Business
SARS Forced to Repay R168 Million to South African Taxpayers After Complaints
When the watchdog bites back
For years, frustrated taxpayers have accused SARS of dragging its feet on refunds. But the 2024/25 report from the Office of the Tax Ombud (OTO) has revealed something rare: the system fought back and won.
The OTO confirmed that ten taxpayers collectively received R168 million in refunds after successful complaints were filed and upheld against SARS. The cases ranged from corporate to individual disputes, but the outcome sent a clear message: the watchdog is watching, and it’s got teeth.
A year of growing frustration and progress
In total, the ombud’s office received nearly 4,913 complaints this financial year, with 46% accepted for formal review. While that’s a slight drop from the previous year, it reflects tighter validation processes that ensure only legitimate cases move forward.
The rest of the complaints, about 1,650 rejected and nearly 1,000 withdrawn by taxpayers, highlight a common problem: many people don’t know the right steps to take before escalating to the ombud. According to Section 18(4) of the Tax Administration Act, all internal SARS processes must be exhausted first unless there are exceptional reasons. Most rejections stemmed from taxpayers skipping this vital step.
Despite that hurdle, the OTO still pushed through thousands of valid disputes. SARS resolved 2,390 complaints in total and accepted 99.33% of the ombud’s recommendations, proof that once an issue reaches the right desk, accountability follows.
Paying back the money
Of all the ombuds’ wins, the monetary impact stands out. The OTO said the top ten resolved cases alone amounted to R167.98 million in refunds, a figure only slightly down from the previous year’s R179 million.
Most of these payouts involved VAT, followed by Corporate Income Tax and Payroll Tax, all categories notorious for refund delays caused by verification bottlenecks, disputes, and administrative backlog.
“These refunds are often life-changing, particularly for small and medium-sized businesses,” the OTO noted. It’s not hard to see why: a delayed VAT refund can halt operations, freeze payroll, or push a company into a cash-flow crisis.
Small victories, big impact
Even with fewer mega-refunds this year, the ombud highlighted meaningful improvement in SARS’s responsiveness. Nearly 43% of cases were resolved within 15 days, a major jump from 30% last year. The number of long-running cases, those taking more than three months, also dropped, though complex disputes remain a challenge.
The steady refund figures over three years suggest that while SARS is making progress, refund delays remain a systemic issue baked into the administrative process.
Still, for those ten taxpayers who finally got their millions back, the ombud’s intervention was more than paperwork; it was justice.
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Source: Business Tech
Featured Image: Daily Investor
