DROP IN TAX REVENUE
SARS inquiry surprises experts
SA’s strained public finances are in the spotlight ahead of ratings reviews
Finance Minister Malusi Gigaba has cited declining tax morality and negative sentiment on the South African Revenue Service (SARS) as justification for an inquiry into the receiver of revenue’s administration of tax. The inquiry into SARS tax administration and governance, which Gigaba announced on Tuesday, came as a surprise to tax experts, including Judge Dennis Davis, who heads a committee conducting continuing work on the tax system. Gigaba said the goal of the inquiry, expected to be set up soon, was to assess other factors responsible for revenue under-collection and the steps necessary to improve performance management systems at SARS. Gigaba shocked financial markets in October by flagging wider deficits and rising government debt in a closely watched budget speech, attributing the dismal forecasts to sluggish growth and low tax receipts. On Tuesday he told reporters that President Jacob Zuma had granted his request for an inquiry by a judge into the administration and gover...
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