SAIT raises concerns over SARS’s issuance of “verification” letters for trust income tax returns that request detailed information—such as income and expense breakdowns per fixed property—which in SAIT’s view, extends beyond the legal definition of verification. Citing the Forge Packaging case, SAIT argues that such requests resemble the characteristics of an audit, which involves deeper interrogation of information, third-party corroboration, and assessment of completeness and authenticity. Since the requested information often requires manual analysis and is not readily available from trusts’ typically unsophisticated annual records, the demands are impractical and burdensome. SAIT contends that these letters should be formally classified as audits under Section 42 of the Tax Administration Act, rather than verifications, and requests SARS either revise its classification or provide detailed justification for its current approach.
