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Tax Statistics

22 May 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

We are pleased to announce that SAIT attended the workshop on the SARS 2013 Tax Statistics on 21 May 2013.  This is a joint publication between National Treasury and the South African Revenue Service (SARS).

The purpose of the workshop was to access the requirements of both current and potential users of this publication. Planned additions for inclusion into the nest edition of Tax Statistics was also shared and discussed at this engagement.

There is a growing acceptance by the media, researchers and policymakers of the intrinsic value that credible tax statistics provide in promoting a far richer and fact-based discourse on fiscal policy.  This not only improves policy formulation and informed assessments thereof, but it also promotes a culture of transparency on fiscal affairs as generally advocated for by the provisions of Section 32 in the Bill of Rights in the Constitution and by the Promotion of Access to Information Act.

The tax statistics once again confirm the responsiveness of the South African tax administration system.  All taxes with the exception of Corporate Income Tax (CIT) rebounded strongly from the slump in collections observed during the recession.  CIT remains depressed though largely due to the many companies still carrying assessed losses incurred from which they have not yet recovered fully to the levels preceding the recession.

The Tax Statistics also show a strong growth in the taxpayer register.  By working with these statistics interesting trends in employment and income dynamics are being revealed.

Over the past five years the tax statistics publication has grown considerably in content and quality and has been increasingly referenced and used by the media, academics, economics, market analysts and various government and non-governmental organisations.

Future developments with regard to tax statistics include the following:

  • Graphs on assessed individuals by magisterial district, based on residential information of assessed tax payer.
  • The impact of medical credits on taxable income.  The introduction of medical credits resulted in increases in taxable income as the relief is now granted as a tax credit as opposed to a deduction against income.  The average effective tax rate for individuals in 2013 is therefore lower than the averages of the 2012 and prior years.  This is important to note if comparisons are performed over a number of tax years.
  • A table will be included that sets out the number of transactions as well as property values and transfer duty in property value groupings for those properties subject to transfer duty.
  • A table of diesel claims form vendors that are registered for diesel rebates will be introduced that sets out claims in value groupings with distinctions between the three types of claimants (on land, off shore, and rail).
  • A table providing a breakdown of the different components of the fuel levy will be provided.
  • A table that combines the contributions of the different tax types by sector will be compiled for possible inclusion in the tax statistics.
  • Statistics based on tax certificates issued to individuals that will cover below-threshold earners and non-assessed tax payers.

A further interesting development is the tracking of individual taxpayers that have been assessed for 10 continuous years.  To illustrate the movement of taxpayers’ taxable income and their tax liability (tax payers should be below 65 year of age in the 2013 tax year) taxpayers that have been assessed for all the tax years(2004 to 2013) have been identified and an analysis on this will be included in the next tax statistics publication.

Please click here to view the highlights.

Please click here to view full publication and tables. 


WHY REGISTER WITH SAIT?

Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

MINIMUM REQUIREMENTS TO REGISTER

The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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