There is a common perception that a tax attorney does the same as a tax consultant and that the services of a tax consultant overlap with those of a tax attorney to the extent that there is no real need for a tax attorney.

This is not entirely correct. A tax consultant looks at the tax payer’s income and expenses and works out what can and cannot be claimed as deductions and then from that, submits the tax payers. The tax attorney provides legal advice on the submission, specifically for those claims for deductions that may be questioned by SARS as well as those that are not mechanical, such as a deduction for retirement funding.

In any case where a claimed deduction or exclusion of income from taxation is submitted, it is wise to submit a tax attorney’s opinion along with the tax submission, whether this is for VAT,PAYE, income tax or any other taxation category. That way, when SARS does the assessment on the submissions, they have a legal opinion in front of them, explaining why that deduction or exclusion has been claimed so that they can take that into consideration when making a decision on whether the submission will be allowed or accepted.

If SARS still decides that the claimed deduction is not allowed, then that submission strengthens the case when the refusal is taken on appeal.  It’s better to take the time to get a tax opinion before submission, in order to avoid weak tax deductions or to strengthen those deduction claims that can be made. After then deduction has been disallowed, it is a lot tougher to get that decision reverse. Its far better to do a strong submission than ask for the assessment to be overturned after the fact. For assistance on this, call Themba at Dewar Attorneys to discuss your tax submissions.

For further assistance contact Themba Shongwe on themba@dewarattorneys.com