The Citizen (Gauteng)

Sars facing ‘choppy seas’

R108.3M: IRREGULAR EXPENDITUR­E ON CONTRACT RENEWALS, PERFORMANC­E BONUSES

- Barbara Curson

Acting commission­er optimistic that taxpayers won’t have to contact a call centre or visit a branch.

The South African Revenue Service’s (Sars) acting commission­er Mark Kingon displayed in-depth organisati­onal knowledge as he briefed parliament on Sars’ 2018 annual report to March 31 2018.

“We can’t afford mess-ups at Sars. It is an important organisati­on and it has to do what is right in every circumstan­ce.

“We are going in the right direction, but we are facing choppy seas.”

Non-compliance

Performanc­e bonuses were paid without the finance minister’s approval; such irregular expenditur­e amounted to R4.3 million.

Sars also incurred irregular ex- penditure on two contract renewals amounting to R104 million as it hadn’t implemente­d Treasury’s new rules.

Tax ombud

Sars is also dealing with the ombud’s finding on refunds. Ten cases have been dealt with and a new system to end the problems experience­d with stoppers on refunds is being put in place. The VAT and diesel refund accounts will be split.

Operationa­l matters

Kingon noted that:

Sars has halted non-core litigation to focus on its core mandate.

It’s trying to shorten branch queues by focusing on improved service delivery in other areas. Kingon’s optimistic that ultimately taxpayers should be able to self-service and not have to contact a call centre or visit a branch.

While there are concerns about the IT system, this aspect was misconstru­ed in the press; the Sars system won’t collapse.

The current eFiling platform is reaching the end of its cycle and will be replaced with Html5 for the 2019 tax year. The IT infrastruc­ture must be refreshed. Sars is running on Windows 7; new equipment will have to be installed to run on Windows 10.

Major highlights include:

6.3% revenue growth year on year, with 1.3% GDP growth. 94% filing compliance. 93.63% returns assessed within the first 24 hours of receipt cycle. R2.7 billion in fraudulent claims prevented. 17.2 million tax returns submitted in 2018 (2017: 16.6 million).

Illicit economy

Sars has establishe­d an illicit economy unit that’s currently dealing with 58 cases. Primary concerns are tobacco and fuel.

Financial statements

Total revenue accounts collected, comprising taxes, levies, duties, fees and other monies, amounted to R1.3 trillion (2017: R1.2 trillion).

Total revenue from rendering of services, other income, and interest received, amounted to R554.7 million (R1 191.2 million).

Total expenditur­e, comprised mainly of R7.5 billion employee costs (R7.2 billion), amounted to R10.9 billion (R10.8 billion).

 ?? Picture: Moneyweb ?? HELP YOURSELF. Sars acting commission­er Mark Kingon is optimistic that ultimately taxpayers should be able to self-service and not have to contact a call centre or visit a branch.
Picture: Moneyweb HELP YOURSELF. Sars acting commission­er Mark Kingon is optimistic that ultimately taxpayers should be able to self-service and not have to contact a call centre or visit a branch.

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