Non-compliance by taxpayers to blame for collection shortfall - Kingon
Acting Sars commissioner Mark Kingon delivered preliminary results, which showed Sars collected R1.28 trillion, missing its R1.3 trillion target.
JOHANNESBURG - Outgoing acting South African Revenue Service (Sars) commissioner Mark Kingon says non-compliance by many taxpayers and an increase in refunds are largely to blame for the estimated R15 billion shortfall in revenue collection.
Kingon delivered preliminary results on Monday afternoon, which showed Sars collected R1.28 trillion, missing its R1.3 trillion target.
Personal income tax, value-added tax and company income tax are the main contributors to the collected revenue - accounting for 80%.
While company income tax collections contracted by 2.5% and growth in personal income tax slowed from August last year, VAT recorded the largest growth due to the 1 percentage point increase.
Kingon said unpaid tax returns have cost Sars a lot of money.
“Returns without payments were just over R64,000 intervention with the value of R1.6 billion.”
He’s also spoken about the revenue service’s growing debt book.
“The debt book currently stands at around R145 billion and that is of deep concern to us.”
Kingon said although the higher refund payments of R287.8 billion lowered the net revenue collection, it also put money back into the economy.