Why 90% of refunds were inexplicably reversed

It’s been a week of 2024 tax chaos for SARS, following a systems error that led to tens of thousands of tax refunds needing to be reversed. The South African Revenue Service (SARS) has apologised for the system ‘challenges’ it experienced this week. And Business Tech reports that 90% of botched tax refunds have already been processed. While the final 10% of refunds should be rectified and released for payment by Monday 29 July 2024.

Just one-week ago, SARS trumpeted the fact that 83% of all refunds were paid out within just 72 hours. That equates to R14 billion to more than 1.5-million taxpayers. And, as a reminder, 2024’s tax season opened earlier this month (Monday 15 July) and runs into October. Tax season for individual (non-provisional) taxpayers closes on Monday 21 October 2024. Then 2024 tax dates for provisional taxpayers also opened on 15 July, however, these run until Monday 20 January 2025.

2024 TAX CHAOS

Not everyone has had a good experience with their 2024 tax returns. Image: File

The 2024 tax chaos for SARS started on the opening day of the season when the SARS eFiling portal crashed out from an overload of traffic. Thousands of taxpayers complained of unresolved system errors on the backend. And we had readers complain they were paid returns without even accepting/confirming them on the SARS portal. Now, SARS admits that more than 30 000 taxpayers have been affected by the latest refund reversal glitch.

The revenue service had this to say following the 2024 tax chaos: “All refunds go through the validation process, due to the risk associated with the validity of refund payments. As a result, validations can result in refunds being flagged for verification. Affected taxpayers will be ‘engaged with’ to provide supporting documents where necessary for the funds to be released. SARS sincerely apologises to all taxpayers for the inconvenience caused in this validation process,” concluded SARS.

FILING A 2024 TAX RETURN

2024 tax chaos
There’s still plenty of time to file your SARS 2024 tax return through the following means. Image: File

South African taxpayers have several channels to complete their 2024 returns:

  • Submit your return through SARS eFiling online.
  • The smartphone-enable SARS MobiApp allows you to complete and submit your Income Tax Return (ITR12) on your mobile.
  • You can file electronically at any SARS branch where an agent will assist you in-person. However, you must make an appointment beforehand and bring all supporting documents.

HAVE YOU EXPERIENCED ANY OF THE 2024 TAX CHAOS?

2024 tax chaos
We’d like to hear from you … Image: File

If you were one of the taxpayers paid a refund and then had it immediately reversed, please let us know by clicking on the comment tab below or by emailing [email protected]. You can also send a WhatsApp to 060 011 0211. Don’t forget to follow @TheSAnews on X and The South African on Facebook for the latest social media updates.

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