Tax and SARS knowledge base
How does a company request a reduced assessment using RRA02?
How does a company request a reduced assessment using RRA02?
Last reviewed:
Direct answer
A company can use the RRA02 eFiling form to ask SARS to reduce an existing assessment in limited circumstances described in section 93 of the Tax Administration Act. SARS presents it as a less formal route for readily apparent errors. It does not replace the objection and appeal process, and it is not suitable for every disagreement with an assessment.
SARS says an RRA02 for the same year cannot be submitted while an active audit or dispute case is in progress. Check the assessment and any live cases before starting the form.
What this means in practice
The first task is to identify the source of the error. SARS's guide describes two broad routes. Section 93(1)(d) concerns a readily apparent undisputed error in the taxpayer's return or a SARS assessment. Section 93(1)(e) concerns an assessment based on a failure or incorrect return by an employer or other third party, a fraudulent return by an unauthorised person, or a SARS processing error.
RRA02 is not a second chance to argue every interpretation or valuation issue. The company needs to explain the error, give the correct figure and support it with records. A vague statement that the assessment is too high will not show SARS why the assessment should be reduced.
Where the issue needs formal factual or legal disagreement, preserve the company’s objection and appeal rights. Do not allow an RRA02 attempt to cause a missed dispute deadline. The correct route can depend on the notice, the evidence and the tax position.
Step-by-step
- Read the assessment and establish the error.
Download the notice of assessment and identify the source codes, amounts and period. Compare it to the submitted ITR14, accounting records, third-party certificates and SARS correspondence. State the exact amount reflected and the amount the company says should have been reflected.
- Check whether RRA02 is available.
Use SARS's current guide to test the case against section 93(1)(d) or 93(1)(e). SARS says an assessment older than three years cannot be submitted under section 93(1)(d), while its guide states that an RRA02 under section 93(1)(e) can still be submitted for that assessment. Check whether an audit, objection, appeal, revised declaration, estimated assessment or agreed estimate is already active.
- Open the form in eFiling.
Log in to the authorised company profile. Select Returns, Request for Reduced Assessment and New. Choose the relevant period. SARS says the form pre-populates the income-tax reference and year of assessment. Select Company or Close Corporation as the nature of person and identify whether the form is being completed by a tax practitioner or representative.
- Select grounds and complete the amounts.
Select the relevant section and reason permitted by the form. Enter a full, factual reason in the grounds field. Use the assessment to identify each source-code description, the amount reflected and the amount that should be reflected. SARS's guide allows up to ten rows, but each row should reconcile to evidence.
- Upload substantiating documents.
SARS says supporting documents are required to process the request. Upload readable documents that are not password protected and meet the relevant file size and type requirements. Include the assessment, the calculation, returns or third-party information, and records that demonstrate the claimed error.
- Submit and monitor the case.
Submit the form, confirm the declaration and upload the documents. SARS says the case becomes Filed after successful document submission. Monitor SARS Correspondence for an acknowledgement, a request for additional documents and an outcome letter that allows, disallows or partly allows the request.
Documents and records to keep
Keep the assessment, the RRA02 form, grounds narrative, calculations, uploaded supporting documents, filing confirmation and every SARS letter. Include the source data that proves the error, such as employer certificates, bank records, contracts, invoices or ledger schedules. Retain a case chronology and records of the authority of the person who filed.
Important limits and exceptions
RRA02 does not replace an objection or appeal. It is available only in limited circumstances, and SARS must still be satisfied that the requirements have been met. An unsuccessful RRA02 should not be treated as a ruling on every possible dispute ground.
Do not submit duplicate or inconsistent requests. If an active audit or dispute exists, SARS's guide says RRA02 is only allowed after SARS finalises that case. Take advice before changing any formal dispute strategy.
When to get tailored advice
Get advice where the error is material, based on an accounting judgment, involves a foreign payment, VAT, payroll, an assessed loss or a disputed interpretation of tax law. Advice is also sensible if the assessment is close to a formal objection deadline.
TaxProof can assist with an RRA02 document pack and reconciliation. We cannot decide whether SARS will reduce an assessment without reviewing the assessment and evidence.