At That Point
  • home
  • services
  • about us
  • our work
  • our thoughts
  • SAIPA Newsroom

Proposed tax administration law amendments welcome, but concern remains

28/8/2016

0 Comments

 
Picture
By: Sibusiso Thungo, Tax Manager, South African Institute of Professional Accountants.
 
In early August this year, comments were submitted for the draft 2016 Tax Administration Laws Amendment Bill that brings welcome change and thought-provoking additions.
 
However, Section 16 of the bill has caused a major concern. To clarify, this section speaks of the mandate of the Office of the Tax Ombud to review and investigate any systemic issues related to a service matter; including the application of the provisions of the Tax Administration Act; or procedural or administrative provisions of a Tax Act, as defined in the above Act, only at the request of the minister. It is one of the areas being discussed with the ministry to ensure that the Office of the Ombud has true power to bring on substantial change and oversight.
 
We want to see that the Office of the Ombud is being given the ability to investigate complaints about infringements of taxpayers’ rights by South African Revenue Services (SARS).
 
This includes recent allegations that SARS delays paying refunds, especially around their financial year end. These have never been investigated, so if the Office of the Ombud can achieve this kind of power, then it would be of inordinate value to taxpayers. It means that SARS will be called to question when their actions are not in line with taxpayers’ constitutional rights, or fair and reasonable administrative actions.
 
It must be noted that the above is not something new for the Office of the Ombud, other jurisdictions like Canada, India and Australia have been given a similar mandate.
 
Rise of the Tax Ombud
The Office of the Tax Ombud was originally created in 2013 to engage with the rising concerns of taxpayers when dealing with SARS, as well as to take a vital seat at the taxation table.
 
There was a need to have an intermediary to deal with the complaints laid before SARS. Under the leadership of Judge Bernard Ngoepe, this Office of the Ombud has seen considerable success and played a pivotal role in resolving a significant number of cases.
 
To date, 88% of the cases referred to the Office of the Ombud have been resolved with SARS taking its recommendations into consideration. It has, perhaps surprisingly, found joy on behalf of taxpayers and practitioners in spite of having limited authority and weight. These successes have played no small part in the proposed changes ahead.
 
More time for mandate
Also included within the draft bill are crucial proposed changes to the Office of the Ombud that could potentially give both taxpayers and Ombud greater control and independence when it comes to dealing with SARS and provide taxpayers with a reliable, neutral space in which to address challenging situations or issues.
 
With the current legislation, the Office of the Ombud has only three years to achieve its mandate. The new draft legislation proposes to extend this duration to five years, a very welcome and applauded step, as it can be difficult to instigate real change in only three years. This is particularly true of an office that is so new.
 
By extending the length of time for the Office of the Ombud to run, the draft legislation will allow the office potentially save even more taxpayers’ frustration and concern. Should the legislation be signed off, the office will run for five years effective from 2017, but how it will be managed and when its start date finalised has yet to be determined.
 
Other welcome changes
In addition to the time extension, the Office of the Ombud has been given more power. Previously, when the office wanted to appoint staff, they could only do so in accordance with the SARS Act and after consultation with the SARS commissioner. With the current draft legislation, the office now has the autonomy to independently appoint staff and this will support them in attracting talent. It shows that they are increasingly independent of SARS.
 
Finally, the proposed amendments also place control of the budget into the hands of the Ombud. While the organisation will still be funded by SARS under the proposed legislation, there are at least some steps being taken to shift the boundaries of control.
 
Currently, the recommendations the Office of the Ombud makes are not binding to SARS and taxpayers. They may choose to follow them or not, however if not accepted by a taxpayer or SARS, reasons for such decision must be provided to the Office of the Tax Ombud. SARS has accepted all of these recommendations so far and it is clear that they take the Office of the Ombud seriously. Hopefully this will only bode well for the growth of the office going forward.

ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za  
 
For more information on SAIPA please visit:
Website: www.saipa.co.za
Twitter: @SAIPAcomms
LinkedIn: South African institute of Professional Accountants group
Facebook: South African Institute of Professional Accountants

0 Comments
    Welcome to the SAIPA newsroom. For releases prior to August 2014 please click here.

    Archives

    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    April 2015
    February 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014

