Business Day

Former judge to lead tax inquiry

- Bekezela Phakathi With Linda Ensor and Natasha Marrian phakathib@businessli­ve.co.za

President Cyril Ramaphosa has appointed former judge Robert Nugent to head the commission of inquiry into tax administra­tion. /

President Cyril Ramaphosa has appointed former judge Robert Nugent to head the tax-administra­tion commission of inquiry.

The commission is expected to consider the adequacy and legality of steps the South African Revenue Service ( SARS) took to address revenue shortfalls in the past two years, including unauthoris­ed bonuses to top executives and the withholdin­g of refunds to taxpayers.

Public confidence in SARS plummeted on suspended commission­er Tom Moyane’s watch, leading to a R48bn hole in revenue collection. In a statement on Tuesday, the Presidency said Ramaphosa appointed Azhar Bham SC presiding officer in Moyane’s disciplina­ry inquiry.

Also expected to be included in the tax-administra­tion commission terms of reference is SARS adherence to tax administra­tion processes, including for VAT refunds, mining-rehabilita­tion funds and adherence to customs and excise provisions particular on tobacco. The commission will look into any change in the operating model on the effectiven­ess of SARS operations and the integrity of supply-chain management and tendering processes.

The Presidency said the commission was separate from the disciplina­ry process instituted against Moyane. The inquiry was also separate from the Davis tax committee appointed by the finance minister and which focuses on assessment or recommenda­tions on specific tax policy issues.

Judge Nugent will be assisted by Michael Katz, Mabongi Masilo and Vuyo Kahla.

“The terms of reference for the commission will be gazetted in the coming days,” the president said.

Ramaphosa said his administra­tion had also taken steps to address leadership challenges at SARS, including the suspension of the commission­er, the initiation of a disciplina­ry process and the appointmen­t of an acting commission­er.

Moyane is due to face a disciplina­ry inquiry for his handling of the matter of his former second-in-command, Jonas Makwakwa and allegedly misleading Parliament, making unauthoris­ed bonus payments to members of his executive and instructin­g a SARS official not to co-operate with a KPMG inquiry. /

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