Tax Ombudsman annual report reveals strong demand for complaints resolution

The Office of the Tax Ombud has released its latest annual report, showcasing a strong demand for its complaints resolution services. Professor Thabo Legwaila, CEO of the Office of the Tax Ombud, highlighted that 98% of its non-binding recommendations were accepted by the South African Revenue Service (SARS), although this was slightly lower than in previous years. Despite this slight decrease, the high acceptance rate by SARS indicates the commendable work being done by the Office of the Tax Ombud. The report also revealed a decrease in the number of complaints received, signaling both increased awareness of taxpayers' rights and improved vigilance from SARS in treating taxpayers fairly. In the interview with CNBC Africa, Professor Legwaila elaborated on the nature of the complaints received by the Office of the Tax Ombud. He noted that approximately 50% of complaints were brought by taxpayer representatives, such as tax experts, while the other half came from individual taxpayers. Complaints ranged from delays in tax refunds, both for corporate and personal income tax, to issues with PAYE statements. The Office of the Tax Ombud successfully resolved various complaints, including discrepancies in PAYE statements and disputes over timeframes. One notable achievement mentioned in the annual report was the resolution of systemic issues through the issuance of a systemic report. By making recommendations on a larger scale, the Office of the Tax Ombud was able to address multiple issues and subsequently reduce the overall number of complaints. The systemic approach also contributed to the high implementation rate of recommendations by SARS, which stood at an impressive 98%. Professor Legwaila emphasized the importance of maintaining vigilance in both the Office of the Tax Ombud and SARS. He stressed that the high acceptance rate of recommendations by SARS indicated a mutual commitment to resolving taxpayer complaints effectively. By upholding transparency and fairness in the tax system, both entities play a crucial role in building trust and compliance among taxpayers. Despite the challenges posed by dealing with a powerful entity like SARS, the Office of the Tax Ombud has demonstrated its effectiveness in advocating for taxpayer rights and ensuring accountability within the tax administration system. The annual report serves as a testament to the positive impact of the Office of the Tax Ombud in promoting transparency, fairness, and efficiency in tax-related matters. As the demand for complaints resolution services continues to grow, the Office of the Tax Ombud remains dedicated to upholding its mandate of protecting taxpayer rights and fostering a culture of compliance and accountability in South Africa's tax landscape.