Kingon to use short time at SARS to rein in ‘tax crooks’

● SARS acting commissioner Mark Kingon is determined to clamp down on errant taxpayers to chop a large debt book and resolve a high number of outstanding tax returns.

Kingon was appointed on Monday following the surprise late-night suspension of former commissioner Tom Moyane after his terse standoff with President Cyril Ramaphosa, who expressed disappointment about the poor administration at SARS.

Kingon declined to comment on developments concerning Moyane but did say negative media reports had contributed to deterring taxpayers from compliance despite most of them being tax-compliant.

SARS now has a large debt book and outstanding tax-return contingency to resolve. However, it still has to determine what is collectable on the debt book.

“We’ve got crooks out there. There are many people who are just deciding not to pay their taxes. We’ve got to deal with those people firmly,” Kingon said.

The pressure is on to collect as much as possible ahead of the financial year-end on Thursday. “We need to put R1.217-trillion on the table for the minister and hopefully more if we can. That’s my first focus,” Kingon added.

In the 2018 budget in February, the National Treasury revised the tax revenue shortfall projection to R48.2-billion from R50.8-billion on improvements in the economy last year, notably in the agricultural sector and mining, which has benefitted from better global commodity prices. This would boost provisional tax, Kingon said.

He said whether the shortfall could be reduced this week or in the next year depended on SARS’s capability and economic expansion. His other priorities, although he is only acting for 90 days, will be to improve service to taxpayers. The publication of a revised service charter is imminent, while he will focus on firming relationships with enforcement agencies such as the National Prosecuting Authority.

Kingon, a SARS veteran of 34 years, said he would consider the commissioner’s post if asked but had no delusions about whether or not he would be offered the job.

Keith Engel, CEO of the South African Institute of Tax Professionals, said there had been speculation in the market about former deputy finance minister Mcebisi Jonas and former Alexander Forbes head Edward Kieswetter, who has a history at SARS, as potential commissioners. “I think Mark Kingon would be an excellent choice, and all the politics would disappear,” he said.