Tax Ombud Probes Sars Over Rampant Tax Profile Hijackings

The specter of compromised financial security looms over South African taxpayers as the Office of the Tax Ombud (OTO) deepens its scrutiny into the South African Revenue Service’s (Sars) approach to handling eFiling profile hijackings. This investigation comes as a response to the widespread distress caused by a sharp rise in identity theft incidents within the tax system, particularly during the peak of the tax refund season.

This problem has persisted, calling into question the effectiveness of current security protocols and potentially eroding the public’s trust in the tax authority's capability to safeguard personal and financial data. It was against this backdrop that Yanga Mputa, the Tax Ombud, opted for a full-scale investigation—a procedural step that demanded the nod from Finance Minister Enoch Godongwana.

The investigation is set to explore the layers of the issue: how fraudsters manage to manipulate user login data and modify essential details like bank account numbers with alarming ease, swiftly redirecting refunds into their pockets. The risk becomes even more pronounced during the annual tax filing period which ignites a flurry of activity, creating opportune moments for these hijackers to siphon off refunds.

Through this examination, the OTO seeks to form concrete recommendations to assuage this pressing issue and construct a more robust and secure tax filing system. Engagements with Sars, affected taxpayers, and related industry bodies are on the agenda to ensure a comprehensive approach to this multifaceted problem.

The OTO's intervention is not unprecedented. In the past, they have engaged in systemic investigations to inspect and ameliorate inefficiencies within Sars. Previous inquiries have revealed delays in delivering verified refunds and nonadherence to designated dispute resolution timeframes—each pointing toward entrenched procedural issues within Sars. Timely response and resolution from the tax collector have been areas of significant concern, as reflected in the OTO’s prior reports.

The outcome of this systemic investigation could be transformative for the financial safety and operational rationality of the taxpayer service landscape. With a focus on the integrity of the eFiling system and the effectiveness of Sars’s response strategies, the Tax Ombud is setting the stage for potential reforms that may redefine taxpayer support and security in South Africa.