Sars’ stand on graft?
QUESTIONS SENT: JUST SILENCE IS HEARD
Tax collector may follow various approaches.
THas Sars entered into agreements with evaders?
he 2021 Tax Statistics Report released on 25 January made no mention of the cost to the fiscus of state capture and tax evasion. This raises the question: Has the South African Revenue Service (Sars) taken an active stand against corruption?
The report contained the statement: “The surplus in tax revenue collections was further supported by the continuous efforts by Sars to improve tax revenue administration through targeted strategic enforcement interventions to achieve higher taxpayer compliance ratios.”
Moneyweb sent questions to Sars on 27 January, requesting specific details of “continuous efforts”; the meaning of “targeted strategic enforcement interventions” and “higher taxpayer compliance ratios”.
1. What specifically has Sars done to ensure that the individuals, companies and trusts linked to corruption in recent reports have now been registered for tax and are being subjected to audits?
2. Can Sars confirm that it has established a comprehensive list of all these individuals, companies and trusts, to ensure that everyone has been registered for tax, that no one escapes the tax net, and if the correct amount of tax has not been paid, that they are undergoing audits?
3. How many matters involving individuals, companies and trusts has Sars handed over to the NPA [National Prosecuting Authority] over the last 24 months?
4. Has Sars considered separately reporting on these matters, without naming the parties concerned until they have been prosecuted, to appease the public that Sars isn’t only going after small-time crooks, and also has these major tax evaders in its sights?
5. In holding these individuals and entities accountable, is Sars following a two-pronged process, that of raising assessments on undeclared income, and simultaneously handing them over to the NPA to prosecute?
6. If it is not possible to engage in a twopronged process, and taking into account the delays in the NPA, is Sars then auditing/raising assessments on individuals before they are to be handed over to the NPA?
7. What specifically has Sars done to ensure that the NPA is actively pursuing these individuals and entities?
8. what specifically is Sars doing to register and audit the many individuals and entities who are under the radar?
9. If Sars does not aggressively pursue the taxation of these individuals and entities, is Sars not concerned that by the time its auditors get to them there will be no assets left to pay the tax debts?
10. Has Sars entered into any settlement agreements with any individuals or entities that have been named in the above reports over the last two years? If so, is Sars not obliged in the interests of transparency to disclose the total amount (not the names) and the reason why a settlement was reached? Would Sars disclose the percentage of the settlements reached to the tax amount; for example, 50%?
Sars has not responded to Moneyweb. Moneyweb approached Bowmans partner Patricia Williams for comment.
Williams agreed that Sars could follow a two-pronged process, that of raising assessments on undeclared income and simultaneously handing the parties over to the NPA to prosecute.
She said there are different rules for disclosure to the police and the NPA, depending on whether the relevant crime is a tax offence or a different offence. The Tax Administration Act (TAA) allows Sars to disclose taxpayer information to the police or the NPA “in the course of performance of duties under a tax Act or customs and excise legislation”.