provide a possible route.
This does not mean that every old assessment can be reopened.
The nature of the error and the applicable legal provisions remain decisive.
6. What Is the Difference Between RRA01 and RRA02?
SARS provides different forms depending on the taxpayer.
| Form | Applicable taxpayer |
|---|---|
| RRA01 | Individual taxpayers — personal income tax |
| RRA02 | Companies, close corporations and trusts |
Both forms are designed to facilitate requests for reduced assessments in the applicable circumstances.
The relevant SARS eFiling guidance should be followed for the taxpayer concerned.
7. How Do You Submit an RRA01 Through SARS eFiling?
For individual taxpayers, the general process is as follows.
Step 1: Log In to SARS eFiling
Visit SARS eFiling and log in to your profile.
Step 2: Select Request for Reduced Assessment
Navigate to:
Returns → Request for Reduced Assessment → New
Step 3: Select the Relevant Tax Year
Choose the year of assessment that requires correction.
Step 4: Select the Applicable Section
Choose either:
- Section 93(1)(d); or
- Section 93(1)(e).
You will then select the relevant reason for your request.
Step 5: Explain the Grounds for the Request
Provide a clear explanation of:
- What SARS assessed.
- Why the assessment is incorrect.
- The correct amount.
- The evidence supporting the correction.
- Why the selected section applies.
The grounds field accommodates up to 3,000 characters.
Step 6: Complete the Amounts Requested
The form requires information including:
- Source code or description.
- Amount reflected on the assessment.
- Amount that should be reflected.
Use the relevant ITA34 assessment to identify the amounts and source codes.
Step 7: Upload Supporting Documents
Supporting documents must be uploaded to complete the submission.
Simply completing and saving the form is not sufficient.
Step 8: Confirm Submission
Once the supporting documents have been successfully uploaded and submitted, check that the request reflects the appropriate filed status.
Retain the submission confirmation and monitor SARS correspondence.
8. What Supporting Documents Are Required?
The documents depend on the error being corrected.
Examples include:
| Error | Potential supporting documents |
|---|---|
| Incorrect IRP5 | Corrected IRP5, payslips or employer confirmation |
| Incorrect investment income | IT3 certificates and relevant financial records |
| Incorrect amount captured | Original documents and reconciliation |
| SARS processing error | Assessment, submitted return and reconciliation |
| Incorrect third-party information | Corrected certificate or confirmation from the third party |
A clear reconciliation between the original assessed amount and the requested corrected amount can make the submission easier to understand.
Supporting documents should be relevant, complete and consistent with the grounds submitted.
9. Can You Submit an RRA While a SARS Audit or Dispute Is in Progress?
Certain existing SARS cases can affect the availability of the RRA procedure.
Active Audit or Request for Relevant Material
SARS generally restricts RRA submission while an active audit or request for relevant material remains in progress for the same assessment year.
The taxpayer may need to wait until the relevant process is finalised.
Existing Dispute
SARS’s current individual eFiling guidance indicates that an RRA01 may be submitted even where a dispute case exists for the same year, but taxpayers should check the dispute details carefully to avoid duplicating requests.
Different restrictions may apply to company and trust RRA02 submissions.
Estimated Assessments
Where the latest assessment is an estimated assessment, SARS’s individual RRA01 guidance indicates that an RRA01 cannot be submitted in that situation and that the taxpayer must submit the required original return.
Practical tip: Review the assessment status and existing SARS cases before selecting a correction procedure.
10. RRA01 vs Request for Correction vs Formal Objection
These procedures serve different purposes.
| Procedure | When it may be appropriate |
|---|---|
| Request for Correction (RFC) | Where SARS permits the taxpayer to amend a previously submitted return |
| Request for Reduced Assessment (RRA01/RRA02) | Where the assessment qualifies for reduction under the relevant section 93 provisions |
| Formal objection (NOO) | Where the taxpayer disputes an assessment or decision and must follow the dispute rules |
| Appeal | Where the taxpayer disagrees with an objection outcome and has grounds to appeal |
When Should You Use a Formal Objection?
A formal objection may be necessary where:
- SARS disallows a deduction and the taxpayer disputes the decision.
- The taxpayer disagrees with SARS’s interpretation of tax legislation.
- There is a substantive disagreement about the facts.
- The issue does not qualify for correction through the other available procedures.
The ordinary objection period is generally 80 business days from the assessment, subject to the applicable dispute rules and provisions for late objections.
