Tax professionals and taxpayers encounter hurdles stemming from current operational and administrative issues within SARS. Recently, a surge in these issues necessitated collaborative efforts between regulatory bodies and SARS to identify remedies. One significant concern revolves around unauthorised access to e-Filing profiles, leading to user frustration. This longstanding issue has resurfaced, with instances of profile access being compromised and users losing control. Furthermore, there are reports inaccuracies in tax representatives’ information and fraudulent alterations to banking details, diverting refunds to unauthorised bank accounts.
Despite attempts to address these issues through the SARS’ fraud hotline, effectiveness has been limited. However, SARS has demonstrated a newfound urgency in tackling these challenges. Initiatives such as the establishment of a Cyber-crime unit and a dedicated reporting platform, alongside the integration of a feature within the SARS Online Query System for reporting fraudulent activities, underscore their commitment. Additionally, forthcoming authentication methods such as biometrics and two-factor authentication aim to enhance security.
Recent media coverage has hinted at a potential security lapse within the CIPC system, possibly linked to e-Filing profile compromises. Collaborative efforts between SARS and CIPC are underway to investigate and mitigate future breaches. Another obstacle pertains to SARS’ handling of requested documentation. Previously, courtesy letters were issued for missed deadlines, but this practice appears to have ceased. Failure to comply with document submission deadlines may trigger additional assessments under the Tax Administrative Act 2011, leading to avoidable disputes. Furthermore, premature issuance of final demand letters before the initial submission deadline exacerbates confusion and disputes.
Regulatory bodies like SAICA are actively liaising with SARS to confront these challenges and bolster the efficiency of the tax system.
Guidance for Navigating SARS Operational Challenges:
E-Filing Profile Compromises:
Challenge: Users encountering unauthorised access to their e-Filing profiles, resulting in altered login credentials and locked accounts.
Tip: Regularly monitor your e-Filing profile for any suspicious activity and update login credentials regularly.
Inefficacious Fraud Reporting:
Challenge: Ineffectiveness of the SARS fraud hotline, impeding the reporting of fraudulent activities.
Tip: Utilise alternative reporting platforms provided by SARS, such as the newly established Cyber-crime unit and reporting platform.
Delayed Document Requests:
Challenge: SARS no longer issuing courtesy letters for missed deadlines on requested material, leading to unnecessary disputes.
Tip: Proactively submit requested documents well before the communicated deadline to avoid potential assessments and disputes.
Timeline Ambiguity:
Challenge: Taxpayers receiving final demand letters before the initial submission deadline, causing confusion.
Tip: Stay vigilant of communications from SARS and promptly address any timeline discrepancies.
In addition to these challenges, ongoing collaboration between regulatory bodies like SAICA and SARS remains imperative. By actively engaging with SARS, these organizations endeavor to improve the tax system’s functionality and address challenges effectively. As tax professionals navigate these complexities, remaining abreast of updates from SARS and adopting proactive strategies will be pivotal in ensuring operational smoothness and compliance with tax regulations.
For any enquiries, please contact RVN Taxation Services on 012 348 5073.
Written by: Anika Bester – Tax Manager – RVN Taxation Services (Pty) Ltd