Last week, Finance Minister Malusi Gigaba announced he had asked the president to urgently set up an inquiry into tax administration and governance at the South African Revenue Service (SARS), and the president had agreed. On Monday, the Davis tax committee presented its 110-page report on tax administration and the governance of SARS to Gigaba. That makes the timing of the finance minister’s announcement last week seem rather odd, putting question marks over his motivation in requesting an inquiry. It would be even more odd if the new inquiry, whenever it is established, does not work very closely with Judge Dennis Davis and his committee, who have already done a good deal of work on the tax administration issue. Clearly, SA has a problem with its tax authority, one that Gigaba appears to have recognised. Revenue is expected to fall short by R50.8bn in the current fiscal year and over the medium-term framework of three, years the cumulative shortfall is expected to total R209bn. SA...

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