The Tax Ombud handles complaints about Sars’ service and procedures and investigates any systemic and emerging issues.
The Office of the Tax Ombud is investigating the hijacking of taxpayers’ e-Filing profiles with help from tax authorities in Australia where a similar problem occurred over the past few years.
The Office of the Tax Ombud launched its 2023/24 annual report this week, saying its contact centre received 17,014 contacts consisting of 12,338 queries and 4,676 complaints. This was an increase of 13.28% compared to the previous year when the office received 15,020 contacts.
Queries also increased by 12.10% and complaints by 16.49%. During 2023/24 the Ombud validated 4,618 complaints, an increase of 16.62% compared to the 3,960 complaints of the previous year. In addition, the total amount of the top 10 taxpayer refunds, thanks to the Ombud’s intervention, increased to over R179 million compared to R103 million in the previous year.
Although the Ombud’s recommendations are non-binding, the South African Revenue Service (Sars) implemented 99.77% of them.
The Office of the Tax Ombud was established in 2013 in terms of the Tax Administration Act to review and address taxpayer complaints about Sars’ service and procedures and review any systemic and emerging issues.
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Hijacking of e-Filing profiles a systemic issue?
According to Frik Pretorius, acting senior manager for legal services and systemic investigations at the Office of the Tax Ombud, said at the launch that the investigation into the hijacking of taxpayers’ e-Filing profiles must determine if it is a systemic issue.
Profile hijacking happens when criminals posing as taxpayers take over legitimate taxpayers’ online accounts post fake returns and pocket any refunds. They also steal taxpayers’ personal details this way and also hide tax transgressions this way.
Pretorius said the office received complaints that Sars was not acting fast enough when taxpayers complained that their e-Filing profiles were hijacked.
The tax authority in Australia had to contend with the same problem over the past few years when it had to act to update and protect Australia’s myGov platform that gives citizens access to its online services.
The Australian authority even shared its report on the issue with the Tax Ombud’s office to help with its investigation after the minister of finance, Enoch Godongwana, gave his permission for the investigation.
Although the Ombud’s office does not know when the investigation will be completed, its report will first have to go to Sars for input before it will be published for public comment before a final report is announced.
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