"SARS Has Selected Me for Verification/Audit." Don't Panic! Here's What to Do

Received a letter from SARS? Learn the difference between a simple verification and a full audit. Here’s a step-by-step guide on what to do next.

Verification: The Routine Check-up

A verification is a simple, "face-value" check. SARS is not investigating you; they are just asking you to "please show us your proof."

What it is: SARS's system has flagged something on your return and wants to see the supporting documents.

Common Triggers: Claiming a home office deduction, RA contributions, or medical aid expenses. It's often just a random spot-check.

What to do: You will receive a letter on eFiling listing the specific documents they want to see (e.g., "your RA certificate," "your medical aid certificate," "your logbook").

Your Action: You have 21 business days to gather only the documents they asked for and upload them via eFiling.

This is the most common review. If your documents match your return, your file will be concluded, and your refund (if you're due one) will be released.

Audit: The Deep Investigation

An audit is much more serious, in-depth, and invasive. This is not a spot-check. This means SARS has a reason to believe there are significant inaccuracies in your tax affairs.

What it is: A formal investigation where SARS will scrutinise your financial records, bank statements, and declarations, often going back several years.

Common Triggers: Major discrepancies between your income and third-party data, consistently high or unusual claims, or a verification that raised more questions than it answered.

What to do: You will receive a "Notification of Audit" letter outlining the scope of the audit. They may ask for everything: bank statements, invoices, contracts, logbooks, etc.

Your Action: This is the point where you should stop and call a tax practitioner immediately. Do not try to handle a full audit on your own. The auditor will communicate with you directly, and anything you say can be used in the assessment.

Your 5-Step Action Plan for a VERIFICATION

For most people, you'll only face a verification. Here's what to do.

Don't Panic. Read the letter carefully.

Check the Deadline. You usually have 21 business days. Do not miss it.

Create a Checklist. Make a list of every specific document SARS has requested.

Gather Your Documents. Scan or download your RA certificate, medical aid certificate, logbook, donation certificates, home office calculations, etc.

Upload via eFiling. Go to your return on eFiling and use the "Submit Supporting Documents" link. Upload your files (PDF is best) and click "Submit."

Pro Tip: DO NOT submit documents SARS didn't ask for. If they only ask for your RA certificate, do not also upload your home office logbook "just in case." You will only invite more questions. Give them exactly what they ask for, and nothing more.

Disclaimer: This article is for informational purposes only and does not constitute financial or tax advice. Tax laws are complex and subject to change. We strongly recommend consulting with a registered tax practitioner to address your specific circumstances. TaxClaw.ai is a tool to assist you in managing your tax obligations and is not a substitute for professional advice.