PAYMENT BACKLOG
Pravin Gordhan urged to launch a probe into SARS for VAT refund delays
DA calls for the tax ombudsman to investigate SARS VAT system’s backlog of about R5bn
Finance Minister Pravin Gordhan has been urged to institute an investigation by tax ombudsman Judge Bernard Ngoepe into allegations that the South African Revenue Service (SARS) is deliberately delaying the payment of VAT refunds in order to boost its revenue-collection outcome. DA deputy spokesman on finance Alf Lees has appealed to Gordhan to request Ngoepe to investigate following reports that there is a backlog in the region of R5bn in the payment of VAT refunds, which, Lees said, was "a clear indication of the weak administration and technology at SARS". The SARS VAT system also handles diesel refunds, which have a backlog amounting to an estimated R1bn. "The delay of the diesel refunds has a devastating impact on business, mining and agriculture, in particular. We understand that the processing of diesel refunds has ... ground to a halt," Lees said on Monday.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.