Celebrating 11 Years of Fair Tax Treatment: The Vital Role of the Tax Ombud
As the Office of the Tax Ombud (OTO) marks its 11th anniversary, it stands as a beacon of fairness and justice in South Africa’s tax administration system. Over the years, the OTO has played a pivotal role in promoting trust between taxpayers and the South African Revenue Service (SARS) by addressing service, procedural, and administrative issues. This milestone also coincides with the release of the OTO’s 2023/24 Annual Report, which reflects its continued commitment to championing taxpayer rights and fostering compliance.
The Role of the Tax Ombud
The OTO was established to create balance in the tax ecosystem, ensuring that SARS’s significant powers are exercised fairly and transparently. Acting as an independent and impartial body, the OTO resolves disputes and provides taxpayers with recourse when their rights are infringed. Its existence has made a tangible impact in improving voluntary compliance, as taxpayers are more likely to meet their obligations when they feel the system is equitable.
Key Achievements in 2023/24
The OTO’s Annual Report highlights several accomplishments:
Refunds Secured: Through effective interventions, the OTO assisted in securing R179 million in refunds for taxpayers, a significant increase from R103 million the previous year.
Growth in Accessibility: The number of taxpayers directly accessing OTO services rose by 13%, showcasing the growing reliance on its role in resolving tax issues.
High Recommendation Implementation Rate: Despite the non-binding nature of its recommendations, SARS implemented 99.7% of them during the 2023/24 financial year. This demonstrates the OTO’s effectiveness in driving systemic improvements.
Addressing Emerging Tax Issues
The OTO remains proactive in tackling systemic challenges. A notable focus this year has been the investigation of taxpayer eFiling profile hijacking. Collaborating with international counterparts, such as the Australian Tax Ombudsman, the OTO is exploring global best practices to mitigate these threats. By addressing such issues, the OTO ensures the tax administration system evolves to protect taxpayer rights in an increasingly digital landscape.
Awareness and Accessibility
Public awareness of the OTO’s services is critical for its success. To bridge the gap, the OTO has initiated robust campaigns, including the "Be a Smart Taxpayer" awareness drive. These efforts have included:
Workshops and webinars to educate taxpayers.
Mall activations like the Eastgate Shopping Centre campaign to engage the public directly.
Extensive use of social and traditional media to inform a wider audience.
These initiatives aim to empower taxpayers with knowledge about their rights and how the OTO can assist them. While the OTO has made significant strides, challenges remain. Its single office in Gauteng limits accessibility for taxpayers in remote areas. To counter this, the OTO is expanding its outreach efforts and leveraging digital platforms to increase visibility nationwide. Furthermore, it continues to advocate for the timely implementation of its recommendations, ensuring its work translates into tangible benefits for taxpayers.
Practical Tips for Accountants
For accountants, understanding the OTO’s role can provide immense value to clients:
Inform clients about the OTO’s services for resolving disputes with SARS.
Encourage your clients’ proactive compliance by highlighting taxpayer rights and obligations.
Leverage OTO resources to protect clients’ interests and ensure fair treatment by SARS.
The OTO’s services are not just for taxpayers but also a critical support system for accountants navigating the complexities of tax administration on behalf of their clients.
Let us continue working together to foster trust, compliance, and transparency in the tax landscape as we look forward to the OTO’s future achievements.
Read more in the OTO’s publication Fair Play 35 – 30 Years into Democracy.
