ANALYSIS: SARS intensifies focus on the rich and ultra-rich with expanded team
The South African Revenue Service (SARS) now has a team of 30 people who focus exclusively on rich individuals and their tax affairs. The total number of high net-worth individuals is just more than 37,200 with less than 1% of those individuals (234) being classified as ultra-rich, with net asset values of more than R75m. The Davis Tax Committee says in its final tax administration report, published on November 13, that 0.1% of the South African population contributes about 30% of the country’s tax. "The importance of this contribution to tax collection by a minority of taxpayers is recognised, particularly when considering that individuals contribute 38% of the total taxes collected compared to companies, which contribute 17%." The committee recognises that "fiscal citizenship" is improved by building "trusting relationships" with high net-worth individuals to inspire confidence in the tax authority. It is also suggested that refunds be paid timeously, and that quality control over...
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