Tax Law News South Africa

Subscribe

Elections 2024

Siviwe Gwarube tells us why the DA could help South Africa succeed!

Siviwe Gwarube tells us why the DA could help South Africa succeed!

sona.co.za

Advertise your job ad
    Search jobs

    Tax ombudsman asks to probe delayed refunds

    Tax Ombudsman Judge Bernard Ngoepe has written to Finance Minister Pravin Gordhan, asking for permission to launch a probe into whether "systemic problems" at the South African Revenue Service (SARS) are the reason for widespread delays in the payment of refunds.
    Tax ombudsman asks to probe delayed refunds
    © Tomasz Pacyna – 123RF.com

    This comes as SARS is under heightened scrutiny after collecting about R30bn less than had been projected in 2016, which the tax agency blamed on economic factors. But corporate tax went up by R6.5bn over the same period.

    Ngoepe said on Sunday that his office conducted two categories of investigations - Category A, which emanates from complaints by individuals or companies; and Category B, which probes "systemic problems" or issues at SARS.

    An investigation into systemic problems requires approval from Gordhan, while complaints from individuals about their tax matters falls squarely into the mandate of the tax ombudsman.

    Ngoepe said he had submitted a request to the finance minister last week to launch a broader investigation into issues at SARS. He is awaiting a reply from the finance minister.

    "If you are getting a lot of category A complaints, which tells you there is probably something wrong with the SARS system, then you begin to say 'maybe let's look at the system'.

    "I have only submitted ... my request for approval so I can investigate SARS's systemic problems relating to alleged delayed refunds of monies, which should be paid back to taxpayers." Ngoepe said he had received several complaints about the delayed payments of refunds and felt that he had "no choice" but to ask for permission to launch a probe.

    "Such complaints were so many that it would have been irresponsible of me not to approach the minister fora category B investigation," he said. Complaints about the delayed payment of refunds were not uncommon, Ngoepe said. However, "this time around, there had been a noticeable increase".

    He said he would continue investigating the individual complaints he received, but his hands were tied on a broader, systemic probe, pending approval from Gordhan. The Treasury and SARS could not confirm on Sunday whether it had received Ngoepe's request.

    On Friday, SARS hit out at Judge Dennis Davis, the chairman of the Davis Tax Commission, saying it had lost confidence in him following comments he had made at a conference last week about perceptions about SARS's capacity.

    The committee's objective is to assess SA's tax policy framework and its role in supporting the objectives of inclusive growth, employment, development and fiscal sustainability.

    SARS said it had written to Gordhan, asking that Davis be removed from the committee. Davis would not be drawn into a public spat with the tax agency and said he had responded to SARS and asked to meet its commissioner, Tom Moyane.

    Source: Business Day

    Source: I-Net Bridge

    For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

    We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.

    Go to: http://www.inet.co.za
    Let's do Biz