Sars picks up pieces after axing
● Acting South African Revenue Service (Sars) commissioner Mark Kingon says he is a “career taxman” and would be available for the permanent post if required.
The position has become vacant after President Cyril Ramaphosa sacked the suspended commissioner, Tom Moyane, this week. Ramaphosa fired Moyane on recommendations made by judge Robert Nugent, who chaired the recent commission of inquiry into governance and maladministration at Sars.
Kingon, on Friday, declined to comment on whether he had been approached for the job. But he said: “All I can say is I’ve served at the Sars for a number of years. I will serve in whatever capacity is required as long as we’re building the organisation.
“I’m a career taxman. In what capacity that might mean, I don’t know. I have indicated that if required to serve in that capacity I would definitely consider it.”
The Sars Act requires the president to appoint the commissioner.
Moyane has said he will challenge his dismissal in the Constitutional Court. Efforts to reach him and his attorney on Friday were unsuccessful.
According to a presidency statement, Ramaphosa told Moyane in a letter the interim report “paints a deeply concerning picture of the current state of Sars and the reckless mismanagement which characterised your tenure as Commissioner of Sars”.
Nugent recommended immediate action to avoid further deterioration of the tax administration system.
Ramaphosa also told Moyane that of greater concern was the former commissioner’s refusal to “meaningfully participate” in the Sars commission to help identify the root cause of systemic failures. The president also indicated that Moyane, in his response to judge Nugent’s recommendation that he be fired, had failed to deal with substantive issues that the report raised.
Among the findings that cloud Moyane’s reign at Sars are allegations of intimidation and an environment of fear under him, said staff who testified at the commission. Sars had also held back VAT refunds to inflate tax collection revenue figures at year-end, which now had to be addressed.
Parliament’s standing committee on finance welcomed Moyane’s dismissal.
Committee chair Yunus Carrim said Ramaphosa had no choice, “given the almost unanimous views expressed at the Nugent commission that he had mismanaged Sars, the amount of revenue shortfall now emerging and the decisive and final proposal from the commission that he be dismissed”.
Kingon will remain in place until the commissioner vacancy is filled permanently.
He will focus on reconstituting the large business centre by the middle of December. The unit assists large businesses and highnet-worth individuals with tax services.
Another unit, the illicit economy unit focusing on tobacco, fuel, clothing and textiles and alcohol illicit financial flows, is expected to be established this month.