SAICA raises concerns with SARS’ new service charter

The Commissioner of SARS has set his sights on rebuilding SARS to ensure the financial sustainability of the country and ensure a fair, effective, and efficient tax system. The Commissioner notes that The Strategic Plan 2020 – 2024, presents an inspirational vision to build a smart modern SARS, with unquestionable integrity, trusted and admired.

The Commissioner has also noted that a hard stance against non-compliance will be taken with the objective to detect taxpayers and traders who do not comply and make non-compliance hard and costly.

SARS released its revised Service Charter on 9 May 2022, with an effective date of 1 April 2022.

This follows SARS’ 2020 call for comments on the previous version of the SARS Service Charter to which SAICA provided proposals for enhancements. It is noted that in revising the Service Charter, SARS has taken into account external inputs, its own audit observations and systemic issues raised by the Office of the Tax Ombud and there have been improvements since the 2018 version thereof.

However SAICA expresses its concern, especially in part 10 of the Service Charter, in which SARS has taken a position, that matters that require the organisation to lawfully adhere to, are matters that SARS ‘can merely strive to’. SAICA has previously raised its concerns with this approach in its comments on the draft and in our recent submissions to Parliament.

Part 10 of the SARS Service Charter deals with Disputes in terms of the Tax Administration Act. The Tax Administration Act, read together with the Dispute Rules promulgated under section 103 of that Act prescribes specific timelines which SARS and taxpayers must comply with, and includes processes in respect of requests for reasons, objections and appeals to assessments. These timelines are not voluntary or “best-effort” but are compelled by law.

The SARS Service Charter further states that SARS is aiming to only partially comply with timelines legally imposed on it – i.e. that it envisages between 50% – 90% compliance with different dispute rules, as set out therein. “This is an unfortunate approach as this could be likened to taxpayers only partially complying with their legal obligations, something the Commissioner would not overlook or accept. It is SAICA’s view that SARS should be holding itself to the same high compliance standards that it holds taxpayers to and therefore nothing less than 100% compliance is what the expected service level should be”, said Somaya Khaki, Project Director of Tax at SAICA.

Whilst the Dispute Rules provide remedies to taxpayers in the event of SARS’ non-compliance therewith, enforcement of taxpayer rights comes at a price that is unattainable for most and should not be necessary for a fair, effective and an efficient SARS that upholds and subjects itself to the law.

“We hope that the Commissioner will relook at the Service Charter as a matter of urgency to ensure that it not only becomes a tool to empower his vision for SARS, but also serves to enforce taxpayer rights and restore public trust in SARS”, stated Khaki.

About SAICA

The South African Institute of Chartered Accountants (SAICA), South Africa’s pre-eminent accountancy body, is widely recognised as one of the world’s leading accounting institutes. The Institute provides a wide range of support services to more than 50 000 members and associates who are chartered accountants (CAs[SA]), as well as associate general accountants (AGAs[SA]) and accounting technicians (ATs[SA]), who hold positions as CEOs, MDs, board directors, business owners, chief financial officers, auditors and leaders in every sphere of commerce and industry, and who play a significant role in the nation’s highly dynamic business sector and economic development.

Chartered Accountants are highly valued for their versatile skill set and creative lateral thinking, that's why all of the top 100 Global Brands employ Chartered Accountants.

SAICA Media Contacts

Kgauhelo Dioka, ***@saica.co.za
073 398 8633
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Renette Human, ***@saica.co.za
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