FOOTNOTES
HILARY JOFFE: There’s clear evidence of post-Moyane pick-up, but SARS will have to ensure compliance
The annual figures for tax collection can tell us as much about the state of the country’s economy and its various sectors as they do about the tax authority. And when it comes to corporate income tax (CIT), the trends tell of the future, not just of the past — and the news from the South African Revenue Service, which released its 2017-18 tax year results on Tuesday, is that there is already clear evidence of a pick-up in the economy. Though revenue growth for the year as a whole was just 6.3% in the period from December to February, growth picked up to well over 10% — and that, says SARS, reflected higher business confidence, stronger commodity prices, a lift in the purchasing managers index as well as a stronger currency. It’s not immediately obvious why confidence would translate directly into tax payments, but companies tend to anticipate how they will be doing when they calculate their provisional tax payments, particularly the second provisional payment they have to make 12 m...
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