Compliance7 min read

SARS Audit — What to Expect and How to Prepare

A factual guide to SARS audits and verifications — why they happen, what documents you need, your rights under the Tax Administration Act, and how to respond.

Published 1 May 2025

Verification vs Full Audit

A verification (Section 42 of the Tax Administration Act) is a targeted check on specific items in your return — for example, SARS may ask for proof of your home office claim or medical expenses. A full audit (Section 40) is a comprehensive review of your entire tax position. Most taxpayers will encounter verifications, not full audits. SARS selects returns using a risk-based system that flags anomalies: deductions that are unusually high relative to income, inconsistencies between years, or mismatches with third-party data.

Common Audit Triggers

Large home office claims relative to income. Travel allowance claims without a logbook. Claiming deductions as a salaried (non-commission) employee. Income that doesn't match IRP5 or IT3 certificates. Large donations or unusual Section 18A claims. Freelance income not declared. Rental income omitted. Cryptocurrency gains not declared. Previous non-compliance or late filing.

What Documents to Prepare

IRP5 / IT3(a) certificates from employers. IT3(b) interest certificates from banks. Medical aid tax certificates. Retirement fund contribution certificates. Home office — floor plan, municipal accounts, employment contract. Travel — logbook (digital or paper), vehicle costs receipts. Receipts for any deduction claimed. Bank statements showing expenses. Invoices for assets depreciated under Section 11(e).

Your Rights During an Audit

You have the right to: be informed of the reason for the audit; be represented by a tax practitioner; receive reasonable time to gather documents (usually 21 business days for a verification); object to the outcome; request reasons for adverse decisions. SARS must follow proper procedures under the Tax Administration Act. If a SARS official behaves improperly, you can complain to the Tax Ombud.

Responding to SARS Requests

Respond within the deadline (typically 21 business days). Upload documents via eFiling under 'SARS Correspondence'. Organise documents clearly — label each file with the relevant section/deduction. Don't submit more than what's asked for — relevant, concise responses reduce the chance of additional queries. If you need more time, contact SARS via eFiling or the call centre before the deadline to request an extension.

Disclaimer: This article is based on the South African Income Tax Act and published SARS Interpretation Notes as at the 2024/2025 tax year. It is provided for informational purposes only and does not constitute professional tax advice. Tax legislation changes periodically — consult a registered tax practitioner for advice on your specific situation.

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