Personal Finance

Was your tax refund reversed? Here is why

Some taxpayers were filled with joy when their tax return refund reflected in their bank accounts.

Only to be met with disappointment and confusion when the refund was reversed by the taxman.

Some of the taxpayers aired their confusion and frustration on social media, asking why SARS’ eFiling system said they were not owed a refund, while their statement of account showed they did.

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Reversed tax returns

Siphithi Sibeko, head of media at SARS told The Citizen that they have been made aware of the challenges.

Sibeko said the taxman is working with all relevant stakeholders to resolve the issue.

SARS told those affected that the refunds were subject to screening and would take between two and 21 business days to be completed.

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“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 2 to 21 business days. If the refund passes the screening process, it will be released to the taxpayer.” 

ALSO READ: Waiting for Sars to answer? Taxman apologises for hours-long call centre delays

Delays in returns

SARS commissioner Edward Kieswetter spoke about the delays that can be expected during a media briefing held recently.

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He said taxpayer may wait for their money if they have outstanding tax returns from prior years, or their banking details are not up-to-date.

To avoid delays, he advised taxpayers to ensure their banking details were updated and that all the outstanding tax returns had been submitted.

Returns are paid out within 72 hours if nothing is outstanding or incorrect.

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ALSO READ: Sars says R10 billion worth of tax returns already paid with an average of R5 900 per person