SARS requested that long outstanding cases must be escalated and where a TCC is denied due
to this issue, this must also be escalated. Members who would like to escalate such matters must
log these on the SAICA Member Portal under the SARS Operational category, indicating the
SARS branch and case reference number/s for initial follow up with SARS.
4. Inability to file personal tax returns due to issues with directives
In addition to the above, there are still cases where tax practitioners and/or taxpayers are unable
to file personal income tax returns due to directive errors or mismatches. SARS directs the tax
practitioner/ taxpayer to the retirement fund and the retirement fund directs them back to SARS.
SARS WC advised that a fix was implemented at the beginning of March and taxpayers should
now be able to submit the affected returns, even if the system identifies a mismatch. The return
will be processed and is likely to be subject to a verification to resolve the mismatch.
If members are still unable to submit and wish to escalate such matters, these must be logged
on the SAICA Member Portal under the SARS Operational category, indicating the SARS branch
and case reference number/s for initial follow up with SARS.
5. SARS not complying with dispute timelines
There are many instances where SARS are not complying with the timelines provided for in the
Dispute Rules. These delays are experienced throughout the process, from objections through
to the ADR process.
SARS acknowledged that there was a backlog with respect to objections and confirmed that there
is a national project to focus on this and address the backlog. It was noted that SARS had
prioritised resolving the delayed refunds and verifications and now that the backlog with respect
to this has been cleared, it is shifting its focus to disputes.
With respect to appeals, these are dealt with by SARS’ legal division. Within SARS WC, the team
is working closely with the compliance division to resolve outstanding appeals. The region
currently has a significant number of cases, with only 6 consultants to deal with these, in addition
to other functions performed by the division. Where a case is outstanding for a year or more,
SARS requested that these be escalated for urgent intervention. Other urgent cases may also be
escalated.
What is concerning is that, according to SARS, a majority of appeals relate to objections which
were disallowed because the taxpayer or tax practitioner failed to submit the request supporting
documents. This results in unnecessary work for SARS and delays for the taxpayer, when this
could have been avoided, if the requested documents were submitted. This also contributes to
the high number of successful appeals as it is only at appeal stage that evidence is provided. Itw
as acknowledged that in some instances, SARS’ requests for documentation is not always clear
or specific enough and SARS is working hard to make the requests for documentation more
specific, but this is a work in progress. There is an improvement planned for the next filing season.
SARS has requested that tax practitioners submit requested documents timeously and in a clear
and understandable format. In SARS view, in most instances, the documentation should be on
hand as it would have been required in the preparation of the related returns. SARS also raised
concerns regarding a lack of understanding of basic tax principles, on the part of some tax