Although the South African Revenue Service (SARS) has an important role to play, it must do so within the confines of the law, the Tax Ombud said.

Speaking at the launch of the Tax Ombud Office’s annual report for 2016/17 on Tuesday, Judge Bernard Ngoepe stressed the importance of his office as a watchdog.

“We don’t like SARS to adopt a ‘skop and donner’ attitude, we want them to treat people fairly,” he said. Treating people fairly will inculcate in them a sense of responsibility and they will comply with their duties. Given that South Africa is a constitutional democracy, every institution’s exercise of authority must be subject to some counterbalance, he said. During his address, Ngoepe lamented that his office had to approach the Finance Minister to get permission to conduct an investigation into SARS’ systems.

On the relationship between the office of the Tax Ombud and SARS, Ngoepe said that while SARS has a right to collect the tax, his office ensures that the tax authority does so in accordance with the law. In turn, the Tax Ombud does not enable taxpayers to evade their obligations. He urged SARS to follow recommendations, or at the very least give reasons why they will not implement the recommendations as a matter of good governance. “This impacts the morale and the confidence people have in the system.”

Ngoepe said there is also misunderstanding between SARS and taxpayers which leads to “hitches”. He made an example of when SARS issues a final letter of demand. SARS should also inform taxpayers of the options they have available to them, which they have not done in the past.

Source: Fin24

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