Navigating SARS Administrative Fairness: A Guide for Taxpayers and Practitioners

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Navigating SARS Administrative Fairness: A Guide for Taxpayers and Practitioners

• 10 March 2026
• Tax Administration
• The Tax Faculty

The South African tax landscape is defined by a significant power imbalance between the South African Revenue Service (SARS) and the taxpayer. While SARS holds extensive statutory powers to assess, collect, and enforce tax payments, taxpayers are often participants in a system where administrative errors can lead to immediate and severe financial consequences.

Understanding your rights and the mechanisms available to ensure administrative fairness is essential for maintaining a balanced relationship with the revenue authority.

The Role of the Office of the Tax Ombud (OTO)

Established under the Tax Administration Act 28 of 2011, the Office of the Tax Ombud (OTO) provides an independent and functional oversight mechanism. Its primary purpose is to review and address complaints regarding service, procedural, and administrative matters arising from SARS operations.

What the OTO Can and Cannot Do

It is vital for practitioners to distinguish between a technical tax dispute and an administrative failure.

The OTO May:	The OTO Does Not:
Review service or procedural issues.	Overturn tax assessments.
Address systemic administrative trends.	Substitute SARS' technical tax decisions.
Recommend corrective actions to SARS.	Function as a court of appeal.
Identify recurring administrative deficiencies.	Review the correctness of an assessment.

When Does Inefficiency Become Unlawful?

Not every instance of operational inefficiency by SARS is necessarily unlawful. However, under Section 33 of the Constitution and the Promotion of Administrative Justice Act (PAJA), you have a right to administrative action that is lawful, reasonable, and procedurally fair.

SARS’ conduct may cross the line into unlawfulness when:

• Delays in processing, responding, or resolving matters become unreasonable.
• Reasons for decisions are vague, absent, or insufficient to understand the basis of the action.
• Decisions are arbitrary or inconsistent, lacking a rational basis.
• Communication failures prejudice taxpayers, preventing them from responding effectively.

Common Complaints and Emerging Trends in 2026

The OTO continuously monitors complaint trends to identify systemic failures within SARS. In 2026, several persistent areas of concern have been noted:

• Delayed Refunds: SARS' inability to pay out refunds within prescribed timeframes causes significant cash flow issues.
• VAT Registration Rejections: Businesses often experience rejections of VAT applications without clear or sufficient reasons.
• eFiling Profile Hijacking: Instances where taxpayer profiles are compromised, leading to unauthorized changes.
• Dispute Resolution Delays: Non-adherence to regulations regarding objections, appeals, and suspension of payment requests.

Practical Steps for Recourse

Before approaching the OTO, taxpayers must exhaust all internal SARS remedies. This requirement ensures that SARS has the opportunity to fix the error through its own internal complaint channels first.

Practitioner Checklist:

1. Document Everything: Maintain meticulous records of all correspondence, calls, and reference numbers.
2. Verify Scope: Determine if the issue is a technical dispute (merits of the tax) or an administrative failure (the process).
3. Internal Channels First: Guide clients through the SARS Complaints Management Office before escalating to the OTO.
4. Prepare a Detailed OTO Complaint: If internal remedies fail, provide a clear statement of the administrative failure along with all supporting documentation.

Conclusion

Administrative fairness is a constitutional right. By understanding the mandate of the OTO and maintaining proactive documentation, taxpayers and practitioners can effectively protect their rights and hold the revenue authority accountable.

This article is based on a CPD webinar presented by Yolisa Dyasi and Boitumelo Mothiba on Navigating SARS Administrative Fairness: Taxpayer Rights, Common Complaints, Emerging Trends and Practical Remedies.

• Access the On-Demand Webinar Here

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