Taxpayers generally have the odds stacked against them when it comes to disputes with the South African Revenue Services (SARS). With wide-ranging powers provided to it under the Tax Administration Act, SARS is able to request information about taxpayers from third parties, search and seize relevant items from your home or office, and even demand a third party such as a bank or employer to pay your outstanding taxes.
If a taxpayer was at loggerheads with SARS the only recourse was to take the matter to court, incurring legal fees.
It is hoped that with the recent launch of the SA Tax Ombud, taxpayers will finally have an independent body which can provide recourse should a taxpayer feel they have been unfairly treated.
On 7 April 2014 the Office of the Tax Ombud was officially launched in South Africa, with retired Judge Bernard Ngoepe acting as Tax Ombud. The ideals of the Tax Ombud’s office are indeed noble: it intends to be a simple and affordable resolution channel for taxpayers with legitimate complaints. The Tax Ombud’s office will be able to review a complaint, and if necessary, resolve it through mediation or conciliation with specific SARS officials who have been identified to engage with the Tax Ombud’s office.
These complaints may be around administrative issues, poor service, or the failure by SARS to observe taxpayer rights. The Tax Ombud will not however deal with any legislative or tax policy issues. You could not for example go to the Ombud to complain about the rate of VAT or to dispute the extended powers of SARS under the Tax Administration Act. The Ombud will also not be able to rule on any tax issue that is already before the courts.
| “We owe a debt of gratitude to the millions of taxpayers in our country who have provided the state with the means to fund its programmes which, in a virtuous cycle, will stimulate growth, job creation and generate higher future revenue. We owe them our deep gratitude and a commitment to spend this money wisely, honestly and efficiently. But also we owe to these taxpayers a tax system that treats them fairly.” – Minister of Finance Pravin Gordhan |
In order not to be overwhelmed with complaints, National Treasury has made it clear that the Tax Ombud may only review a complaint after a taxpayer has exhausted SARS’ internal complaints resolution mechanisms. According to National Treasury “direct access to the Tax Ombud will only be allowed if there are compelling circumstances for doing so.”
The role of the Ombud is not only to resolve complaints but also to provide information that is easily accessible and understandable. Tax Ombud Judge Ngoepe says one of the key challenges will be to ensure that “the office treats the tax-paying public with utmost dignity and respect, and provides an open, accountable and timely service. It also renders well-reasoned decisions in respect of actions taken by it.”
While the intention of the Ombud is noble, we await to see how it works in practice. Public Ombud offices are often understaffed in comparison to the number of complaints, something that is already evidenced by the underperformance of the National Consumer Commission.
The Tax Ombud’s office draws on comparable institutions in Canada and the United Kingdom and operates independently of SARS. We have been given the assurances that it “also treats with strict confidence the communication between it and the taxpayer.”
Tax Ombud contact details:
Phone: 0800 662 837
Fax: 012 452 5013
Email: complaints@taxombud.gov.za
This article was first published in City Press
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