Important Warning About Deadlines
Submitting an RRA does not automatically suspend or extend the deadline for lodging a formal objection.
Taxpayers should assess objection deadlines independently and seek advice promptly where a formal dispute may be required.
11. What Happens After SARS Receives an RRA?
After submission, SARS may:
- Accept the request and issue a reduced assessment.
- Request additional supporting documents.
- Disallow the request.
- Communicate another outcome in accordance with the applicable process.
SARS will generally issue correspondence relating to the request and its outcome.
If the request is disallowed, review the reasons carefully.
Depending on the circumstances, the taxpayer may need to consider another available correction procedure, a formal dispute or professional advice.
An RRA does not guarantee a reduced assessment or a refund.
12. Common Mistakes to Avoid When Submitting an RRA
Selecting the Wrong Section
Section 93(1)(d) and section 93(1)(e) address different circumstances.
The grounds must match the relevant provision.
Providing Insufficient Evidence
SARS needs sufficient information to establish why the assessment should be reduced.
Using an RRA for a Genuine Tax Dispute
An RRA is not a substitute for objecting to a disputed tax interpretation or factual finding.
Ignoring Prescription
Older assessments require careful consideration of the applicable legal grounds.
Forgetting to Submit Supporting Documents
A saved RRA01 form awaiting documents is not the same as a successfully filed request.
Missing the Objection Deadline
Where a formal objection is necessary, delaying action while pursuing another procedure can create additional complications.
Practical Tip from Eva Financial Solutions
Before submitting an RRA01 or RRA02, reconcile the original tax return, the SARS assessment and the supporting documents.
Ask three questions:
- Is the error readily apparent and undisputed?
- Was the assessment affected by incorrect third-party information, an unauthorised fraudulent return or a SARS processing error?
- Is the issue actually a dispute requiring a formal objection?
These questions can help identify the appropriate route before submitting documents to SARS.
A well-prepared application should clearly explain the error, identify the relevant legal provision and reconcile the assessed amount to the requested corrected amount.
Frequently Asked Questions About SARS Reduced Assessments
What is an RRA01 form?
RRA01 is the SARS Request for Reduced Assessment form used by individual taxpayers to request a reduction of an existing personal income tax assessment in qualifying circumstances.
What is an RRA02 form?
RRA02 is the corresponding SARS form for companies, close corporations and trusts.
What is an undisputed error under section 93(1)(d)?
It is a readily apparent error in a taxpayer’s return or SARS assessment that does not involve a substantive dispute.
Can I submit an RRA after three years?
Section 93(1)(d) is generally unavailable once the assessment has prescribed. Section 93(1)(e) may still apply where its specific requirements are satisfied.
Can an incorrect IRP5 qualify for a reduced assessment?
Potentially, yes. An assessment based on an incorrect employer return may qualify under section 93(1)(e), subject to the applicable requirements and evidence.
Does an RRA replace a formal objection?
No. The RRA process applies only in limited circumstances. Genuine disputes may require formal objection and appeal procedures.
Will SARS automatically issue a refund after approving an RRA?
Not necessarily. The outcome depends on the revised assessment, the taxpayer’s overall tax account and any other relevant obligations.
Do I need supporting documents?
Yes. SARS requires supporting documents to be submitted with the request.
Can Eva Financial Solutions assist with RRA01 and RRA02 applications?
Yes. We can assist with reviewing assessments, identifying the appropriate correction procedure, preparing supporting reconciliations and submitting qualifying requests.
Need Help Correcting an Incorrect SARS Tax Assessment?
An incorrect SARS assessment can result in unnecessary tax liabilities, delayed refunds or compliance complications.
However, selecting the wrong correction procedure may cause additional delays.
At Eva CFO t/a Eva Financial Solutions, we assist individual taxpayers, companies and trusts with:
- Reviewing SARS assessments.
- Identifying potential undisputed errors.
- RRA01 and RRA02 applications.
- Requests for Correction.
- SARS objections and appeals.
- Supporting document preparation.
- Tax reconciliations and compliance.
Received an incorrect SARS assessment? Contact Eva Financial Solutions for professional assistance in determining the appropriate next step.
Disclaimer
This article provides general information about reduced assessments under the South African Tax Administration Act. The availability of RRA01, RRA02, Requests for Correction and formal dispute procedures depends on the taxpayer’s circumstances, the relevant assessment and applicable law. Taxpayers should obtain professional advice where prescription, objection deadlines or disputed legal issues arise.