It’s been a rocky start to the current fiscal year, and as of a month ago only R257 billion has been collected by the South African Revenue Services. That may sound like a lot, but SARS estimated receiving around R300 billion at this time.
So what’s up with the shortfall?
Maybe the SABC stopping their policy of handing out monster golden handshakes (HERE) would be a start, but there are other fish to fry.
It’s no secret that South Africa’s economic climate is not doing SARS any favours. Rising interest rates‚ tighter credit conditions‚ high unemployment and the depreciation of the rand is only hindering the tax authority’s efforts to collect the maximum amount.
Unfortunately, this news isn’t good for South Africans. Tax efficiency and compliance are critical factors and constant changes in legislation, tax court cases and SARS policy can affect you without knowing it.
Of course this means it’s more important than ever to make sure you know what you are doing, or take the far easier route and have professionals like Galbraith Rushby do the work for you.
SARS has set their ultimate year-end goal at R1 trillion. Good luck, guys.
Here are a few stats about the current situation, with this from SARS commissioner Tom Moyane a few weeks back:
VAT refunds were 5.6% or R2.6 billion higher due to higher than expected claims from finance‚ manufacturing‚ wholesale and retail trade sectors.
Personal income tax was also R941 million (1%) lower while lower fuel demand saw fuel levy collections fall 2.9% (R439 million) below the estimate.
Excise duties were R320 million or 3.6% lower due to lower revenue from cigarettes.
These shortfalls were partially offset by higher corporate income tax which was about R940 million (1.8%) higher than estimates due to lower refunds and higher provisional payments.
Moyane also reported that there was a “sharp increase in electronic volumes of submissions which reached 97.5% in 2015 with 98% of payments being made electronically in that year”, and hinted at a mobile app for submitting tax returns.
Here’s to the future! For now, at least, just make sure you’re one of those South Africans with their ducks in a row.
[source:timeslive]