    Categories

    All
    2014/15 Tax Filing Season
    2016 Tax Administration Laws Amendment Bill
    21 February 2018
    4IR
    Accountability
    Accountancy
    Accountants
    Accounting
    Accounting Ethics
    Accounting Institutions
    Accounting Integrity
    Accounting Standards
    Advice For Professional Accountants
    Africa
    Anti-corruption Pledge
    B-BBEEE
    Blockchain
    Bongani Coka
    Brian Purcell
    Bridging The Gap
    Budget 2015
    Budget 2016/17
    Budget Speech 2018
    Business
    Business Budget
    Business Rescue
    Cadre Formation
    Carbon Tax
    Careers
    CEO
    Code Of Ethics
    Companies Act
    Constitution
    Continuing Professional Development
    CPA Ireland
    CPD
    Cryptocurrencies
    Cryptocurrency
    Cyber Crime
    Cyber Security
    Cyril Ramaphosa
    Darren Gorton
    David Van Rooyen
    Davis Commission
    Debt
    Debt Intervention Bill
    Deloitte
    Department Of Basic Education
    Department Of Home Affairs
    Die Hoërskool DF Malan
    Different Types Of Accountants
    Doctoral
    Economic Climate
    Economic Development
    Economic Growth
    Economic Instability
    Economy
    Education
    Empowerment
    Environment
    Estate Planning
    Ethics
    Ettiene Retief
    Exxcellence
    Faith Ngwenya
    Female Entrepreneurs
    FICA
    FICA Bill
    Finance Minister
    Financial Intelligence Centre Act
    Financial Statements
    Fiscus
    Foreign Trade
    Fraud
    Georgina Barrick
    Global Economy
    Government
    Government Institutions
    Grade 11
    Grade 12
    Grant Thornton
    Health Issues
    Honours Degree
    HSBC
    IFAC
    Initial Coin Offerings
    International Business Report
    International Federation Of Accountants
    International Standard Of Review Engagements
    IRC Of SA
    Job Creation
    Job Losses
    Juane Cronje
    KPMG
    Kwa-Zulu Natal
    Large Business Centre
    LBC
    Learners
    Legal
    Malusi Gigaba
    Mandela Day
    Mark Kingon
    Marnus Broodryk
    Masters Degree
    Mathematics
    Medium-Term Budget Policy Statement
    Membership
    Mid-term Budget
    Mini Budget
    Moetapele Programme
    Momorandum Of Understanding
    Money Launderers
    Monitoring Females
    MTBPS
    NAO
    National Accounting Olympiad
    National Budget 2017
    National Consumer Tribunal
    National Credit Amendment Bill
    National Credit Regulator
    National Development Plan
    National Health
    National Imperatives
    National Tax Thesis
    NOCLAR
    Non-compliance
    Non-Compliance With Laws And Regulations
    Norton Rose Fullbright
    Obesity
    PAFA
    Pan African Federation Of Accountants
    Parilament
    Parliament
    Parliament’s Trade And Industry Committee
    Passenger Identity
    Paying Taxes Report 2018
    PE Exam
    Personal Details
    Personal Income Tax
    Pravin Gordhan
    Prem Govender
    Professional Accountants
    Professional Accountant (SA)
    Professional Accounting
    Professional Evaluation Exam
    Project Achiever
    Project Achiever Extended
    Protection Of Information
    Public Schools
    PWC
    Ragiema Thokan Mahomed
    Ragiema Thokan-Mahomed
    Rashied Small
    Repositioning
    Retirement Funding Reform
    SAIPA
    SAIPA Budget Breakfast
    SARS
    School
    School Learners
    Service Delivery
    Shahid Daniels
    Shahied Daniels
    Shirley Olsen
    Sibusiso Thungo
    Skills
    Skills Development
    Skills Retention Plan
    Skills Shortage
    SMEs
    South Africa
    South African Institute Of Professional Accountants
    South African Institute Of Professional Accountants
    South African Institute Of Tax Professionals
    South African Schools Act
    Struggling Economy
    Students
    Sugar Tax
    Sugary Drinks
    Sustainibility
    Tax
    Tax & Accounting Thesis Competition
    Tax Administration Act
    Tax Administration Laws Amendment Bill
    Taxation
    Tax Clearance Certificates
    Tax Compliance
    Tax Filing Season
    Tax Indaba 2016
    Tax Law
    Tax Ombud
    Tax Payers
    Tax Practitioner
    Tax Season
    Tax Thesis
    Tax Thesis Competition
    Technology
    Tertiary Education
    The Financial Intelligence Centre Amendment (FIC
    Thesis/dissertations
    The South African Institute Of Professional Accountants
    The South African Revenue Service
    The Tax Administration Act
    Thomas Hoeppli
    Tom Mojane
    Transformation
    Treasury
    Trust
    Trusts
    UCT
    Unemployment
    University Of Cape Town
    Value Added Tax
    VAT
    Wealth Taxes
    Winslyn
    Women
    Women Empowerment
    Women's Month
    Workplace
    World Bank
    Xenophobia
    Youth
    Zobuzwe Ngobese

    RSS Feed

CONTACT US

office [at] atthatpoint [dot] co [dot] za
© COPYRIGHT 2020
ALL RIGHTS RESERVED.

  • home
  • services
  • about us
  • our work
  • our thoughts
  • SAIPA Newsroom