There are massive challenges in the way tax is collected - Judge Dennis Davis

Finance Minister Malusi Gigaba announced on Tuesday that President Jacob Zuma has agreed to his request for an urgent inquiry into governance and tax administration at the South African Revenue Services (Sars).

Gigaba says that this inquiry will help to assess reasons for under-collection by Sars, and what needs to be done to improve this.

READ: President Jacob Zuma gives the go ahead on Sars investigation

ALSO READ: Political desk: Difficult to understand what Gigaba is up to

This year, Sars is reported to have missed its first quarter tax revenue target by R13.1 billion.

Stephen Grootes spoke to Judge Dennis Davis, chairperson of the Davis Tax Committee, on what the issues are affecting governance and tax collection at Sars.

It is clear that the minister is anxious about the fact that once you get a medium term budget and you declare that you are 50 down on what his predecessor had budgeted for then that's a problem and you ave got to try and work out what it is.

Judge Dennis Davis, chairperson of the Davis Tax Committee

A pretty fine tax expert suggesting that about 18 billion of that 50 could be explained by way of a decline in the economy but the rest could be all other things, for example did treasury get it right? Is there a degree of declining tax morality? Is Sars up for the job? All of those questions are up for grabs and if you were the minister you would want to know.

Judge Dennis Davis, chairperson of the Davis Tax Committee

Davis says there are massive challenges in the way in which tax is collected and that unless we fix the public morality in the country difficulties in that area will continue.

I do think that the issue of corruption and continuing allegations of state capture are having a very foundational effect on tax morality in South Africa, I am not suggesting there aren't issues to be dealt with in Sars but I am certain that unless we fix the public morality in this country we are going to have a problem on the tax side.

Judge Dennis Davis, chairperson of the Davis Tax Committee

Click on the link below to listen to the full audio....


Recommended

by NEWSROOM AI

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Political desk: Difficult to understand what Gigaba is up to

Political desk: Difficult to understand what Gigaba is up to

Political analyst Karima Brown gives her take on an announced judicial commission of inquiry into SARS and other political news.

President Jacob Zuma gives the go ahead on Sars investigation

President Jacob Zuma gives the go ahead on Sars investigation

Jacob Zuma, has given the green light to set up an urgent judicial inquiry into tax administration and governance at Sars.

Why has Sars not done anything since 2014 to protect taxpayers asks Lackay

Why has Sars not done anything since 2014 to protect taxpayers asks Lackay

Former Sars spokesperson accuses the revenue services of inconsistency in protecting taxpayers information.

SSA should be asking Pauw for help rather than fighting him - Lawson Naidoo

SSA should be asking Pauw for help rather than fighting him - Lawson Naidoo

Jacques Pauw's latest book makes very serious allegations of a criminal nature about the State Security Agency, Sars and Zuma.

The President's Keepers: PDF version is tantamount to theft - Exclusive Books

The President's Keepers: PDF version is tantamount to theft - Exclusive Books

A PDF version of the book has been doing the rounds since Sars and the State Security Agency threatened legal action.

Jacques Pauw not nervous about being pursued by Sars and state security agencies

Jacques Pauw not nervous about being pursued by Sars and state security agencies

On Thursday afternoon Pauw spoke to Afternoon Drive, Bongani Bingwa about the possible legal action taken against against him.

Popular articles
[LISTEN] Zille responds to Lindiwe Mazibuko comments that she undermined her

[LISTEN] Zille responds to Lindiwe Mazibuko comments that she undermined her

Helen Zille responds to alleged comments made by Lindiwe Mazibuko at a dinner, saying she's doing the same to Musi Maimane.

[WATCH] Melania Trump's reaction after shaking Putin's hand

[WATCH] Melania Trump's reaction after shaking Putin's hand

Waitress praised for standing up for herself after a man touched her butt on his way to the toilet and a dog comforts its owner.

Parents no longer have to travel with children's birth certificates

Parents no longer have to travel with children's birth certificates

The new Home Affairs upgrades to the system include printing parents details at the back of the child's passport.

Tell me what you want: Study reveals most common sexual fantasies

Tell me what you want: Study reveals most common sexual fantasies

What are your sexual fantasies? Disclosure can bring sexual freedom, but it can also have downsides. A study lists the top trends.

More arrests are imminent in connection with the cash-in-transit heists - Hawks

More arrests are imminent in connection with the cash-in-transit heists - Hawks

Seven suspects were arrested in Limpopo in less than 24 hours after a cash-in-transit vehicle was blown up in the province.