Attacks will hurt economy – Sars

RESULT: LOWER LEVELS OF TAX COMPLIANCE

‘I have not seen blood on the floor. I don’t see guns and tanks.’

The SA Revenue Service (Sars) has warned that “unwarranted attacks” on the organisation were damaging the economy. Briefing the joint standing committee on finance yesterday, Sars commissioner Tom Moyane said the “onslaught” was resulting in lower levels of tax compliance and could prevent the organisation from reaching its 2016-2017 target.

Moyane said Sars was starting to see a “disturbing trend” where tax compliance was beginning to deteriorate.

“Those who launch unwarranted attacks on Sars should know that they are impacting negatively on the economy,” he said.

Moyane said negative reports in the media were only harming the organisation.

Despite an ongoing public feud between Moyane and Finance Minister Pravin Gordhan, Moyane denied there was a “civil war” as put to him by DA MP David Maynier.

“I think the use of such terminology builds this organisation and the relationship we have with other parties,” he said, adding that his mother tongue was not English so he might have interpreted it differently.

“I have not seen blood on the floor. I don’t see guns and tanks.

“Yes, difference of opinion is something that I think we need to be able to have as part of our development and relationship building,” Moyane said.

Gordhan has said that Sars must account to the minister, but Moyane insists that as commissioner he is only accountable to the president.

Gordhan also recently said that Sars was sitting on R20 billion in unpaid tax refunds.

This prompted Deputy Minister Mcebisi Jonas to give the goahead for the tax ombudsman to investigate Sars.

Sars group executive Randall Carolissen said it was early days to pronounce on a tax revolt, but admitted there were concerns.

“We are not yet at the stage where we can pronounce emphatically about it, but we are worried, for instance, that corporate income tax in February only grew by 2% [when we] expected 8%,” he said.

With three days to go before deadline, Sars was still hoping to collect R80 billion in taxes, even though it was under very tough circumstances.

“I’m not going to belabour the point of the constant attack on Sars and what that does to the morale of Sars people, but Sars is a resilient organisation,” he said. –