SARS: Billions lost through tax fraud
Criminal and illicit activities have cost the South African Revenue Service (SARS) between R8 billion and R10 billion over the past 3 years.
This is according to SARS commissioner Edward Kieswetter.
Kieswetter briefed media on Wednesday on the preliminary revenue collection numbers.
“In general compliance we see a decline in the way companies and individuals estimate provisional tax and in certain areas these are clearly manipulated.
“In terms of VAT refunds there has been a significant development of fraudulent claims and fictitious that are created and therefore refunds that are paid our are not due to the individuals, stealing money from the fiscus,” says Kieswetter.
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At least R127 billion was collected from excise tax, R55.4 billion from customs and R16 billion from property taxes. Kieswetter says they were able to refund taxpayers with R292 billion.
Kieswetter says they have seen an influx of bogus companies claiming refunds from the tax company.
“Just this year alone we were able to stem R600 million of VAT outflows by companies that we have accessed to be bogus companies.
“We see companies being created purely for the purpose of getting access into the VAT system.”
Nonetheless, Kieswetter says compliant taxpayers will be rewarded.
“In this regard SARS has prepared to implement tax measures proposed by government which will see a significant relief to compliant taxpayers.”
Small businesses will also be given some reprieve between April and July.
Kieswetter explains: