The office of the Tax Ombud set up to create confidence

THE Office of the Tax Ombud was established in October 2013 to enhance the tax administration system and to strengthen taxpayers’ confidence in South Africa’s tax system.

One of the main responsibilities of the Office of the Tax Ombud is to maintain a balance between Sars’s powers and duties, and the taxpayer rights and obligations.

The Tax Ombud may only address complaints regarding poor service, procedures, or administrative matters arising from a tax act administered by Sars.

The Tax Ombud cannot address matters relating to the interpretation of legislation.

Sars’s formal complaintsresolution mechanism, called the Complaints Management Office (CMO), must be followed before lodging a complaint with the Tax Ombudsman. You must obtain confirmation that the CMO received your complaint, as well as a reference number. If the CMO does not resolve the complaint to your satisfaction within 21 working days, you can complain to the Tax Ombud’s office.

Once the Tax Ombud’s office receives the complaint, the complaint is assessed.

If the complaint does not fall within their mandate, it will be rejected and the taxpayer will be advised by the Tax Ombud on the process to follow.

Should the complaint fall within the Tax Ombud’s mandate, and be taken up for mediation, it takes an average of 15 days to be resolved, following the ombudsman’s office submitting its recommendations to Sars. The Office of the Tax Ombud can only make recommendations, which are non-binding, and it does not have any discretion or jurisdiction to overrule decisions by any court.

There is no fee for lodging a complaint, and you do not have to appear in person to resolve the complaint. Your tax practitioner can lodge a complaint on your behalf, as long as a power of attorney is submitted with the complaint form, which can be downloaded from the Tax Ombud’s website.

Proposals aimed at enhancing the independence and effectiveness of the Tax Ombud have been included in the draft Tax Administration Laws Amendment Bill, which was published for public comment.

Certain of the proposed amendments to the Tax Administration Act provide for:

● The Tax Ombud to investigate and review any systemic issues related to Sars’s service, the application of the Tax Administration Act, or the procedural or administrative provisions of a tax law.

Judge Bernard Ngoepe said his office had requested that it be empowered to conduct such investigations on its own initiative.

However, due to fears that this could result in the Tax Ombud abusing its powers, the proposal requires the minister to request the investigation.

● If Sars or a taxpayer does not accept a recommendation by the Tax Ombud, they must provide the Tax Ombud with reasons for rejecting the recommendation.

Decisions by the Tax Ombud are not binding on either the taxpayer or Sars. Either party can reject a recommendation without having to provide a reason for doing so.

The above proposed amendments have been requested by the Office of the Tax Ombud in light of strengthening their independence from Sars.