Top Complaints Against SARS – And How We Help You Avoid Them

When it comes to SARS, the most common taxpayer complaint is no surprise: delayed refunds. But that’s only one of several recurring problems – known as systemic issues – that impact businesses across South Africa.

The Office of the Tax Ombud (OTO) keeps track of these issues, working with SARS to resolve them. Over the years, the number of systemic issues has dropped from more than 20 to just seven, but the impact on businesses remains significant.

The 7 Systemic Issues at SARS

1. Delays in the payment of refunds.

2. Missed timeframes in dispute resolution under the Tax Administration Act (TAA).

3. Tax Compliance System (TCS) design flaws causing undue hardship.

4. No response to deferred payment arrangement requests (within 21 days).

5. No response to compromise requests (within 90 days).

6. No response to suspension of payment requests (within 30 business days).

7. Repeat verifications for reduced assessments or identical supporting documents.

Why These Issues Matter to Your Business

• Cash flow challenges: Late VAT and diesel refunds can stall growth and even threaten business survival – especially for SMEs.

• Lost contracts: The TCS may flag businesses as non-compliant even when payment arrangements are in place, resulting in lost tenders or unpaid invoices.

• Prolonged non-compliance: SARS delays in dispute resolution or payment requests leave taxpayers unfairly marked as non-compliant.

• Wasted time and costs: Repeat verifications add unnecessary admin and financial strain.

As author Terry Pratchett once said: “There was death and taxes, and taxes were worse, because at least death didn’t happen to you every year.”

How We Protect Your Interests

As your SARS-registered tax practitioner, we make sure your dealings with SARS are as smooth and efficient as possible. Here’s how:

• Compliance first: We help put systems in place for accurate record-keeping – your best defence against SARS issues.

• Expert representation: Our tax team can manage disputes professionally and within the correct legal framework.

• Inside knowledge: We understand SARS’ service levels, timeframes, and escalation processes – including the SARS Complaints Management Office.

• Fast-tracking complaints: We recognise systemic issues early and escalate them to the Tax Ombud where needed.

• Independent recourse: If all else fails, we can assist you in accessing the OTO’s free and independent support.

• Risk protection: We advise on tax risk insurance to safeguard your business against costly audits and disputes.

Systemic issues at SARS may be outside of your control – but protecting your business from their effects isn’t. With our expertise, you can focus on growth, while we ensure your SARS interactions are efficient, compliant, and cost-effective.