The Office of the Tax Ombud is drafting a report to address growing concerns over cybercrime vulnerabilities affecting taxpayers, particularly through e-filing profile hijacking. The report follows numerous complaints about stolen taxpayer funds due to hacked electronic profiles.
Survey Reveals High Vulnerability Among Tax Practitioners
As part of its investigation, the Tax Ombud surveyed 400 taxpayers, with 393 responses highlighting key risks. The findings show that 48% of affected taxpayers are tax practitioners, who manage multiple client profiles, making them prime targets. Individual taxpayers without practitioners and those using practitioners also reported significant exposure.
Personal Income Tax Most at Risk
The survey identified personal income tax (65%) as the most vulnerable to fraud, as hackers find it easier to falsify refund claims. In contrast, Value-Added Tax (VAT) (20%) and Corporate Income Tax (CIT) (15%) were less susceptible due to stricter verification requirements.
Low Reporting Rates to Police
Only 25% of victims reported e-profile hijacking to the police, with many citing distrust in the system or fear of being ignored. However, one tax practitioner shared a positive experience with the Renbeck SAPS, though officers admitted they lacked training on handling cybercrime cases.
Call for SARS and SAPS Collaboration
The Tax Ombud emphasized the need for stronger collaboration between SARS and SAPS to combat cybercrime. Recommendations will include improved police training and public awareness campaigns.
Interim Safety Measures Urged
Tax Ombud spokesperson urged taxpayers to protect their login details, report incidents immediately to SARS and police, and remain vigilant when e-filing.
A draft report will be released by end of June for public feedback, with hopes that SARS will enhance electronic security and taxpayer education.
