Sars predicts rise in business rescue cases this year
Sars commissioner Edward Kieswetter said that the national lockdown, aimed at fighting COVID-19, has had a devastating impact on these businesses' ability to operate.
JOHANNESBURG - South African Revenue Service (Sars) commissioner Edward Kieswetter said that the number of businesses that would undergo business rescue this year would rise.
Kieswetter said that the national lockdown, aimed at fighting COVID-19, has had a devastating impact on these businesses' ability to operate.
The commissioner said that this would have a negative impact for the country as a whole.
"Although they may be permitted to operate, they may not be able to operate profitably and therefore they will just not open."
Kieswetter said that the impact of the COVID-19 lockdown and slow economic growth had cost Sars up to R285 billion in losses in the month of April.
Kieswetter said that they'd noticed that during this period, there'd been a drop in revenue collection.
He said that there was a number of reasons:
"Forty-two percent of businesses feel that they cannot operate throughout the COVID-19 pandemic, 54% of businesses feel that they will not survive between one and three months, 46.4% of businesses have temporarily closed their doors."
WATCH: COVID-19 Situation Desk - 5 May 2020 AM
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