Tax ombudsman assists the public

Pretoria - Taxes collected by the South Africa Revenue Service (Sars) should be used to alleviate the plight of the poor and not to line the pockets of politically connected individuals.

Tax Ombudsman Judge Bernard Ngoepe was speaking during a panel discussion at the University of Pretoria in Hatfield at which the impact of the office of the tax ombudsman in society was explored.

Judge Ngoepe encouraged the group of tax practitioners and academics to put under scrutiny the contents of the 2014/15 annual report he recently tabled in Parliament.

The report, which covered six months of the ombudsman’s existence, showed that more than 75 percent of complaints lodged by taxpayers to the Tax Ombudsman against Sars had been resolved in favour of taxpayers.

But Judge Ngoepe said the large number of complaints received was not indicative of disaster within Sars. He said he was not concerned that Sars was abusing its powers.

The ombudsman’s office was financed by Sars and its independence to scrutinise the tax collector was questioned.

Judge Ngoepe said that the question of independence of his office had been protected by the Tax Administration Act, through which it had been established.

He said people should ask whether taxes they paid were being used to help the poor or to line the pockets of politically connected individuals. He also raised concerns about the billions of rands that had been siphoned out of the country illegally by multinationals.

Awareness

Participants in the discussion raised questions about the lack of understanding about the ombudsman’s office.

The chief executive in the office of the tax ombudsman, Eric Makhawane, said roadshows had been conducted in all provinces in conjunction with the South African Institute of Chartered Accountants to make the public aware of the existence of the office of the ombudsman.

But he said it had been found during the roadshows that even some tax practitioners were not aware of the existence of the office. Presently, the office employs more than 30 staff members and receives 200 cases from taxpayers monthly.

Makhawane admitted that the office was short-staffed, but said it was still recruiting.

Although taxpayers had been encouraged to make use of the ombudsman’s office, they were also urged to use Sars offices to solve their problems before resorting to the ombudsman.

The group executive responsible for auditing at Sars, Narcizio Makwakwa, said that the ombudsman’s office gave aggrieved taxpayers an opportunity for their issues to be solved outside Sars. The ombudsman made recommendations following the investigation of tax-related cases, and there had not been recommendations that Sars did not implement.

Deputy public protector Kevin Malunga said he welcomed the office of the tax ombudsman because it eased pressure on the public protector’s office. He said there had been a decline in cases related to taxes previously forwarded to the public protector’s office.

Judge Ngoepe’s duties cover service issues only and cannot review legislation or policy. Complaints about liability for tax or the amount of tax due are not accepted by the ombudsman’s office.

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