90% of the reversed refunds have been released. The remaining will be released by Monday, or communicating will be made to taxpayers who need to submit documentation. Picture: iStock
Some taxpayers were left confused following the reversal of tax refunds by the South African Revenue Service (Sars).
The entity has since offered an explanation and apologised for the inconvenience caused by the reversal of funds.
As of Thursday, Sars said it had released 90% of the reversed funds.
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In a media statement, Sars said 30,000 taxpayers had their refunds reversed. These funds were subject to further screening.
“Due to the risk associated with the validity of refund payments, all refunds go through the validation process with all stakeholders in the tax ecosystem,” Sars said.
Those who have not received their reversed funds will either receive them by Monday or receive communication to provide supporting documents.
“These are the normal processes in the validations of refunds,” said Sars.
When taxpayers asked why their refunds were reversed, Sars said the funds would be made available following a screening process.
“Reversed refunds are returned to the taxpayer’s assessed account. These funds are subject to further screening. The turnaround time for this screening ranges between two to 21 business days. If the refund passes the screening process, it will be released to the taxpayer,” said Sars.
ALSO READ: Sars says R10 billion worth of tax returns already paid with an average of R5 900 per person
Giving an update on tax refunds already paid out, Sars said it has kept its commitment to paying refunds within 72 hours after taxpayers have filled. Thus far, they have paid out 83% of the filled returns within 72 hours.
Since the beginning of filing tax season, at least R14 billion has been paid to 1.5 million taxpayers.
