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OTO: Draft Report 2025 re SARS eFiling profile highjacking
- 04 November 2025
- Accounting
- South African Accounting Academy
Summary:
The Office of the Tax Ombud (OTO) has published its draft report 2025, which refers to their investigation into alleged eFiling profile hijacking within the South African Revenue Service (SARS) system.
Article:
The report investigates numerous complaints from taxpayers and tax practitioners concerning compromised eFiling profiles leading to fraud. The release of the draft report was postponed from July 2025 to allow SARS to provide input.
Key findings indicate that eFiling profile hijacking primarily affects tax practitioners and individual taxpayers, mostly involving Personal Income Tax and VAT. Fraudulent transactions typically range from under R10,000 to R100,000.
The report highlights vulnerabilities such as inadequate authentication, difficulties in fraud detection, delayed responses from SARS, insider threats, and low digital security awareness among taxpayers.
Recommendations include SARS enhancing authentication (e.g., biometric re-verification) and fraud detection systems. Collaboration between SARS, banks, CIPC, and SAPS is suggested to flag suspicious activity. The report also recommends that tax practitioners and taxpayers strengthen security with measures like strong passwords and two-factor authentication. National Treasury is advised to consider legislative changes and creating an Inspector-General of Tax Administration.
The report was published for public comment with a deadline of 31 October 2025. The final report is anticipated after reviewing public comments.
Click here to download the 106-page Draft Report:
Relevance to Auditors, Independent Reviewers & Accountants:
- Practitioners providing tax services should stay informed of the latest developments that are published by the Office of the Tax Ombud.
Relevance to Your clients:
- Taxpayers should stay informed of the latest developments that are published by the Office of the Tax Ombud.