ZA | Incident Report
Professional Malpractice
2025-12-15
South African Revenue Service Rejects AI-Hallucinated Tax Objections
AI Model: Unspecified generative AI tool Tax AdvisoryRegulatory ActionAfrica
I. Executive Summary
SARS issued a formal warning after identifying a surge in tax objections citing repealed laws and non-existent precedents generated by AI.
II. Key Facts
- Objections found to have no valid legal basis in South African law. • Tax advisors warned of professional blacklisting for automated filings. • Mandatory manual review policy introduced for advisor submissions.
III. Regulatory & Ethical Implications
Demonstrates regulator intolerance for automated legal work lacking substantive review.