Tax practitioners to meet Treasury and SARS
18 September 2015
Posted by: Author: Manelisi Dubase
Author: Manelisi Dubase (SABC News)
Parliament has ordered various tax practitioners to consult with the Treasury and South African Revenue Service (SARS) to discuss a plethora of amendments which they were proposing on the newly publicised Taxation Laws Amendment and the Tax Administration Laws Amendment bills.
Various stakeholders, from organised business, law firms and multi-national companies expressed several reservations with a number of amendments as proposed by the Treasury.
They were making their submissions in parliament on Wednesday.
As the economy is spiralling down the slippery road, the Treasury is intensifying its effort to squeeze every cent it can get to mitigate the looming crisis.
It is proposing several changes to tax laws that are aimed at boosting the country's coffers. But lawmakers find these amendment proposals too technical and complex in nature.
Standing Committee on Finance (SCOF) Chairperson Yunus Carrim says, "What we're saying is that some of the more complex, technically challenging issues are better addressed between SARS, Treasury on the one side and tax organisations and professionals that made representations to Parliament today [on Wednesday]. It’s our view that Parliament has to be more activistic.”
Several stakeholders strongly argued that some of these amendments might achieve the opposite of what the government intends to do.
"They say companies might face double taxation if cross border taxes are changed and potential investors might flee, while others say some of these laws might discriminate against South African companies,” he adds.
Lawmakers say despite these disapprovals, the government is obliged to tighten the screws to intensify its revenue collection.
"We are very clear that with low economic growth rates at the moment and for the foreseeable future the pressure is greater than ever before on the SA Revenue Services to ensure that it raises absolutely every cent that is due to national coffers from people who are meant to pay it,” adds Carriem.
SARS is also hard at work as it hopes to collect R1.1 trillion for the 2015 tax season. It has already missed its quarterly target by R2 billion.
SARS Commissioner Tom Moyane says they are perusing tax evaders and fraudsters to achieve their target.
This article first appeared on sabc.co.za.