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Tax Ombud Ngoepe on why they should be independent from SARS
The office of the Tax Ombud has been entrusted with conducting two reviews on SARS. The first on Pay-As-You-Earn and the other is adherence to time-frames prescribed by the rules for the resolution of disputes. Yet, the Office of Tax Ombud is not fully independent of SARS, relying on the tax agency for supporting governance, fiduciary and administrative functions. Judge Bernard Ngoepe, Tax Ombud joins CNBC Africa for more.
Thu, 10 Oct 2019 12:08:53 GMT
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AI Generated Summary
- Judge Bernard Ngoepe underscores the importance of full independence for the Office of the Tax Ombud to enhance accountability and transparency in tax administration.
- Challenges such as delays in refunds and prolonged dispute resolutions by SARS necessitate urgent reform to empower the Tax Ombud in addressing taxpayer grievances.
- The call for structural independence, separate budget allocation, and direct reporting lines to the Minister of Finance highlights the critical steps needed to safeguard the office's autonomy and effectiveness.
The Office of the Tax Ombud has been entrusted with two significant responsibilities in conducting reviews on South African Revenue Services (SARS). These reviews focus on Pay-As-You-Earn and adherence to the timeframes set for the resolution of disputes. However, despite the crucial role the Office of the Tax Ombud plays in promoting a healthy balance between SARS' powers and taxpayers' rights, it is not entirely independent of SARS. This reliance on the tax agency for governance, fiduciary, and administrative functions undermines the office's autonomy and effectiveness. In a recent interview with CNBC Africa, Judge Bernard Ngoepe, Tax Ombud, shed light on the need for the office to operate independently from SARS to better serve taxpayers and fulfill its mandate.
Judge Ngoepe expressed gratitude for the support received from past and current Ministers of Finance, highlighting the positive impact of the Office of the Tax Ombud in improving the functioning of the revenue collection system. However, he emphasized the importance of urgent action to establish the office as a fully independent institution. Judge Ngoepe stressed the significance of structural independence, calling for the Office of the Tax Ombud to have its legal personality and financial autonomy. Currently, the office is financially dependent on SARS, which poses challenges in ensuring impartiality and effective oversight.
One of the key concerns raised by Judge Ngoepe is the slow progress in achieving full independence for the Office of the Tax Ombud. He underscored the need for the office to have a separate budget and direct reporting lines to the Minister of Finance to avoid undue influence from SARS. Judge Ngoepe pointed out the inherent governance risks associated with being financially reliant on an institution that the office is supposed to oversee, highlighting the urgent need for reform.
In his annual report, Judge Ngoepe identified various challenges faced by taxpayers, including delays in refunds and prolonged resolution of tax-related issues by SARS. These grievances, though seemingly mundane, significantly impact taxpayers' trust and confidence in the revenue system. By advocating for an independent and empowered Office of the Tax Ombud, Judge Ngoepe aims to address these issues effectively and ensure a fair and efficient tax administration process.
Despite the strides made in expediting refunds by SARS in response to the Ombud's recommendations, there is still room for improvement. Judge Ngoepe is closely monitoring the effectiveness of these initiatives to enhance service delivery and uphold taxpayers' rights. He emphasized the importance of educating the public on their rights and the role of the Office of the Tax Ombud in safeguarding these rights, urging for increased awareness and engagement from taxpayers.
In conclusion, Judge Bernard Ngoepe's call for independence for the Office of the Tax Ombud reflects a commitment to strengthening accountability, transparency, and oversight within the South African tax system. By establishing the office as a separate and autonomous entity, free from external influence, taxpayers can expect a more responsive and efficient tax administration process. The ongoing dialogue on institutional reform and enhanced independence underscores the commitment to fostering a fair and equitable tax environment in South Africa.
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