Taxpayers who do not submit their tax returns will end up with a criminal record, the South African Revenue Service (SARS) said on Monday.
Economist Mike Schussler has broken down the weighty tax burden placed on individuals in South Africa, showing that we have one of the highest tax rates in the world.
The South African Revenue Service has collected R1trn in tax revenue so far, but this is still below the R1.217trn target set by Treasury in the Budget Speech.
In a statement issued by SARS on Monday, commissioner Tom Moyane said that he is confident the tax authority will reach the target by March 29.
“We are focused on closing all revenue leakages through non-compliance and our staff will spare no effort in reaching the revenue target by March 29, even though the economy is not performing to our expectations,” he said.
“We believe that our efforts will provide government with the requisite fiscal space to free up resources for its developmental objectives while allowing it to better manage the levels of debt we are facing.”
Finance Minister Malusi Gigaba at the Budget Speech on Wednesday said that the tax revenue shortfall is R48.2bn. The revenue target was revised up from R1.214trn to R1.217trn.
SARS explained in a statement issued on Thursday that the R2.6bn increase is a result of improved company and trade taxes collected in the last quarter of 2017.
In his maiden State of the Nation Address President Cyril Ramaphosa announced a tax inquiry into the governance and administration at SARS.
Ramaphosa said the commission, requested by the finance minister, would ensure that the credibility of SARS is restored, as well as its capacity to meet revenue targets.
“We must understand that tax morality is dependent on an implicit contract between taxpayers and government that state spending provides value for money and is free from corruption,” said Ramaphosa.
SARS has since stated it will cooperate with the inquiry.
Following the 2016 budget speech during which the proposal to tax the sugar content of beverages was first tabled, and after 18 months of debate, the South African Parliament on Tuesday adopted the taxation of sugary drinks.
Households will soon be paying between R45 and R60 extra every month as part of a drought levy, if mayor Patricia de Lille has her way in council on Tuesday.
On Monday, President Jacob Zuma directed the Minister of Finance, Malusi Gigaba, to trim down expenses and increase revenue to find a solution to the R40 billion gap identified in the Medium-Term Budget Policy Statement and by ratings agency Standards & Poors ahead of its ratings cut on Friday.
Cape Town mayor Patricia de Lille has confirmed that the city is considering a new levy to help raise funds to avert the drought crippling the city. Speaking at a media briefing on Thursday, de Lille said that the funds would be used as additional funding for its water augmentation scheme, reports Times Live.
South Africa’s Revenue Service (SARS) will launch legal proceedings against KPMG due to reputational damage caused by the auditor releasing details of a confidential report it produced for the tax agency, commissioner Tom Moyane said on Monday.
Charles Winshaw (Pty) Ltd has signed terms of business with Arton Capital, which recently opened its doors in South Africa. This development came about because Charles Winshaw (Pty) Ltd has evolved from an international investment specialist company to one that creates family legacies.