Abstract
The Tax Ombud has existed for 10 years and various studies have been conducted to consider the effectiveness, formation and independence of the Office of the Tax Ombud (OTO). The research problem is that the OTO is structurally not independent from the South African Revenue Service (SARS). The study was conducted as a comparative analysis of the Tax Ombud and seven other ombuds in South Africa. The study focused on how the seven ombuds selected in the sample obtained their structural independence in their relevant industries and how this can be applied to improving the independence of the Tax Ombud. In the study, the researcher divided structural independence into five sub-categories, namely the legal entity type, whom the office reports to, whether there is a fee for the complaint submitted, who funds the office and who has the authority to appoint and dismiss employees for the office. The study found that the OTO is structurally not independent from SARS due to whom the Office reports to and how the Office is funded. Further to the structural independence, it was found that the OTO does not have power over SARS, as its recommendations are not binding. Therefore, it is recommended that the structural independence of the OTO be improved in accordance with the other ombuds in South Africa. This would encompass a reporting line by the Tax Ombud to Parliament or an independent tax regulatory board instead of the Minister of Finance; the OTO must receive its own operating budget; employment must not be done in in terms of the SARS Act, but rather in terms of its own mandate; and the OTO must have the power to refer the matter to a higher authority, such as Parliament or an independent tax regulatory board, if the parties do not accept the recommendations and the OTO is still dissatisfied with the parties’ reasons for not accepting and implementing them.