Tax body the only winner
This refers to Keith Engel’s plea for a “technocrat with a big vision to lead Team SARS” (Business Day, July 12). But on what convoluted grounds does the CEO of the South African Institute of Tax Practitioners (SAITP) think the SARS tax division deserves even one accolade, let alone as a brand “like a national sports team”?
For certainty, SAITP plays all its home and away games against SARS, so Engel’s selection will be biased. A bit like Australian skipper Steve “sandpaper” Smith picking the Proteas captain.
When our Springboks or Proteas take on other countries they sometimes win and our patriotism is boosted. When the SAITP plays SARS and wins we are all poorer except the SAITP; the winner must pay SAITP fees, and Treasury has to put out its begging bowl.
If the SAITP loses to SARS then the SAITP changes the rules by thinking up new tax avoidance field placings.
SAITP income tax and VAT make ticket prices higher, disadvantaging rich and poor (these are called “deadweight” taxes and unequivocally lower GDP by at least 25%).
The SAITP is ruthless in defence. Metaphorically, it seeds the clouds with silver iodide (professional advice), not caring that flooding, lightning or tornadoes can shorten the game. It is stone deaf to spectators’ pleas for a fair game. But try getting a ticket refund when the game does not run its course.
And the SAITP does not like competition. It wants national blazers without having to show that taxes are not one of life’s certainties.
They do this by ignoring the tax-haven windfalls that will surge when unearned rents are captured from the millions of national pitches in towns and the countryside, big or small, pricey or cheap.
So what can South African spectators do? The SAITP must answer the charge that its tax professionals in public and private practice are not engaged in a timeless test match like in Durban in 1939.
That showed how two potential belligerents could keep the money flowing, provided they did not knock down wickets.
Peter Meakin
Registered valuer