Tax experts hail choice of new head of SARS

THE tax industry has welcomed President Jacob Zuma’s surprise choice of Thomas Moyane as commissioner of the South African Revenue Service (SARS) after Oupa Magashula resigned in the aftermath of a scandal in July last year.

While Mr Moyane is a development economist by training, rather than a tax expert, the professional tax industry sees him as experienced and well connected at national level to bring about change.

He will have the unenviable task of trying to rebuild trust in SARS after a string of recent scandals.

SARS deputy commissioner Ivan Pillay took over from Mr Magashula in an acting capacity, but he did not want to take on the role full time despite receiving plaudits for the job he has done.

Mr Pillay’s contract came up for renewal in October last year, but Mr Zuma failed to announce a full-time commissioner, leaving SARS operating with an acting head for more than a year.

Stiaan Klue, the CE of the South African Institute of Tax Practitioners — the largest body of tax professionals in the country — said on Tuesday the fact that Mr Moyane had significant experience as a commissioner at national level would be more important than his technical tax skills.

“You actually don’t want a technocrat in this job, but rather someone who can listen. It is good it is someone from the outside — SARS needed new blood and a new broom,” he said.

Mr Moyane has served as national commissioner in the Department of Correctional Services; as CEO of the Government Printing Works; as MD of Engen Mozambique; as well as for the Department of Trade and Industry where he was regional coordinator for the regional spatial development initiatives and chief director for industry and enterprise development.

A measure of controversy was linked to Mr Moyane a year ago. According to an Eyewitness News interview, he had confirmed he was seeking legal advice after being “retired” as commissioner of correctional services. He said he was surprised by news of his retirement.

His five-year term was due to end only in 2015, and while he had turned 60 prior to this date, the government had known about this when it hired him at the age of 57 for a five-year term in 2010.

Mr Magashula resigned after claims of impropriety were probed.