Sars’ Moyane must go now
DAMAGE: TOO MUCH EXPERTISE LOST If the SA Revenue Service collapses, it will take many years to rebuild.
Battered from all sides and not being propped up by acceptable revenue collections, careless errors and the loss of skills are eroding the foundations of a once world-class organisation. If the South African Revenue Service (Sars) collapses, it’ll take many years to rebuild.
Running a tax administration requires many boxes to be ticked. Systems must be efficient; staff held to the highest ethical standards; taxpayers treated with respect and fairness and there must be compliance with all relevant laws.
Sars is responsible for collecting what is due to the fiscus. Its commissioner operates in full view of all. Errors can’t be swept under the carpet. For these reasons, and others, the commissioner should protect himself by being surrounded by experts and engage in rigorous debates and discussions – not gag those who disagree.
To my mind Sars commissioner Tom Moyane didn’t seem to know who to trust when he was appointed. It appeared Jonas Makwakwa (who recently resigned) became his most trusted confidant – a tactical mistake. If only Moyane had understood he’d find senior tax officials who don’t care about politics – but are trustworthy, highly respected, and very knowledgeable about tax policy and administration.
From the time Moyane arrived, he collided with any challenge to his authority. Many top officials were either suspended or left under contentious circumstances, including Ivan Pillay, Clifford Collings, Johann van Loggerenberg, Adrian Lackay, Matsobane Matlwa, among others.
Others resigned. Having so many senior officials leaving an organisation leads to rumours and pandemonium among staff. Parliament heard in December that Sars lost over 500 staff. There’s a point at which losing too many experienced staff makes it almost impossible to train and mentor a large number of inexperienced staff.
When Moyane joined Sars, I was senior manager of tax avoidance and reportable arrangements at the Large Business Centre. After 20 years, I reached retirement age and he chose not to extend my contract.
While some may argue that my critique of Sars has to do with sour grapes, life is too short for that. Sars gave me wonderful opportunities, and through it I was privileged to have engaged with some of the best tax and legal minds, and worked for people I’ll forever hold in high esteem. Importantly, I made a difference in challenging tax avoidance and mentoring and training staff.
However, I am angry at the disrepute Moyane and Makwakwa have brought to Sars and the many careers I saw destroyed. There are many loyal, law-abiding Sars employees, governed by what’s right, who are praying this nightmare will soon end. The loss in skills is evidenced by the problems the average taxpayer experiences with Sars.
Moyane’s now under tremendous pressure from parliament’s standing committee on finance. He will have to start submitting all documents requested.
The final tax collection figures will be available at the end of March. The shortfall will possibly be between R50-60 billion. This should signal the death knell for Moyane, and the start of Sars’ rebuilding.