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Why did SARS automatically merge my tax profile?
Why did SARS automatically merge my tax profile?
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Direct answer
SARS may automatically merge tax records to create one profile view for an entity and its associated tax types, including income tax, VAT, employment taxes and, where applicable, customs and excise. Before the proposed merge, SARS says it issues an Update to Your Tax Profile letter. If you disagree, you have 21 days from the issue date of that letter to submit a written correction request with the letter.
An automatic merge is about profile records, not a tax assessment. Read the notice carefully and decide whether the records it lists truly belong to the same taxpayer or legal entity. If they do, you normally do not need to signal agreement. If they do not, act promptly and use the official correction route.
What this means in practice
Many taxpayers have more than one tax type, old registration record or profile entry. SARS's auto-merge function is designed to consolidate those associated records into a single profile. That can help a taxpayer see the whole registered tax position, but it also means the details must be accurate before consolidation.
The update letter is the central document. It identifies the proposed action and starts the correction period. Save it immediately, including its issue date, and do not confuse that date with the date you first saw it in eFiling. The 21-day period described by SARS runs from the issue date. A delay in opening correspondence can therefore reduce the time available to respond.
If information on the profile is outdated or wrong, address it through the appropriate registered-details process. SARS says it cannot update current registered particulars as part of auto merge. A general correction and a request to stop or correct a proposed merge can therefore be separate tasks. Keep records for both.
Step-by-step
- Open and save the Update to Your Tax Profile letter.
Access it through the relevant eFiling correspondence area and retain a copy. Note the issue date, the taxpayer name and the tax records SARS proposes to include.
- Compare each record with your primary records.
Check identity numbers, registered names, company or trust registration numbers, tax reference numbers and the status of the representative. Do not assume a familiar trading name proves that two records belong together.
- Decide whether you agree with the proposal.
Where all listed records are for the same taxpayer or legal entity and the details are consistent, the auto merge may be appropriate. SARS says you do not have to indicate agreement. Where you do not agree, prepare a written correction request.
- Prepare a factual correction request within the stated period.
Explain the specific reason for disagreement and attach the Update to Your Tax Profile letter. Use supporting documents that directly establish the difference, rather than a broad statement that the records are wrong.
- Submit through an official route.
SARS lists eFiling supporting documents, a SARS office and the SARS Online Query System as ways to submit the correction request. Use the route that fits the live case instructions and retain proof of submission.
- Monitor correspondence for the outcome.
SARS says a rejection letter is sent to eFiling correspondence or by email where a reason is invalid. If the reason is accepted, SARS will issue a confirmation that the records will not be auto merged. If no request is received in time, or it is rejected, the merge may proceed.
- Review the profile after the result.
If SARS completes the merge, it says a Confirmation of Your Tax Profile letter will be posted to eFiling correspondence. Keep it with the original notice and verify that the consolidated profile reflects the correct taxpayer.
Documents and records to keep
- Update to Your Tax Profile and any later confirmation or rejection letter.
- Identity or legal-entity documents that support your conclusion about the records.
- The written correction request, attachments and upload or SOQS confirmation.
- eFiling correspondence screenshots and case numbers.
Important limits and exceptions
The auto-merge correction process is not the same as an objection against a tax assessment. An assessment, penalty, debt or return issue may need its own route even if it appears on a profile that is being merged.
SARS advises that registered-particular updates are not performed as part of auto merge. Correct inaccurate address, identity, contact or registration information through the appropriate existing process instead of assuming that the letter changes it.
When to get tailored advice
Seek tailored advice if the notice lists a tax reference number you do not recognise, more than one legal entity appears involved, or the correction period is close to expiry. Help is also worthwhile where an auto merge could affect a tax-compliance request or representative rights.
TaxProof can help organise the notice, the factual supporting records and the written explanation. SARS decides whether a proposed merge is corrected, rejected or completed.
Related TaxProof guides
- How do I challenge an incorrect SARS auto-merge? (B05-ADM-004)
- What is the SARS entity-merge process on eFiling? (B05-ADM-002)