We have recently become aware of some of the most compliant clients in our practice being required to submit to a tax audit. In most cases this takes the form of an upload of supporting documents on the SARS website. It has been suggested that this requirement is merely a smokescreen by SARS in their attempts to postpone tax refunds. This is becoming increasingly problematic for our profession and for an increasing number of the tax paying public. This view is supported in the extract below (in italics) from an article written by Pieter Faber in correspondence received from the South African Institute of Chartered Accountants:
“We also continue to note that taxpayers are experiencing increasing frustration in refunds being withheld for audits on tax matters. As these matters are seemingly not in accordance with standard procedure it complicates member’s ability to use the remedies available in law.
We are engaging with SARS along with the other recognised controlling bodies at the highest possible level. We understand that this matter must be resolved with the utmost urgency. In the interim, we advise our members to log their complaints with the SARS Complaints Management Office (086 012 1216) and to then escalate the matter to a higher authority such as the Tax Ombud once that remedy has been exhausted.”
We continue to follow up with SARS on the progress of refunds and should this not be successful we will investigate other options if applicable.
