SARS refund complaints are valid

The investigation by Tax Ombud Judge Bernard Ngoepe into the alleged delayed payment by the South African Revenue Service (SARS) of VAT refunds has found the complaints are justified.

The report identified several mechanisms that SARS has used to delay the payment of tax refunds and has further urged the tax authority to terminate them while at the same time acknowledging that these methods had been employed to combat fraud in some instances.

"It is clear that the system allows for SARS to unduly delay the payment of verified refunds to taxpayers in certain circumstances. This has become a systemic issue.

"The system does not sufficiently protect taxpayers. The removal of the obstacles would go a long way towards addressing the problem‚" the judge said in his conclusion.

Judge Ngoepe’s investigation was prompted by the sharp increase in the number of complaints by taxpayers.

- Business Day