 While it is the season to be jolly, it’s also a time for caution, as South Africans face a heightened risk of tax scams during this period.
“People are more relaxed this time of year and tend to let their guard down, making them easy targets for tax fraudsters,” says Jemaine Manikus, CEO of Latita Africa. Spot the scam Scammers employ a range of schemes to con people out of money or sensitive tax information they can use in subsequent crimes. To reach their goal, they usually pose as a SARS official or authorised third-party online, in the mail, over the phone, through SMS or in person. They’re masters at “social engineering”, which simply means they know how to manipulate a person’s behaviour using language that triggers our laziness, fear, greed or trusting nature. “Don’t think for a moment that you’re too clever to be outsmarted by them; they are masters at getting you to do what they want because they’ve practiced on thousands of others before you,” says Manikus. However, most attempts usually boil down to:
Regardless of which method a scammer uses, always follow these simple rules:
Apart from the typical username and password, SARS has long used two-factor authentication to protect access to its eFiling website and mobile app (MobiApp). This can either be in the form of a One-Time PIN (OTP) delivered by SMS or email, or a login alert through MobiApp. Two recent enhancements include making two-factor authentication compulsory for all individual profiles, and confirming and updating security contact details. Bear in mind though, there has been a growing trend in SIM swapping and cloning. This can allow criminals to receive security messages sent to your phone, like OTPs, and use them to break into your account. It’s best to use the MobiApp because it creates login alerts that cannot be intercepted from the outside. In addition, SARS is introducing facial recognition authentication for all individuals registering for Personal Income Tax through its eFiling website, MobiApp or Self-Service Kiosks. “These are essential security features that can help, but taxpayers still need to be vigilant and do their part to protect themselves,” says Manikus. Look before you leap The best way to defend yourself against scammers is to always verify what is happening before taking any action by calling the SARS Contact Centre on 0800 00 7277. If SARS doesn’t know about an email, letter, phone call, text or chat message, personal visit or the official in question, then they should not be trusted. If you feel you are the victim of a scam or an attempted scam, call the SARS Fraud and Anti-Corruption Hotline on 0800 00 2870 for assistance. Lastly, to educate yourself on the latest attacks, visit the SARS Scams and Phishing webpage where you’ll find good advice and examples of fake correspondence. Use your tax consultant as your first line of defense A registered tax consultant is a sometimes overlooked but essential first line of defense against tax scams. They can readily identify communications as fraudulent or verify their authenticity through their close contact with SARS. On top of that, they’ll manage your eFiling profile for you, monitor your account for unauthorised access or transactions, and provide technical support to secure your tax data. That said, taxpayers should ensure their tax advisor is actually registered with SARS and prefer firms with a strong tax legal team on board. “It’s an often-used term for attorneys, but it’s just as valid to say ‘Don’t talk to me, talk to my tax advisor’; you’re far better protected if everything goes through your tax consultant, especially over the festive season,” says Manikus. ENDS MEDIA CONTACT: Idéle Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za For more information on Latita Africa please visit: Website: https://latitaafrica.com/ LinkedIn: https://www.linkedin.com/company/latita-africa/?originalSubdomain=za Facebook: https://www.facebook.com/latita.africa/ X: https://twitter.com/latita_africa
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 Taxpayers increasingly view themselves as walking a tightrope from a compliance perspective, with SARS (South African Revenue Service) on one side and a daunting administrative burden on the other.
The stakes can be very high, and it does not help that the rules of engagement are always changing. When it comes to disagreements with SARS, things certainly have changed from how they used to be. Providing half answers to SARS requests, with no substantial detail, along with an inclination to try and keep important information away from SARS is now hurting more and more taxpayers. SARS is evolving, and in order to avoid friction with the taxman, taxpayers need to adapt. One of the golden rules in tax is that the onus of proof generally falls on the taxpayer. At the same time, the tax authority has become increasingly proficient and vigilant in its collection efforts. So, how do you ensure you’re not caught on the wrong end of SARS, or in the crossfire of a SARS dispute? “Prevention is certainly better than cure, when it comes to tax. But when things do go wrong, before you decide to lodge a dispute, it’s crucial to first be honest about the completeness and accuracy of your submissions – and to approach the dispute from that angle,” advises Razael Manikus, COO at Latita Africa. Common Reasons for Tax Disputes In the past, taxpayers would often point fingers at SARS for their woes. Denied their deductions and misplaced assessments, despite providing sufficient evidence, were common culprits. Now, however, the tables are turning. According to Manikus, an increasing number of tax disputes are arising from taxpayers or their accountants either submitting incorrect (e.g. nil) returns or providing incomplete to no information during SARS verification requests. “More and more, we have found disputes becoming necessary due to rushing tax return submissions through at the last minute to avoid late penalties. Many times, this is done under the impression that it will be corrected later, which is not always the case and there are many instances when no corrective steps are taken in time. Unfortunately, this only makes matters worse,” says Manikus. Becoming Tax Compliant and Resilient According to the firm, the best defence against an adverse tax assessment by SARS is a strong offense – in other words, proactive tax management. For both businesses and individual taxpayers alike, integrating tax planning and management into your financial routine is essential. Being well prepared for submissions on time eliminates the need to rush and reduces the risk of costly errors or omissions. A strategic, evidence-first approach to your tax affairs is key. “A competent tax advisor will help you develop a personal and business tax management system that keeps you compliant and resilient to adverse tax events. This should be a hallmark of your relationship with your advisor,” says Manikus. Getting the Ball Rolling SARS is not infallible. Mistakes can occur, and when they do, having a proactive stance allows you to address the issues head-on. Your first step in challenging an incorrect tax assessment is usually to submit a Request for Reasons, compelling SARS to provide definitive reason for their assessment if one has not already been given. This not only equips you with valuable information to build your case but also keeps SARS to the defined issues (i.e., reasons) later on. With an evidence-based approach, meeting the (generally 80-business-day) deadline to lodge an objection becomes a lot more manageable. Even if this deadline is missed, you can still take action up to three years later in many cases, provided you have compelling reasons for the delay. Knowing When to Hand Over Navigating the maze of the tax dispute resolution process with SARS requires more than just mere persistence or principle; it demands expertise. A diligent tax practitioner also knows that a dispute is not the only tool at their disposal. They might, for instance, recommend a (non-contentious) Request for Reduced Assessment when appropriate. Understanding the full range of mechanisms available for dealing with SARS is crucial. A qualified tax practitioner, armed with a mastery of these tools and strong legal expertise, can protect your rights throughout the process. “SARS is to be commended for its commitment to becoming a technologically advanced tax authority, but taxpayers will increasingly need specialist help to stay ahead of the compliance curve, as it remains a moving target,” adds Manikus. Staying Ahead in the Compliance Game In the world of tax compliance, staying ahead of the game requires more than just following the rules – it requires strategic planning, proactive management, and expert guidance. As SARS evolves, so must your approach to SARS engagement. In the land of the blind, the one-eyed man is king. Equally so, by taking an evidence-first approach and seeking the right expertise where necessary, you can confidently navigate this new era of tax compliance with a full view of the risks ahead of time and the means to effectively deal with them. ENDS MEDIA CONTACT: Idéle Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za For more information on Latita Africa please visit: Website: https://latitaafrica.com/ LinkedIn: https://www.linkedin.com/company/latita-africa/?originalSubdomain=za Facebook: https://www.facebook.com/latita.africa/ X: https://twitter.com/latita_afric |
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