The South African Revenue Service (SARS) says its relationship with Judge Dennis Davis, chairman of the Davis Tax Committee, has "intolerably and irretrievably broken down". In a statement issued on Friday, the tax agency took issue with comments Davis made at a conference on tax evasion and illicit financial flows last week. Davis told the conference that "the biggest challenge facing SA today is the erosion of the integrity of SARS". His criticisms of SARS included that it lacked the ability to deal with multinational corporations seeking to evade tax, and that he disagreed that there were 103,000 people in the new top marginal tax bracket of 45%. SARS denied that a decline in its capacity was the reason for the R30bn deficit in meeting its revenue target and that it did not have the capability to collect taxes front big corporations. It emphasised that it would not use "any untoward investigative methods or scare tactics that instil fear in taxpayers" and that enforcement was a "...

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