Tax ombud finds SARS employs delaying tactics
Investigation by Judge Bernard Ngoepe discovers complaints about VAT refunds are justified
The investigation by Tax Ombud Judge Bernard Ngoepe into the alleged delayed payment by the South African Revenue Service (SARS) of VAT refunds has found the complaints are justified. The report identified several mechanisms that SARS has used to delay the payment of tax refunds and has further urged the tax authority to terminate them while at the same time acknowledging that these methods had been employed to combat fraud in some instances. "It is clear that the system allows for SARS to unduly delay the payment of verified refunds to taxpayers in certain circumstances. This has become a systemic issue. "The system does not sufficiently protect taxpayers. The removal of the obstacles would go a long way towards addressing the problem," the judge said in his conclusion. Judge Ngoepe’s investigation was prompted by the sharp increase in the number of complaints by taxpayers, who in some cases said the practice of delayed refunds caused them serious cash flow problems, especially in...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.