Tax ombud gets the nod to probe two Sars issues

The tax ombudsman has received approval to launch two separate investigations into the SA Revenue Service (Sars).

The reviews are related to problems with the pay-asyou-earn (Paye) statement of accounts and alleged non-adherence to dispute-resolution timeframes by Sars.

The ombudsman previously conducted a similar probe and found that Sars unduly delayed the payment of tax refunds in certain instances.

In terms of the Tax Administration Act (TAA), the ombud may investigate any systemic and emerging issue with the approval of the finance minister.

In a statement on Wednesday, tax ombud Judge Bernard Ngoepe said the request to Finance Minister Nhlanhla Nene was prompted by complaints he had received from taxpayers and industry bodies.

“Both Sars and external stakeholders, including industry bodies, have already been notified,” he said.

“The office of the ombud will be engaging Sars, concerned taxpayers and/or their representatives, including their relevant industry bodies.

“It is hoped that, as a contribution toward facilitating revenue collection and building confidence in the tax system, necessary recommendations will be made at the end, if need be.”

The Nugent Commission of Inquiry into Tax Administration and Governance is expected to deliver its interim report to President Cyril Ramaphosa on September 30. The final report is expected by November 30.

The commission previously heard how Sars became fragmented after the implementation of a new operating model under the tax collector’s now-suspended commissioner Tom Moyane and is expected to make recommendations to put Sars on firmer footing.