Tito Mboweni should unleash Sars to bring home the tax bacon
Agency should be able to fill critical vacancies to rebuild its capabilities and operate efficiently
The correlation between strict enforcement and greater tax collection is well established and a logical one. Adequate enforcement or stricter enforcement, or even the perception of it, results in greater efforts towards tax compliance by taxpayers. If taxpayers believe the revenue authority lacks the skills or capacity to enforce the law and identify tax avoidance and evasion, some taxpayers could adopt a “catch-me-if-you-can” attitude towards tax compliance.
Under the previous commissioner, the capabilities of the SA Revenue Service (Sars) had been eroded, with a mass exodus of experienced staff either leaving voluntarily or being pushed out. To rebuild its capabilities and operate efficiently, Sars should fill certain critical vacancies. Commissioner Edward Kieswetter told parliament’s finance committee that there are just fewer than 1,000 critical vacancies at Sars. He has estimated that there is a need for additional funding to the tune of just less than R1bn to rehabili...
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