AS the deadline for the submission of tax returns approaches, the South African Revenue Service (SARS) has appealed to taxpayers to exercise caution against ‘tax advisors’ who guarantee them a tax refund.
“SARS wants to appeal to all taxpayers to exercise caution if they are approached by tax advisors who guarantee them a tax refund on submission of their income tax returns. Anyone who guarantees a taxpayer a tax refund may be misleading them and should be avoided,” said the revenue service on Tuesday.
SARS has seen an increase in fraud cases involving personal income tax returns where tax consultants or intermediaries, have promised clients substantial tax refunds (in return for a ‘cut’ of up to 50 per cent of the refund) submit fraudulent tax returns on behalf of the taxpayer to SARS.
Last month, with the assistance of the South African Police Service (SAPS), SARS conducted raids in Mpumalanga, which resulted in the arrest of 28 people who had submitted fraudulent income tax returns on behalf of at least 200 individuals, on the understanding that they would keep a percentage of the fraudulent refund generated.
The total amount of fraudulent claims in these cases is just over R7-million. The activities of suspected syndicates are particularly prevalent as the deadline of 22 November draws closer.
“SARS urges taxpayers not to fall for conmen who promise them guaranteed tax refunds. The only way a refund can be guaranteed upfront is if fraudulent information is submitted in a tax return. This places the taxpayer at serious risk of being arrested for fraud because taxpayers are ultimately responsible for tax returns submitted in their name, even if by third parties,” the revenue service said.
