Moyane’s operating model saw rise in legal cases, commission told

This was among the submission at the hearings in Pretoria on Friday.

FILE: Tom Moyane. Picture: EWN

PRETORIA - The Nugent Commission of Inquiry has heard how the new operating model introduced by Tom Moyane has increased frustration among taxpayers and seen an increase in litigation.

This was among the submission at the hearings in Pretoria on Friday.

Retired judge Nugent is investigating tax administration and governance at Sars since 2014, under Moyane’s leadership.

Relationship manager Anthony Cohen says the inefficiencies introduced by the new operating model has seen taxpayers become increasingly frustrated. He adds they’re less willing to share information.

“We’ve even had taxpayers who told us once we pay the refunds we owe them, then they’ll talk. Until then they’d [say] they’re not interested. We’ve also seen a huge increase in litigation.”

Tax ombud chief executive Eric Mkhawane says they’ve established that Sars was irregularly withholding refunds from taxpayers.

“Once a taxpayer has met all Sars’ requirements, there’s really no legal basis for withholding the refund. That’s what we found was a problem.”

The Revenue Service told the ombud it has stopped this practice.

(Edited by Shimoney Regter)