SARS three-year warning for taxpayers in South Africa

• SARS can reopen tax assessments older than three years if it proves fraud, misrepresentation, or non-disclosure by the taxpayer.
• The clarification comes after a recent High Court judgment clarified that SARS is generally prohibited from challenging income tax assessments more than three years old unless certain conditions are met.
• Taxpayers and experts are advised to ensure full and accurate disclosure to SARS to avoid revisiting historical tax assessments, as SARS does not have free rein to reopen old assessments simply because it disagrees with the legal position taken by the taxpayer.