A Guide to Trader Rights, Obligations and Dispute Resolution

Understanding your rights and obligations as a trader is essential to ensure smooth operations and compliance. This guide outlines the key rights afforded to traders, empowering you to advocate for your business interests. In addition, we will explore the avenues available to you should your rights be compromised, enabling you to seek redress and maintain a fair business environment.

Your Rights as a Trader

It is advisable to read the SARS service charter to gain a full understanding of your rights and obligations as a trader and taxpayer. A majority of these rights and obligations can be summarised into 6 important points:

Rights	Obligations
Access to Information, Clarity, and Personalised Support Clear information about your tax obligations. Support and resources to help you comply with tax regulations. Personalised assistance tailored to your business needs. Access to digital tools to streamline tax processes. Opportunities to provide feedback through SARS surveys.	Fulfil Your Tax and Customs Obligations Comply with tax laws and regulations in a timely manner. Meet deadlines for tax payments and filings. Register for relevant taxes as your business grows. Withhold and remit taxes collected on behalf of the government (e.g., PAYE, VAT).
Quality Service Consistent, high-quality service from SARS across all interaction channels. Honest and timely communication with SARS. Interact with SARS through the appropriate channels.	Honest and Timely Communication with SARS Provide truthful and complete information to SARS. Interact with SARS through the appropriate channels. List Item 3
Dispute Resolution Taxpayers have the right to lodge complaints and disputes with SARS. If dissatisfied with the initial response, traders can escalate complaints through SARS' internal channels and ultimately to the Tax Ombud. SARS is expected to address complaints and disputes within specified timeframes.	Comply with SARS Record Keeping Requirements Keep accurate records of financial transactions for at least five years. Provide requested documentation to SARS within specified deadlines. Keep SARS informed of any changes in contact or banking details.
Fair treatment, confidentiality and professionalism Taxpayers have the right to be treated fairly and equitably by SARS. SARS is obligated to protect taxpayer information. Traders can expect professional conduct from SARS officials.	Ethical Tax Conduct Taxpayers must act honestly and ethically, fulfilling tax obligations and supporting tax compliance. Demonstrate loyalty to the tax system and assist in combating tax fraud.
Professional Tax Assistance and Representation Taxpayers have the right to appoint a qualified representative to handle tax matters. The taxpayer remains ultimately responsible for all tax affairs, even when represented. Representatives can participate in tax administration improvement initiatives on behalf of taxpayers.	Take Responsibility and Accountability The taxpayer ultimately bears responsibility for their tax affairs, even when represented by a professional. The taxpayer ultimately bears responsibility for their tax affairs, even when represented by a professional. Any actions taken by a representative are on behalf of the taxpayer.
Respect Taxpayers and SARS officials should treat each other with courtesy and professionalism. Taxpayers are entitled to be treated fairly and honestly by SARS officials.	Respect the Tax System and SARS Officials Taxpayers should respect the tax laws and regulations administered by SARS. Provide truthful and accurate information during all tax interactions. Taxpayers are responsible for complying with tax laws. Avoid illegal tax evasion schemes.

Dispute Resolution with SARS

When your rights as a customs and cross-border trader have been infringed upon, understanding the available dispute resolution channels is crucial. Here’s a breakdown of the available options:

Internal Administrative Appeal

This is the first step in challenging a SARS decision.
You must submit a written appeal using form DA 51 within 30 days of the decision or receiving reasons for it.
Incomplete forms may be rejected, causing delays. You can find form DA51 on the SARS website.
SARS acknowledges receipt within 10 days and aims to finalize the appeal within 60 days.
If unsatisfied with the outcome, you can explore Alternative Dispute Resolution (ADR).
Form DA 51

Alternative Dispute Resolution (ADR)

This is a voluntary process for reaching a settlement outside of formal court proceedings.
While you can initiate ADR, SARS ultimately decides if a matter is suitable.
You must submit a completed form DA 52 within 30 days of receiving the Internal Appeal Committee decision.
SARS informs you within 20 days if the matter is appropriate for ADR.
If chosen, a neutral facilitator works with both parties to reach a mutually agreeable solution.
Form DA 52

Important Points:

Ensure you submit all required information and documents for both processes.
Missing information can delay the resolution of your dispute.
If ADR fails, you can still pursue judicial review through the Tax Court.

When to Contact the Tax Ombud

The Tax Ombud (OTO) is a valuable resource for taxpayers who have exhausted internal SARS complaint channels and remain unsatisfied. Here’s why contacting the OTO might be necessary:

Unresolved Issues: If SARS hasn’t addressed your service, procedural, or administrative complaint to your satisfaction, the OTO can investigate further.
Systemic Problems: The OTO investigates recurring issues affecting multiple taxpayers within the tax system.
Fairness and Impartiality: The OTO is an independent body offering an objective review of your situation.

Examples of Situations Where the OTO Can Help:

Unhelpful or unprofessional behavior by SARS staff
Missing information on a tax assessment
Issuing a tax assessment without proper notice
Unreasonable delays in processing payments or refunds
Failure to respond to requests for compromise or payment suspension within designated timeframes

Benefits of Using the OTO:

Free Service: The OTO complaint process is free of charge.
Accessibility: You can lodge a complaint online, by mail, fax, or phone.
Dedicated Case Manager: The OTO assigns a case manager to handle your complaint from start to finish.
Access to SARS Information: The OTO has access to relevant SARS information to investigate your complaint thoroughly.

Important Considerations:

Exhaust Internal Channels First: Generally, you should file a complaint with SARS’s Complaints Management Office before contacting the OTO.
Time Limits: There are time limits for filing complaints with the OTO.
Recommendations, Not Binding Decisions: While the OTO’s recommendations hold significant weight, they are not binding on SARS or the taxpayer.

Conclusion

Understanding your rights and obligation as a trader is essential for navigating the complex trade environment. By being aware of your rights, obligations and the dispute resolution mechanisms available, you can protect your business interests, and maintain compliance.

If you have any questions regarding exports under the SADC trade agreement you are most welcome to give us a call on 087 550 1038. Alternatively, you can submit a query via our website here.

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