Publications
Partners
Johannesburg - The introduction of a tax ombudsman may not be that helpful to taxpayers, a tax expert said on Monday.
The office of a tax ombud was introduced in terms of the latest draft tax administration bill released for public comment on October 29.
“This follows from years of lobbying in order to introduce this office in circumstances where the Sars monitoring office has seemingly failed to address the needs of taxpayers," said Emil Brincker, director and head of national tax practice at law firm Cliffe Dekker Hofmeyr.
Tax ombud staff must be employed in terms of the South Africa Revenue Service (Sars) Act. They would be seconded to the tax ombud's office by the commissioner after consultation with the tax ombud.
“In this context the impression may be created that such personnel may be biased to the extent that they are still employed within the framework of the South African Revenue Service Act," Brincker said.
In addition, the costs of the office would also be funded by Sars.
The ombud's powers are limited to procedural and administrative issues.
“It is specifically indicated that the tax ombud may not review legislation or tax policy or Sars policy, other than to the extent that it may relate to a service matter or a procedural or administrative matter. Once a matter is subject to objection and appeal, the tax ombud may not interfere,” said Brincker.
Some of the practical provisions were the same as those for the Sars monitoring office, which had proved problematic.
“If the same types of practical provisions are to be followed with reference to complaints to the tax ombud, similar issues may arise with reference to substantial time delays before the matter is ultimately reviewed by the tax ombud."
Brincker was also concerned about confidentiality.
“Even though there is a general provision dealing with confidentiality, the tax ombud may disclose information that does not reveal the identity of the taxpayer," he said.
"He must also disclose information if required by the Tax Administration Act or an act of parliament.This goes back to the secrecy provisions and the possibility that information may be disclosed in some circumstances."
Brincker said that clause 71 of the bill provides that Sars may, pursuant to an application to a judge, disclose offences to either the South African Police Service or the National Director of Public Prosecutions.
The office of a tax ombud was introduced in terms of the latest draft tax administration bill released for public comment on October 29.
“This follows from years of lobbying in order to introduce this office in circumstances where the Sars monitoring office has seemingly failed to address the needs of taxpayers," said Emil Brincker, director and head of national tax practice at law firm Cliffe Dekker Hofmeyr.
Tax ombud staff must be employed in terms of the South Africa Revenue Service (Sars) Act. They would be seconded to the tax ombud's office by the commissioner after consultation with the tax ombud.
“In this context the impression may be created that such personnel may be biased to the extent that they are still employed within the framework of the South African Revenue Service Act," Brincker said.
In addition, the costs of the office would also be funded by Sars.
The ombud's powers are limited to procedural and administrative issues.
“It is specifically indicated that the tax ombud may not review legislation or tax policy or Sars policy, other than to the extent that it may relate to a service matter or a procedural or administrative matter. Once a matter is subject to objection and appeal, the tax ombud may not interfere,” said Brincker.
Some of the practical provisions were the same as those for the Sars monitoring office, which had proved problematic.
“If the same types of practical provisions are to be followed with reference to complaints to the tax ombud, similar issues may arise with reference to substantial time delays before the matter is ultimately reviewed by the tax ombud."
Brincker was also concerned about confidentiality.
“Even though there is a general provision dealing with confidentiality, the tax ombud may disclose information that does not reveal the identity of the taxpayer," he said.
"He must also disclose information if required by the Tax Administration Act or an act of parliament.This goes back to the secrecy provisions and the possibility that information may be disclosed in some circumstances."
Brincker said that clause 71 of the bill provides that Sars may, pursuant to an application to a judge, disclose offences to either the South African Police Service or the National Director of Public Prosecutions.
