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Efforts to expand tax base bearing fruit

24 May 2016   (0 Comments)
Posted by: Author: Amanda Visser
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Author: Amanda Visser (Moneyweb)

A new focused approach to combat non-compliance is paying off.

The recent crackdown on the cash and carry sector in the South African economy seems to be bearing fruit.

The South African Revenue Service (Sars) has raised assessments worth R600 million in the past financial year, following on-site inspections and audits of non-compliant businesses.

Sars has also warned that criminal investigations will be instituted in cases where there is evidence of "gross negligence” or "intentional tax invasion”.

A new focused approach to combat non-compliance in high risk sectors was launched in December last year, which included the cash and carry sector.

The approach entailed random on-site inspections to check for under-declarations, non-registration and filing non-compliance.

The South African Institute of Tax Professionals (Sait) says the focus on cash and carry is long overdue.

It is also consistent with recent statements by Sars commissioner Tom Moyane that the tax base has to be expanded.

Sait CEO Keith Engel says there are a number of sizeable mid-tier businesses that are evading tax by having a dual set of books and by operating in undisclosed cash.

Please click here to view full article.

This article first appeared on moneyweb.co.za.



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