SARS Forced to Repay R168 Million to Taxpayers After Complaints
The Office of the Tax Ombud (OTO) has revealed that the South African Revenue Service (SARS) was compelled to refund ten taxpayers a combined R168 million during the 2024/25 financial year following successful complaints.
According to the OTO’s latest annual report, the office received 4,913 tax complaints over the year. Of these, 46% (2,265 cases) were accepted and referred back to SARS with recommendations for resolution.
Complaints on the Rise, but Fewer Accepted
While the total number of accepted complaints declined slightly compared to the previous year—likely due to stricter validation—the OTO said the rise in rejected complaints suggests that many taxpayers still misunderstand the proper complaint channels.
Over 1,650 complaints were rejected, and 996 were withdrawn by taxpayers themselves.
Most rejections (87%) stemmed from taxpayers failing to first exhaust SARS’s internal complaints process, as required under Section 18(4) of the Tax Administration Act (TAA).
Other rejections involved matters already under appeal, objection, or outside the OTO’s mandate.
What the Ombud Found
Accepted complaints often related to delays in verification, issuing of tax residency certificates, and portfolio maintenance such as deregistering or reactivating tax numbers.
Others involved taxpayers stuck in SARS’s objection or appeal processes.
SARS successfully resolved 2,390 complaints in 2024/25—an improvement from 2,178 the previous year—and implemented 2,374 of the OTO’s recommendations, representing a 99.33% compliance rate.
Only 16 recommendations were not implemented, for various reasons.
Refunds That Make a Difference
The OTO said its impact is most visible in the monetary refunds SARS is forced to pay following its interventions.
“These refunds are often life-changing for taxpayers, particularly small and medium businesses,” the ombud noted.
The OTO does not disclose total refund values, but tracks the top 10 largest cases each year.
In 2024/25, these amounted to R167.98 million, slightly lower than the R179.18 million recorded in 2023/24 — a 6.27% decrease year-on-year.
“Despite the decline, the consistent high value of refunds reflects the systemic nature of refund delays and the OTO’s ongoing role in addressing them,” the report stated.
Most refunds related to Value-Added Tax (VAT), followed by Corporate Income Tax (CIT) and Payroll Tax — echoing historical trends where verification delays and disputes cause bottlenecks.
Faster Dispute Resolution
The OTO also reported progress in speeding up resolutions:
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43.01% of recommendations were finalised within 15 days, up from 29.98% the year before.
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However, the number of cases taking longer than 91 days also rose, suggesting room for improvement in handling complex or contested cases.
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