New taxpayer verification process a necessity

Taxpayers will in future have to appear in person at a branch office of the South African Revenue Service (Sars) if any of their details registered with the agency change. In the past this verification was only necessary when the taxpayer’s banking details changed. However, they’ll have to visit a branch if a telephone number or an address changes.

Taxpayers will have to take their identification documents with them and will be fingerprinted and photographed for Sars to verify whether their records correspond with that of the Department of Home Affairs.

“As crazy and cumbersome as the verification system may be, the sad fact is that there is so much fraud that Sars was compelled to do something”, says Des Kruger, a member of the tax legal technical work group at the South African Institute of Tax Professionals (Sait). Willem Oberholzer, tax specialist at Nkonki, says it’s perfectly understandable Sars would want to verify any change in banking details in an attempt to curtail fraud.

“The only concern might be whether the Sars offices can handle the influx of taxpayers for the physical verification when taxpayers are required to present themselves in person.”

Sait CEO Keith Engel says Sars “frequently” audits or seeks to verify claims made on returns. Sars is distrustful of paperwork that can easily be fabricated.

Sars provides rapid refunds in many cases, but its risk engine is sensitive and deviations can easily trigger an audit, he adds.