Results 1 to 7 of 7

Thread: VAT Audit

  1. #1
    Full Member
    Join Date
    Sep 2014
    Location
    South Africa
    Posts
    95
    Thanks
    3
    Thanked 1 Time in 1 Post

    VAT Audit

    Is anyone else having issues with VAT audits on periods in which they are due a refund?

    We are still owed a refund from the 2016-06 period. SARS as audited the period 3 times, then put through an assessment reversing all input VAT, and then imposed a massive output VAT penalty.

    From the notes on the SARS system from the auditor I can see that SARS made a mistake when auditing our return (tried to test an output invoice as an input invoice) and so subsequently I've had to lodge a NOO.

    You are supposed to do this online now, but the new form doesnt allow you to put in a net amount less than zero (i.e. like you are owed a refund). I went into the branch to do it (just 7 hours over two visits) and now I've received a notice saying the NOO has been rejected. The reason given isn't clear at all.

    So I guess I'm back into the branch on Monday.....frustrating to put it mildly!

  2. #2
    Silver Member
    Join Date
    Sep 2012
    Location
    Louis Trichardt
    Posts
    268
    Thanks
    52
    Thanked 39 Times in 35 Posts
    Why don't you lodge a complaint in the meantime, as this is clearly an error form SARS's side.

  3. #3
    Full Member
    Join Date
    Sep 2014
    Location
    South Africa
    Posts
    95
    Thanks
    3
    Thanked 1 Time in 1 Post
    Quote Originally Posted by dellatjie View Post
    Why don't you lodge a complaint in the meantime, as this is clearly an error form SARS's side.
    I had wanted to avoid having to lodge a complaint but perhaps thats a good idea while the NOO is in the system.

    I'll give them a call today.

  4. #4
    Platinum Member Mike C's Avatar
    Join Date
    Apr 2012
    Location
    Durban
    Posts
    2,450
    Thanks
    216
    Thanked 329 Times in 287 Posts

    Tax Ombudsman

    Received this via email today from DotNews. I have reprinted it with permission.


    The Office of the Tax Ombud (ďOTOĒ) was created in 2013 and despite initial doubts as to its role has carved a niche for itself and gained credibility as a result. Recent legislation has strengthened the OTO.

    The Ombud was designed as a free service to taxpayers to assist them when there is poor service from SARS, or when taxpayers experience administrative or procedural issues with SARS.


    How independent is the Ombud?

    Initially, the Ombud was funded out of SARSí budget and all staff were seconded from SARS. This created the perception that the Ombud was not an independent institution.

    In January President Zuma approved legislation which permits the OTO to recruit its own staff and its budget has been moved from SARS to the Minister of Finance.

    This new Act also extends the tenure of the Ombud from three to five years. This will allow the Ombud the time to leave his or her mark on the Office of the Ombud and thus should improve the calibre of future Ombuds.


    The effect of Ombud findings

    These are not binding on either SARS or the taxpayer. The recent legislation requires that the party not accepting the Ombudís report has 30 days to explain to the Ombud why the findings will not be followed.

    Apart from providing the OTO with information to help it review how effective its findings are, this explanation requirement will enhance the OTO because SARS and taxpayers will now carefully weigh up whether to reject the Ombudís findings.

    A concern with the OTO process is the lack of prescribed time periods for the various processes in resolving a complaint, but hopefully this will be addressed in the future.

    The power of the Ombud has been further strengthened by allowing the OTO to launch investigations (with the permission of the Finance Minister) of systemic service, administrative or procedural issues. Again this increases the credibility of the Ombud and should be a valuable service to taxpayers.


    A Bill of Rights and a Service Charter in the wind?

    The Ombud has lobbied for an updated Taxpayers Bill of Rights and a SARS Service Charter which will provide improved transparency and clarity for both parties. To date this has not happened.

    The OTO is beginning to provide taxpayers with a useful service. In 2014/2015, 75% of the cases taken on by the Ombud resulted in decisions in favour of the taxpayer. By 2015/2016 this had risen to 87%. The Ombud is providing a counterweight to the widespread powers that SARS has.
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

  5. #5
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    21,358
    Thanks
    3,095
    Thanked 2,494 Times in 2,098 Posts
    Blog Entries
    12
    Quote Originally Posted by Mike C View Post
    The OTO is beginning to provide taxpayers with a useful service. In 2014/2015, 75% of the cases taken on by the Ombud resulted in decisions in favour of the taxpayer. By 2015/2016 this had risen to 87%. The Ombud is providing a counterweight to the widespread powers that SARS has.
    It also shows the extent of SARS' abuse of its clients.

    That's a ridiculously high percentage where SARS was at fault.
    The trouble with opportunity is it normally comes dressed up as work.

    Alcocks Electrical Services | Alcocks Pest Control & Entomological Services

  6. #6
    New Member
    Join Date
    Sep 2017
    Location
    India
    Posts
    4
    Thanks
    0
    Thanked 0 Times in 0 Posts
    You can file a complaint against company at Voxya, online consumer complaint forum. It will help you to get a replacement, refund, return and provide complete compensation for your loss.

  7. #7
    Suspended
    Join Date
    Mar 2013
    Location
    Had enough
    Posts
    3,360
    Thanks
    114
    Thanked 214 Times in 202 Posts
    Quote Originally Posted by MelissaThomas View Post
    You can file a complaint against company at Voxya, online consumer complaint forum. It will help you to get a replacement, refund, return and provide complete compensation for your loss.

    This is South Africa ......... not India

Similar Threads

  1. Tax audit
    By Alansautoelec in forum Tax Forum
    Replies: 5
    Last Post: 03-Jun-15, 06:52 PM
  2. Time in which an audit must be completed?
    By BusFact in forum Accounting Forum
    Replies: 5
    Last Post: 28-Oct-14, 01:49 PM
  3. Accounting audit
    By sofhiathomas in forum Accounting Forum
    Replies: 1
    Last Post: 23-Jun-14, 09:48 PM
  4. WCC Audit
    By Christel in forum Labour Relations and Legislation Forum
    Replies: 3
    Last Post: 13-Mar-13, 11:49 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •