The Tax Ombud has red-flagged delayed SARS response times as well as insider threats to taxpayers financial security in a draft report into allegations of eFiling profile hijacking, released this week for public comment.
The closing date for submissions is October 31. This follows a year-long investigation conducted by the Ombud into some shocking allegations of eFiling fraud.
The Ombud surveyed taxpayers to capture their experiences and challenges related to profile hijacking while eFiling.
Preliminary findings from the survey were presented in a public workshop held on May 28, with seven case studies highlighted, one of them a VAT scam of almost R500,000.
Initially, the Ombud planned to publish the report in July but 2025. However, SARS’ formally requests for additional time to respond to the draft report and its recommendationswere granted.
Key Findings
eFiling profile hijacking is most prevalent among tax practitioners and individual taxpayers;
The majority of cases involve Personal Income Tax and Value-Added Tax (VAT);
Fraudulent transactions typically involve amounts under R10,000 — but can reach up to R100,000; and
Vulnerabilities include inadequate authentication processes, challenges in fraud detection, delayed SARS response times, insider threats, and low digital security awareness among taxpayers.
Key Recommendations included in the report:
SA African Revenue Service needs to: - Enhance authentication protocols; - Improve fraud detection and refund verification systems;- Boost taxpayer education; and strengthen collaboration with banks, the Companies and Intellectual Property Commission, and the SAPS.
Tax practitioners need to: - Implement stricter controls on third-party access and uphold high professional conduct standards.Taxpayers need to: - Use strong passwords;- Activate two-factor authentication; and - Regularly monitor eFiling activities.
National Treasury needs to: - Amend certain provisions in the Tax Administration Act; and- Establish an Inspector-General, as recommended by the Nugent Commission of inquiry almost seven years ago, in December 2018; and
SA Reserve Bank needs to: - Investigate banking irregularities linked to eFiling profile hijacking.
Invitation for public comment
The Ombud invites written comments on the eFiling profile hijacking draft report, hoping that a robust and effective response to the report will help ensure protection of taxpayers’ rights, thereby enhancing trust in SA’s tax administration system.
Visit www.taxombud.gov.za to download the full report and find help with how to comment before the deadline on October 31.
Daily Dispatch
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