Ombud wants more funds

OFFICE WAS STRETCHED TO THE LIMIT, SAYS CEO

The office of the tax ombud expects to finalise a study within the next month or two aimed at determining whether it has enough capacity, staff and appropriate expertise.

The Capacity Management Study, as it is referred to internally, aims to collect concrete data to establish how many team members it requires to deal with the rapidly rising number of complaints it receives. This after its CEO, Eric Mkhawane, admitted previously that the office had been “stretched to the limit”.

Mkhawane doesn’t want to put a number to it ahead of the release of the annual report for the 2017/18 financial year, but says there is still “a significant” increase in the number of complaints.

During the previous financial year, complaints rose 62% to 3 454. Due to budget constraints, the office battled to deal with the rise in complaints at that time.

Asked how the office has responded to these challenges, Mkhawane said it had requested additional funding and received “some of it”. The Capacity Management Study is another initiative it has undertaken.

“We are looking at how long it normally takes for a person to conclude a complaint with the current capacity, and whether we are able to meet the demands. We are appointing more people, but it may not be sufficient,” he says.

Mkhawane believes the rise in complaints is “more than anything else” a result of greater awareness of the office.

The tax ombud has also commissioned professionals to draft a proposed operating model that could enhance the status and independence of the office, something that has been a concern since it was established in 2013.

Tax Ombud Judge Bernard Ngoepe says that ideally, the office should become an independent institution under National Treasury. It should also receive its own budget and be held accountable to the relevant authority if necessary.

Although its budget is currently ring-fenced within the general budget of Sars, the commissioner of Sars is to all intents and purposes the accounting officer in respect of the office of the tax ombud. This is despite the fact that the office has to resolve concerns about service and procedural and administrative matters between Sars and taxpayers independently.