SARS finally released the SARS Service Charter on 1 July 2018, the day
on which filing season for 2018 commenced. One important use of the Charter is
to allow the Office of the Tax Ombud to evaluate SARS’ actual levels of service
against the level of service prescribed in the Charter. SARS faced calls from
the Office of the Tax Ombud to release the Charter, but it remained outstanding
for a number of years.
The Charter sets out what SARS does and how it seeks to meet its mandate
under the South African Revenue Service Act, 34 of 1997. The document sets out taxpayers’
rights and obligations, but does not create any new rights. The rights in the
document flow from the Bill of Rights in the Constitution and the obligations
flow from the fiscal statutes.
The rights and obligations set out in the Charter are as follows:
‘SARS will:
Help you by providing
• Courteous and professional service at all times
• Clear, accurate and helpful responses
• Instructions that are clear and concise on the actions you need to
take and by when
• Access to SARS via eFiling, the SARS Contact Centre, SARS branches and
Mobile Tax Units
• Self-explanatory leaflets and booklets on the SARS website www.sars.gov.za
and in branches
Be fair to you by
• Expecting you to pay only what is due under law
• Treating everyone equally
• Ensuring everyone pays their fair share
• Informing you if and when prescribed timeframes cannot be met
Respect your constitutional rights and privacy by
• Keeping your tax affairs strictly confidential
• Furnishing you with reasons for decisions taken regarding your tax and
customs affairs
• Applying the law consistently and impartially
If you are not satisfied, you may
• Exercise your right to request reasons for decisions and outcomes
regarding your personal tax affairs
• Exercise your right to object and appeal against an assessment or
qualifying decision
• Lodge an administrative complaint via eFiling, at a SARS branch or via
the SARS Contact Centre
• After having exhausted all administrative complaints processes within
SARS, lodge a complaint with the Office of the Tax Ombud
In return, your obligations are to
• Be honest
• Submit full and accurate information on time
• Comply with all prescribed administrative processes and timeframes
• Pay your tax and/or duties on time and in full, using the correct
payment reference number(s)
• Encourage others to pay their tax and/or duties on time and in full
• Not encourage or be party to any corrupt activity or fraud in any form
• Ensure that SARS has your correct personal information and payment
details
• Take responsibility for your tax affairs, even if you have authorised
someone to act on your behalf.
• Show our staff respect just as they are expected to respect you. If
someone else acts on your behalf, we expect the same respect from them.’
 |
| The SARS Service Charter sets out what SARS does and how it seeks to meet its mandate under the South African Revenue Service Act, 34 of 1997 Image bought from i-Stock "Compliance" by almagami |
From a review of the Charter it appears
that SARS want taxpayers to encourage other taxpayers to pay their tax and or
duties on time and in full. Whilst the sentiment for this statement is
understood it has no legal basis and cannot be legally enforced.
The Charter also sets out the levels of
service taxpayers can expect when interacting with SARS. It deals with the
following types of interactions with SARS:
·
Engagement
·
Registration
·
Returns/Declarations
·
Inspection, audit and
verification
·
Refunds
·
Payments
·
Debt
·
Disputes in terms of the Tax
Administration Act
·
Disputes in terms of the
Customs and Excise Act
Where SARS fails to adhere to the time
frames specified in the Charter, the taxpayer would have to complain to SARS
and adhere to the prescribed complaints process or lodge a complaint with the
Tax Ombud in the prescribed manner.
It must be noted that the Charter is not a
legal document and is only a statement of intent on the part of SARS. The Charter does not address the question of
taxpayers recovering wasted costs from SARS which is catered for in a number of
other countries.
In the United States, the Taxpayer
Advocate, an office similar to the Tax Ombud, can issue Taxpayer assistance
orders directing the Internal Revenue Service to refrain from taking action
against taxpayers in certain well-defined cases. It is unfortunate that, in
South Africa, the Tax Ombud does not, at this stage, have a similar power.
Another problem that still needs to be
addressed is the issue of legal assistance for indigent taxpayers. In the
United States, taxpayers can go to Low Income Taxpayer Clinics for assistance
with their tax affairs. It is hoped that in time something similar will be
introduced in South Africa.
Hopefully, SARS will meet the timeframes
stated in the SARS Service Charter and, whilst the Charter may not be perfect,
it is hoped that it will encourage enhanced tax compliance and result in a
better relationship between taxpayers and SARS.
Taxpayers need to be aware of their rights
and obligations in the tax arena and the Charter should assist in this regard.
Likewise, SARS needs to be mindful of taxpayers’ rights and must uphold those
rights as stated in the newly released Service Charter.
Dr Beric Croome is a Tax Executive at ENSafrica. This article first appeared in Business Day, Business Law and Tax Review, August 2018.
