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New model affected Sars' capacity to probe delinquent taxpayers, inquiry hears

Sars executive responsible for compliance, Fareed Khan, is testifying at the commission hearings in Pretoria.

Picture: EWN

PRETORIA – The Nugent Commission of Inquiry has heard more evidence of how a new operating model undermined the South African Revenue Services (Sars) capacity to investigate delinquent taxpayers.

Sars executive responsible for compliance, Fareed Khan, is testifying at the commission hearings in Pretoria.

Retired Judge Robert Nugent has been tasked with investigating tax administration and at governance at Sars over a four-year period.

Nugent asked Khan how the new model affected the organisation's ability to enforce compliance.

“Cases that were referred to in the preliminary investigation that was responsible for identifying these taxpayers that were involved in aggressive taxpayers money, all fraudulent activities. And to the best of my knowledge that functionality disappeared.”

Khan says this affected the ability to recover debts owed to Sars.

“There was a decrease in the yield as well as in the number of cases that they were dealing with, which is probably not an indication as to what were they trying to do. But the operation model, in my opinion, disempowered them.”