How Can the Tax Ombud Assist: A Guide for Tax Practitioners
Tax practitioners are crucial in ensuring that taxpayers comply with SARS regulations. However, disputes and administrative challenges often arise, leading to frustration for both taxpayers and their tax practitioners. The Office of the Tax Ombud (OTO) is an independent, impartial, and free mechanism to resolve taxpayer complaints related to SARS service, administrative, and procedural issues. This article provides an overview of the OTO’s mandate, common complaints it handles, and how tax practitioners can effectively engage with the OTO to support their clients.
What is the Office of the Tax Ombud?
The OTO was established in 2013 under the Tax Administration Act as a neutral entity to review taxpayer complaints about SARS. Its key functions include:
Addressing taxpayer complaints related to service, administrative, or procedural issues.
Conducting systemic investigations into recurring issues that impact multiple taxpayers.
Providing recommendations to SARS on resolving disputes.
The OTO operates independently and ensures taxpayers are treated fairly within the tax system.
Why Should Tax Practitioners Engage with the OTO?
Using the OTO benefits both tax practitioners and their clients in the following ways:
Offering free and accessible service as there are no costs involved in lodging complaints.
Dedicated assistance is offered to practitioners though a specific case handler, improving communication.
The OTO has direct access to SARS systems, aiding in resolving disputes efficiently.
The OTO identifies and investigates recurring problems or systemic issues within SARS processes that impact multiple taxpayers.
Types of Complaints Handled by the OTO
The OTO addresses a range of issues, categorised into:
Administrative complaints, errors in assessments, missing taxpayer details on SARS notices, or incorrect classification of taxpayer accounts.
Procedural Complaints, unlawful actions, such as SARS issuing a third-party appointment to collect funds without the required notice period.
Service complaints including issues such as unhelpful or unprofessional SARS staff, failure to provide requested information, or poor communication.
Systemic Investigations, issues that affect multiple taxpayers, such as:
Delays in processing tax refunds.
Non-adherence to dispute resolution timelines.
SARS failing to confirm receipt of correspondence.
Delayed responses to requests for compromises and deferred payment arrangements.
Current Systemic Investigation: eFiling Profile Hijacking
One of the major systemic investigations currently undertaken by the OTO involves eFiling profile hijacking. This issue has resulted in unauthorised access to taxpayer profiles, leading to fraudulent submissions and tax liabilities. The OTO is conducting a survey on this matter, and tax practitioners are encouraged to participate to ensure a broad representation of affected cases. You can complete the survey here.
Common Complaints from Tax Practitioners
Tax practitioners frequently encounter the following issues when dealing with SARS:
SARS initiating multiple repeat verifications for the same taxpayer.
Failure to respond to taxpayer correspondence and queries.
Delays in updating taxpayer details, particularly for deceased estates.
Non-compliance with dispute resolution timeframes.
Unjustified delays in VAT and diesel refunds.
Failure to acknowledge or process tax debt compromises and payment arrangements.
How to Lodge a Complaint with the OTO
Tax practitioners should follow these steps when submitting complaints:
Complete a Complaint Form from the OTO’s website.
Provide full documentation include a clear chronological summary of events, SARS reference numbers, relevant correspondence, and supporting evidence.
Sign and date the forms. If lodging on behalf of a taxpayer, submit a power of attorney and certified ID copies for both the taxpayer and representative.
Wait for acknowledgment. The OTO will assess the complaint’s validity, investigate, and make recommendations to SARS.
NOTE: A complaint may be lodged with the OTO only after the taxpayer has exhausted SARS’s internal complaints resolution mechanisms. However, exceptions are made in cases where compelling circumstances exist, such as undue hardship or significant financial impact.
What Happens After a Complaint is Lodged?
The OTO assesses whether the complaint falls within its mandate.
If valid, SARS is given an opportunity to respond and resolve the matter.
The OTO makes recommendations, though these are not binding on SARS.
If SARS does not accept the recommendations, it must provide reasons within 30 days.
The OTO may escalate unresolved issues to the Minister of Finance or SARS Commissioner.
Avoid These Common Mistakes
Tax practitioners can enhance their efficiency by avoiding the following mistakes:
Failing to update SARS with new contact details.
Not adhering to SARS dispute resolution rules (e.g., missing deadlines).
Submitting incomplete documentation.
Not familiarising themselves with the Tax Administration Act and SARS procedural rules.
Join CIBA’s webinar on the work of the Office of the Tax Ombud on 13 February 2025 and learn about the processes from the expert!
This webinar offers CIBA members the opportunity to interact with the presenter, gaining a better understanding of how the OTO operates and how they can utilise the free services offered effectively for their clients. It offers valuable insights for tax practitioners and taxpayers alike by:
📌 Providing clear guidance on how to resolve tax complaints efficiently.
📌 Helping practitioners understand what to expect when engaging with the OTO.
📌 Explaining systemic issues in the tax system and how the OTO plans to address them.
📌 Equipping practitioners with knowledge to better represent their clients.
📌 Offering real-world examples that can be applied in everyday tax practice.
🎤 Don't miss out on this opportunity to enhance your expertise and gain practical knowledge on handling tax disputes!
