SARS hits back at Sunday Times profile hijacking article

The South African Revenue Service (SARS) has noted its concern at an article published in last weekend’s Sunday Times regarding the hijacking of taxpayers’ profiles.

SARS has ‘extensively investigated the alleged crime’

In a release on its website, SARS wrote that under normal circumstances it is prohibited by Chapter 6 of the Tax Administration Act 28 of 2011 from divulging confidential taxpayer information.

However, since the taxpayer has authorised that its information be published in the article, SARS will clarify the matter.

SARS has extensively investigated the alleged crime with the sole purpose of uncovering any internal irregularities or alleged complicity by SARS staff that may have compromised the systems of the organisation.

SARS has over the years built internationally recognised and user-friendly systems to make it easy and simple for taxpayers to comply with their legal obligations.

These systems include built-in oversight of each transaction to safeguard taxpayer information and ensure internal accountability.

SARS Commissioner Edward Kieswetter said: “SARS has investigated this matter and we have found that no negligence or liability that can be imputed to SARS, meaning that SARS can therefore not be held liable for the criminal action reported by the Sunday Times.

“SARS will assist the company and all law enforcement agencies in any investigations that must follow to uncover the source of this tax crime,” Commissioner Kieswetter said.

He added that the crime of profile hijacking pointed to pervasive cybercrime with global links. 

The sophistication of this type of crime is constantly evolving and SARS, like all other financial institutions are under constant threat due to international cybercrime syndicates.

Enhancements have been implemented

SARS has invested significantly in its technological infrastructure to combat this phenomenon.

SARS is continuously working on how to enhance its processes to authorise taxpayers when bank details are changed.

Some of the enhancements that have been implemented, include Multi-factor Authentication, strengthening password rules and biometric authentication. 

Apart from this SARS is constantly assessing its own systems to identify system weaknesses to ensure that we mitigate any form of risk.  

This will mean working more intensively with other parties such as banks.

Finally, Commissioner Kieswetter said: “One of our key strategic objectives is to build public trust and confidence in the organisation, which was lost during the years of state capture. SARS has made great progress in this area and will certainly not want to lose the ground gained through criminal activity, whether it’s done from inside or outside the organisation.”

The enquiry underway by the Office of Tax Ombudsman (OTO) to investigate incidents of profile hijacking is welcomed by SARS.

SARS is cooperating with OTO and looks forward to the recommendations that will be made on how best to combat the scourge of profile hijacking.

Have you submitted your tax return?

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