Nene moves to restore taxman’s reputation

Cape Town 101028. Deputy Finance Minister, Nhlanhla Nene is his 120 Plein Street office. PHOTO SAM CLARK, CA, Gaye Davis

Cape Town 101028. Deputy Finance Minister, Nhlanhla Nene is his 120 Plein Street office. PHOTO SAM CLARK, CA, Gaye Davis

Published Dec 21, 2014

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Johannesburg - Finance Minister Nhlanhla Nene has moved to restore the public’s confidence in the under-siege SA Revenue Service.

Following weeks of drama, which included the publication of damaging allegations and suspensions, Nene on Saturday said he would not allow recent events to derail the country’s major revenue collector. The minister pledged to do everything in his power to ensure that Sars remained a model institution.

Nene said: “I’ve noted the events that have been unfolding at the Sars in recent months, about which the Sars commissioner has kept me fully briefed. I’ve also received a copy of the report by the independent panel chaired by Advocate Muzi Sikhakhane.

“I am in consultation with the Sars commissioner and other relevant stakeholders about how we can best bring about closure to this sad chapter in the history of this important fiscal institution.

“I will make an announcement on the way forward, before the end of January. It is also my intention to brief Parliament at an appropriate time.”

Nene said Sars was bound by the constitution to promote and maintain a high standard of professional ethics. Sars should also provide service impartially, fairly, equitably and without bias. He said Sars should foster transparency by providing the public with timely, accessible and accurate information.

Nene added that, in its interaction with the taxpayers, traders, its employees and the public in general, Sars should uphold provisions of the Bill of Rights, notably the rights of taxpayers, traders and Sars employees to just administrative action and access to information.

“The tasks carried out by Sars include the maintenance of the databases of taxpayers and traders, engaging with taxpayers (through electronic platforms, offices, call centres and various special units), auditing returns and other declarations, managing customs operations at border posts, managing the pro- cesses of revenue collection, refunding taxpayers, investigating tax offences, and policing integrity and honesty within Sars itself.

“In addition to making itself as accessible as possible and enforcing the law against those who evade taxes, Sars also tries to find other ways to impact positively on the culture of tax compliance.

“Information is the lifeblood of everything that Sars does,” he continued, and (data) that relates to taxpayers, is confidential and ought to be treated as such. So, key to the success of Sars is the trust that South Africans, but more specifically taxpayers, have that Sars employees will not compromise their details.

”The rigorous focus on improving administrative efficiency is the most important policy process in Sars, and its performance in gathering revenues is the most important issue likely to exercise the mind of a minister of finance.

“This means continuous engagement with Sars about its performance and ways to overcome problems in enforcing relevant laws, developing appropriate outreach activities and improving levels of service,” Nene said.

It’s hoped that the proposed remedies will be revealed to the South African public in January, as per the minister’s promise.

Sunday Independent

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