Sars and Tax Ombud address concerns over eFiling profile hijackings

The South African Revenue Service (Sars) and the Office of the Tax Ombud (OTO) have jointly expressed concern over a recent article published by the Sowetan, which reported a surge in hijacked Sars eFiling profiles allegedly linked to cyber-fraud syndicates, and that these incidents have reportedly led to substantial financial losses for affected taxpayers.

According to the statement, at the time of publication, the OTO had not yet released its draft report for public comment. As such, the article contained several factual inaccuracies, prompting both institutions to clarify the current status of investigations and collaborative efforts.

Sars and the OTO say they are legally mandated to perform distinct yet complementary roles within South Africa’s tax ecosystem. They say their shared objective is to uphold the integrity of the country’s tax administration and protect the interests of taxpayers.

“Sars not only respects but considers the role of the OTO as an indispensable partner to ensure the functioning of the tax ecosystem is fair and beyond reproach,” the institutions stated.

Sars says it continues to address complaints lodged with the OTO, reinforcing the cooperative relationship between the two bodies.  It says both institutions are regarded as pillars of fiscal integrity, and their mutual respect’s mandate ensures that the tax system remains accountable and transparent.

Following extensive engagement with stakeholders, the OTO will release its draft report on October 1, 2025, the bodies say.

According to the OTO, it has been investigating cases of compromised eFiling profiles for over a year, prompted by numerous complaints from taxpayers and tax practitioners. The findings highlight a growing concern: the rapid escalation of cybersecurity threats in an increasingly digital world.

The OTO notes that “in today’s digitally interconnected environment, cybersecurity risks have escalated dramatically, posing significant threats to individuals, businesses, and institutions. As more personal and financial transactions shift online, criminals exploit weaknesses in authentication systems, data-sharing protocols, and user behaviour to commit identity theft, fraud, and unauthorised access".

It says even routine tasks, such as logging into tax platforms or updating banking details, can become entry points for cybercriminals. Within the South African context, Sars is a prime target due to its role in revenue collection and refund payments.

Sars has reaffirmed its commitment to bolstering security measures to prevent unauthorised access and protect taxpayer data. Taxpayers are urged to remain vigilant, safeguard their login credentials, and report any suspicious activity through official Sars channels.

Sars commissioner Edward Kieswetter says: “We respect that the final report by the OTO will be made public soon, and Sars remain committed to continue its engagement with the public on its substance. The public must be assured though, that Sars continue to work with diligence to ensure the highest level of integrity and protection to taxpayers who uses the Sars digital platform.”

The delay in releasing the OTO’s draft report was intended to allow Sars to provide detailed input on preliminary findings. This collaborative process ensures a balanced and comprehensive analysis. While some differences may remain between the institutions, such divergence is natural in any rigorous review, the institutions say.

The Tax Ombud says: “The OTO takes the hijacking of taxpayer eFiling profiles very seriously. As an independent institution, the OTO ensures objective oversight and the fair treatment of taxpayers. The OTO upcoming draft report reflects extensive engagement with all stakeholders and is aimed at driving real, practical solutions.”

Both Sars and the OTO have reiterated their unwavering commitment to ensuring that taxpayers can meet their obligations with confidence and security. The integrity of the tax system and the protection of taxpayer information remain top priorities.As the country grapples with the evolving threat of cybercrime, the partnership between Sars and the OTO stands as a critical safeguard for the public. Their joint efforts aim to restore trust in the eFiling system and ensure that South Africa’s tax administration remains resilient, transparent, and fair.

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