SARS’ “SPIN” ON “HACKED” TAXPAYER ACCOUNTS

The disappearance of tax credits, or refunds, from taxpayers’ accounts has been the subject of much media discussion during the past year.

In a recent response, SARS apparently alleged that they will not be liable to refund such amounts, where the taxpayer’s  accounts have allegedly been “hacked”.

I do not to believe that SARS can evade responsibility in each case where credits have been paid apparently unlawfully, to third parties. In a recent matter, a taxpayer submitted his income tax return, which claimed a large refund, which was mysteriously paid to someone else.

His investigations revealed that his bank account details, as contained in SARS electronic filing system, had miraculously been deleted, and replaced with the details of another bank account, without the implementation of SARS usual stringent verification process, which it imposes on taxpayers, to verify new bank accounts.

Soon after this change, the refund was paid into this new bank account.

Despite reporting this allegedly unlawful payment to SARS’ fraud department, the taxpayer received no further communications, for nearly two and a half years.

It was only when SARS received the formal notice of the taxpayer’s intention to seek the necessary relief from the High Court, that SARS suddenly paid the refund to him, apparently with interest, and without any explanation.

It is entirely plausible to accept that this payment, without any explanation, or qualification, is an admission of SARS’ liability for the unlawful payment to the third party.

No taxpayer should simply be expected to bear the loss of such similar unlawful payments. So much for SARS’ attempt to deny liability.

SARS “spin doctors” also conveniently ignore its legal obligation to provide “…effective, secure, and reliable SARS electronic filing services”.