The South African Revenue Service (SARS) proudly advertises itself as being “At Your Service”. However, the actual experience of many taxpayers paints a starkly different picture. Instead of smooth, efficient interactions, many find themselves caught in bureaucratic nightmares, grappling with inefficiencies that SARS itself often creates. Here are just a couple of recent examples that highlight the irony of this claim.
The public officer fiasco
HRTorQue, a company providing payroll services, submits EMP201 returns for its clients. For this, it must be registered on the clients’ EMP201 profile with SARS. A little while back, SARS implemented a system change that reviewed taxpayer profiles and, where a public officer was missing, arbitrarily assigned the role to any person listed on the profile.
The result? One of our colleagues, as the primary contact on HRTorQue’s profile, was suddenly designated as the public officer for multiple companies. When we approached SARS to rectify the error, their response was astonishingly unhelpful: “We cannot make this change. You need to set up 18 different appointments and visit us in person to correct each instance.”
So, my colleague setup the appointments as instructed and visited the branch only to be told at various points:
- “We cannot help you. We cannot take you off as public officer unless there is somebody to change it to.”
- “Go to CIPC – they can help.”
- “This wasn’t us. Somebody must have fraudulently used your ID.” (except the ID is different and managed to sneak past SARS’s defences)
What’s next? A lawyer’s letter?
SARS made the mistake, yet it is the taxpayer who must expend significant time and effort to resolve it.
The mysterious delays in tax refunds
Have you ever been due a tax refund, only to find that SARS suddenly requests additional documentation or identifies new ‘issues’ that delay payment? It’s a pattern many taxpayers have noticed: refunds are delayed through procedural hurdles that appear conveniently timed to keep SARS from paying out promptly. The question arises – are these inefficiencies merely coincidental, or is SARS leveraging bureaucracy to hold onto taxpayer money for as long as possible?
The burden on tax practitioners
We are aware of tax practitioners who no longer file income tax returns for individuals because of the additional time required to send in supporting documentation. The process has become too expensive, making it impossible to charge clients the actual cost of submitting their returns. This has the potential to discourage compliance and force taxpayers to navigate an increasingly complex system on their own.
A system that works against taxpayers
Tax laws and processes are undeniably complex, making it difficult for ordinary taxpayers to comply fully, even with the best intentions. The oft-repeated maxim “ignorance of the law is no excuse” seems unfair when the legislation itself is nearly indecipherable to those who are not tax professionals. Instead of making compliance easier, SARS appears to introduce roadblocks that frustrate taxpayers and businesses alike.
The bigger picture: A strained social contract
South African taxpayers already feel disillusioned about where their contributions go. They see little return on their hard-earned money – municipal services are failing, potholes litter the roads, water supply is unreliable and electricity shortages are a daily reality. Even SARS has admitted that its own systems are outdated. Given this backdrop, SARS’ attempts to claim the moral high ground ring hollow.
A call for change
If SARS truly wishes to be “At Your Service”, it must make tangible improvements. Taxpayers should not have to jump through hoops to correct SARS’ own mistakes. Refunds should not be systematically delayed. Above all, SARS should acknowledge that its role is to facilitate compliance, not to obstruct and frustrate those who are simply trying to follow the rules.
Come on SARS, make it easier for people, not harder.
If you are one of the many frustrated taxpayers out there, connect with us. Our team of tax specialists can help you with all your tax and compliance challenges. Email us on [email protected].