THE Southern African Clothing and Textile Workers Union’s (Sactwu) second submission to the Davis Tax Committee (DTC) emphasises the importance of ensuring that the SA Revenue Service (Sars) has adequate capacity to address ongoing tax abuse.
Sactwu general secretary André Kriel said yesterday that it had also raised the issue of transfer pricing abuse.
The DTC is assessing the country’s tax policy framework, and its role in supporting the objectives of inclusive growth, employment, development and fiscal sustainability.
Kriel said issues related to adequate capacity barely featured in the DTC’s interim report on base erosion and profit shifting (BEPS).
Sactwu made submissions towards the drafting of the second interim report on BEPS.
Kriel said far too little work has been done on effective corporate tax rates.
The result was that debates about increasing or decreasing the corporate income tax rate often remained vague.
“As is the case in the committee’s interim report on VAT, the burden to increase tax revenue is then moved to VAT, which will have a negative impact on the poor.”
– Staff Writer
l The full version of Sactwu’s submission can be found here: http://www.sactwu. org.za/pr-and-news/435-sactwu-makes-second- submission-to-the-davis-tax-committee-dtc