Tax compliance remains at records lows and is a deep concern for both the South African Revenue Service (SARS) and the Treasury, and this was apparent in the tax authority falling short of its revised 2017-18 revenue target. SARS collected R1.216-trillion for 2017-18, which was R700m, or 0.06%, short of the revised estimate of R1.217-trillion announced in the 2018 budget. Finance Minister Nhlanhla Nene said revenue collection was driven by the state of the economy, fiscal policy and administrative efficiency. He stressed, however, that SARS was close to the target but that tax compliance remained low, at levels last seen during the 2008-09 financial crisis. SARS acting commissioner Mark Kingon said: "Compliance is of deep concern to us. Some of it is driven by perceptions with regards to SARS and perceptions of the country but some of it is also economical." The focus for SARS was to restore credibility, said Kingon. PwC head of tax Kyle Mandy said only 25% of 2018’s under-collectio...
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