SARS: Taxpayers owe government over R513 billion
by Kelebogile Matlou
The South African Revenue Service (SARS) says taxpayers now owe the government over R513 billion in unpaid taxes a figure that Deputy Commissioner Johnstone Makhubu revealed on Monday during the 12th annual Tax Indaba.
Makhubu warned that the ballooning tax debt poses a major risk to the fiscus but also offers opportunities for improved recovery and enforcement. “As at the end of the last financial year, we are sitting at around R513 billion of monies owed to the fiscus by taxpayers. If you are sitting with a balance sheet like that, any shareholder will ask: What are you doing to leverage it? And how much of it should you be writing off?,” he asked.
While SARS has not had significant tax debt write-offs in the past, Makhubu acknowledged that some level of write-offs may be necessary. “Even if we allowed for some substantial write-offs, we believe there is still an opportunity, as our global counterparts show us, to leverage what remains,” Makhubu said.
Makhubu also addressed the challenges posed by the rapid growth of e-commerce. SARS began charging VAT on low-value goods imported through e-commerce platforms last year, scrapping the previous flat 20% rate. “The proliferation of cross-border tax and financial crime is a global challenge, and we think we are not unique in South Africa,” he said.
